Investor Presentaiton
Australian housing market.
Affordability issues to re-emerge in Sydney and Melbourne.
Affordability: Australia (%)
%
890
35
30
30
25
25
Share of average income required to raise a
deposit over 5yrs and pay mortgage over first
5yrs for purchase of median-priced dwelling
55
Economics
Mortgage interest rates (%)
Westpac
%
f'casts to
Dec-22
%
%
35
Variable*
⚫3 year fixed
10
10
2017 peaks
30
8
8
25
25
6
6
30
20
20
20
4
4
15
15
15
2
2
NSW
Vic
Aus
*Standard, owner occupier, including discount
0
0
10
Dec-99
Sources: CoreLogic, Westpac Economics
Consumer Sentiment: 'time to buy a dwelling' (index)
10
Mar-07
Mar-09 Mar-11 Mar-13
Mar-15 Mar-17 Mar-19 Mar-21
Dec-02 Dec-05 Dec-08 Dec-11 Dec-14 Dec-17 Dec-20
Sources: RBA, Westpac Economics.
Rental vacancy rates (%)
Index
Index
160
160
Brisbane
Rental vacancy rates (%, quarterly, annual average)
-Sydney
Melbourne
-Perth
150
150
8
140
140
7
130
130
6
120
120
110
110
National
average since
1980
100
100
3
90
90
80
80
2
70
70
1
*quarterly observations prior to 2007
60
60
0
Apr-01
Apr-05
Apr-09
Apr-13
Apr-17
Apr-21
Mar-88
Sep-93
Mar-99
Sep-04
Mar-10 Sep-15
Mar-21
Sources: Melbourne Institute, Westpac Economics
104 Westpac Group 2021 Interim Results Presentation & Investor Discussion Pack
Sources: ABS, Westpac Economics.
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