Western Australian economy strongest in country
The latest State of the States report, released by Commonwealth Securities, highlights the strongest state economies across the nation. This could be valuable information for making anyone hoping to purchase profitable investment property in the future.
The report examines eight key indicators when generating the results. These include economic growth; retail spending; equipment investment; unemployment; construction work done; population growth; housing finance and dwelling commencements.
Ranked against these criteria, Western Australia emerged as the strongest economy within Australia. Australian Capital Territory ranked as second, Northern Territory in third, with Queensland and New South Wales in a tie for fourth.
Housing finance, for example, trended lower than the decade-old average in all but three states - ACT, Western Australia and Victoria. However, commitments were higher across all states than they were 12 months ago.
ACT experienced the largest increase in housing commitments after rising by 10.7 per cent over the decade-old average for the state, and growing by 18.9 per cent over the last year. Western Australia experienced similar growth, increasing by 8.8 per cent above the decade average, and by 14.2 per cent over the last year.
Taking into consideration these upward trends, it appears the real estate markets in these states are beginning to take off. This could be fantastic news for anyone considering taking out a home loan and purchasing property in the near future.
Regardless of whether you're a first home buyer or a simply looking to add another property to your investment portfolio, this information could help you focus your search for the location of your next purchase.
Another statistic to take note of, especially for property investors, is the expected population growth in each state. In this case, Western Australia is the one to keep an eye out for. The state has an annual growth rate of 3.42 per cent, which translates to almost 40 per cent more than the decade average.
With a number of off the plan developments in the area, there are multiple chances to secure property in an up-and-coming region, in order to establish yourself in the rental property market and begin to reap the rewards of smart property purchasing.