December 2014
Bankwest First Time Buyers 2014 Report
Introduction The sixth annual Bankwest First Time Buyer Deposit Report tracks the time it would take for first time buyers to save a deposit in 465 local government areas (LGAs) across Australia over the five years to June 2014. The report quantifies how long it would take a first time buyer to save a 20% deposit based on local incomes and local house prices and the level of the First Home Owners Grant where available by state. Data has been sourced from the Australian Bureau of Statistics (ABS) Wage and Salary Earner Statistics for Small Areas, the ABS Wage Price Index, the Reserve Bank of Australia (RBA) and Residex.
Introduction
Deposit savings times have been calculated on the basis of a first time buyer couple setting aside 20% of their combined pre-tax income annually. The calculation assumes the savings are deposited into an online savings account each month and earn interest on this basis.
IMPORTANT INFORMATION AND DISCLAIMER The information contained in this report is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this report without first obtaining specific professional advice. To the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945, its related bodies corporate, employees and contractors accepts no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this report.
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1. National Deposit Trends – Houses • Nationally, it will now take first time buyers 4.1 years to raise the $110,997 needed for a 20% deposit to buy a house, up from 3.9 years in 2013 • By capital city, Sydney first time buyers need to save for the longest amount of time (6.7 years), followed by Melbourne (5.5 years) • There are now 20 local government areas (LGAs) across the nation where first time buyers would have to save for more than 10 years for a 20% house deposit The sixth annual Bankwest First Time Buyer Deposit Report shows that the average first time buyer (FTB) couple would need to save for 4.1 years in order to raise a 20% deposit to buy their first home. This is based on a combined average salary of $110,997 for two people aged 25-34, saving 20% of their pre-tax income in an high interest online savings account, and including any first time home owner grants, where available. Across Australia the savings needed to purchase a median priced house has reached $93,800, up from $87,600 in 2013, based on a healthy level of growth for national houses. The median value for houses has grown to $469,000 from $438,000, a 7.1% increase. A large part of this growth can be attributed to low interest rates, with standard variable rates currently at the lowest level since 2009, and the current average rate of 5.9% per annum well below the average rate of 7.3% achieved over the past 10 years.1 However, while low interest rates may make it easier for home owners to service their loans, on the flip side they can increase the difficultly for first time home buyers (FTBs) to save for a first home deposit. For a couple saving their money in a high interest online savings account, the average interest rate has been 2.5% over the past 12 months, down from 3.17% in 2013, and the average rate of 4.69% over the past 10 years. First time buyer deposit trends by state
LGA Name
ACT Houses NSW Houses NT Houses QLD Houses SA Houses TAS Houses VIC Houses WA Houses Australian Houses
Years to Years to Years to save house save house save house deposit (June deposit (June deposit (June 2014) 2013) 2009) 4.0 4.8 4.1 3.8 3.3 2.7 4.4 3.7 4.1
4.0 4.4 4.1 3.7 3.3 2.8 4.1 3.6 3.9
3.8 3.8 3.9 3.9 3.4 3.0 3.7 3.9 3.7
Change over 1 year
Change over 5 years
Savings needed for 20% house deposit $s (June 2014)
0.0 0.4 0.0 0.1 0.0 -0.1 0.3 0.1 0.2
0.2 1.0 0.2 -0.1 -0.1 -0.3 0.7 -0.2 0.4
106,200 112,700 94,500 85,200 68,700 52,100 97,000 96,700 93,800
House
1
Source: RBA Indicator Lending Rates, August 2014
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By state, FTBs in NSW have to wait the longest before they can own their own home, with a couple on an average wage taking 4.8 years to save the $112,700 required for a home deposit, up from 4.4 years in 2013. Victoria has the next longest savings time at 4.4 years, followed by the Northern Territory (4.1 years) and the ACT (4.0 years). The shortest savings times by state are in Tasmania, where it would only take 2.7 years for a couple to save a home deposit, and South Australia where it would take 3.3 years. First time buyer deposit trends in capital cities
LGA Name
Adelaide Houses Australian Capital Territory Brisbane Houses Darwin Houses Hobart Houses Melbourne Houses Perth Houses Sydney Houses Capital cities average
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Change over 1 year
Change over 5 years
Savings needed for 20% house deposit $s (June 2014)
3.6 4.0
3.5 4.0
3.7 3.8
0.1 0.0
-0.1 0.2
76,700 106,200
4.1 4.2 3.3 5.5 3.9 6.7 4.4
3.9 4.4 3.2 5.2 3.8 5.9 4.2
4.2 4.1 3.7 4.5 4.0 4.9 4.1
0.2 -0.2 0.1 0.3 0.1 0.8 0.2
-0.1 0.1 -0.4 1.0 -0.1 1.8 0.3
93,500 101,300 66,300 126,200 103,200 165,100 104,813
Sydney leads capital city saving time surge The average capital city saving time has increased to 4.4 years from 4.2 years in 2013, with savings times increasing in six of eight capitals. This has been led by a surge in saving times in Sydney, where it would now take a couple 6.7 years to save the $165,100 for a deposit in a median priced home in Sydney, up from 5.9 years in 2013. This represents by a considerable distance the longest savings time of all capital cities, and the largest year-on-year increase. Melbourne has also seen a big increase in savings times, with an FTB couple now taking 5.5 years to save for a home, up from 5.2 years in 2013. Melbourne is followed by Darwin (4.2 years), Brisbane (4.1) and the ACT (4.0). The most affordable capital city is Hobart, where couples could afford a deposit for a median priced home after 3.3 years of saving.
House
More than one quarter of local areas have long savings times for FTBs Nationally, it would take longer than four years to save a 20% deposit for a median priced house in 27% of LGAs - 124 out of 465 LGAs. This compares to 24% of LGAs five years ago in June 2009 (113 out of 465).
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Seven in 10 local areas in capital cities have long savings times for FTBs In capital cities, it would take longer than four years to save a 20% deposit for a median priced house in 69% of LGAs (100 out of 144 LGAs). This compares to 59% of LGAs five years ago in June 2009 (85 out of 144). Long savings times for nine in 10 Sydney LGAs For nine in 10 Sydney LGAs (88%) it would take a couple more than four years to save a deposit, including more than seven in 10 (72%) where it would take longer than six years to save a home deposit. It would take longer than four years to save a 20% deposit for a median priced house in both LGAs in Darwin (100%) along with 74% of LGAs in Melbourne, 67% in Perth and 63% in Adelaide. Hobart has the lowest proportion of LGAs in which it takes more than four years for a couple to save (14%). Regional areas have shorter savings times Regional LGAs are much more affordable, with 30% (97 out of 321) taking less than two years to save for a deposit and 62% taking between two and four years to save for a deposit. Only 7% take more than four years for a couple to save for a deposit. LGAs where it takes longest for first time buyers to save a house deposit
LGA Name Peppermint Grove Mosman Woollahra Strathfield Waverley Nedlands Cottesloe Perth City Hunters Hill Burwood
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
21.5 14.2 13.8 13.3 12.6 12.2 12.0 11.7 11.7 11.4
21.4 12.8 12.1 11.5 11.0 11.8 11.1 11.2 10.2 9.8
20.8 12.9 11.7 10.2 10.5 12.9 12.4 11.0 10.6 7.6
Perth Sydney Sydney Sydney Sydney Perth Perth Perth Sydney Sydney
WA NSW NSW NSW NSW WA WA WA NSW NSW
769,000 492,800 479,100 295,400 377,600 342,800 394,200 306,800 377,900 243,300
Number of LGAs with ultra-long saving time jumps There are now 20 LGAs across the nation with ‘ultra-long’ saving times (where it would take more than 10 years for a couple to save a house deposit). This has been driven by strong property price growth in Sydney, with the city accounting for 12 of the 20 areas with savings times over 10 years, up from six in 2013. Six of the remaining ultra-long savings time LGAs are located in Perth, while two are in Melbourne. There are no LGAs outside of the three capitals of Sydney, Perth and Melbourne that have savings times of over 10 years.
House
5
More than 20 years to save deposit in Peppermint Grove The most expensive area in Australia is still Peppermint Grove in Perth, where it would take a FTB couple 21.5 years to save the $769,000 required for a 20% home deposit, which is relatively stable in comparison to 2013 (21.4). Mosman has the next longest savings times, though these are considerably shorter than Peppermint Grove, with a couple needing 14.2 years to save the $492,800 deposit for a median priced home in the local area. One in five LGAs affordable with less than two year saving times There are 97 LGAs across Australia which have saving times of less than two years, or 21% of the total. This is a slight decline in comparison to 2013, when there were 104 LGAs, or 22% of the total. All of the LGAs with shorter savings times are based in regional Australia, with 37 of the 97 in NSW, 19 in Western Australia, 17 in South Australia, eight each in Queensland and Victoria, six in Tasmania and two in the Northern Territory. Less than six months to save for a deposit in Tasmania’s West Coast The shortest time to save a deposit is Tasmania’s West Coast, where it would only take a couple 0.4 years (five months) to save the $10,600 needed for home deposit. It is followed by Dundas in South Eastern Western Australia (0.4 years) and Central Darling (0.7 years) in Far West NSW. LGAs where it takes shortest for first time buyers to save a house deposit
LGA Name
Years to save house deposit (June 2014)
Years to Years to save house save house deposit deposit (June 2013) (June 2009)
West Coast Dundas Central Darling Coolgardie Urana Peterborough Gnowangerup
0.4 0.4 0.7 0.9 1.0 1.0 1.1
0.4 0.5 0.6 0.9 0.9 0.9 1.1
0.5 0.4 0.3 1.1 0.5 0.9 1.5
Coober Pedy Paroo Southern Mallee
1.1 1.1 1.1
1.1 1.2 1.2
1.0 0.4 1.0
Region
State
Savings needed for 20% house deposit $s (June 2014)
Mersey-Lyell South Eastern Far West South Eastern Murray Northern Lower Great Southern Northern North West Murray Lands
TAS WA NSW WA NSW SA WA
10,600 12,200 13,600 29,900 17,500 14,900 20,700
SA QLD SA
19,400 19,600 17,700
Six in 10 regional areas take between two and four years to save deposit For most regional LGAs (62%) it would take a couple between two to four years to save for a home deposit, while there are 7% which would take between four to six years, and 1% (or two out of 321) where it would take more than six years to save a deposit. In three in 10 LGAs (30%) there are savings times of less than two years.
House
Seven in 10 local areas have longer savings time in 2014 The time needed to save for a house deposit has increased across 70% of LGAs across Australia compared to 2013. This has primarily been driven by increasing house prices, and declining interest rates for high interest savings accounts. Victoria has seen the largest proportion of increases with 84% of LGAs taking more time to save for deposits. Victoria is followed by NSW (78%), Western Australia (75%) and the Northern Territory (67%).
