Q3 2017 Key Market Indicators – Northern Territory
The results are in: Northern Territory (NT) leads the way in home loan affordability, the only state recording double digit growth of 10.2% over the past 12 months to March 2017. The NT also leads the way in first home buyer loans growth, at 11.3%.
The PRDnationwide Q3 2017 Key Economic Indicators provide consumers with a quick snapshot of the current state of affairs from an economic and property perspective. The PRDnationwide Key Economic Indicators cover both national and state level data, comprising of:
Number of loans to first home buyers
Home loan affordability index
Number of dwelling approvals
Consumer sentiment index
Standard variable loan
Consumer price inflation index
Weekly family income
A key finding for Northern Territory is in relation to affordability, where it is the only state to have recorded a double digit growth over the past 12 months to March 2017. Home loan affordability index for Northern Territory reads 47.4 index points in March 2017, representing a 10.2% increase. This surpasses the Australian average of 32.9 index points, which is reflected in an 11.3% increase in the number of loans to first home buyer over the past 12 months.
The above indicators suggests that the Northern Territory is potentially an area for first home investors to consider, especially with the progressive moves by #FacingNorth – an initiative of major business advisory group formed to promote investment in NT. If successful this movement will see new tax incentives to encourage population growth in the NT, as well as commercial activities.
Dwelling approvals has seen cooling measures, decreasing to 60 number of approvals. This is in line with a decreasing nett migration, providing current stock the opportunity to be absorbed in the market. Unemployment rate has further decreased to 3.5% in July 2017, which is significantly lower than the Australian average of 5.6%. Furthermore weekly family income has increased to $2086, indicating wage growth and strong potential for future economic growth.