June 2019 Udia Wa Property Market Statistics

UDIA WA PROPERTY MARKET STATISTICS

JUNE 2019

IN THIS ISSUE

KEY TRENDS 4

INDUSTRY UPDATE 5

ECONOMY 6

RESIDENTIAL LAND DEVELOPMENT 7

RESIDENTIAL PROPERTY SETTLEMENTS 8

CORRIDOR SNAPSHOT 9

RESIDENTIAL PROPERTY MARKET 11

RESIDENTIAL CONSTRUCTION SECTOR 12

AT A GLANCE...

KEY TRENDS

Current Figure M/Q Change 3 M/Q Rolling Av. YOY Change ECONOMY Official Cash Rate Target (RBA) 1.00% (Jun) -25 bps (M) 1.25% (M) 50 bps (M) Discounted Variable Mortgage Rate (RBA) 5.15% (Jun) 5 bps (M) 4.60% (M) 0 bps (M) Estimated Resident Population - WA 2,606,338m (Dec) 0.2% (Q) 2,600,996m (Q) 0.9% Unemployment Rate - WA (Original) 5.9 (May) -17 bps (M) 6.2 (M) -5 bps Retail Turnover - WA (Original) $2.79 b (May) 3.4% (M) $2.76b (M) 1.3% Consumer Price Index - Greater Perth 111.2 (Mar) -0.1% (Q) 111.1 (Q) 1.1% Wage Price Index - WA 130.5 (Mar) 0.3% (Q) 130.1 (Q) 1.6%

Current Figure M/Q Change 3 M/Q Rolling Av. YOY Change RESIDENTIAL LAND DEVELOPMENT SECTOR Lot Sales (UDIA Land Snapshot ) 777 (Jun) -22.7% (Q) 852 (Q) -11.2%

Current Figure M/Q Change 3 M/Q Rolling Av. YOY Change RESIDENTIAL CONSTRUCTION SECTOR Dwelling Approvals - WA (Original) 1,480 (May) 29.5% (M) 1,344 (M) -11.4% Private Sector House Approvals - WA (Original) 1,046 (May) 12.4% (M) 994 (M) -9.6% Finance Commitments for Construction of New Owner-Occupier Dwellings (Original) 784 (Apr) -2.9% (M) 770 (M) -1.1% Dwelling Construction Starts - WA All Sectors (Original) 3,611 (Dec) -18.7% (Q) 4,014 (Q) -33.8% House Approvals - Greater Perth (Original) 864 (May) 8.3% (M) 841 (M) -10.2% Multi-Unit Approvals - Greater Perth (Original) 393 (May) 165.5% (M) 303 (M) -6.4%

Current Figure M/Q Change 3 M/Q Rolling Av. YOY Change RESIDENTIAL PROPERTY MARKET Median House Price - Perth (Landgate/REIWA) $487,000 (Mar) -2.4% (Q) $490,333 (Q) -2.6% House Sales - Perth (Landgate/REIWA) 5,279 (Mar) -2.4% (Q) 5,416 (Q) -11.1% Unit Sales - Perth (Landgate/REIWA) 1,180 (Mar) 2.6% (Q) 1,203 (Q) -15.8% House and Unit Listings - Perth (REIWA) 16,957 (Mar) 5.8% (Q) 16,113 (Q) 4.2% WA Owner-occupier Dwelling Finance Commitments (exc. refin; Original) 3,098 (Apr) -3.2% (M) 3,121 (M) -6.3% Established Dwelling Loans Owner-Occupation - WA (Original) 2,176 (Apr) -2.2% (M) 2,205 (M) -7.5% FHOG Applications - WA (Original) 503 (May) 16.2% (M) 457 (M) -24.0% Value of Investment Housing Loans - WA (Original) $176.91m (Apr) -12.0% (M) $210.76m (M) -17.1% REIWA Average Selling Days - Perth 79 (Mar) 14.5% (Q) 75 (Q) 9.7%

Current Figure M/Q Change 3 M/Q Rolling Av. YOY Change RESIDENTIAL RENTAL MARKET REIWA Median House Rent - Perth 360 (Mar) 0.0% (Q) 357 (Q) 2.9% REIWA Vacancy Rate - Perth 2.5% (Mar) -40 bps (Q) 3.1% (Q) -260 bps

UDIA WA INDUSTRY UPDATE UDIA WA recently attended the Bankwest Curtin Economics Centre’s (BCEC) launch of the BCEC Housing Affordability Report 2019, which highlighted that while some improvements have been seen in WA housing affordability, home ownership in Perth remains out of reach for many on low to moderate incomes.