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However, savings times have not increased across all states and territories. In the ACT some 71% of LGAs have had declining savings times, while in Queensland 54% of LGAs have had reduced savings times in the past year. FTB numbers continue to decline The downward trend in the number of FTBs has continued, with 80,018 buying their first home in the 12 months to June 2014, down 11.6% from 90,553 in 2013. Current figures are also down significantly in comparison to the same point five years ago, when there were 162,679 FTBs in the year to June 2009. Annual Number First Time Home Buyers - Australia (2004 - 2014)
200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013 2014 Source: ABS
House
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2. National Deposit Trends – Units • The average time taken to save for a unit across Australian capital cities is 3.3 years, up marginally from 3.2 years in 2013 • By capital city, FTBs need to save for the longest in Sydney (4.7 years) and Melbourne (4.1 years) • The shortest capital city savings time for a unit deposit is in Hobart (2.3 years) Across Australian capital cities, an FTB couple planning to purchase a median priced unit would need to save 20% of their combined income for 3.3 years to raise a 20% deposit ($78,200), up slightly from 3.2 years in 2013. Unit deposits take longest to save for in Sydney By capital city, FTBs in Sydney have to save for the longest time to buy a unit (4.7 years), followed by Melbourne FTBs (4.1 years). The least amount of time it would take a couple to save for a unit deposit in a capital city is in Hobart at 2.3 years. Across the eight capitals, it now takes longer to save in four compared to 2013, with Sydney showing the largest increase (4.7 years vs. 4.2 in 2013). There are no capitals where savings times have declined, but they have remained stable in Adelaide, Canberra, Darwin and Perth. First time buyer deposit trends in capital cities (Units)
LGA Name
Adelaide Units Australian Capital Territory Brisbane Units Darwin Units Hobart Units Melbourne Units Perth Units Sydney Units Capital city average
Years to save Years to save Years to save unit deposit Unit deposit Unit deposit (June 2014) (June 2013) (June 2009)
Change over 1 year
Change over 5 years
Savings needed for 20% Unit deposit $s (June 2014)
2.7 3.1
2.7 3.1
2.8 3.0
0.0 0.0
-0.1 0.1
57,300 80,800
3.2 3.1 2.3 4.1 3.4 4.7 3.3
3.1 3.1 2.2 3.9 3.4 4.2 3.2
3.3 3.2 2.6 3.5 3.1 3.6 3.1
0.1 0.0 0.1 0.2 0.0 0.5 0.1
-0.1 -0.1 -0.3 0.6 0.3 1.1 0.2
72,700 74,000 45,200 92,500 89,400 113,700 78,200
Unit
Hardest to save for unit in Byron Bay The LGA of Byron in the Richmond-Tweed area of NSW has the longest saving time across the nation, with a couple needing to save for 6.2 years for a median priced unit deposit. The next longest is Burwood in Sydney (6.1 years), Manly (5.9 years), Sydney City (5.8 years) and Waverley (5.4 years). Of the 10 longest savings times for units, seven are in Sydney, two in Perth and Melbourne, and one in Richmond-Tweed.
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LGAs where it takes longest for first time buyers to save a unit deposit
LGA Name Byron Burwood Manly Sydney City Waverley Nedlands Woollahra Cottesloe Ashfield Randwick
Years to save Years to save Years to save Unit deposit Unit deposit Unit deposit (June 2014) (June 2013) (June 2009) 6.2 6.1 5.9 5.8 5.4 5.4 5.3 5.3 5.3 5.2
5.9 5.3 5.3 5.3 5.0 5.3 4.9 5.5 4.7 4.8
5.9 4.1 4.9 4.5 4.4 4.8 4.4 6.3 3.5 4.0
Region
State
Richmond-Tweed Sydney Sydney Sydney Sydney Perth Sydney Perth Sydney Sydney
NSW NSW NSW NSW NSW WA NSW WA NSW NSW
Savings needed for 20% Unit deposit $s (June 2014) 92,400 124,600 165,600 131,100 152,000 143,000 171,600 164,500 114,400 137,100
Shortest saving time for unit is 1.4 years There are four local areas in Australia which share the title as quickest for FTB couples to save a unit deposit, with Whyalla in Northern South Australia, Collie in South West Western Australia, Burnie in Tasmania and Glenelg in Victoria each taking only 1.4 years for a couple to save for a unit deposit. Kwinana in Perth is the only capital city LGA in Australia that makes the list, with couples needing to save for 1.6 years for a unit deposit. LGAs where it takes shortest for first time buyers to save a unit deposit
LGA Name
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Whyalla Collie Glenelg Burnie Katherine
1.4 1.4 1.4 1.4 1.5
1.4 1.6 1.6 1.4 1.3
1.5 1.5 1.6 1.7 1.8
Latrobe South Burnett Deniliquin Muswellbrook Kwinana
1.5 1.5 1.6 1.6 1.6
1.5 1.6 1.4 1.6 1.5
1.3 1.8 1.6 1.1 1.7
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
Northern South West Western District Mersey-Lyell Northern Territory - Bal Mersey-Lyell South West Murray Hunter Perth
SA WA VIC TAS NT
33,000 41,300 29,200 28,600 32,600
VIC QLD NSW NSW WA
33,900 32,000 30,200 45,200 40,100
More than one year longer to buy a house than a unit in capital cities It takes 1.1 years longer to save for a house than for a unit on average in Australian capital cities. The biggest difference between unit and house savings times is in Sydney where it would take an extra 2.0 years to save for a house deposit compared to a unit, followed by Melbourne where it takes an extra 1.4 years. Perth has the smallest differential, taking an extra 0.5 years to save for a house over a unit.
Unit
9
3. NSW Deposit Trends • First time buyers in NSW need to save for 4.8 years to raise a deposit to buy a house • In Sydney, first time buyers need to save for 6.7 years for a house deposit • The number of FTBs as recorded by the ABS has continued to fall in 2014, with only 13,709 homes financed by FTBs in the year to June 2014, a 17.2% decline on the same point in 2013 Driven by a relatively strong state economy and above average population growth which has pushed up demand, the average FTB couple in NSW would need to save for 4.8 years to raise the $112,700 needed for a 20% deposit to buy a house – the longest time of any state or territory. This is 0.4 years (five months) more than in 2013, when it took 4.4 years. First time buyers in NSW have been facing a very strong property market in the year to June 2014, with median property prices increasing by 11.7% over this period. This has been considerably higher than the growth in income for people in the first time home owner age bracket (25-34 years old), which has increased by 2.4% in the past year, leading to a further increase in already long savings times for couples in the state. Almost seven years to save for home deposit in Sydney Sydney is the most difficult capital city in Australia for FTBs to enter the property market, with savings times now approaching seven years for a couple to save a home deposit. The 6.7 years it would take to save a home deposit is an increase of 0.8 years (10 months) on the same point in 2013. This has been driven by a whopping 15.4% year-on-year increase in median home values or 42.9% since 2009. FTB couples now need to save a $165,100 deposit. This is $40,000 more than the closest capital city rival of Melbourne ($126,200), and considerably more than the average capital city deposit of $104,813. GOSFORD 10 years plus
HAWKESBURY
6 -10 years 4 - 6 years
THE HILLS SHIRE
PITTWATER
HORNSBY
BLUE MOUNTAINS
BLACKTOWN
KU-RING-GAI
WARRINGAH
PENRITH PARRAMATTA
AUBURN
WOLLONDILLY
NSW
BANKSTOWN
CANTERBURY
ROCKDALE HURSTVILLE KOGARAH
CAMDEN CAMPBELLTOWN
SUTHERLAND SHIRE
10
BOTANY BAY
RANDWICK
SYDNEY
LIVERPOOL
WILLOUGHBY LANE COVE MANLY NORTH SYDNEY MOSMAN
RYDE
HOLROYD
FAIRFIELD
2 - 4 years
HUNTERS HILL CANADA BAY LEICHHARDT WOOLLAHRA WAVERLEY ASHFIELD BURWOOD STRATHFIELD MARRICKVILLE
Some 12 LGAs in Sydney with savings time of 10 years or more There are now a record 12 local areas in Sydney where it would take a couple more than 10 years to save for a home deposit, or 28% of total LGAs for the Sydney region. A further 44% have savings times of over six years, while in only 12% would it take between 2-4 years, and 16% where it would take 4-6 years. The state as a whole looks much more affordable than Sydney, with 68% of LGAs having savings times of less than 4 years. Mosman maintains longest savings time At the top end of the Sydney market savings times have seen considerable increases compared to 2013. In Mosman, a couple would now need to save for 14.2 years for the $492,800 needed for a deposit on a median priced house there, while in Woollahra they would need to save for 13.8 years for the $479,100 deposit, up from 12.1 years in 2013. There are notable inclusions on the top 10 savings time list such as Strathfield (13.3 years) and Burwood (11.4 years) which each have relatively lower deposits required in comparison to the traditional expensive local areas. However, they have been pushed into the top 10 LGAs by savings time due to property prices increasing by 17.3% and 18.6% respectively in each of these LGAs, coupled with lower wages for residents in these areas. NSW LGAs where it takes the most time for FTB couples to save a house deposit
LGA Name
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
Mosman Woollahra Strathfield Waverley Hunters Hill Burwood Manly Randwick Willoughby Lane Cove
14.2 13.8 13.3 12.6 11.7 11.4 11.4 10.8 10.8 10.6
12.8 12.1 11.5 11.0 10.2 9.8 10.3 9.4 9.6 9.4
12.9 11.7 10.2 10.5 10.6 7.6 9.7 8.4 8.5 7.9
Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
492,800 479,100 295,400 377,600 377,900 243,300 335,500 300,800 324,600 338,200
Three quarters of NSW LGAs have longer savings times The time to save a house deposit has increased in 78% of LGAs in NSW during the past year. Over the longer term of five years the time taken to save for a deposit has also increased in 89% of NSW LGAs for FTBs.
