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Western Australia to lead the nation’s economic growth from 2010 to 2014

PERTH: The real estate industry in Perth, Australia, is expected to be steady over the remainder of 2010, and Western Australia is expected to lead the nation’s economic growth from 2010 to 2014, according to CB Richard Ellis (CBRE)’s latest Global Marketview report for 2Q2010.

Unemployment appears to have peaked, with Western Australian employers anticipating greater need for labour, particularly through spin-offs from the expected renewed energy and resources boom, it said.

The average annual real output growth of 4.6% is expected for Western Australia over the forthcoming five-year period – the strongest of any state and well above the national rate of 3.4% per annum.

The report noted that while housing starts fell by 6.3% in 2009 (according to Access Economics), further population growth is expected as resource investment re-gathers pace in the state. The rebound should begin in 2010 with a 9.7% rise in housing starts according to Access Economics.

“The dangers lie in those that do not benefit from this positive shift in the economy and simply pay the price without receiving the benefits of increased wages and employment,” it said.

The report indicated that the residential market in Perth recorded mixed results last year, and similar performance is expected in 2010. The luxury market in the Western Australia, particularly green-title lots with free standing property, has seen good levels of transactions with property value growth approaching the levels seen in 2007, it added.

“The unit and apartment market has not seen the same results. Almost 2,000 settlements over the past year have seen a surplus of product in a slowly maturing market.

“Land sales have continued to flow, with incentives removed and developers gearing up for new broad acre land acquisitions. New housing has been evident recently. The major concerns lie with continued strong population growth and an expected skills shortage with the forecast boom on the energy and resource markets,” the report said.
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