Western Australian economy continues to grow
The State of the States report released by Commsec late last month (January 17) has highlighted the increasing strength of Western Australia, which remains the top performing economy across the nation and could present a great opportunity for those interested in purchasing commercial property.
Western Australia came out at the top of the table for retail spending, with the increasing population and growing economy illustrating a great investment environment for both residential and commercial real estate. Furthermore, the state came in second for economic growth, business investment, construction work done, housing finance, population growth and unemployment.
The region came fourth for dwelling starts, the state's only shortcoming.
With regards to the growing retail strength, the state saw spending rest at almost 22 per cent above the decade average during the September quarter of 2013, with solid population growth, a growth rise in home purchases and firm wage increases underpinning this.
Housing finance in the state also trended above decade averages, with figurse expected to grow in the long term. The latest Bankwest Housing Density report found that people in the state were going against the national trend and turning towards traditional standalone homes in Western Australia, as opposed to medium density properties such as units, townhouses and semi-detached homes.
"Western Australia is bucking the national trend, as every other state and territory saw medium density housing steadily outstripping the popularity of traditional stand-alone homes. West Australians aren't giving up on their home owner dream, shunning the convenience of medium density in order to secure their own stand-alone property," said Bankwest Executive General Manager Mark Reid in a February 18 statement.
Furthermore, Economist Savanth Sebastian told abc.net.au in a January 20 article that the state's economy is "really driving the growth story" and resources industry are really driving the region's growth, with mining investment shifting more towards a "production boom".
"It's starting to see income flow back to the resource states and the low interest rate environment also supporting the consumer and household angle as well," said Mr Sebastian in the article.
He went on to say the Western Australian economy would be a top one to watch heading into the future, especially over the next 12 months.
Now could be a great time to begin investigating investment in Western Australia. There are a wide range of commercial property and residential real estate opportunities in the state, which could lead to lucrative gains in the future.