Western Australia Still on Top in Latest State of the States Report

According to the latest CommSec State of the States report, Western Australia is leading in four of the eight economic criteria used in the report, and finished second in two others. In other words, WA is in second place or better in 75% of the categories. The Northern Territory is close behind in second place, and the ACT is in third place.

WA led Australia in population growth, with an annual rate of 3.32%. It also led in construction work, with a 95.9% above decade averages; this also represents a gain of 22.9% from the same time last year. WA was also in first place for retail trade, at 25.5% average levels for the last decade, and equipment investment, with more than double the decade average spending, with a 100.7% increase.

WA was also second strongest in overall economic growth at 34% over the decade average level, and housing finance. They were third strongest in unemployment and fifth-strongest in dwelling starts.  

CommSec Chief Economist Craig James, who edited the report, drew many conclusions from the data. The first conclusion was that WA has the strongest state economy in Australia, but that the Northern Territory is closing the gap between first and second considerably. After WA and the Northern Territory, there is a gap to the ACT, and that gap widens to a middle tier of Queensland, Victoria, and NSW. There is another gap between those three and South Australia, with Tasmania firmly in last place.

CommSec expects the rankings to remain constant over at least the next year, with the Northern Territory showing the greatest potential for improvement. Tasmania is also expected to become stronger, thanks to some rebuilding work.

Many property developers in WA are excited about the report. Dave Gillon is the Sales Manager for 4Land Property Group, which has developed a very popular community called Natures Walk in the Mandurah area. The estate has been very successful with house and land packages in Mandurah. Gillon attributes part of their success to WA’s economy, and part of it to the value provided by Natures Walk.

According to Gillon, “This report confirms the confluence of a number of economic factors that have made it a great time to buy a house in Western Australia, and the success we’ve had with a number of estates is in line with the overall conclusions about the economy. We have low unemployment figures, high retail spending, and our construction industry leads the country in equipment investment and work done.”

Gillon continued, “Western Australia has great numbers in housing finance, but it is stacked alongside a weak number of housing starts. This tells us that businesses are doing most of the construction, which usually means that more jobs are on the way. It also tells us that there aren’t enough new homes on the market to meet the demand.”

Gillon concluded, “Luckily, we are providing some great value house and land packages, especially in the Mandurah area. The economy is strong enough to support the market, and interest rates are low enough to make the homes very affordable. We recommend that anyone who is considering buying a home get started now before prices begin to rise.”

The Natures Walk Estate is located in Erskine and provides house and land packages which are perfect for first home buyers, downsizers and those looking to retire.

For more information on other Mandurah property by 4Land Property Group, call 08 9301 4445 or visit their website http://www.natureswalk.com.au/.