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Victoria continues to lead First Home Buyer Market as each capital improves in different sectors

The Adelaide Bank/REIA Affordability Report for the December quarter 2018 showed a slight decline in housing affordability nationally with the proportion of income required to meet loan repayments increasing to 31.2 per cent, up by point one per cent. However, it showed an improvement of point four per cent when compared to the December Quarter of 2017.

“When we look at the year on year figures, compared to the corresponding quarter of 2017, housing affordability has improved over the past year with the proportion of income required to meet monthly loan repayments decreasing by zero-point four per cent,” said Darren Kasehagen, Head of Third Party Banking, Adelaide Bank.

At a glance

  • VIC leads first home buyer numbers
  • ACT first home buyers up 34 per cent
  • NSW shows the biggest improvement for renters
  • QLD shows the largest decrease in new loans
  • SA had the largest increase in loan size
  • WA rents up point five per cent (but still nations most affordable at 16.6 per cent of family income)
  • TAS had the largest rise in monthly loan repayments
  • NT housing affordability improves by one point five per cent

Victoria

Victoria continues to have the highest number of first home buyer loans. Housing affordability improved with the proportion of income required to meet loan repayments decreasing to 33.1 per cent, a decrease of point four per cent over the quarter.

Housing affordability has also improved year on year with the proportion of income required to meet monthly loan repayments decreasing by point three per cent.

Rental affordability also improved marginally with the proportion of income required to meet the median rent decreasing to 23.2 per cent, a decrease of point four per cent year on year.  The number of loans to first home buyers in Victoria increased to 8,855, an increase of two point seven per cent over the quarter but a decrease of 10.5 per cent compared to the December quarter 2017.

New South Wales 

Housing affordability declined with the proportion of income required to meet loan repayments increasing to 36.7 per cent, an increase of point two per cent over the quarter.

Rent affordability improved in New South Wales over the quarter with the proportion of income required to meet median rent payments decreasing to 28.3 per cent, a decrease of point two per cent and a decrease of one point four per cent compared to the same quarter last year.

In New South Wales, the number of loans to first home buyers increased to 7,634 an increase of six point eight per cent over the quarter and an increase of one point seven per cent compared to the December quarter 2017.

Western Australia

Housing affordability declined with the proportion of income required to meet loan repayments increasing to 23.1 per cent, an increase of point six per cent over the quarter. However, compared with the December quarter 2017, housing affordability has improved with the proportion of income required to meet monthly loan repayments decreasing by point eight per cent over the past year.

Rental affordability has also declined, with the proportion of income required to meet the median rent increasing to 16.6 per cent, an increase of point five per cent over the quarter and an increase of point two per cent compared with the December quarter 2017.

The number of first home buyers in Western Australia increased to 3,833 in the December quarter, an increase of six point seven per cent over the quarter but a decrease of four point one percent compared to the same time last year.

Queensland

Housing affordability in Queensland declined with the proportion of income required to meet loan repayments increasing by point two per cent over the December quarter to 28.1 per cent, an increase of point five per cent year on year.

Rental affordability in Queensland also declined over the quarter with the proportion of income required to meet the median rent increasing to 22.1 per cent, an increase of point two per cent over the quarter but a decrease of point six per cent compared to the December quarter last year.

The number of loans to first home buyers in Queensland decreased to 5,664, a decrease of five point seven per cent over the quarter and a decrease of 14.4 per cent compared to the December quarter of 2017.

South Australia

Housing affordability in South Australia declined with the proportion of income required to meet monthly loan repayments increasing to 27.5 per cent, an increase of point nine per cent over the quarter. Year on year also saw a decline with the proportion of income required to meet monthly loan repayments increasing by one point one per cent.

Rental affordability declined over the quarter with the proportion of income required to meet rent payments increasing to 22 per cent, an increase of point two per cent over the quarter. Compared with the December quarter 2017, rental affordability has decreased by point one per cent.

The number of loans to first home buyers in South Australia increased to 1,645, an increase of 11 per cent over the quarter and an increase of nine point four per cent, compared to the December quarter 2017.

Tasmania

Over the December quarter, housing affordability in Tasmania declined with the proportion of income required to meet loan repayments increasing to 26.3 per cent, an increase of one point six per cent over the quarter and increased by point six per cent over the year.

Rental affordability in Tasmania improved over the quarter with the proportion of income required to meet median rents decreasing to 28.1 per cent, a decrease of point two per cent over the quarter but recording an increase of one point three per cent year on year.

The number of first home buyers in Tasmania increased to 545, an increase of 12.6 per cent over the quarter and an increase of 23.3 per cent compared to the same quarter of the previous year.

Northern Territory

Housing affordability improved in the December quarter with the proportion of income required to meet loan repayments decreasing to 19.4 per cent, a decrease of one point five per cent over the quarter and the same percentage year on year.

Rental affordability declined over the quarter with the proportion of income required to meet the median rent increasing to 21.3 per cent, an increase of one point three per cent over the quarter but a decrease year on year of one point eight per cent.

The number of loans to first home buyers in the Northern Territory increased to 261, an increase of 27.9 per cent over the quarter and an increase of 24.3 per cent compared to the December quarter 2017.

Australian Capital Territory

Housing affordability in the Australian Capital Territory declined with the proportion of income required to meet loan repayments increasing to 20.6 per cent, an increase of point nine per cent over the quarter and by one per cent year on year.

Rental affordability in the Australian Capital Territory has also declined over the quarter with the proportion of income required to meet the median rent increasing to 18.9 per cent, an increase of point five per cent over the quarter and recording a year on year increase of point seven per cent.

The number of loans to first home buyers in the Australian Capital Territory increased to 710, a significant increase of 34.0 per cent over the quarter, but a decrease of seven point three per cent compared to the December quarter 2017.

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