Q4 2017 PRD Key Market Indicators - Western Australia
Believe it or not…Western Australia (WA) is the 3rd most affordable state in Australia, at 42.3 index points. This is significantly higher than the Australian average of 31.8 index points. Due to the state’s transition from a mining to a professional services sector, now is the perfect time for astute investors to enter the WA property market.
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 WA is in relation to affordability, which has increased by 1.2% over the past 12 months (to June 2017). The growth in WA’s affordability is in contrast to the Australian average, which has decreased by 0.9%. This further confirms that now is the time to seriously consider the Perth market. First home buyers in WA are doing exactly that, with the number of first home loan buyers increasing by 3.8% over the past 12 months (to June 2017).
Dwelling approvals in WA have seen cooling measures over the past 12 months, decreasing by 0.1% to 1,716 number of approvals in September 2017. Nett migration has also decreased quite significantly by 34.4% to 2,636 in March 2017, potentially due to the downturn in the mining industry. This suggests a potentially balanced market in demand and supply, and provides current stock the opportunity to be absorbed by the market.Good news can be found in the amount of people employed, with the unemployment rate decreasing by 7.8% over the past 12 months (to October 2017). Furthermore those who are currently employed are enjoying an increase in household income, with the weekly family income increasing by 0.9% to $1,994. This suggests 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