Q4 2019 Key Market Indicators – Tasmania
The property landscape in Tasmania is changing…
There is a changing property landscape in Tasmania (TAS), particularly in terms of home loan affordability and first home buyers. In the March quarter of 2019, TAS recorded a 13.1% annual growth in the number of first home buyer loans, earning it a gold award nationally in the Most Improved Number of First Home Buyer Loans category (in the PRD Q4 2019 Key Market Indicator AwardsFirst home buyers are feeling the increase in median property price growth in TAS, as the home loan affordability index sat at 38.7 points in the June quarter of 2019, indicating a decline of -1.8% in the past 12 months. This is in direct contrast with the 3.4% increase experienced nationwide and is a continuation from the -3.4% decline experienced in the 12 months to the March quarter of 2019. Following the same pattern seen in the March quarter of 2019, this is the highest decline in home loan affordability growth across the nation and has changed the property pricing landscape of TAS.). The June quarter of 2019 revealed a different landscape, recording an annual decline of -6.1%.
Nett migration in TAS increased by 3.4% in the 12 months to the March quarter of 2019, which was higher than the national average of 1.4%. With increasing nett migration comes property demand. That said, considering the changing landscape of the TAS market, developers need to acquire stock that is appropriately priced and appeals to the local market.
Median weekly family income was $1,473 in the June quarter of 2019, representing a 2.9% growth in the past 12 months. This is higher than the Australian average growth of 2.6%, earning TAS a silver award nationally in the Highest Growth in Median Weekly Family Income category; a repeat award win of the March quarter of 2019 Key Market Indicator report. Although there has been an increase in the unemployment rate in the 12 months to September 2019 (of 5.1%), those employed now have higher spending and saving capacity, creating a relatively stable economy.
The PRD Q4 2019 Key Market Indicators report provides a quick snapshot of the current state of the market in Australia from both an economic and property perspective. The 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