The report outlined that improvements APRA has also officially relaxed its mortgage serviceability buffer, have been seen in perceptions of removing the requirement for ADIs to use a floor rate of at least seven affordability, with less households percent, coupled with an increased floating floor requirement of at paying in excess of 30 percent of their least 2.5% above standard loan rates. income on housing costs and fewer While these recent changes are likely to take some time to influence a struggling often to meet these costs. CHRIS GREEN broader market recovery, they are anticipated to have a positive WA prices and rents have also fallen in Director of impact on the WA property market and assist in addressing at least a many areas, although this has been to Policy & Research few of the identified barriers to home ownership entry. Through this, the benefit of moderate- and higher- one would expect a corresponding easing in rental market pressures. UDIA WA income earners, with low income earners in the private rental market Moving forward, UDIA will be monitoring dwelling commencements, seeing little improvement. owner-occupier finance commitments, lot sales and the rental market for signs of improvement. Leading indicators such as population Further, rents in many Perth metropolitan suburbs saw limited growth and job vacancies will also provide forward indication of market movement, despite the present low supply and vacancy rate. The improvement. effect of this has been compounded by few suburbs recording rent to income ratios in an affordable range (at or below 30% of household At present, the WA population growth rate has been on a gradual income) for households in the lowest quartile of income earners. upward trajectory for the last two years of available records, recording Nationally, Perth is ranked as the least affordable city for renter an annual growth rate of 0.9% as at December 2018. Total WA job housing cost shares (at an average of 27% of household income). vacancies slowed to an annual growth rate of 5.4% as at May 2019, following three consecutive months of 30-45% annual growth. In conjunction with the challenging state of Perth’s rental market for lower income earners, the report identified a range of key barriers to While population growth and job vacancies are generally heading in home ownership entry, including not being able to afford a deposit; not the right direction, this growth has not yet translated to improved having stable employment; not being able to live in a preferred property market conditions. This can be seen in WA dwelling location; and not being able to afford the mortgage payments. commencements figures, which in the December 2018 quarter were at the lowest point since June 2001. In relation to these challenges, the State Government’s 2019 State Budget included temporary changes to Keystart’s eligibility criteria. Further, WA housing finance commitments for first home buyers (FHB) These came into effect as of July 1, with income limits increasing by in the March 2019 quarter fell to the lowest levels since June 2011, $15,000 for singles and couples and by $20,000 for families until the with those for non-FHB at similarly low levels. The number of FHB end of 2019. commitments recorded for the month of April remained at similarly low levels, and 7.1% lower than at the same time last year. While the impact of the changes to Keystart is not yet widely reflected in this month’s Urban Intelligence, the State Government has reported UDIA’s Land Snapshot survey has similarly recorded generally lower a corresponding increase in Keystart enquiries and First Home Owner sales figures over the 2018-19 financial year, with total lot sales over Grant (FHOG) applications since the Keystart changes were this period (3,345 for 2018-19) down 9.3% from the year prior (3,687 announced. FHOG figures for May also revealed a 44.7% monthly lift for 2017-18). Total lot sales for the June 2019 quarter were 11.2% in the number of grants being paid, with these being at the highest below the same quarter the year prior, although sales figures for the level since the same time in 2018. month of June 2018 were somewhat inflated by end of financial year incentive programs run by a few survey participants. More recently and since the release of the BCEC’s report, the RBA has cut the cash rate twice to a new record low of 1.0%, with a In conclusion, while there are some positive signs, the WA property primary aim to bring the national unemployment rate down further and market remains subdued. UDIA will continue to monitor market bring underlying inflation rates back to target (2%). activity and provide members with up to date advice over the coming months.

ECONOMY 1400.0 8.0 Key Points of Interest Labour Market, WA (ABS) 1350.0 • The Western Australian unemployment rate for May fell 17 7.0 basis points (bps) over the month to sit at 5.9% (in original 1300.0 6.0 terms; 6.3% seasonally adjusted), 5bps below levels at the 1250.0 same time last year and 84bps above the national rate of 1200.0 5.0 5.1%. 1150.0

• In May, the number of employed persons in WA lifted 0.3% 4.0

Unemployment Rate (%) Rate Unemployment Employed Persons Persons Employed(,000) month-on-month (MoM) to 1.343 million, 0.4% higher than 1100.0 3.0 figures in May 2018. 1050.0 • WA’s state participation rate remained steady in May at 1000.0 2.0 68.48%, but was 42bps lower year-on-year (YoY) and May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 Employed Persons (Original) Unemployment Rate (Seas. Adj.) Unemployment Rate (Original) 219bps above the national rate of 66.3%. Source: ABS 6202.0, T8 • In the December quarter, annual population growth for WA remained steady at 0.9%, bringing the estimated resident Retail Turnover (ABS) 13.0% population to 2.606 million (+23,961 additional persons from YoY WA (Original) YoY Australia (Original) 11.0% the same time in 2017). YoY WA (Seas. Adj.) • Total net overseas migration for 2018 increased 27.0% to sit 9.0% YoY Australia (Seas. Adj.)

at 14,863, up from a total of 11,702 in 2017. Meanwhile, net 7.0%

interstate migration recorded 25.9% less persons leaving 5.0% WA in 2018 (-9,503) than in 2017 (-12,818).

Retail Turnowver Growth (p.a) Turnowver Retail 3.0% • WA retail turnover lifted 1.3% YoY in May to sit at $2.79 billion, and also increased to a 10.5% share of total national 1.0% retail turnover ($26.7 billion). -1.0%

-3.0% May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 Source: ABS 8501, T3

30,000 Population Change, WA (ABS) 85,000 Mortgage Rates, Australia 9.50 75,000 25,000 Standard Variable 65,000 8.50 Discounted Variable 20,000 55,000

45,000 7.50 Three Year Fixed 15,000 35,000 10,000 6.50 25,000

15,000

5,000 (% p.a.)Rates Loan Home Annual Growth in in Growth AnnualWA Population 5.50

5,000

Change in Population Components Components (Quarterley) Change Population in 0 -5,000 4.50

-5,000 -15,000 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 3.50 Natural Increase Net Overseas Migration Net Interstate Migration Annual Growth Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Source:ABS 3101.0, T2 & 4 (Original Data) Source: RBA, F5

Consumer Price Index (ABS) WA Job Vacancies - By Quarter 40.0 7.0% WA Total Job Vacancies Mining 35.0 Manufacturing 5.0% 30.0 Construction Rental, Hiring and Real Estate Services 25.0 3.0%

20.0

1.0%

Job Vacancies (,000) Vacancies Job 15.0

year year quarterly) (calculated Index change in

- on - Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 10.0

-1.0% Year 5.0

-3.0% 0.0 CPI - Perth (Housing) YOY Change CPI - Australia (Housing) YOY Change CPI - Perth (All Groups) YOY Change CPI - Australia (All Groups) YOY Change

Source: ABS 6401, T 1, 5 & 7. Source: ABS 6354.0

RESIDENTIAL LAND DEVELOPMENT SECTOR Key Points of Interest UDIA Land Snapshot Survey - by Quarter $260,000 3000 • In the June quarter, total lot sales reported in UDIA’s Land Total Sales Median Price $250,000 Snapshot survey fell 22.7% quarter-on-quarter (QoQ) and 2500 11.2% year-on-year (YoY). This follows total sales for the $240,000 2000 March quarter reaching the highest level since September $230,000 2017. $220,000 1500 • Figures were down across all price categories on a QoQ

$210,000 Median Price Median and YoY basis, bar a 3.4% QoQ increase for lot sales 1000 priced between $280,001-$340,000, and a tripling of sales $200,000 Quarter perSales Total 500 priced $120,000 (and under) (although sales in this $190,000 category are variable due to lower numbers). $180,000 0

• The median lot price increased 1.8% QoQ to $218,752,

Jun-11 Jun-13 Jun-14 Jun-17 Jun-18 Jun-12 Jun-15 Jun-16 Jun-19

Sep-11 Sep-12 Sep-15 Sep-16 Sep-13 Sep-14 Sep-17 Sep-18

Dec-10 Dec-13 Dec-14 Dec-17 Dec-18 Dec-11 Dec-12 Dec-15 Dec-16

Mar-12 Mar-13 Mar-16 Mar-19 Mar-11 Mar-14 Mar-15 Mar-17 Mar-18 2.5% below levels at the same time last year. Source:UDIA Land Snapshot Survey

UDIA Land Snapshot Total Sales: June Quarter 2019 $340,000 plus 59

$280,001 - 340,000 91

$240,001 - $280,000 110

$200,001 - $240,000 153

$160,001 - $200,000 228

$120,001 - $160,000 120

$120,000 (and under) 16

0 50 100 150 200 250

THREE MONTHS TO MARCH 2019: WA REGIONAL PROPERTY SETTLEMENTS (Source: Landgate) Settlements Median Land Area Size Median Price Gascoyne 29 809 $ 300,000.00 Detached House 18 822 $ 345,000.00 Medium Density 5 449 $ 350,000.00 Vacant Land 6 841 $ 187,500.00 Goldfields Esperance 168 807 $ 266,250.00 Detached House 133 819 $ 275,000.00 Medium Density 28 327 $ 240,500.00 Vacant Land 7 894 $ 7,000.00 Great Southern 217 755 $ 315,000.00 Detached House 160 812 $ 358,000.00 Medium Density 33 311 $ 280,000.00 Vacant Land 24 762 $ 151,000.00 Kimberley 13 611 $ 167,000.00 Detached House 6 829 $ 310,000.00 Medium Density 7 309 $ 90,000.00 Mid West 225 830 $ 180,000.00 Detached House 171 880 $ 200,000.00 Medium Density 28 277 $ 225,000.00 Vacant Land 26 873 $ 16,000.00 Pilbara 159 680 $ 280,000.00 Detached House 109 705 $ 337,650.00 Medium Density 49 256 $ 152,000.00 Vacant Land 1 745 $ 180,000.00 South West 660 701 $ 340,000.00 Detached House 471 769 $ 367,000.00 Medium Density 97 297 $ 347,000.00 Vacant Land 92 611 $ 181,900.00 Wheatbelt 119 1,003 $ 165,000.00 Detached House 99 1,012 $ 175,000.00 Medium Density 3 431 $ 182,500.00 Vacant Land 17 912 $ 53,000.00 Note: Settlement figures on this page are based on Landgate data available at the time of publication and may not represent all settlements during the period. Data is based on settlements with a land area of 2,000sqm and under.

RESIDENTIALPERTH AND PEEL REGION PROPERTY SETTLEMENTS

MARCH 2019: MONTHLY SETTLEMENTS BY METROPOLITAN CORRIDOR (Source: Landgate) Median Land Settlements Median Price Area Size Central Metro 1160 345 555,000 Detached House 551 647 750,000 Medium Density 562 177 443,000 Vacant Land 47 383 465,000 North-East Metro 215 540 365,000 Detached House 157 627 395,000 Medium Density 21 274 315,000 Vacant Land 37 375 228,000 North-West Metro 426 602 472,500 Detached House 332 680 500,000 Medium Density 59 266 423,000 Vacant Land 35 375 280,000 Peel 182 651 337,500 Detached House 123 696 385,000 Medium Density 28 199 230,000 Vacant Land 31 560 185,000 South-East Metro 237 590 315,000 Detached House 178 683 347,500 Medium Density 30 244 256,000 Vacant Land 29 375 220,000 South-West Metro 364 542 385,000 Detached House 261 636 415,000 Medium Density 66 130 305,750 Vacant Land 37 375 230,000 Note: Settlement figures on this page are based on Landgate data available at the time of publication and may not represent all settlements during the period. Data is based on settlements with a land area of 2,000sqm and under.

