The Australian property market is being affected by a number of factors. These include population growth and unemployment, as well as economic growth, which can have a positive or negative impact on housing finance and the number of properties purchased.
Annual growth rates in most states are increasing. Western Australiarecorded a 2.12 percent rise, Victoria a 1.77 percent rise and New South Wales a 1.43 percent rise. Tasmania recorded its strongest growth over the last 2.5 years at 0.64 percent.
Across Australia unemployment is above decade averages. Northern Territory represents the strongest market with an unemployment rate of 4.3 percent, the Australian Capital Territory recorded a rate of 4.4 percent, while Western Australia ‘s rate was 5.7 percent. Tasmania is improving after hitting an all-time low of 6.5 percent.
The Northern Territoryis leading economic activity at more than 40 percent above its decade average. This state also recorded a 3.2 percent annual growth rate. Western Australia recorded a decade average of 26 percent growth, with the Australian Capital territory recording 15.2 percent. Tasmania and South Australian decade averages are just below 1 percent in growth. Retail spending has increased by 6.3 percent in New South Wales, by 4.1 percent in Victoria, and by 2.4 percent in Tasmania.
These factors have had a positive impact on housing finance with Victoria recording a rise of 11.5 percent in home loans. New South Wales recorded a 10.4 percent rise and Western Australia 5.5 percent.
The weakest market was the Northern Territory with a 23 percent drop in housing finance being recorded. South Australia fell by 13.7 percent and Tasmania dropped by 10.8 percent.
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Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!