NSW
11
FTB numbers continue to fall in NSW The number of FTBs as recorded by the ABS has continued to fall in 2014, with only 13,709 homes financed by FTBs in the year to June 2014. This is a 17.2% decline on the same point in 2013, and a 73.7% drop on the same point in 2009. Annual Number First Time Home Buyers - New South Wales (2004 - 2014)
70,000 60,000 50,000 40,000 30,000 20,000 10,000 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013 2014 Source: ABS
One in four NSW LGAs would take less than two years to save deposit There are 37 NSW LGAs (25% of the total of 149) where the average FTB couple would have to save for less than two years to raise a 20% deposit for their first house. This is a considerable drop from 2009 when there were 49 LGAs with short savings times in the state. All of these local areas are in regional NSW. Only eight months to save deposit in NSW cheapest LGA Central Darling in Far West NSW has the shortest savings time in the state, taking 0.7 years (eight months) for a couple to save the $13,600 required for a house deposit. This is the only LGA in NSW where it would take less than a year to save a deposit, and is almost 20 times faster to save for a home deposit than a couple that lived in Mosman, the LGA with the state’s top saving time. The next shortest savings time is for Urana in the Murray region (1.0 years), followed by Broken Hill (1.2 years), Coonamble (1.2 years) and Bourke (1.3 years). NSW LGAs where it takes the least time for FTB couples to save a house deposit Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
Central Darling Urana Broken Hill Coonamble Bourke Bogan Carrathool
0.7
0.6
0.3
Far West
NSW
13,600
1.0 1.2 1.2 1.3 1.3 1.3
0.9 1.1 1.1 1.1 1.4 1.2
0.5 1.4 0.7 0.7 1.2 1.1
Murray Far West North Western North Western North Western Murrumbidgee
NSW NSW NSW NSW NSW NSW
17,500 25,300 23,400 27,000 30,200 22,300
Hay Bland Lachlan
1.4 1.4 1.5
1.3 1.5 1.4
1.4 1.4 1.2
Murrumbidgee Central West Central West
NSW NSW NSW
26,100 30,600 26,300
NSW
LGA Name
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Almost five years to save for unit in Sydney It would take the average FTB couple 4.7 years to save a 20% deposit to buy a unit in Sydney in 2014, the highest of all Australian capitals, and more than six months longer than it would take a couple in Melbourne. Savings time has increased by 0.5 years (six months) compared to 2013, and is 1.1 years longer than five years ago in 2009. Compared to buying a house in Sydney, units remain an attractive option for couples with savings times a full two years less than for a house. Six years to save for a unit in Burwood It would take a couple 6.1 years to save the $124,600 needed to put a deposit on a median priced unit in Burwood, the longest time in Sydney. This is closely followed by Manly (5.9 years), Sydney City (5.8 years), Waverley (5.4 years) and Woollahra (5.4 years). Sydney LGAs where it takes the most time for FTB couples to save a unit deposit
LGA Name
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
Burwood Manly Sydney City Waverley Woollahra Ashfield Randwick Pittwater Ku-Ring-Gai Strathfield
6.1 5.9 5.8 5.4 5.3 5.3 5.2 5.2 5.1 5.1
5.3 5.3 5.3 5.0 4.9 4.7 4.8 4.8 4.7 4.5
4.1 4.9 4.5 4.4 4.4 3.5 4.0 4.6 4.2 3.8
Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
124,600 165,600 131,100 152,000 171,600 114,400 137,100 128,300 144,000 105,000
NSW
13
At least two and a half years to save for a unit in Sydney The shortest savings times for a unit deposit in Sydney are in Wollondilly (2.7 years), Camden and Wyong (both 2.8 years), and both Campbelltown and Penrith (both 2.9 years). At the lower end of the market for units savings times have increased across all 10 of the most affordable LGAs. Sydney LGAs where it takes the least time for FTB couples to save a unit deposit LGA Name
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
2.7 2.8 2.8 2.9 2.9 3.0 3.1 3.1 3.3 3.3
2.3 2.7 2.6 2.5 2.5 2.6 2.8 2.9 3.0 3.1
2.1 2.3 2.3 2.0 2.1 2.1 2.0 2.4 2.7 2.7
Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney Sydney
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
64,000 69,700 58,300 61,700 67,200 67,100 65,800 69,900 71,100 71,600
NSW
Wollondilly Camden Wyong Campbelltown Penrith Liverpool Fairfield Hawkesbury Gosford Blue Mountains
Years to save Unit deposit (June 2014)
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4. Victorian Deposit Trends • First time buyers in Victoria need to save for 4.4 years to raise a deposit to buy a house • In Melbourne, first time buyers need to save for 5.5 years for a house deposit • First time buyer numbers drop sharply by 25.8% in comparison to 2013, coinciding with the removal of the first home owners grant for established homes in July 2013 The average FTB couple in Victoria would need to save for 4.4 years to raise a 20% deposit to buy a house, the equal second longest savings time by state after NSW. This is up by 0.3 years (four months) compared to 2013. The savings time increase in the state has been driven by a strong increase in median house values, which have grown by 7.1% over the past 12 months, the second highest after NSW. This has outpaced income growth for Victorians aged 25-34, who have only seen wages increase by 2.7% in this period. Five and a half years for Melbourne couple to save for home deposit In Melbourne an FTB couple would need to save $126,200 on average for a 20% house deposit, which would take 5.5 years – the second longest period of any capital city. This is up from 5.2 years in June 2013 and from 4.5 years in June 2009.
WHITTLESEA HUME
NILLUMBIK
MARIBYRNONG
MELBOURNE
STO
PO P RT
HOBSONS BAY
YARRA RANGES MAROONDAH
BO RO O
ND WHITEHORSE AR NN IN G A T
EN GL
IP LL HI
WYNDHAM
E UL NY A B MANNINGHAM
IN A DAREB RR YA
MOONEE VALLEY
D
BRIMBANK
N LA RE MO
MELTON
ON
RA EI
KNOX
O GST N
TER GREA ONG EN DAND
IDE
KIN
YS BA
MONASH
FRANKSTON
CASEY
CARDINIA
10 years plus 6 -10 years 4 - 6 years 2 - 4 years
MORNINGTON PENINSULA
Victoria
15
Victorian LGAs with long savings times dominated by Melbourne LGAs In Victoria nine of the 10 LGAs with long savings times are in Melbourne. The longest time to save a house deposit is in Boroondara, where it would take a couple 11.3 years to save for the $299,100 house deposit required. It is followed by Stonnington (10.3 years), Bayside (9.1 years), Port Phillip (8.8 years) and Glen Eira (8.4 years). The only exception is Queenscliffe (7.1 years) in the Barwon region. At a state-wide level across Victoria, a FTB couple would need to save for more than six years for a house deposit in 15% of LGAs (12 out of 79). Victorian LGAs where it takes the most time for FTB couples to save a house deposit
LGA Name
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
11.3 10.3 9.1 8.8 8.4 7.4 7.2 7.2 7.1 6.9
10.1 9.7 8.4 8.0 7.6 7.0 6.3 7.0 6.4 6.2
8.3 9.5 7.1 7.2 7.3 7.1 5.4 6.1 5.8 5.1
Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Barwon Melbourne
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
299,100 281,300 252,200 241,900 199,200 176,400 158,500 185,700 153,600 171,300
Boroondara Stonnington Bayside Port Phillip Glen Eira Melbourne Monash Yarra Queenscliffe Manningham
Less than two years to save deposit in eight Victorian LGAs In 2014, only 10% of Victorian LGAs (8 out of 79) would take less than two years for a FTB couple to save for a house deposit. This is half the 19% of LGAs that took less than two years to save in 2009 (15 out of 79). Victorian LGAs where it takes the least time for FTB couples to save a house deposit
LGA Name
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
1.1 1.2 1.3 1.4 1.8 1.8 1.8 1.9 2.0 2.0
1.1 1.2 1.4 1.2 1.8 1.6 1.8 1.8 2.0 2.0
0.9 1.0 0.9 1.0 1.8 1.3 1.6 1.4 1.9 1.9
Mallee Wimmera Wimmera Wimmera Mallee Loddon Mersey-Lyell Wimmera Western District Ovens-Murray
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
Victoria
Buloke Hindmarsh Yarriambiack West Wimmera Gannawarra Loddon Latrobe Northern Grampians Glenelg Towong
Years to save house deposit (June 2014)
16
Savings needed for 20% house deposit $s (June 2014) 22,200 20,600 20,800 22,300 32,000 31,900 42,500 34,800 41,500 36,900
Only one year to save deposit for house in Buloke The shortest time that couples would have to save for a 20% deposit is in Buloke, where it would take 1.1 years to save. It is followed by Hindmarsh (1.2 years), Yarriambiack (1.3 years), West Wimmera (1.4 years) and Gannawarra (1.8 years). Longer time to save a deposit for FTBs in 84% of Victorian LGAs The time needed to save for a house deposit has increased in 84% of LGAs in Victoria since 2009, and in 96% over five years. Melbourne LGAs with the most time for FTB couples to save a unit deposit LGA Name Bayside Monash Boroondara Glen Eira Whitehorse Manningham Melbourne Yarra Stonnington Port Phillip
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
4.9 4.9 4.8 4.6 4.6 4.4 4.2 4.2 4.2 3.9
4.7 4.6 4.5 4.3 4.2 4.2 4.1 4.1 4.0 3.8
4.0 4.0 4.0 4.0 3.7 3.4 4.1 3.7 4.0 3.4
Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
132,500 104,900 121,000 105,500 103,900 107,800 97,500 105,400 107,500 104,500
Melbourne FTBs would need to save for more than four years for a unit deposit It would take the average FTB couple 4.1 years to save a 20% deposit to buy a unit in Melbourne, with $92,500 needed for a deposit on a median value unit. This is up in comparison to 2013 (3.9 years) and up from 3.5 years in 2009. The LGAs in Victoria where it takes a FTB couple longest to save for a unit deposit are in Monash and Bayside (both 4.9 years), followed by Boroondara (4.8 years) and Whitehorse and Glen Eira (both 4.6 years).
Victoria
17
Melbourne LGAS with the least time for FTB couples to save a unit deposit
LGA Name
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
2.3 2.5 2.5 2.7 2.8 2.8 2.9 2.9 3.3 3.3
2.3 2.5 2.4 2.7 2.8 2.7 2.9 3.0 3.2 3.2
1.9 2.2 2.0 2.3 2.4 2.4 2.4 2.6 2.7 2.8
Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne Melbourne
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
49,400 52,800 56,400 57,600 58,500 59,300 58,800 62,700 69,500 60,700
Melton Cardinia Wyndham Casey Hume Frankston Brimbank Whittlesea Yarra Ranges Greater Dandenong
At least two years to save to buy a unit in Victoria The shortest savings time for a unit deposit in Melbourne is in Melton (2.3 years), followed by Cardinia and Wyndham (both 2.5 years). FTB numbers in Victoria fall The number of FTBs in Victoria has decreased by 25.8% to 21,301, from 28,709, in the year to June 2014. This sharp drop off appears to be linked to the reduction of the First Home Owners Grant in the state, which was removed for established homes in July 2013, and looks to be mirroring the drop in FTB numbers for other states such as NSW and Queensland, which removed their first home owners grants earlier than Victoria.
Annual Number First Time Home Buyers - Victoria (2004 - 2014) 60,000 50,000 40,000 30,000 20,000 10,000 2005
2006
2007
2008
Victoria
2004
18
2009
2010
2011
2012
2013 2014 Source: ABS
5. Queensland Deposit Trends • First time buyers in Queensland need to save for 3.8 years to raise a deposit to buy a house • In Brisbane first time buyers need to save for 4.1 years for a house deposit • It would take a first time buyer couple almost a full year less to save a unit deposit compared to a home deposit in Brisbane The average FTB couple in Queensland would need to save for 3.8 years to raise a 20% deposit to buy a house – the fourth shortest savings period of any state or territory. This is up from 3.7 years in June 2013, while taking less time than in 2009 when it took 3.9 years for Queenslander couples to save for deposits. The increase in savings time for Queenslander FTBs has been driven by an increase in median house values of 5.8% in the past 12 months, while incomes for this group have only grown by 2.6%. However, over the longer term of five years FTB wages have outpaced median house value growth, with wages growing by 19.1% compared to house value growth of 1.9%. Brisbane FTBs need to save for more than four years for deposit In Brisbane, an FTB couple would need to save $93,500 for a 20% house deposit, which would take 4.1 years. This is up from 3.9 years in 2013, though is below the 4.2 years it would have taken couples in 2009.
10 years plus 6 -10 years 4 - 6 years 2 - 4 years
MORETON BAY
BRISBANE REDLAND IPSWICH LOGAN
Queensland
19
Much of Queensland is relatively affordable Compared to the other major eastern seaboard population centres, much of Queensland is relatively affordable for FTBs. One in five or 17% of LGAs in Queensland would take less than two years to save for a house deposit, while a further 76% would take between 2 and 4 years to save a house deposit. At the higher end of the Queensland market there are 7% of LGAs (3 out of 46) which have savings times of more than four years, only a fraction of the 32% of LGAs which would take four or more years to save in NSW. Tourist destinations important to Queensland property market Couples living in the Gold Coast face Queensland’s longest savings time to put a deposit on a house, with the $104,300 deposit taking FTB couples 5.1 years to save. Despite having to save less than $10,000 than FTB couples living in Brisbane City, a lower average wage in the Gold Coast has led to couples here facing the longest saving time in the state. Queensland differs from other eastern seaboard states in that the local areas with the longest savings times are not concentrated in the state’s capital city, but are spread out amongst tourist destinations, such as the Gold Coast, the Sunshine Coast, Cairns and the Whitsundays, indicating how important the tourism industry is to the Queensland property market. Queensland LGAs with the most time for FTB couples to save a house deposit
LGA Name
Gold Coast Brisbane City Sunshine Coast Redland Scenic Rim Cairns Moreton Bay Whitsunday Logan Toowoomba
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
5.1 4.8 4.6
4.7 4.5 4.4
5.2 4.6 5.0
Gold Coast Brisbane West Moreton
QLD QLD QLD
104,300 114,900 92,800
3.9 3.7 3.7 3.6 3.4 3.4 3.2
3.8 3.5 3.5 3.5 3.4 3.3 3.0
4.3 3.9 3.8 3.8 4.6 3.6 2.9
Brisbane South West Darling Downs Brisbane Wide Bay-Burnett Brisbane Wide Bay-Burnett
QLD QLD QLD QLD QLD QLD QLD
88,300 76,600 72,800 79,000 69,600 70,000 66,800
Savings times decrease in most Queensland LGAs Saving for house deposits has become easier in the majority (54%) of Queensland LGAs in comparison to 2013. This contrasts to NSW and Victoria, where savings times have increased in 78% and 84% of LGAs respectively.
20
Paroo in North Western Queensland has the shortest savings time for FTB couples of all LGAs in the state, with couples only needing to save for 1.1 years for the $19,600 deposit. It is followed by Flinders (1.2 years), Quilpie (1.4 years), Murweh Shire (1.5 years) and Blackall Tambo (1.6 years). Queensland LGAs with the least time for FTB couples to save a house deposit Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Paroo Flinders
1.1 1.2
1.2 1.3
0.4 0.8
Quilpie Murweh Shire Blackall Tambo Banana Cloncurry
1.4 1.5 1.6 1.9 2.0
1.4 1.6 1.7 2.0 1.9
0.5 1.3 1.2 2.1 2.1
South Burnett Balonne Charters Towers
2.0 2.1 2.1
2.1 2.1 2.0
2.1 1.8 1.9
LGA Name
Region
State
Savings needed for 20% house deposit $s (June 2014)
North West Darling Downs South West Mackay Central West South West Darling Downs South West South West Darling Downs
QLD QLD
19,600 26,700
QLD QLD QLD QLD QLD
20,700 28,000 28,700 52,200 52,100
QLD QLD QLD
41,300 38,200 47,400
Longest unit savings times in Sunshine Coast The Sunshine Coast in the South Eastern region has the longest savings times for units in Queensland, with FTB couples needing 3.5 years to save the $69,100 required for a unit deposit. It is followed by the Gold Coast and Brisbane City (both 3.4 years). Queensland LGAs with the most time for FTB couples to save a unit deposit Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Sunshine Coast Gold Coast Brisbane City Western Downs
3.5 3.4 3.4 3.0
3.4 3.2 3.3 2.7
3.8 3.7 3.5 2.1
Goondiwindi Somerset Redland Moreton Bay Bundaberg Southern Downs
3.0 3.0 2.8 2.8 2.7 2.6
2.3 2.9 2.8 2.7 2.7 2.7
2.1 2.8 3.1 2.8 2.7 2.4
LGA Name
21
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
South Eastern Gold Coast Brisbane Wide BayBurnett Far North South West Brisbane Brisbane Central West Sunshine Coast
QLD QLD QLD QLD
69,100 67,500 79,100 66,200
QLD QLD QLD QLD QLD QLD
58,400 62,900 63,600 60,100 48,700 44,100
Queensland
Years to save Unit deposit (June 2014)
Time for FTB couples to save a unit deposit in Brisbane
LGA Name Brisbane City Redland Moreton Bay Ipswich Logan
Years to save Years to save Years to save Unit deposit Unit deposit Unit deposit (June 2014) (June 2013) (June 2009) 3.4 2.8 2.8 2.2 2.2
3.3 2.8 2.7 2.1 2.2
3.5 3.1 2.8 2.3 2.4
Region
State
Brisbane Brisbane Brisbane Brisbane Brisbane
QLD QLD QLD QLD QLD
Savings needed for 20% Unit deposit $s (June 2014) 79,100 63,600 60,100 47,600 44,100
One year less saving time for unit than house in Brisbane It would take the average FTB couple 3.2 years to save a 20% deposit to buy a unit in Brisbane, which is slightly below the national average (3.3 years). This is 0.9 years (11 months) shorter than the 4.1 years it would take to save for a house in the state’s capital. By LGA, Brisbane City has the longest saving time (3.4 years), followed by Redland and Moreton Bay (both 2.8 years). Ipswich and Logan have the shortest savings time of 2.2 years for a unit deposit. Annual Number First Time Home Buyers - Queensland (2004 - 2014) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013 2014 Source: ABS
Queensland
FTB numbers in Queensland drop by 10.8% The number of FTBs in Queensland has fallen by 10.8% to 13,455 for the year to June 2014, with a slight uptick from mid-2013 not enough to prevent a year-on-year decline.
22
6. Western Australia Deposit Trends • First time buyers in Western Australia need to save for 3.7 years to raise a deposit to buy a house • In Perth, first time buyers need to save for 3.9 years for a house deposit • A deposit in Perth’s Peppermint Grove would take a FTB couple 21.5 years to save The average FTB couple in Western Australia would need to save for 3.7 years to raise a 20% deposit to buy a house, below the national average of 4.1 years. This is up from 3.6 years in 2013, though is slightly behind the 3.9 years it would have taken in 2009. The increase in savings time for Western Australian FTBs is largely due to an increase in median house prices of 5.8% over the past 12 months, outpacing wage growth of 2.8% for people aged 25-34. However, over five years wage growth has outpaced median house price growth (7.9% vs. 22.6%). This largely explains the decline in savings time over the past five years for Western Australians. Perth FTBs need to save for close to four years to buy first house In Perth a FTB couple would need to save $103,200 for a 20% house deposit, which would take 3.9 years. This is shorter than the capital city average of 4.4 years. While taking longer to save for a deposit than in 2013 (3.8 years), this is slightly lower than in 2009 (4.0 years).
WANNEROO
J OO
SWAN
NDA LUP
VINCENT CAMBRIDGE SUBIACO NEDLANDS CLAREMONT COTTESLOE PEPPERMINT GROVE MOSMAN PARK EAST FREMANTLE
STIRLING
BAYSWATER BASSENDEAN
MUNDARING
PERTH CITY BELMONT
VICTORIA PARK SOUTH PERTH
MELVILLE FREMANTLE
KALAMUNDA
CANNING
GOSNELLS
COCKBURN
ARMADALE
KWINANA 10 years plus 6 -10 years 4 - 6 years
ROCKINGHAM SERPENTINE-JARRAHDALE
2 - 4 years
WA
23
Savings times increase in most WA LGAs In 75% (66 out of 88) of Western Australian LGAs the savings times for FTB couples has increased compared to 2013. However, since 2009 only 34% of LGAs have seen savings times increase, while 66% have seen them decrease. Western Australian LGAs with the most time for FTB couples to save a house deposit Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
Savings needed for 20% house deposit $s (June 2014)
Peppermint Grove
21.5
21.4
20.8
Perth
WA
769,000
Nedlands Cottesloe Perth City Mosman Park Claremont Cambridge East Fremantle Subiaco Vincent
12.2 12.0 11.7 10.2 10.1 9.3 8.5 7.6 7.1
11.8 11.1 11.2 10.5 9.4 8.8 8.1 7.7 6.9
12.9 12.4 11.0 11.8 10.5 9.0 9.2 8.2 6.4
Perth Perth Perth Perth Perth Perth Perth Perth Perth
WA WA WA WA WA WA WA WA WA
342,800 394,200 306,800 261,400 305,500 273,900 248,000 239,800 188,200
LGA Name
Peppermint Grove remains Australia’s least affordable LGA for FTBs Peppermint Grove is the only LGA in Western Australia (and the rest of Australia) where it would take the average FTB couple more than 20 years of saving 20% of their pre-tax income for a deposit on a house. The value of a deposit on a median house is $769,000, and would take 21.5 years to save. The deposit for a house in Peppermint Grove alone is 54% more expensive than the cost of a median value house in Western Australia ($498,500).
WA
Along with Sydney, Perth dominates the ultra-long savings times category in Australia, with six LGAs where it would take a couple more than 10 years to save a deposit. Nedlands has the next longest savings time at 12.2 years, followed by Cottesloe (12.0 years), Perth City (11.7 years) and Mosman Park (10.2 years).