CORRIDORA YEAR IN THE LIFE OF THESNAPSHOT PEEL REGION Key Points of Interest

• In the twelve months to March 2019, residential settlements made in the Peel region formed 6.3% of the total number of settlements in the Greater Perth region for this period. Of the total Peel settlements for this timeframe: 61.6% were for detached houses; 16.6% were for medium density product; and 21.8% were vacant land settlements. • The Peel region was the corridor with the highest internal proportion of medium density product settlements (16.6%) (bar the central metropolitan region with a 49.2% proportion), but only claimed a 3.7% share of total medium density settlements for Greater Perth. The other metropolitan corridors had proportions of: 15.1% for the SW; 11.7% for the NW; 9.5% for the SE; and 9.4% for the NE corridor. Overall, medium density settlements formed 28.2% of Greater Perth settlements made in the twelve months to March 2019. • For the month of March 2019, the median price of Peel detached house settlements fell 0.6% from the same time last year to sit at $385,000. The medium density settlement PEEL REGION SUMMARY - 12 MONTHS TO MARCH 19 (Source: Landgate) median price also decreased 5.2% over this timeframe to Median Land Area Average number of Average number of Settlements Median Price $230,000, while that for vacant land settlements increased Size bedrooms bathrooms Peel 2181 608 $315,000 2.5 1.3 2.8% to $185,000. BODDINGTON 18 710 $134,500 2.4 1.1 Detached House 10 1,004 $152,500 3.2 1.4 • Median lot sizes for settlements made in the Peel region in Medium Density 4 529 $135,000 3.0 1.3 March 2019 fell 0.7% from the same time the year prior for Vacant Land 4 658 $19,500 0.0 0.0 MANDURAH 1939 592 $315,000 2.5 1.3 detached house settlements (696sqm); decreased 9.8% for Detached House 1172 700 $370,000 3.4 1.8 medium density settlements (199sqm); and increased Medium Density 344 224 $253,000 2.6 1.5 18.1% for settlements of vacant land (560sqm). Vacant Land 423 510 $186,000 0.0 0.0 MURRAY 224 729 $290,000 2.6 1.3 Detached House 161 794 $345,000 3.4 1.6 Medium Density 15 482 $239,000 2.1 1.5 Vacant Land 48 605 $155,000 0.0 0.0 PEEL REGION SETTLEMENTS BY SIZE SUMMARY - TWELVE MONTHS TO MARCH 2019 (Source: Landgate) Settlements 0-200 201-300 301-400 401-500 501-600 601-700 701-800 801-1000 1000-2000 Grand Total Peel 162 159 218 228 297 311 310 306 190 2181 BODDINGTON 1 1 2 5 1 2 6 18 Detached House 2 1 1 6 10 Medium Density 1 1 2 4 Vacant Land 3 1 4 MANDURAH 157 157 205 210 269 266 280 260 135 1939 Detached House 7 46 77 89 177 206 243 231 96 1172 Medium Density 145 86 41 35 20 5 3 4 5 344 Vacant Land 5 25 87 86 72 55 34 25 34 423 MURRAY 5 2 12 17 26 40 29 44 49 224 Detached House 8 8 11 31 24 35 44 161 Medium Density 5 1 1 1 3 3 1 15 Vacant Land 1 3 8 12 9 5 6 4 48 Note: Settlement figures on this page are based on Landgate data available at the time of publication and may not represent all settlements during the period. Data is based on settlements with a land area of 2,000sqm and under.

CORRIDORA YEAR IN THE LIFE OF THESNAPSHOT PEEL REGION

Note: Settlement figures on this page are based on Landgate data available at the time of publication and may not represent all settlements during the period. Data is based on settlements with a land area of 2,000sqm and under.

RESIDENTIAL PROPERTY MARKET

Key Points of Interest Owner-Occupier Dwelling Finance, WA 7,000 $1,600,000 • The number of owner-occupier housing finance 6,000 $1,400,000 commitments (excluding refinancing) recorded in WA fell $1,200,000 3.2% month-on-month (MoM) to total 3,098, 6.3% lower 5,000 $1,000,000 than at the same time last year and 27.9% below the ten- 4,000 year monthly average. $800,000 3,000 • This total number of WA housing finance commitments was $600,000 2,000

comprised of: 784 commitments for the construction of $400,000

Number of Commitments of Number Value of Commitments (,000) of Commitments Value dwellings (-2.9% MoM; -1.1% year-on-year (YoY)); 138 1,000 $200,000

commitments for the purchase of new dwellings (-16.9% 0 $- MoM; -14.8% YoY); and 2,176 commitments for the Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 WA FHB Commitments WA non-FHB Commitments (exc. Refinancing) purchase of established dwellings (excluding refinancing) (- WA Value of FHB Commitments WA Value of non-FHB Commitments (exc. Refinancing) 2.2% MoM; -7.5% YoY). Source: ABS 5601.0 (Original Data) • The number of WA commitments for the refinancing of Residential Property Listings, Greater Perth (REIWA) established dwellings decreased 3.8% MoM in April to sit at 20000 1,288, 2.4% below levels in April 2018 and 33.4% below the 18000 ten-year monthly average. 16000 • In April, housing finance commitments made by WA first 14000 home buyers (FHB) fell to 1,081, a 6.0% decrease from 12000 March and 7.1% down YoY. The total value of FHB 10000 commitments made in this month similarly declined 6.5% 8000 MoM to sit at $338.2 million, 8.8% lower than at the same 6000

time the year prior and 23.3% below the ten-year monthly Listings(Quarterly)andUnitHouse 4000 average value. 2000

• Non-FHB commitments (excluding refinancing) for April fell 0

Sep-07 Sep-09 Sep-12 Sep-14 Sep-16 Sep-18 Sep-08 Sep-10 Sep-11 Sep-13 Sep-15 Sep-17

Mar-08 Mar-10 Mar-12 Mar-14 Mar-16 Mar-18 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 1.6% MoM and 5.9% YoY to total 2,017. The value of these Mar-07 Source: REIWA commitments was $702 million (-4.5% MoM; -14.1% YoY). WA Owner-Occupier Housing Finance by Purpose Greater Perth Median Prices $600,000 Construction of dwellings Purchase of new dwellings Median House Price Median Unit Price Median Land Price 7000 Purchase of established dwellings (exc. Refinancing) Total commitments (exc. Refinancing) Refinancing of established dwellings $550,000 6000 $500,000

5000 $450,000

4000 $400,000

3000 $350,000 MedianPrice(quarterly)

$300,000

2000

OccupierFinanceHousingCommitments -

$250,000

1000 Owner

$200,000 0 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Source: ABS 5601.0 (Original Data) Source: REIWA Dwelling Finance for Investment Housing (ABS) 600 Greater Perth Rent (REIWA) 10% AU Value of household $3,000 Vacancy rate Median House Rent commitments $14,000 for investment 500 dwellings (exc. $2,500 refin) $12,000 AU Total Value of household 400 $10,000 $2,000 commitments for investment dwellings $8,000 300 5% $1,500 WA Value of household $6,000 commitments for investment $1,000 200 dwellings (exc. $4,000 refin) Rent(Quarterly)MedianHouse WA Total $500 Value of (%)Rate Vacancy Quarterly & Variance $2,000 100

household AU Value of Dwelling Finance ($m/month) FinanceDwelling of Value AU WA Value of Dwelling Finance ($m/month) FinanceDwelling of Value WA commitments for investment $- $- dwellings 0 0% Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Source: ABS 5601.0 (Original Data) Source: REIWA

