Ensure you never miss an issue of the
real estate business bulletin
WA tops State of the States report

WA tops State of the States report

by Reporter 0 comments

CommSec has released its quarterly State of the States economic performance report, with Western Australia again rated the strongest performing economy in Australia.

The report attempts to identify how Australia’s states and territories are tracking by analysing eight key indicators: economic growth, retail spending, equipment investment, unemployment, construction work completed, population growth, housing finance and dwelling commencements.

While WA only topped one of the eight indicators - retail spending - the state was ranked second in six other indicators, and fourth on dwelling starts. 

In good news for the wider economy, CommSec economist Savanth Sebastian predicted all state and territory economies would lift in the coming quarter, as both consumers and businesses are showing a sustained level of optimism.

“The low interest rate environment is boosting housing construction, while rising wealth levels is supporting confidence and, in turn, spending,” he said.

According to the report, housing finance commitments for November 2013 were up on levels for the previous year in all states and territories except the Northern Territory.

Housing finance is not just a lead indicator for real estate activity and housing construction but is also a useful indicator of activity in the financial sector, according to Mr Sebastian.

The report shows Victoria, Western Australia, New South Wales and the Australian Capital Territory all recorded trend housing finance commitments above decade averages.

Victoria was rated top in terms of this indicator, with the number of housing finance commitments 9.8 per cent above the decade average level and commitments in November 12.6 per cent higher than a year ago.

New South Wales moved up to third spot and showed strong momentum with an increase of 20.4 per cent on the 2012 figures in trend terms, while the ACT dropped from first place to fourth.

The Northern Territory was judged the weakest economy for housing finance, with trend commitments 19.2 per cent lower than its decade average.

The next weakest was Tasmania, with trend commitments down by 20.4 per cent on the decade average, but encouragingly, commitments were up 20.2 per cent on a year ago.

WA tops State of the States report
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?