24
Western Australian LGAs with the least time for FTB couples to save a house deposit Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Dundas Coolgardie Gnowangerup
0.4 0.9 1.1
0.5 0.9 1.1
0.4 1.1 1.5
Merredin Narembeen Kellerberrin Wongan-Ballidu Moora Collie Pingelly
1.2 1.3 1.4 1.5 1.5 1.6 1.6
1.3 1.4 1.4 1.4 1.4 1.6 1.5
1.5 1.1 1.5 1.5 1.3 1.6 2.2
LGA Name
Region
State
South Eastern South Eastern Lower Great Southern Midlands Midlands Midlands Midlands Midlands South West Upper Great Southern
WA WA WA
Savings needed for 20% house deposit $s (June 2014) 12,200 29,900 20,700
WA WA WA WA WA WA WA
30,300 20,000 25,200 32,000 31,400 46,700 36,400
Diverse housing market in WA for FTBs While the state may include some of Australia’s least affordable local areas, it also has some of the nation’s most affordable local areas for couples to purchase their first home. Dundas in South Eastern Western Australia has a savings time of 0.4 years (five months) for couples to save the $12,200 required for a deposit. It is followed by Coolgardie (0.9 years), Gnowangerup (1.1 years) and Merredin (1.2 years). In more than one in five (19 out of 88) LGAs in Western Australia it would take FTB couples less than two years to save a deposit. Perth LGAs with the most time for FTB couples to save a unit deposit LGA Name Nedlands Cottesloe Claremont Fremantle Perth East Fremantle Melville Vincent South Perth
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
5.4 5.3 4.8 4.6 4.4 4.3 4.3 4.1 4.1
5.3 5.5 4.4 4.5 4.4 4.2 4.1 3.9 4.0
4.8 6.3 4.2 3.7 4.4 4.3 3.9 3.6 3.7
Perth Perth Perth Perth Perth Perth Perth Perth Perth
WA WA WA WA WA WA WA WA WA
143,000 164,500 140,300 118,100 107,900 123,000 116,900 105,500 113,700
WA
25
Six months quicker to save for unit rather than house in Perth It would take the average FTB couple 3.4 years to save a 20% deposit to buy a unit in Perth, stable compared to 2013 (3.4 years), and up from 2009 (3.1 years). This is slightly ahead of the capital city average (3.3 years), though well behind savings times in Sydney (4.7 years) or Melbourne (4.1 years). For Perth FTBs units can be seen as a relatively quicker way to enter the housing market than saving for their own house, with deposits for units taking 0.5 years (6 months) less time to save for than a house deposit. Despite the relative affordability of units in Perth, there are still some areas with considerable savings times for FTBs. It would take a couple 5.4 years to save a unit deposit in Nedlands, closely followed by Cottesloe (5.3 years), Claremont (4.8 years) and Fremantle (4.6 years). Less than two years for unit in Kwinana The shortest saving time for units in Perth is in Kwinana, where it would take a couple 1.6 years to save the $40,100 deposit. It is the only LGA in Perth where a couple can save a unit deposit in less than two years. It is followed by Armadale (2.1 years), Rockingham (2.2 years), Mundaring and Gosnells (both 2.7 years). Perth LGAS with the least time for FTB couples to save a unit deposit
LGA Name
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
Savings needed for 20% Unit deposit $s (June 2014)
State
Kwinana 1.6 1.5 1.7 Perth WA 40,100 Armadale 2.1 2.0 2.1 Perth WA 53,200 Rockingham 2.2 2.1 2.0 Perth WA 59,500 Mundaring 2.7 2.5 2.7 Perth WA 67,500 Gosnells 2.7 2.6 2.4 Perth WA 65,900 Swan 2.8 2.7 2.6 Perth WA 71,000 Wanneroo 2.9 2.8 2.7 Perth WA 74,400 Cockburn 2.9 2.8 2.7 Perth WA 79,900 Kalamunda 3.0 2.8 2.6 Perth WA 76,300 Bayswater 3.2 3.1 2.7 Perth WA 82,500 FTB numbers in Western Australia rises The number of FTBs in Western Australia has increased by 3.4% in the year to June 2014 to 20,608, up from 19,933 in 2013. This is in stark contrast to NSW, Victoria and Queensland which have all seen considerable declines in the number of FTBs. Annual Number First Time Home Buyers - Western Australia (2004 - 2014)
30,000 25,000 20,000 15,000 10,000 5,000
WA
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: ABS 26
7. South Australian Deposit Trends • First time buyers in South Australia need to save for 3.3 years to raise a deposit to buy a house, the second shortest by state after Tasmania • In Adelaide first time buyers need to save for 3.6 years for a house deposit • In 63% of Adelaide LGAs, first time buyers need to save for more than four years for a house deposit The average FTB couple in South Australia would need to save for 3.3 years to raise a 20% deposit to buy a house, below the national average of 4.1 years. This is stable in comparison to 2013 (3.3 years), and down slightly in comparison to 2009 (3.4 years). Savings times for South Australian couples have remained steady due to median house values and wages for people aged 25-34 growing at similar rates in the past 12 months (3.2% and 3.3% respectively). However, the improved affordability over five years has been driven by wages growing at a faster rate (18.5%) than median house values (6.0%). Adelaide: Australia’s second most affordable capital FTB couples living in Adelaide only need to save for 3.6 years in order to put a deposit on a median valued home, the second shortest savings time in Australia, and below the capital city average of 4.4 years. Savings time in Adelaide is more than three years shorter than Sydney (6.7 years). When considering that the Economist Intelligence Unit (EIU) recently ranked Adelaide as the fifth most liveable city in the world, ahead of Sydney which came seventh, then property prices in Adelaide may represent considerably good value for Australian FTBs. Savings time in Adelaide has increased slightly compared to the same point in 2013 (3.5 years), though is down in comparison to 2009 (3.7 years).
GAWLER
PROSPECT WALKERVILLE
PLAYFORD
NORWOOD PAYNEHAM ST. PETERS SALISBURY PORT ADELAIDE ENFIELD
CAMPBELLTOWN
TEA TREE GULLY
CHARLES STURT ADELAIDE HILLS ADELAIDE WEST TORRENS BURNSIDE UNLEY HOLDFAST BAY
MITCHAM
MARION MOUNT BARKER ONKAPARINGA 10 years plus 6 -10 years 4 - 6 years 2 - 4 years
SA
27
Up to seven years saving time in South Australia’s most unaffordable LGA In Adelaide, it would take longer than four years to save a 20% deposit for a median priced house in 63% of LGAs (12 out of 19). The longest savings times in South Australia are all in Adelaide, with Walkerville (7.3 years), Burnside (6.4 years) and Unley (6.3 years) the LGAs in which it takes the longest for a FTB couple to save. South Australia LGAs where it takes the most time for FTB couples to save a house deposit
LGA Name
Years to save house deposit (June 2014)
Years to save house deposit (June 2013)
Years to save house deposit (June 2009)
Region
State
7.3 6.4 6.3 5.9
7.0 6.1 6.0 5.7
7.4 6.8 6.3 5.6
Adelaide Adelaide Adelaide Adelaide
SA SA SA SA
Savings needed for 20% house deposit $s (June 2014) 166,100 153,300 151,000 132,500
5.7 5.4 5.4 4.5 4.4 4.4
5.6 4.8 5.4 4.5 4.2 4.3
5.4 5.1 5.1 4.7 4.3 4.3
Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide
SA SA SA SA SA SA
126,400 119,300 125,800 102,800 96,900 93,900
Walkerville Burnside Unley Norwood Payneham St Peters Adelaide Prospect Holdfast Bay Mitcham Adelaide Hills West Torrens
Small deposit needed in one quarter of South Australian LGAs In slightly more than one quarter (27%) of South Australian LGAs (17 out of 63), it would take the average FTB couple less than two years to save for a house deposit. This is up compared to 2009, when it would have taken less than two years to save in 22% of LGAs (14 out of 63). The smallest times to save a deposit are in Peterborough (1.0 years), Coober Pedy and Southern Mallee (both 1.1 years), and Flinders Ranges (1.3 years). South Australia LGAs where it takes the least time for FTB couples to save a house deposit
LGA Name Peterborough Coober Pedy Southern Mallee
Years to save house deposit (June 2013) 0.9 1.1 1.2
Years to save house deposit (June 2009) 0.9 1.0 1.0
1.3 1.4
1.2 1.4
1.4 1.4 1.5 1.5 1.6
Region
State
Savings needed for 20% house deposit $s (June 2014)
SA SA SA
14,900 19,400 17,700
1.5 1.7
Northern Northern Murray Lands Northern Northern
SA SA
26,300 26,700
1.6 1.4
1.5 1.3
Northern Northern
SA SA
27,100 29,100
1.6 1.7 1.6
2.0 1.7 1.8
Northern South East Northern
SA SA SA
33,100 27,600 38,500
SA
Flinders Ranges Port Pirie City And Dists Northern Areas Mount Remarkable Port Augusta Wattle Range Whyalla
Years to save house deposit (June 2014) 1.0 1.1 1.1
28
Most LGAs in South Australia have longer savings times than in 2013 The time to save a house deposit has risen in 54% of LGAs in South Australia over the past year, while in contrast falling in 75% of LGAs over the five years since 2009. Adelaide LGAs by savings times for FTB couples to save for a unit
LGA Name
Walkerville Adelaide City Norwood Payneham St Peters Burnside Holdfast Bay Unley Charles Sturt Prospect Adelaide Hills Marion Mitcham Campbelltown (Sa) West Torrens Port Adelaide Enfield Tea Tree Gully Onkaparinga Salisbury Gawler Playford
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
3.4 3.2 3.1
3.2 3.2 3.0
3.5 3.4 3.0
Adelaide Adelaide Adelaide
SA SA SA
Savings needed for 20% Unit deposit $s (June 2014) 74,400 69,800 67,700
2.9 2.9 2.9 2.8 2.7 2.6 2.6 2.6 2.5 2.5 2.4 2.3 2.3 2.0 1.8 1.7
2.9 2.9 2.8 2.8 2.6 2.6 2.5 2.5 2.6 2.5 2.3 2.3 2.2 2.1 1.7 1.6
3.0 3.2 2.9 2.9 2.6 2.8 2.8 2.6 2.7 2.7 2.6 2.4 2.4 2.2 2.0 1.7
Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide Adelaide
SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA
68,500 67,100 67,300 60,600 57,700 56,700 56,300 56,800 54,800 53,500 49,000 48,700 45,400 41,000 37,300 32,200
Unit deposit can be saved in one year less than house deposit in Adelaide A median value unit in Adelaide would take an average FTB couple 2.7 years to save a deposit. This is the second shortest savings time of all Australian capitals, and almost a full year shorter than the time taken to save a house deposit in Adelaide (3.6 years). The local area with the longest savings time for an apartment in Adelaide is Walkerville, in which it would take a FTB couple 3.4 years to save. Adelaide City (3.2 years) and Norwood Payneham St Peters (3.1 years) have the next longest savings times. There are two LGAs in Adelaide where FTBs could save a unit deposit in less than two years, Playford (1.7 years) and Gawler (1.8 years).
SA
29
FTB numbers in SA increase by 16% in the past year South Australia has seen the largest increase in the number of FTBs over the past year of all states and territories, with numbers increasing by 16.3% in the year to June 2013 to 7,369 from 6,337 in 2013. Annual Number First Time Home Buyers - South Australia (2004 - 2014) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2004
2005
2006
2007
2008
SA
-
30
2009
2010
2011
2012
2013 2014 Source: ABS
8. ACT Deposit Trends • Four years for ACT couples to save more than $100,000 needed for house deposit • ACT FTBs need to save for 3.1 years for a unit deposit • In 43% of ACT districts tracked, first time buyers need to save for more than four years for a house deposit The average FTB couple in the ACT would need to save for 4.0 years to raise a 20% deposit to buy a house, slightly shy of the national average of 4.1 years. Savings times in the ACT have remained stable over the past year due to relatively flat median property value growth in the territory, coupled with wage growth which is lower than the national average. Time to save a house deposit for FTB couples in the ACT
LGA Name South Canberra North Canberra Woden Weston Creek Belconnen Gungahlin Tuggeranong
Years to save house deposit (June 2014) 6.0
Years to save house deposit (June 2013) 6.2
Years to save house deposit (June 2009) 6.1
Region
State
ACT
ACT
Savings needed for 20% house deposit $s (June 2014) 191,500
5.2
5.1
4.6
ACT
ACT
143,700
4.9 3.9 3.7 3.6 3.6
5.0 3.9 3.8 3.8 3.7
4.6 3.6 3.5 3.7 3.4
ACT ACT ACT ACT ACT
ACT ACT ACT ACT ACT
135,800 110,200 95,600 100,400 93,400
Longest savings periods in South Canberra At a local level in the ACT it would take a FTB couple 6.0 years to save a 20% deposit in South Canberra - the longest period of any ACT LGA. South Canberra is followed by North Canberra (5.2 years) and Woden (4.9 years). Most ACT LGAs saving times shorter in 2014 Compared to 2013 the time taken for FTBs in the ACT to save deposits has decreased in five of the seven regions analysed, with North Canberra the only LGA to have savings time increase, while it was stable in Weston Creek. Conversely, in comparison to 2009, five of the seven areas now take longer to save for. FTB numbers in the ACT fall by a quarter in past financial year The number of FTBs in the ACT has fallen by 26.4% in the year to June 2014 to 1,149, compared to 1,562 in 2014. This is the second largest decline of all states and territories after the Northern Territory which fell by 27.8%. Like Victoria, the drop off in the ACT has coincided with the removal for the first home owners grant for established homes, which was dropped in September 2013.
ACT
31
Annual Number First Time Home Buyers - Australian Capital Territory (2004 - 2014) 3,500 3,000 2,500 2,000 1,500 1,000 500 -
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013 2014 Source: ABS
ACT FTBs would need to save for 3.1 years for a unit deposit It would take the average FTB couple 3.1 years to save a 20% deposit to buy a unit in ACT, slightly below the capital city average of 3.3 years. It would take the longest to save a unit deposit in North Canberra (3.1 years), with the shortest savings time in Gungahlin (2.7 years). Time to save a unit deposit for FTB couples in the ACT
LGA Name North Canberra South Canberra Belconnen Tuggeranong Woden Weston Creek Gungahlin
Years to save Unit deposit (June 2014)
Years to save Unit deposit (June 2013)
Years to save Unit deposit (June 2009)
Region
State
Savings needed for 20% Unit deposit $s (June 2014)
3.1
3.2
3.2
ACT
ACT
84,800
3.0
3.1
3.0
ACT
ACT
94,800
2.9 2.9 2.8 2.8 2.7
3.0 3.0 2.9 2.9 2.8
2.9 2.8 2.8 2.8 2.6
ACT ACT ACT ACT ACT
ACT ACT ACT ACT ACT
75,300 73,900 77,100 79,100 73,400
ACT
32
9. Editor’s Notes The time taken for first time buyers to save a deposit has been calculated by comparing house and unit prices with income data for potential first time buyers (represented by 25-34 year olds) at a local government area level. Calculations are based on first time buyers saving 20% of a median priced house or unit price, including available first home owners’ grants. For the 2013 figures the first home owners grant has been eliminated across most states for established. According to the ABS, 83.5% of all dwelling sales in Australia were for established homes in the year to June 2014. As such the first time home owner grant value for established homes has been applied throughout this report. Some 74.1% of dwelling sales are in NSW, Victoria and Queensland, which now have no grant for established homes. This value has been applied to the Australia wide calculation for homes and units. For details about how the grant has been applied by state see table below.
State
Date FTB grant ends
Grant value 2014 (established homes)
ACT NSW NT QLD SA Tas VIC WA
Sep-2013 Oct-2012 Ongoing Oct-2012 Jun-2014 Jul-2014 Jul-2013 Ongoing
$0 $0 $12,000-$25,000* $0 $5,000 $7,000 $0 $3,000
Grant cap value 2014
$600,000 $575,000 none $750,000
Grant value 2009
Grant cap value 2009
$7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000 $7,000
none none none $1,000,000 $575,000 none none None
*Grant value dependent on whether house is in an urban or rural area. Rural areas receive the higher $25,000 grant, while urban areas receive the lower $12,000 grant.
Deposit savings times have been calculated on the basis of a first time buyer couple setting aside 20% of their combined pre-tax income annually. The calculation assumes the savings from their salary are deposited in an online savings account each month and earn interest on this basis. Interest earned is assumed to be taxed at an individual’s marginal tax rate. Income levels for 25-34 year olds have been used as a proxy for potential first time buyer incomes. Income data has been sourced at a local government area level. Average income data by local government area has been sourced from the Australian Bureau of Statistics (ABS) Wage and Salary Earner Statistics for Small Areas. Income levels for 2014 and 2013 have been estimated using 2011 income by age and local government areas from Wage and Salary Earner Statistics for Small Areas, and ABS wage price index increases by state. The 2009 income levels have been taken from Wage and Salary Earner Statistics for Small Areas for 2008/09. Median house and unit prices have been sourced from Residex and are for the years June 2009, June 2013 and June 2014. Data for industry average online savings account rates has been sourced from the RBA.
33
Notes
Data on the number of first time buyers and proportion of established home sales has been sourced from the ABS Housing Finance series.
Data from previous reports may not match data published in this report due to updated data from the ABS, Residex and the RBA.
Notess
Please note that tables may not sum due to rounding.
34
10. Full List of Deposit Savings Time State
Belconnen
ACT
$95,600
3.71
$75,300
2.94
Gungahlin
ACT
$100,400
3.64
$73,400
2.68
North Canberra
ACT
$143,700
5.20
$84,800
3.12
South Canberra
ACT
$191,500
5.99
$94,800
3.04
Tuggeranong
ACT
$93,400
3.60
$73,900
2.87
Weston Creek
ACT
$110,200
3.91
$79,100
2.83
Woden
ACT
$135,800
4.91
$77,100
2.84
Albury
NSW
$55,500
2.73
$37,600
1.86
Armidale Dumaresq
NSW
$64,800
3.60
$49,100
2.75
Ashfield
NSW
$232,500
10.28
$114,400
5.28
Ballina
NSW
$95,300
5.21
$71,300
3.94
Balranald
NSW
$27,200
1.63
Bankstown
NSW
$142,000
6.32
$85,300
3.88
Bathurst Regional
NSW
$64,700
3.00
$47,200
2.21
Bega Valley
NSW
$69,700
3.82
$47,700
2.64
Bellingen
NSW
$74,800
4.48
Berrigan
NSW
$37,200
2.02
$32,900
1.79
Blacktown
NSW
$100,500
4.46
$75,600
3.38
Bland
NSW
$30,600
1.44
Blayney
NSW
$48,800
2.10
Blue Mountains
NSW
$88,300
3.99
$71,600
3.26
Bogan
NSW
$30,200
1.31
Bombala
NSW
$31,300
1.66
Boorowa
NSW
$37,700
2.06
Botany Bay
NSW
$214,300
8.52
$107,400
4.42
Bourke
NSW
$27,000
1.27
Broken Hill
NSW
$25,300
1.20
Burwood
NSW
$243,300
11.42
$124,600
6.12
Byron
NSW
$116,100
7.63
$92,400
6.17
Cabonne
NSW
$39,600
1.86
Camden
NSW
$100,800
4.02
$69,700
2.81
Campbelltown
NSW
$81,800
3.78
$61,700
2.87
Canada Bay
NSW
$267,900
9.15
$137,800
4.88
Canterbury
NSW
$178,800
8.54
$79,500
3.95
Carrathool
NSW
$22,300
1.33
Central Darling
NSW
$13,600
0.69
Cessnock
NSW
$56,000
2.36
$54,500
2.30
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Years to save house deposit (June 2014)
35
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013)
Full List
LGA
Savings needed for 20% house deposit $s (June 2014)
Full List
LGA
State
Savings needed for 20% house deposit $s (June 2014)
Auburn Kogarah Clarence Valley Cobar Coffs Harbour Coolamon Cooma-Monaro Coonamble Cootamundra Corowa Shire Cowra Deniliquin Dubbo Dungog Eurobodalla Fairfield Forbes Gilgandra Glen Innes Severn Gloucester Gosford Goulburn Mulwaree Great Lakes Greater Taree Griffith Gundagai Gunnedah Guyra Gwydir Harden Hawkesbury Hay Holroyd Hornsby Hunters Hill Hurstville Inverell Jerilderie Junee Kempsey Kiama Ku-Ring-Gai Kyogle
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
$149,100 $228,400 $57,200 $45,000 $77,200 $30,100 $41,600 $23,400 $38,800 $44,800 $37,800 $36,800 $58,900 $57,500 $71,700 $112,200 $36,500 $32,200 $38,500 $48,900 $98,700 $59,600 $72,500 $52,700 $50,500 $35,000 $54,300 $39,400 $32,800 $30,500 $92,700 $26,100 $125,800 $187,100 $377,900 $192,400 $42,600 $29,300 $35,900 $50,800 $120,400 $292,700 $43,600
Please note: cells left blank where data is unavailable.
