Australian Property News
ACT outpaces the nation
Posted on Wednesday, July 28 2010 at 11:24 AM
Western Australia may lead the nation as the strongest overall economy, but the Australian Capital Territory is leaps and bounds ahead in its housing finance levels and dwelling starts, according to CommSec
In its July report of Economic Insights: State of the States, Commsec assessed the states against eight economic indicators during the March quarter.
These indicators include housing finance, construction work, dwelling starts, wages and prices, retail spend, equipment finance, population growth, and unemployment levels.
WA led overall, with a result 29 per cent above its average decade of economic growth and knocked the ACT down from its number one position nationally.
From a housing perspective, the ACT led the way with its housing finance commitments almost 16 per cent higher than its decade average during a period when other states and territories recorded negative growth.
However the report also revealed a recent retreat in the ACT housing finance figures, down 19 per cent compared to one year ago.
Tasmania has seen the least number of home loan commitments with figures 23 per cent below its decade average and is what CommSec describes as a victim of this year’s interest rate rises.
ACT dwelling starts for the March quarter equally led the nation, demonstrating a level of 56 per cent above the decade average, however since the December quarter they’re now in retreat.
The strong job market, increased land production and rising population growth has underpinned the ACT’s runaway results, said CommSec.
Not surprisingly, New South Wales remains at the bottom end of the dwelling starts rankings, with dwelling starts 11 per cent below decade averages.
Western Australia’s population recorded the fastest growth levels at a 2.7 per cent annual rate of population growth, while Queensland followed closely behind with 2.4 per cent.
However, South Australia saw the largest increase in its population growth pace in the March quarter, with its 1.32 per cent annual rate well above the 0.8 per cent decade average.
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