The state leading Australia economically for the first time
Kanebridge News
Share Button

The state leading Australia economically for the first time

Tripled population growth has turbocharged economic demand, jobs and housing starts

By Bronwyn Allen
Thu, Feb 8, 2024 10:19amGrey Clock 2 min

South Australia is leading the country economically, with a population surge post-COVID boosting economic demand, lowering unemployment and creating a property market boom. Amid a national housing undersupply crisis, South Australia has the best rate of new home building activity and house prices have risen 10 percent in Adelaide and 9 percent in regional South Australia over the past 12 months.

CommSec’s quarterly State of the States report compares the states and territories on eight economic measures: economic growth, retail spending, equipment investment, unemployment, construction, population growth, housing finance and dwelling commencements. The report compares each measure against the long-term trends for each state and territory to determine the out performers.

According to the latest report, South Australia is the best-performing economy and comes out on top in four categorieseconomic growth, unemployment, construction work and dwelling starts.

The states and territories were ranked in the following order:

South Australia
NSW and Victoria (equal second)
Western Australia
Tasmania
ACT
Queensland
Northern Territory

CommSec chief economist Craig James said this is the first time in the 15-year history of the report that South Australia has emerged as Australia’s leading state economy.

“Population growth in South Australia has tripled over the past two years, which is showing up in a strong housing market and overall economic activity,” Mr James said. He commented that Australia’s resilient jobs market and strong population growth are underpinning all state and territory economies, however high interest rates and the cost-of-living crisis have led to a slower pace of economic growth in all of them.

Economic activity in South Australia in the September quarter was 9 percent above its four-year average level of output. NSW was in second spot at 8.3 percent above its four-year average. Trend unemployment in South Australia was 3.8 percent in December, which was 36.5 percent below the state’s decade-average. Tasmania ranked second at 3.9 percent, 32.8 percent below its norm.

South Australia ranked first for construction work, based on the total real value of residential, commercial and engineering work completed in trend terms in the September quarter. South Australia completed just over $4 billion of construction during the period, which was 23.4 percent above its decade average, ahead of NSW with $19.7 billion of work, 18.3 percent above its average.

South Australia is also building new homes at a more rapid rate than any other state or territory. In the September quarter, South Australia booked 2,852 dwelling starts, which was just 2.3 percent below its decade average. Tasmania was second with 703 starts, 3.2 percent below its average. Dwelling starts in the two most populous states in Australia were woefully below their decade averages. In NSW, 10,536 starts were recorded, down 28.8 percent on the decade average. In Victoria, there were 12,666 starts, down 20.7 percent on normal trends.

The downside to South Australia’s economic growth has been a greater rate of inflation. Adelaide recorded the highest annual inflation rate in the September quarter at 5.9 percent, ahead of Perth at 5.8 percent. But this was only slightly above the national inflation rate of 5.4 percent. Last week, the Australian Bureau of Statistics released the December quarter national inflation figures, which revealed a substantial fall from 5.4 percent to 4.1 percent. This was among the reasons that the Reserve Bank kept interest rates on hold after its first meeting of the new year this week.



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Money
The generational investment divide for Australians
By Bronwyn Allen 17/05/2024
Money
The Power Move of Working the 5-to-9 Before the 9-to-5
By CALLUM BORCHERS 17/05/2024
Property
Broken Chandeliers and Oven Fires: What Happens When a Real-Estate Pro Damages a Listing?
By ROBYN A. FRIEDMAN 17/05/2024
Broken Chandeliers and Oven Fires: What Happens When a Real-Estate Pro Damages a Listing?

It was a total accident, and their worst nightmare

By ROBYN A. FRIEDMAN
Fri, May 17, 2024 4 min

Have you ever accidentally damaged a client’s home?

Debby Belt, senior associate, Hammond Residential Real Estate, Chestnut Hill, Mass.

I was representing the seller of a four-bedroom Cape Cod-style home in Newton, Mass., just west of Boston. It was May 2016 and the house was listed for $929,000. It had a beautiful kitchen, with wood cabinets, granite countertops and stainless-steel appliances.

The house went under contract, and it was scheduled for a home inspection. I wanted the house to look pristine for the inspector and buyers, but the kitchen counters were cluttered, so I frantically threw things into drawers, and I put some glassware, baking tins and plates into the oven. When the inspector walked into the kitchen, he turned on the oven to test it without looking inside first. I was in another room at the time, but I smelled something burning, and then heard explosions as the glass shattered.

