Three-Speed Economy for Australia

by joy.manginsay 9. January 2012 18:34

According to Commsec’s Chief Economist Craig James, “West Australia is clearly the nation’s strongest economy and sits in a group by itself.” CommSec analyses the states through eight indicators namely economy growth, retail spending, equipment investment, unemployment, construction word done, population growth, housing finance and dwelling commencements. These are the indicators that CommSec basing their analysis in one state of the country. The WA Economy has been the significant out-performance throughout the year and still the main weakness is the residential sector that makes home price fall. Among all the states in WA, Victoria is the strongest in the housing sector while the South Australia economy performs solidly on overall economic growth and construction work. The Northern Territory continues to outperform with low unemployment and housing finance are below long -term average and underperforming other states and territories.

Perth will begin to Rebound Next year

by joy.manginsay 20. December 2011 18:03

Australian Property Monitors Economist Andrew Wilson expects the tide of turn next year, tipping Perth as the first state to make a comeback in what has been a poor year for the property market nationally. He expects that property values will increase 5-10% next year equal to Brisbane and Darwin in which the said two cities are ahead of the other capital cities in WA. Perth property values shed an average 6% in the year, more that the national average of -4.2%. Property analysts also are predicting that Perth market will begin to rebound next year.

According to Real Estate Institute of WA President David Airey said, “He expects the WA property declines to bottom out within 6 months before a recovery by the middle of 2012. First-home buyers entered the market in which proves that the market has been very strong and it is a good stimulus to upgrade the market.

Head of Property Research at ANZ Bank, Paul Braddick said, “WA’s property bust would bottom out early next year at a $420,000, followed by a “quite strong” recovery.” As we observed, WA has starting to recover and mining sector employees and aspirational home-buyers coming-out to the market, this could well prove that the market has starting to flatten. If there will be higher wages, the stock markets will be recovering, the house price will be increasing, the investments will be improving, so therefore, there will be a confidence to expects that the City will be recovering.

Australian Economy Stays Solid

by Administrator 9. December 2011 18:29

Based on the latest ABS figures show that GDP, in generally adjusted volume terms, grew 1.0% in the September quarter 2011, after a revised increase of 1.4% in the June quarter. The GDP growth indicates 2.7% increase in the terms of trade and the Real gross domestic income grew 1.6% for the quarter. The Australian Bureau of statistics reported that on an annual measure, the economy expanded by 2.5%.

According to Treasurer Wayne Swan, “Slower growth would mean less government revenue but the government remained determined to bring the budget back to surplus in 2012/2013 as planned.” He also expects the economy will still be growing at trend in the current financial year when he hands down Treasury’s latest economic forecasts with the mid-year budget review. Stable monetary exchange and the cuts rates last November and also having cut rates next year will be sign that economy still solid and grow better. Most sectors are struggling or going backwards by mining investment remains the backbone of growth. Among the states, WA led on the way of State final demand and the final demanded jumped by 8.4%, contributing 1.1% points of the 2.1% increase in National final demand. Investors has nothing to worry about what they are invested because next year and the following years, the economy will become stronger and will become more stable economy.

WA is Australia's Engine Room

by Joy Manginsay 25. November 2011 18:36

According to survey released last Wednesday, November 16, 2011, “The Australian economy is growing at an annual pace close to the projected long-term trend. The survey was by Westpac Banking Corporation and the Melbourne Institute. CommSec’s State Report believed that Western Australian have the strongest performing economy within Australia. Despite growth slowing due to the global financial crisis, Australia was one of the few advanced economics to escape recession. Australia can fully benefit from improved terms of trade because of the mining boom. Tax reform also plays a key role in stepping the right direction to reduce the company tax rate.

The NSW Treasurer, the Hon. Mike Baird MP, went on to state; “Conditions in some NSW industries exposed to the high Australian dollar are subdued, particularly in tourism and manufacturing. The NSW retail sector is also soft reflecting increased household caution as evidenced by the rising saving ratio and recently declining consumer confidence. There is a significant divergence between sectors, though, with strong conditions currently in the NSW mining, farm, business services and household services sectors.” They are expected to remain at a high level over the next two years as a result of elevated export prices and subdued import prices. Mining boom also could permanently raise household incomes in Australia.

WA Economy Robust

by Joy Manginsay 15. November 2011 22:10

Despite the stability of Western Australian property market, some buyers indicates that they have developed caution a bad case and are nervous in buying a property. But this bad news would overcome and needs to be balanced for all factors in economic realism because in WA still things are pretty recovering. There WA economy is still healthy and is being driven by a resources boom because WA has continuing low unemployment and good job security, inflation is under control and lastly the low interest rates that indicates the economic growth is still continuing increasing. Nowadays, Australia has strong employment and continued strong population growth will also maintain a steady demand for homes. The Housing Industry forecasting Group Estimates that Western Australia had an underlying housing shortage of 7,900 in June 2011, a figure that’s predicted to almost double in 2011/12. Most property analysts think we can expect to see some modest price rises in 2012.

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