Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

% of income AUSTRALIAN HOUSING DYNAMICS: A COOLING MARKET HOUSING PRICE FORECASTS BY STATE³ HOUSE PRICE GROWTH¹ Total housing prices, y/y % change (calendar year) + -8 -12 16 12 00 yoy % 5 yr Cumulative 2013-2018 5 yr Cumulative Sep 14-Sep 19 Sep 2019 All dwellings Houses Units All dwellings Houses Units All dwellings Houses Units Sydney -4.7 -5.0 -4.1 43.4 46.8 35.9 19.6 20.6 16.8 Melbourne -3.9 -5.9 0.5 40.5 50.8 21.4 25.9 30.2 17.3 Brisbane -2.1 -2.3 -1.5 15.5 19.8 -1.4 6.9 10.3 -6.6 Adelaide -1.1 -1.4 0.3 16.8 17.9 10.9 9.9 10.5 7.1 Perth -9.0 -9.0 -9.2 -11.8 -9.8 -19.8 -20.7 -19.3 -26.2 Darwin -9.4 -11.3 -5.6 -22.1 -14.2 -34.0 -30.0 -25.3 -36.9 Hobart Darwin Canberra Canberra 1.3 2.1 -1.5 21.4 27.3 3.3 22.8 28.3 5.2 2020 (forecast) Hobart 2.5 3.4 -0.7 36.2 36.1 36.9 38.5 41.3 27.4 Australia Sydney Melbourne Brisbane Adelaide Perth 2016 2017 *Capital city weighted average 60 GO 55 50 45 40 35 30 25 2018 2019 (forecast) OVERALL AFFORDABILITY2,3 3 10 9 8 Λ Years of income * 20 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Mortgage payment* as a % of income (LHS) Rent payment as a % of income (LHS) -Price in years of income (RHS) Mortgage repayments on 80% LVR of median capital city house price ** At 15% savings rate on average state/territory household disposable income 2 Sources: 1. CoreLogic RP Data values as at September 2019. 2. Residex,, RBA. 3. ANZ Research Number of years to save 20% of capital city dwelling price* 14 12 10 DEPOSIT AFFORDABILITY2,3 96 Sydney Brisbane Perth 98 00 02 04 06 08 10 Melbourne Adelaide Hobart 12 14 16 18 20 Australian capital city weighted average * At 15% savings rate on average state/territory household disposable income ANZ 119
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