Economic performance across each of Australia’s states and territories remained broadly unchanged last month. CommSec’s State of the States has grouped performance into three categories. The strongest states are Western Australia, the Northern Territory and New South Wales, followed by Queensland, Victoria and the ACT and finally, South Australia and Tasmania. The report shows WA has shown strength in retail trade and housing finance, the Northern Territory has been credited for economic growth, business investment, unemployment and construction work while New South Wales has ranked best for population growth and dwelling starts.
Property growth across the states
CommSec Chief Economist, Craig James details which states are showing signs of growth in the property sector: “The strongest state in Australia in terms of new construction is New South Wales. So, we rank in terms of dwelling starts, current dwelling starts compared with decade averages, New South Wales is number one. ACT has been consistently strong so we’ve got that as number two and third is Western Australia.
If we have a look at overall housing finance – again it’s the same sort of states which are up there. We’ve got Western Australia this time as number one. But, Victoria is the second strongest state in terms of housing finance which basically takes into account purchases of established dwellings. Then we’ve got ACT at number three and New South Wales at number four.”
SA lags on new housing starts
New dwelling commencements continued to rise in the first three months of this year with growth recorded in all states but South Australia. The Australian Bureau of Statistics reports new home starts gained 8.7 per cent to 48,964 in the March quarter as the annual level of commencements hit the highest point since late 2010. At the top of the ladder the Australian Capital Territory booked a 31.6 per cent gain in total dwelling commencements followed by Victoria with 15.4 per cent and Western Australia with 12.1 per cent while South Australia posted a 7.8 per cent fall.
ACT, VIC & WA ranked the best
The ACT, Victoria and Western Australia have been ranked as the hottest housing markets. The Housing Industry Association's Population & Residential Building Hotspots compiled the nation’s fastest growing local housing markets, considering new dwelling approvals and a higher than average population growth rate. The ACT dominated the top three spots with Crace, Bonner and Casey. Rounding out the top ten were Melbourne, Abbotsford, Cranbourne East and Docklands in Victoria while Western Australia’s top rating suburbs were Forrestdale - Harrisdale - Piara Waters, Baldivis and Yanchep. HIA Senior Economist Shane Garrett says the ACT’s residential construction industry is forging ahead but the absence of both Tasmania and South Australia from this year’s Top Twenty for a second year is disappointing.
Australian auction results
Sydney recorded a 77 per cent clearance rate from 404 properties for auction
Melbourne posted a 74 per cent clearance rate from 549 properties for auction
Brisbane booked a 51 per cent clearance rate from 67 properties for auction
Adelaide saw a 68 per cent clearance rate from 39 properties for auction
Commercial property
Construction company Leighton Holdings Limited
(ASX:LEI) has opened the bidding process on its controlling stake in Queensland-based residential property developer Devine Limited
(ASX:DVN).
Takeover target Australand Property Group
(ASX:ALZ) has reported a 49 per cent jump in first half net profit on the back of strength in the residential property sector.
James Packer’s Crown Resorts Limited
(ASX:CWN) will partner up with Chinese property firm Greenland Holdings Group to jointly bid for the Queen’s Wharf Brisbane Project.
Property developer Payce Consolidated Limited
(ASX:PAY) has executed contracts to sell a development site in Hurstville in Sydney’s south for $43 million.
