Q3 2017 Key Market Indicators – Queensland
The results are in: Property demand will increase the most in Queensland, as nett migration figures increased by an exponential 60.9%, from 5661 in December 2015 to 9111 in December 2016.
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
- Unemployment rate
- Weekly family income
- Nett migration
Queensland maintains its affordability reputation, increasing by 3.6% over the past 12 months to 37.4 index points. Not surprisingly, Queensland records the second highest increase in the number of loans to first home buyers over the past 12 months, of 8.5% (from 4953 to 5372 loans in March 2017). Queensland’s affordability index is above the Australian average of 32.9 index points, explaining why many southern investors (i.e NSW and VIC) are choosing to purchase in Queensland.
Nett migration to Queensland has increased exponentially over the past 12 months, currently at 9111 people. This suggest an increase in property demand, which has been met by a 5.0% increase in dwelling approvals over the past 3 months, to 3541 approvals. That said this is 14.7 decrease over the past 12 months, which suggests that a supply-demand equilibrium will be achieved over the next few months. This should stabilise property prices in the long run, good news for affordability but without compromising capital growth.
Compared to the cooling approach of dwelling approvals, this suggests a potential undersupply in the market, a welcome news for astute investors. Unemployment rate has increased slightly to 6.2% over the past 12 months, however the average weekly family income has also increased to $1,644 – indicating further future economic growth.
The above indicators confirms Queensland as a desirable state for affordable residential real estate with a promising future economic growth, good news for both owner occupiers and investors.