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ISCOVER
Staff Reporter
A new report, released by PRDnationwide, has found the Australian economy is healthy and home values are starting to increase.
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PRDnationwide research director Aaron Maskrey said it was the longest spell of growth without a recession that Australia has ever achieved.
“In fact, 21 years without a recession is a record for any nation,” he said.
He believes with low levels of unemployment and inflation – Australia is the place to be for growth and prosperity.
Figures published in PRDnationwide’s Quarterly Economic & Property Report show the number of multi-residential dwellings increased 58.7 per cent in May 2012.
“This was largely driven by a few significant projects in New South Wales, Victoria and the Australian Capital Territory and are being influenced by the end of home buyer incentives in NSW and Victoria in June,” Mr Maskrey said.
The research director said the report showed numbers of new dwellings decreased in the second quarter by 24.6 per cent - or 9096 less new homes across Australia.
“On a state-by-state basis, Victoria continued to record the highest number of dwelling commencements during the March quarter, representing 37 per cent of all dwellings commenced nationally,” said Mr Maskrey.
The report author said Australian house prices are likely to remain flat during 2012 and 2013.
“A recovery is expected when international conditions and domestic growth prospects improve,” he said.
Figures show retail expenditure has increased on a monthly basis.
“Over the 12 month period ending May 2012, