There are many reasons why the Sydney property market is performing so well, but a major reason is the strength of it’s economy.
Well… it probably won’t surprise you that resource-rich Western Australia has been knocked from its long-held number one position as the country’s strongest economic performer and NSW is the new leader at the top of Australia’s economic performance rankings according to Commsec’s quarterly State of the States report.
It is a sign of Australia’s changing economy. Of course the economies of resource states are still strong performers, but the momentum is now with other economies and NSW is leading the way
SMH summarised why the NSW economy is performing so well…
Source: Sydney Morning Herald
Here’s what CommSec has to say:
* NSW is top of rankings on population growth and dwelling starts and second on retail trade, business investment and unemployment. NSW is also third on housing finance and fourth on overall construction work and economic growth.
* Western Australia has lost ground on retail trade, equipment investment and population growth – a consequence of the fading of the mining boom. But Western Australia is still best performing on housing finance – the new economic driver.
* The Northern Territory is now the third best performing economy. In fact the NT is top on five indicators with low unemployment and equipment investment driving growth. But it is also third on dwelling starts, sixth on population growth and eighth on housing finance.
There is little to separate Victoria and Queensland on the economic performance rankings.
* Victoria continues to record solid population growth compared with its decade average, thus sustaining home purchase and construction. But commercial and engineering activity and engineering investment are both fifth ranked of the states and territories.
* By contrast, the key strengths of the Queensland economy are non-residential building and business investment (both third ranked). But relative high unemployment is holding back momentum.
South Australia is now above the ACT in the performance rankings.
* South Australia is generally ranked sixth to eighth on the key indicators but is third ranked on unemployment and population growth.
* The ACT economy is supported by housing finance but rising unemployment has affected growth of consumer spending and business investment.
* Tasmania remains at the bottom of the Australian economic performance table. Tasmania is seventh or eighth on six of the economic indicators although it currently is has the strongest annual grow