Australia - House Price Value





Australia: House Price Value

Mnemonic HPL.IAUS
Unit AUD, NSA
Adjustments Not Seasonally Adjusted
Quarterly 4.89 %
Data 2021 Q2 619,804
2021 Q1 590,891

Series Information

Source Commonwealth Bank Housing Industry Association Australia
Release Housing Affordability Index
Frequency Quarterly
Start Date 3/31/1996
End Date 6/30/2021

Australia: Real Estate

Reference Last Previous Units Frequency
Residential Building Permits Jun 2022 16,461 16,581 #, SA Monthly
Building Completions 2022 Q1 30,111,819 30,493,772 Ths. Ch. AUD, SA Quarterly
Housing Starts 2022 Q1 29,672 33,547 #, SA Quarterly
Non-residential Building Completions 2022 Q1 11,841,238 12,061,763 Ths. Ch. AUD, SA Quarterly
Residential Building Completions 2022 Q1 15,476,509 15,689,779 Ths. Ch. AUD, SA Quarterly
Residential Housing Starts 2022 Q1 18,731 18,364 #, SA Quarterly
House Price Index 2021 Q4 195.45 187.05 Index FY 2012=100, SA Quarterly
House Price Value 2021 Q2 619,804 590,891 AUD, NSA Quarterly

Release Information

For Australia, the HIA (Housing Industry Association) Housing Affordability Index measures accessibility to home ownership for an average first home buyer. A result of 100 means that 30% of earnings are absorbed by mortgage repayments. A value above (below) 100 means the mortgage burden is more (less) manageable.

It is measured by a ratio, average income per household to the income necessary to meet repayments (repayment burden), for on an average established dwelling purchased by first-time home buyers (qualifying income). Thus an increase in the ratio represents an improvement in affordability while a decline represents a deterioration in affordability.

Active:

  • Measurements:
    • Unitary count (#)
    • Percent (%)
    • Interest rate - percent per annum (% p.a.)
    • Index n.o.s. (Index)
    • Australian dollars (AUD)
  • Adjustment: Not seasonally adjusted (NSA)
  • Native frequency: Quarterly
  • Start dates: 1996Q1, 1997Q3, 1999Q2, 2015Q3
  • Geo coverage:
    • Country (IAUS)
    • State/territory (IAUS_^^)
    • Canberra/national capital (metro area) (IAUS_MACT)
    • Aggregate of 8 capital cities (IAUS_CAP)
    • Greater capital areas (IAUS_MG^^)
    • Rest of state areas (IAUS_GR^^)

Predecessors:

  • Pre-revision - Start 1994Q3 to 1999Q2, end uniformly 2021Q2 ("_21")
  • 1994Q3 to 2017Q1
  • 2005Q1 to 2010Q2
  • 1984Q4 to 2009Q3

In calculating the index is 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 * 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

Seasonality: The components used in construction of the index are seasonally adjusted, but the index itself is not seasonally adjusted after construction. The index is compiled in a way that means it does not have seasonal characteristics.

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

About the source

The HIA-Commonwealth Bank (HIA-CBA) Housing Affordability Index was a joint project. Between 2014 and 2017, it ceased to be co-branded.

The Housing Industry Association Limited (HIA) is a national industry association of residential builders and suppliers. It was formed in 1965, as an extension of a regional assocation (the Builders and Allied Trades Assocation, BATA) formed in 1946.

Commonwealth Bank (CBA) is Australia's leading provider of integrated financial services.

Further reading

At the source: