Q4 2019 Key Market Indicators – Western Australia
Affordable housing in Western Australia opens opportunities for first home buyers
Western Australia (WA) recorded a home
loan affordability index reading of 44.6 points in the June quarter of 2019,
earning the state a bronze award nationally for the Highest Home Loan Affordability Index Reading category (in the PRD Q4 2019 Key Market Indicator Awards). This is much higher than the Australian home loan
affordability index reading of 32.2 points, and cements WA as one of the most
affordable states in the country; slightly behind the Northern Territory and
the Australian Capital Territory. Those looking for highly affordable options
should consider WA, particularly as its home loan affordability index improved
by 6.7% in the 12 months to the June quarter of 2019, which was much higher
than the Australian average growth of 3.5%. Due to this, WA earned a gold award
nationally for the Most Improved Home Loan
Affordability Index Growth category.
despite a more affordable property market, the number of first home buyer loans
approved declined by -7.5% in the 12 months to the June quarter of 2019. That
said, this is on par with the Australian average decline of -7.6% during the
same period, which suggests that there were other factors (other than property
prices) in play, such as tighter lending policies.
The WA unemployment rate was 5.7% in September 2019, representing a -6.6% decline in the past 12 months. This is the largest improvement in the unemployment rate of all states, earning WA a gold award nationally in the Most Improved Unemployment Rate category. Median weekly family income in WA was $2,069 in the June quarter of 2019, representing a 2.0% increase in the past 12 months. This is a lower increase than the Australian average of 2.6%, however, it is counterbalanced with the large increase in the number of people employed.
Nett migration to WA was recorded at 5,193 in the March quarter of 2019, which was a significant increase compared to the 2,466 increase recorded in the March quarter of 2019. This will allow for current stock to be absorbed by the market.
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,
- 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
View all Q4 2019 Key Market Indicators