Australia - House Price Value

Australia: House Price Value

Mnemonic HPL.IAUS
Adjustments Not Seasonally Adjusted
Quarterly 1.79 %
Data 2019 Q1 528,586
2018 Q4 538,245

Series Information

Source Commonwealth Bank Housing Industry Association Australia
Release Housing Affordability Index
Frequency Quarterly
Start Date 6/30/2006
End Date 3/31/2019

Australia: Real Estate

Reference Last Previous Units Frequency
Residential Building Permits Jul 2019 12,944 14,327 #, SA Monthly
Building Completions 2019 Q2 28,506,225 30,224,141 Ths. Ch. AUD, SA Quarterly
House Price Index 2019 Q2 137.66 139.69 2011-2012=100 Index, SA Quarterly
Non-residential Building Completions 2019 Q2 10,472,820 11,215,642 Ths. Ch. AUD, SA Quarterly
Residential Building Completions 2019 Q2 15,927,515 16,840,400 Ths. Ch. AUD, SA Quarterly
House Price Value 2019 Q1 528,586 538,245 AUD, NSA Quarterly
Housing Starts 2019 Q1 28,485 27,511 #, SA Quarterly
Residential Housing Starts 2019 Q1 17,315 20,711 #, SA Quarterly

Release Information

HIA (Housing Industry Association) index measures accessibility to home ownership for an average first home buyer. It is measured by the ratio of average income per household to the income necessary to be able to meet repayments on an average established dwelling purchased by first home buyers (qualifying income). Thus an increase in the ratio represents an improvement in affordability while a decline represents a deterioration in affordability. 

In calculating the indexis estimating the value of a mortgage repayment representative of someone who purchased a home during the reference period. This requires a number of assumptions. A mortgage repayment is dependent on the size of the loan, the prevailing mortgage interest rate, and the mortgage term.

Qualifying income is a notional amount at which mortgage repayments are equivalent to exactly 30 per cent of income (the lowest income level at which the mortgage repayment would be affordable):

  • Qualifying Income = Mortgage Repayments 30%

The affordability index is calculated by dividing the actual level of earnings by the qualifying income:

  • Affordability Index = Average Weekly Earnings x 100 / Qualifying Income
The affordability multiple describes the multiple of average full-time earnings required to affordably service mortgage repayments under prevailing conditions. The affordability multiple is calculated as follows:
  • Affordability Multiple = 100 Affordability Index

The affordability index levels for all previous quarters have been revised to reflect the CoreLogic RP Data price series.