36
Years to save house deposit (June 2014) 7.19 9.69 3.29 1.64 4.29 1.62 2.06 1.23 2.01 2.38 2.14 1.90 2.85 2.46 4.41 5.24 1.94 1.66 2.26 2.32 4.47 2.90 3.92 2.99 2.70 1.81 2.48 2.56 1.77 1.76 4.13 1.38 5.59 7.16 11.65 8.31 2.44 1.60 1.85 2.94 5.23 9.99 2.58
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $91,900 $113,400 $53,400
4.53 5.01 3.07
$52,300
2.94
$38,200
2.04
$30,200 $44,900
1.56 2.18
$48,500 $65,800
3.02 3.13
$71,100 $45,500 $55,700 $39,400 $44,000
3.26 2.23 3.03 2.25 2.36
$69,900
3.14
$79,500 $115,800 $143,500 $103,500
3.59 4.53 4.70 4.62
$47,200 $84,100 $144,000
2.73 3.70 5.12
State
Lachlan Lake Macquarie Lane Cove Leeton Leichhardt Lismore Lithgow Liverpool Liverpool Plains Lockhart Maitland Manly Marrickville Mid-Western Regional Moree Plains Mosman Murray Murrumbidgee Muswellbrook Nambucca Narrabri Narrandera Narromine Newcastle North Sydney Oberon Orange Palerang Parkes Parramatta Penrith Pittwater Port MacquarieHastings Port Stephens Queanbeyan Randwick Richmond Valley Rockdale Ryde Shellharbour Shoalhaven
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
$26,300 $84,900 $338,200 $35,400 $235,400 $62,500 $46,200 $108,800 $34,600 $29,900 $72,300 $335,500 $202,200 $66,300
1.50 3.64 10.63 1.86 7.21 3.67 1.93 4.74 1.71 1.60 2.93 11.41 8.11 2.63
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW
$40,300 $492,800 $60,000 $30,300 $60,500 $58,300 $58,500 $30,800 $38,300 $93,000 $339,800 $47,500 $64,200 $86,900 $43,300 $148,800 $91,900 $228,400 $80,400
2.00 14.25 3.03 1.74 2.09 3.56 2.80 1.76 2.03 3.89 10.17 2.17 2.74 3.57 2.01 6.63 3.96 8.94 4.13
NSW NSW NSW NSW NSW NSW NSW NSW
$78,300 $102,000 $300,800 $50,900 $194,400 $233,600 $84,400 $70,700
3.56 3.96 10.84 2.93 8.56 9.07 3.68 3.60
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Years to save house deposit (June 2014)
37
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $71,200 $120,000 $34,000 $148,700 $47,900
3.07 3.99 1.78 4.65 2.84
$67,100
2.97
$59,200 $165,600 $109,100 $63,000
2.41 5.91 4.51 2.50
$146,100 $42,700
4.59 2.17
$45,200 $45,900
1.57 2.82
$77,600 $156,100
3.26 4.89
$47,500
2.04
$91,700 $67,200 $128,300 $59,600
4.17 2.92 5.19 3.09
$64,400 $61,600 $137,100 $57,800 $106,800 $112,000 $65,600 $54,300
2.94 2.42 5.19 3.32 4.86 4.52 2.88 2.79
Full List
LGA
Savings needed for 20% house deposit $s (June 2014)
Full List
LGA
State
Savings needed for 20% house deposit $s (June 2014)
Singleton Snowy River Strathfield Sutherland Shire Sydney Tamworth Regional Temora Tenterfield The Hills Shire Tumbarumba Tumut Shire Tweed Upper Hunter Shire Upper Lachlan Shire Uralla Urana Wagga Wagga Wakool Walcha Walgett Warren Warringah Warrumbungle Shire Waverley Weddin Wellington Wentworth Willoughby Wingecarribee Wollondilly Wollongong Woollahra Wyong Yass Valley Young Alice Springs Barkly Coomalie Darwin Katherine Litchfield Balonne Banana
NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW NT NT NT NT NT NT QLD QLD
$75,900 $58,300 $295,400 $176,600 $229,400 $55,000 $36,200 $38,100 $177,300 $31,400 $42,100 $89,200 $59,300 $53,000 $47,200 $17,500 $58,300 $35,000 $37,800 $29,600 $29,400 $226,200 $31,100 $377,600 $31,200 $29,800 $39,400 $324,600 $93,300 $87,000 $103,200 $479,100 $76,800 $80,700 $44,100 $90,000 $27,200 $38,300 $123,800 $49,600 $107,500 $38,200 $52,200
Please note: cells left blank where data is unavailable.
38
Years to save house deposit (June 2014) 2.41 3.59 13.34 6.48 9.77 2.80 1.98 2.34 6.56 1.75 2.10 4.68 2.50 2.64 2.85 0.95 2.77 1.90 2.35 1.62 1.70 8.47 1.80 12.58 1.82 1.54 2.16 10.77 4.47 3.64 4.42 13.84 3.72 3.47 2.48 4.09 1.43 1.93 5.27 2.21 4.21 2.07 1.86
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $61,200 $44,600 $105,000 $109,700 $131,100 $41,700
1.95 2.77 5.09 4.11 5.78 2.13
$124,900
4.69
$37,900 $63,500 $47,600
1.89 3.37 2.02
$50,000
2.38
$115,300
4.47
$152,000
5.39
$144,500 $84,300 $64,000 $75,400 $171,600 $58,300 $64,500 $43,000 $67,700
5.04 4.05 2.70 3.26 5.34 2.85 2.79 2.42 3.10
$89,000 $32,600
3.84 1.46
State
Barcaldine Blackall Tambo Brisbane Bundaberg Burdekin Cairns Carpentaria Cassowary Coast Central Highlands (Qld) Charters Towers Cloncurry Cook Flinders Fraser Coast Gladstone Gold Coast Goondiwindi Gympie Hinchinbrook Ipswich Isaac Lockyer Valley Logan Longreach Mackay Moreton Bay Mount Isa Murweh Shire North Burnett Paroo Quilpie Redland Rockhampton Scenic Rim Somerset South Burnett Southern Downs Sunshine Coast Tablelands Toowoomba Townsville Weipa Town
QLD QLD QLD QLD QLD QLD QLD QLD QLD
$39,500 $28,700 $114,900 $55,100 $44,800 $72,800 $43,000 $49,700 $67,500
2.13 1.62 4.81 3.04 2.33 3.66 2.10 2.95 2.17
QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD QLD
$47,400 $52,100 $47,400 $26,700 $56,000 $74,200 $104,300 $49,700 $52,300 $47,400 $59,400 $83,200 $54,500 $70,000 $45,500 $74,900 $79,000 $75,200 $28,000 $33,500 $19,600 $20,700 $88,300 $62,000 $76,600 $54,400 $41,300 $49,400 $92,800 $59,100 $66,800 $68,900 $91,900
2.08 1.95 2.33 1.22 2.95 2.61 5.12 2.55 2.79 2.26 2.76 2.24 3.07 3.38 2.27 2.61 3.63 2.51 1.47 2.32 1.08 1.37 3.91 2.62 3.74 2.59 1.99 2.94 4.64 3.21 3.22 2.87 3.22
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Years to save house deposit (June 2014)
39
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013)
$79,100 $48,700 $43,400 $39,800
3.36 2.69 2.26 2.03
$43,300 $65,700
2.58 2.12
$48,300 $67,300 $67,500 $58,400 $48,700
2.55 2.37 3.36 2.98 2.60
$47,600 $79,100 $43,600 $44,100
2.22 2.13 2.47 2.15
$60,500 $60,100 $66,500
2.12 2.78 2.22
$63,600 $61,800 $43,300 $62,900 $32,000 $44,100 $69,100 $41,200 $49,800 $50,300
2.84 2.61 2.14 2.98 1.55 2.63 3.49 2.26 2.42 2.11
Full List
LGA
Savings needed for 20% house deposit $s (June 2014)
Full List
LGA
State
Savings needed for 20% house deposit $s (June 2014)
Western Downs Whitsunday Adelaide Adelaide Hills Alexandrina Barossa Barunga West Burnside Campbelltown (Sa) Ceduna Charles Sturt Clare And Gilbert Valleys Cleve Coober Pedy Copper Coast Elliston Flinders Ranges Franklin Harbour Gawler Goyder Grant Holdfast Bay Kangaroo Island Kingston (Sa) Light Lower Eyre Peninsula Loxton Waikerie Mallala Marion Mid Murray Mitcham Mount Barker Mount Gambier Mount Remarkable Murray Bridge Naracoorte And Lucindale Northern Areas Norwood Payneham St Peters Onkaparinga Peterborough
QLD QLD SA SA SA SA SA SA SA SA SA SA
$56,300 $69,600 $126,400 $96,900 $59,900 $57,600 $39,900 $153,300 $87,700 $47,300 $91,300 $43,900
2.57 3.41 5.73 4.39 3.12 2.81 2.22 6.41 4.01 2.68 4.18 2.21
SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA
$28,800 $19,400 $45,600 $37,700 $26,300 $41,200 $54,800 $29,600 $40,100 $125,800 $42,100 $38,400 $60,300 $47,000 $31,600 $61,200 $81,100 $35,600 $102,800 $69,500 $39,800 $29,100 $41,300 $38,600
1.69 1.07 2.46 2.19 1.26 1.75 2.56 1.72 2.13 5.40 2.60 2.09 2.96 2.74 1.87 3.00 3.69 2.04 4.55 3.27 2.09 1.41 2.52 2.15
SA SA
$27,100 $132,500
1.36 5.89
SA SA
$61,300 $14,900
3.02 0.95
Please note: cells left blank where data is unavailable.
40
Years to save house deposit (June 2014)
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $66,200 $51,200 $69,800 $56,700 $44,700 $38,300
3.01 2.53 3.23 2.61 2.35 1.88
$68,500 $54,800
2.95 2.54
$60,600
2.81
$51,700
2.78
$37,300
1.76
$67,100
2.94
$56,300
2.59
$56,800 $52,600 $30,400
2.56 2.49 1.60
$35,400
2.16
$67,700
3.08
$45,400
2.25
LGA
SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA SA TAS TAS TAS TAS TAS
$119,300 $33,000 $60,800 $80,800 $52,500 $17,700 $46,400 $25,600 $68,300 $27,100 $51,700 $151,000 $62,600 $29,800 $166,100 $27,600 $93,900 $38,500 $59,500 $45,100 $38,600 $46,600 $37,300 $45,100 $26,700
5.41 2.05 3.52 2.38 2.61 1.12 2.49 1.58 3.16 1.62 2.73 6.31 3.47 1.59 7.32 1.54 4.36 1.57 3.46 2.53 2.33 2.49 1.88 2.32 1.56
TAS TAS TAS TAS TAS TAS TAS
$32,600 $65,500 $36,900 $41,000 $32,400 $28,800 $53,400
1.79 3.10 2.17 2.21 1.90 1.51 3.12
TAS TAS TAS TAS
$46,000 $92,300 $51,300 $47,700
2.45 4.55 3.10 2.64
State
Please note: cells left blank where data is unavailable.
