Q4 2017 PRD Key Market Indicators - Northern Territory
Believe it or not… the Northern Territory (NT) has led the way in home loan affordability, at 8.6% over the past 12 months (to June 2017). This is in contrast to the Australian average, which declined by 0.9% over the same timeframe. The NT also led the way in first home buyer loans, with a whopping increase of 40.0% over the past 12 months
The PRDnationwide Q4 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 first home buyer loans
- 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
A key finding for the NT was in relation to affordability, which is currently leading the nation. The home loan affordability index for NT read 49.2 index points in June 2017, representing an 8.6% increase. This is in contrast to the Australian average, which declined by 0.9% to 31.8 index points over the same timeframe. First home buyers have plenty of choice in the NT, particularly with decreasing nett migration (less market competition). This is evident through an increase of 40.0% over the past 12 months (to June 2017), which is again the highest across the nation.
The above indicators suggests that the NT is potentially an area for first home investors to consider, especially with the progressive moves by #FacingNorth – an initiative of major business advisory groups formed to promote investment in the NT. If successful, this movement will see new tax incentives to encourage population growth in the NT, as well as commercial activities.
Dwelling approvals in the NT have seen cooling measures, decreasing to 77 approvals. This is in line with a decreasing nett migration, providing current stock the opportunity to be absorbed in the market. Although the unemployment rate increased to 3.7% in October 2017, this was significantly lower than the Australian average of 5.4%. Furthermore, weekly family income increased by 2.1% to $2,094, indicating wage growth and strong potential for future economic growth.
For a closer look at the PRDnationwide Q4 2017 Key Economic Indicators visit PRD.com.au/research-hub