When I ran into the kitchen, I saw smoke and a small fire in the oven. There was broken glass all over the place, and the kitchen was smoky. Since it was a gas oven, it could have been much worse. The oven was damaged, and the seller wasn’t happy, so I gave her a $500 discount on the commission to offset any damage or credits she would have to give to the buyers. The buyers weren’t too upset, fortunately, because they were probably planning to update the appliances. The home ended up selling for $920,000 with the oven not functioning perfectly. Now, when I meet the inspector, we both still laugh about it.

Jeffrey Kahn, broker, Broker Associates Realty, The Villages, Fla.

In 1995, early in my real-estate career, I was representing the seller of a condominium in a luxury high-rise building on the ocean in Lauderdale-by-the-Sea, just north of Fort Lauderdale. My seller had the mistaken impression that the dining room chandelier was excluded from the sale, so she had it taken down just before closing and replaced it with a less-expensive fixture.

When we did the walk-through the day before closing, the buyer noticed that the original chandelier, which was about 3 feet wide and custom-made from oyster shells and glass on a wrought-iron frame, was missing and, since the contract said that the unit was being sold furnished with everything included in the sale we needed to rectify the situation. The buyer was refusing to close because she loved the chandelier, and my commission—about $30,000, which I was going to split with the other agent—was in jeopardy. The original chandelier was packed in a box on the dining room table, and to make the deal happen, I told the seller I would replace her chandelier with a comparable one if we would rehang the original.

It wasn’t a difficult chandelier, and I’ve done a lot of electrical work in my own homes, so I took down the one hanging from the ceiling. As I started to remove the oyster-glass chandelier from the box, a hairless Sphynx cat jumped on the glass dining room table and rubbed against me. I had never seen a cat in the apartment during the entire listing process, so it scared the heck out of me. I dropped the chandelier, which broke, and I ended up having to pay $8,000 for two new chandeliers and electrician fees. Thankfully, the unit sold for $978,000 and my commission was sufficient to cover the costs. I was just happy the glass dining-room table didn’t break because then my whole commission would have been gone.

Joshua Garner, real-estate agent, The Agency, New York City

In October 2022, I was representing the owner of a Classic Seven co-op on the Upper East Side that was listed for $3.1 million. It had three bedrooms and 2,575 square feet of classic prewar details, with 13 windows and high ceilings. It also had the most particular seller ever. She trusted no one but myself to open up and show the apartment, and it took no less than 30 minutes to prepare and close up each time. There was a written checklist I had to follow, in a specific order, that included the proper angle at which to pull the string for the blinds, how to pick up and strategically fold, stack and put away the series of white sheets she had laid out as runners to protect the bedroom carpets and wearing shoe covers and gloves. She would watch everything from Switzerland via her security cameras and would call me to correct the smallest details.

Prospective buyers were told not to touch anything and to stay on designated walking areas, which were placed a distance from the Ming vases. If they wanted to see the interior of a cupboard or closet, I would refer to myself as Vanna White and would respond to what they instructed. I always warned them ahead of time that she was probably watching and that anything they said or did would be recorded. Buyers would enter with their guard up, which made it difficult. One day, after a showing, I couldn’t get one of the blinds to lower properly. I panicked, but I notified her immediately, and she had a maintenance worker inspect it. The cord had come off the internal spool, and even though it was a quick fix, the seller was livid and ready to withdraw the exclusive.

The only thing that saved the listing was offering to pay $300 to fully replace the mechanism to restore it to new condition. Although there were incidents that upset her during other showings, thankfully, nothing else was ever broken. This co-op, which ended up closing for $2.95 million in October 2023, was the most high-stakes deal I ever worked on.

—Edited from interviews by Robyn A. Friedman 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Related Stories
Property
California Is Desperate for Affordable Housing But Can’t Stop Getting in Its Own Way
By WILL PARKER 14/12/2023
11 ACRES ROAD, KELLYVILLE, NSW
NSW
Home in the Hamptons: A contemporary and comfortable residence in the heart of Kellyville
By Josh Bozin 14/03/2024
Property
On the Market for the First Time, This Hamptons Beach House Is Listed for Nearly $26 Million
By CASEY FARMER 23/04/2024
0
    Your Cart
    Your cart is emptyReturn to Shop