Years to save house deposit (June 2014) 2.10 3.46 1.50 2.68 1.35
41
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $32,200 1.72 $49,000 2.37 $46,000
2.32
$57,700
2.68
$41,000
2.05
$48,700
2.27
$67,300 $46,000
2.90 2.57
$74,400
3.39
$53,500 $33,000 $41,200
2.52 1.35 2.42
$32,300 $28,600 $33,800
1.73 1.45 1.75
$48,700
2.32
$31,700
1.72
$30,600
1.81
$33,600 $57,400 $31,800
1.80 2.87 1.94
Full List
Playford Port Adelaide Enfield Port Augusta Port Lincoln Port Pirie City And Dists Prospect Renmark Paringa Robe Roxby Downs Salisbury Southern Mallee Streaky Bay Tatiara Tea Tree Gully The Coorong Tumby Bay Unley Victor Harbor Wakefield Walkerville Wattle Range West Torrens Whyalla Yankalilla Yorke Peninsula Break O’Day Brighton Burnie Central Coast Central Highlands (Tas) Circular Head Clarence Derwent Valley Devonport Dorset George Town Glamorgan/Spring Bay Glenorchy Hobart Huon Valley Kentish
Savings needed for 20% house deposit $s (June 2014) $39,500 $72,100 $33,100 $53,400 $26,700
Full List
LGA Kingborough Latrobe (Tas) Launceston Meander Valley Northern Midlands Sorell Southern Midlands Tasman Waratah/Wynyard West Coast West Tamar Alpine Ararat Ballarat Banyule Bass Coast Baw Baw Bayside Benalla Boroondara Brimbank Buloke Campaspe Cardinia Casey Central Goldfields Colac-Otway Corangamite Darebin East Gippsland Frankston Gannawarra Glen Eira Glenelg Golden Plains Greater Bendigo Greater Dandenong Greater Geelong Greater Shepparton Hepburn Hindmarsh Hobsons Bay Horsham
State
Savings needed for 20% house deposit $s (June 2014)
Years to save house deposit (June 2014)
TAS TAS TAS TAS TAS TAS TAS TAS TAS TAS TAS VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
$69,200 $55,100 $44,800 $52,000 $46,600 $48,000 $43,300 $36,300 $41,100 $10,600 $51,600 $53,300 $36,400 $57,500 $122,100 $66,800 $60,400 $252,200 $45,000 $299,100 $77,300 $22,200 $47,200 $74,100 $75,500 $39,400 $55,900 $39,500 $141,700 $51,500 $78,200 $32,000 $199,200 $41,500 $71,500 $60,700 $88,700 $76,800 $47,900 $67,600 $20,600 $115,100 $43,500
3.34 2.84 2.36 2.70 2.63 2.59 2.54 2.65 2.07 0.40 2.61 3.07 2.05 2.85 5.10 3.22 2.96 9.07 2.52 11.32 3.74 1.15 2.51 3.44 3.54 2.36 2.93 2.20 6.56 2.84 3.67 1.78 8.36 2.01 3.42 3.06 4.78 3.57 2.60 3.78 1.18 4.91 2.32
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42
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $45,800 $38,700 $32,300 $36,600 $30,400 $35,000
2.23 2.01 1.71 1.92 1.73 1.90
$34,000
1.72
$34,100 $41,700 $32,500 $44,000 $93,000 $56,600 $46,000 $132,500 $32,300 $121,000 $58,800
1.74 2.42 1.83 2.19 3.92 2.74 2.27 4.93 1.82 4.84 2.86
$40,600 $52,800 $57,600 $37,300 $49,600
2.16 2.47 2.72 2.24 2.60
$78,700 $41,300 $59,300
3.73 2.29 2.80
$105,500 $29,200
4.57 1.42
$46,500 $60,700 $57,900 $38,000 $52,400
2.35 3.31 2.71 2.07 2.95
$79,600 $37,100
3.44 1.98
LGA
Years to save house deposit (June 2014)
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
$70,000 $55,400 $128,700 $105,100 $42,500 $31,900 $95,500 $171,300 $64,900 $128,500 $108,900 $176,400 $65,500 $42,500 $61,000 $44,700 $158,500 $148,600 $68,000 $125,900 $101,700
3.30 2.82 5.50 4.56 1.85 1.84 4.24 6.89 3.75 5.70 4.76 7.42 3.00 2.36 2.84 2.47 7.19 5.96 3.11 5.69 4.79
VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC VIC
$71,400 $63,700 $59,600 $124,400 $34,800 $241,900 $41,300 $153,600 $54,900 $42,100 $281,300 $47,000 $120,700 $40,600 $36,900 $49,800 $63,800 $47,400 $22,300 $154,000 $79,300
3.92 3.44 3.18 5.17 1.86 8.76 2.29 7.09 2.71 2.27 10.33 2.45 5.37 2.34 2.01 2.65 3.15 2.10 1.43 6.65 3.65
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43
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $58,500 $39,800 $88,100 $79,400 $33,900
2.77 2.04 3.82 3.48 1.48
$63,800 $107,800 $54,500 $75,600 $78,300 $97,500 $49,400 $30,600 $47,100 $35,300 $104,900 $86,800 $51,000 $82,600 $72,000
2.87 4.43 3.16 3.42 3.46 4.22 2.27 1.71 2.20 1.96 4.85 3.56 2.34 3.79 3.43
$57,300 $62,900 $40,100 $88,800
3.17 3.40 2.16 3.73
$104,500
3.94
$88,500 $46,800 $40,800 $107,500 $36,800 $98,200 $37,500
4.19 2.32 2.20 4.16 1.93 4.40 2.16
$37,700 $46,700 $37,800
2.02 2.32 1.68
$103,900 $62,700
4.57 2.90
Full List
Hume Indigo Kingston (Vic) Knox Latrobe Loddon Macedon Ranges Manningham Mansfield Maribyrnong Maroondah Melbourne Melton Mildura Mitchell Moira Monash Moonee Valley Moorabool Moreland Mornington Peninsula Mount Alexander Moyne Murrindindi Nillumbik Northern Grampians Port Phillip Pyrenees Queenscliffe South Gippsland Southern Grampians Stonnington Strathbogie Surf Coast Swan Hill Towong Wangaratta Warrnambool Wellington (Vic) West Wimmera Whitehorse Whittlesea
State
Savings needed for 20% house deposit $s (June 2014)
Full List
LGA Wodonga Wyndham Yarra Yarra Ranges Yarriambiack Albany Armadale Ashburton Augusta-Margaret River Bassendean Bayswater Belmont Beverley Boddington Boyup Brook BridgetownGreenbushes Broome Bunbury Busselton Cambridge Canning Capel Carnarvon Chittering Claremont Cockburn Collie Coolgardie Coorow Corrigin Cottesloe Cunderdin Dandaragan Dardanup Denmark Derby-West Kimberley Donnybrook-Balingup Dowerin Dundas East Fremantle East Pilbara
VIC VIC VIC VIC VIC WA WA WA WA
Savings needed for 20% house deposit $s (June 2014) $52,900 $68,900 $185,700 $88,000 $20,800 $70,800 $72,400 $132,800 $95,600
WA WA WA WA WA WA WA
$105,300 $117,400 $117,500 $46,300 $55,600 $36,200 $55,800
WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA
State
Years to save house deposit (June 2014) 2.59 3.05 7.17 4.11 1.33 3.55 2.89 3.50 5.06
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $37,400 1.85 $56,400 2.51 $105,400 4.17 $69,500 3.27 $53,800 $53,200
2.72 2.13
$66,200
3.55
4.16 4.54 4.55 2.27 1.99 1.70 2.51
$82,400 $82,500 $86,100
3.28 3.23 3.37
$125,200 $67,100 $93,200 $273,900 $119,500 $78,800 $59,500 $90,200 $305,500 $108,800 $46,700 $29,900 $55,500 $28,100 $394,200 $35,500 $70,400 $70,800 $82,200 $80,300
5.57 2.62 4.27 9.33 4.84 3.09 3.40 3.35 10.08 3.97 1.56 0.88 2.68 1.71 12.02 1.78 3.22 2.47 4.64 3.94
$83,700 $59,400 $73,500 $98,400 $90,400
3.78 2.32 3.39 3.52 3.70
$140,300 $79,900 $41,300
4.84 2.94 1.38
$164,500
5.31
$55,800 $69,200
1.95 3.93
$63,000 $24,400 $12,200 $248,000 $165,300
3.23 1.67 0.41 8.46 4.60
$123,000
4.34
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44
LGA
Years to save house deposit (June 2014)
WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA WA
$66,100 $90,600 $151,600 $82,800 $20,700 $85,800 $71,200 $69,400 $52,800 $118,900 $97,900 $65,100 $34,100 $25,200 $41,500 $65,000 $76,000 $46,400 $170,300 $30,300 $31,400 $261,400 $95,700 $73,400 $20,000 $39,900 $342,800 $48,200 $57,900 $769,000 $306,800 $36,400 $41,600 $168,900 $38,100 $46,000 $79,700 $127,200 $87,500
3.03 4.16 5.87 4.29 1.06 3.52 2.62 2.76 3.07 4.45 3.81 2.15 1.73 1.44 2.27 2.56 2.80 2.56 6.10 1.24 1.50 10.18 3.73 2.65 1.29 2.11 12.15 2.09 2.72 21.51 11.73 1.61 2.26 4.68 2.02 1.84 2.88 3.30 3.27
WA WA WA
$201,200 $145,900 $239,800
7.04 5.42 7.63
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45
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $57,300
2.64
$118,100 $72,000
4.62 3.75
$65,900 $50,000
2.72 1.86
$88,500 $76,300 $51,100
3.35 2.99 1.69
$40,100 $60,700 $34,800 $116,900
1.59 2.25 1.93 4.25
$81,100 $67,500 $45,900
3.35 2.66 1.67
$143,000
5.38
$107,900
4.39
$128,700
3.59
$59,500 $110,400
2.16 2.88
$113,700 $89,500 $113,900
4.08 3.38 3.75
Full List
Esperance Exmouth Fremantle Gingin Gnowangerup Gosnells Harvey Irwin Jerramungup Joondalup Kalamunda Kalgoorlie/Boulder Katanning Kellerberrin Kojonup Kwinana Mandurah Manjimup Melville Merredin Moora Mosman Park Mundaring Murray (Wa) Narembeen Narrogin Nedlands Northam Northampton Peppermint Grove Perth City Pingelly Plantagenet Port Hedland Quairading Ravensthorpe Rockingham Roebourne SerpentineJarrahdale South Perth Stirling Subiaco
State
Savings needed for 20% house deposit $s (June 2014)
LGA
WA WA WA WA WA WA WA WA WA WA
$58,200
State
Years to save house deposit (June 2014) 3.44 2.14 5.55 7.14 1.67 3.44 1.85 1.47 3.62 2.57
Full List
Swan Toodyay Victoria Park Vincent Wagin Wanneroo Waroona Wongan-Ballidu Wyndham-East Kimberley York
Savings needed for 20% house deposit $s (June 2014) $86,800 $57,400 $139,700 $188,200 $30,700 $88,600 $57,200 $32,000 $83,300
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46
Savings needed Years to save unit for 20% Unit deposit deposit $s (June 2014) (June 2013) $71,000 2.83 $98,800 $105,500
3.98 4.11
$74,400
2.90
$69,000
3.01
