Western Australia proves its economic strength

Western Australia holds the title of "best-performing economy" in Australia, according to the July 2014 State of the States report from CommSec.

Western Australia shows strength

WA scooped up second place for both economic growth and construction work, and came third for dwelling starts, population growth and business investment.

WA's favourable economic conditions makes taking out a home mortgage or investment loan a sound option for those looking to make their way up the property ladder.

Its economic output level is approximately 25 per cent greater than the decade average output level, highlighting plenty of potential promise for the state in months and years to come.

With a range of dwellings on offer in the state, from single-level properties to newly constructed double-storey homes, taking out a fixed home loan in Perth or in other parts of the state could be a smart option.

What's happening elsewhere in Australia?

Queensland performed well with regards to equipment investment, but fell behind in population growth, compared to its 10-year average.

"In contrast Victoria continues to record solid population growth compared with its decade average, thus sustaining home purchase and construction. But commercial and engineering activity is relatively weak compared with other states and territories," the report stated.

Tasmania's economic performance did not compare well to the rest of the nation, although it did have the strongest annual growth rate in retail spending.

Queensland, Victoria and the Australian Capital Territory experienced relatively similar economic performance, while NSW came in third for economic performance thanks to new home building momentum. That said, its performance on most economic indicators was moderate.

"The Northern Territory continues to lead the rankings on economic activity. Activity in the top end is almost 36 per cent above its normal or decade-average level of output," the report explained.

CommSec noted that housing finance performance is not simply a "lead indicator for real estate activity and housing construction" but also useful to establish the health of the financial sector. Trend housing finance commitments are over decade averages in the ACT, NSW, Victoria and WA.

Image credit: Ole Reidar Johansen

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