Population, home building gains a boon for NSW
July 25, 2014 / Written by Rich Harvey
Wondering where to purchase Australian investment property? Knowing how an area is performing economically should be high up on your list of factors to consider.
Fortunately, the latest State of the States report from CommSec just made that task much easier.
Focussing on eight key indicators - economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements - the report should provide both first-time investors and seasoned portfolio managers with the data they need to make an informed decision.
Unsurprisingly, the data regarding New South Wales should give those looking to buy investment property in Sydney plenty to smile about.
According to the report, NSW is the third-strongest economy in the nation. And even better for potential investors in the real estate market, it's undergoing a boom in population growth.
"Western Australia is the clear leader in population growth with an annual growth rate of 2.88 per cent," the report stated.
"But while NSW has a lower growth rate at 1.50 per cent, this is 30.8 per cent above the decade average. Western Australia's population growth is 10.7 per cent above the decade
average - third strongest."
Additionally, for those worried that inventory in NSW was too tight to find an affordable deal, news regarding home building should come as a welcome surprise.
The report stated NSW is the strongest state in the country for new home construction, boasting dwelling starts nearly 45 per cent above the decade average. In fact, as of the March quarter, the number of dwellings being built was 19.6 per cent higher than the year before.
However, investors should keep in mind that NSW is playing catch-up when it comes to home building, so demand is still above supply.