RESIDENTIAL CONSTRUCTION SECTOR

Key Points of Interest 3000 Building Approvals, WA & Greater Perth (ABS) • The value of WA residential building jobs for May lifted 2500

35.2% month-on-month (MoM) to total $487.7 million, the 2000 highest monthly value recorded since August 2018 ($651.96 million), but 15.2% below figures at the same time last year. 1500

• The total value of WA residential building jobs for May 1000 consisted of: $441.85 million for new construction building

jobs (+38.0% MoM; -14.7% year-on-year (YoY)); and $45.8 500 Building Approvals (dwellings/month) Approvals Building

million for building jobs for alterations and additions 0 (including conversions) (+13.1% MoM; -19.7% YoY). May-2009 May-2011 May-2013 May-2015 May-2017 May-2019 WA Houses WA Other Dwellings Perth Houses Perth Other Dwellings • In May, the value of building jobs for new houses lifted Source: ABS 8731.0, T5 & 10 13.3% MoM to $304.75 million, the highest since November 2017 ($338,702), but fell 13.3% YoY. For other residential FHOG Applications & Payments for New Dwellings building jobs (excluding houses), the value nearly tripled 1,500 FHOG Paid for New Dwellings FHOG Paid 3 Month Rolling Average over the month to total $130.3 million, but was similarly FHOG Applications for New Dwellings down 13.2% from the same time the year prior. FHOG Applications 3 Month Rolling Average

(Note: generally smaller figures make the non-house category variable). 1,000 • The number of WA building approvals for houses increased 13.0% MoM to 1,070, but was down 11.6% YoY. Building

approvals for other dwellings (excluding houses) doubled 500 from numbers recorded in April, to sit at 410, but fell 10.9% YoY. (Note: generally smaller figures make the non-house category variable).

• The number of first home owner grants paid for new houses 0 and land increased 44.7% MoM in May to total 599. This is May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 Source: Treasury the highest level of monthly grants paid for this category since May 2018 (608), and also coincides with the timing of Value of Building Jobs, WA (ABS) 1000 $140 the State Government 2019-20 Budget announcement of the Keystart lending criteria adjustments, with increases to $120 800 income thresholds for eligible Keystart borrowers from 1 $100 600 July 2019 to 31 December 2019 (more information here). $80

$60 400

$40

200 ($m/month) Jobs BuildingNew

$20 Alterations & Additions ($m/month) Additions & Alterations

$0 0 Value of House/Other WA Residential Building May-2009 May-2011 May-2013 May-2015 May-2017 May-2019 $700,000 Jobs (ABS) Alterations & Additions, Including Conversions Alterations & Additions, Including Conversions (Trend) New Construction New Construction (Trend)

$600,000 Houses Source: ABS 8731.0, T34

Other Residential 9500 Residential Construction, WA Private Sector (ABS) $500,000

8500 Houses Commenced

$400,000 Dwellings Commenced 7500 Houses Completed Dwellings Completed $300,000 6500

$200,000

5500 Value of Building Jobs($m/month) ofBuilding Value

$100,000 4500

3500

$0 Residential Construction (dwellings per quarter) per (dwellings Construction Residential 2500 Dec-2008 Dec-2010 Dec-2012 Dec-2014 Dec-2016 Dec-2018 Source:ABS 8731.0, Table 47 Source: ABS 8752.0, T34 & T38 (Original Data)

Urban Development Institute of Australia (UDIA) WA P: (08) 9215 3400 E: [email protected]

Disclaimer While the data has been collected with due care for the purpose of reporting property market and general economic trends, no responsibility can be taken regarding its accuracy and individuals should conduct their own specific research before making any decisions. Information provided in this publication should not be taken as a guarantee of specific future movements in the market, but rather as an indication of historical market trends. All or part of this document may not be reproduced, published or included in any report without the approval of the UDIA (WA Division) as to the form and context in which it will appear.