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State of the States report suggests a positive outlook for real estate

22 Oct 13

If you're interested in a real estate career, you'll be pleased to know that the industry is set to strengthen in the coming months.

CommSec, the country's largest stockbroking firm, has just released its quarterly State of the States report analysing how Australia's eight states and territories are performing.

The report looks at eight key indicators to form its conclusions: retail spending, economic growth, unemployment, equipment investment, population growth, construction work, dwelling commitments and housing finance.

Overall, economies are expected to lift in the post-Federal Election environment. However, a slowdown in mining investment may affect some regions. This slowdown should be offset by a lift in residential building, which is great news for those currently undergoing real estate training.

More residential buildings will mean more houses on the market, giving the industry a boost. The nation-wide outlook for housing construction has improved as well, mostly due to low interest rates and state government grants for new construction.

Dwelling starts are above decade averages in five states and territories, suggesting huge room for growth in the housing, construction and real estate sectors.

Tasmania is the only centre not to benefit from growth in construction work.

South Australia has returned strong annual growth rates in completed construction work and ranked fifth in housing finance. Construction figures include the total amount of residential, commercial and engineering work completed in the June quarter.

Overall, Western Australia is the strongest-performing and fastest-growing economy, and Tasmania has returned the lowest figures throughout the report. There has been a transition of growth from the mining sector in WA to the housing sector, which is more good news for real estate professionals.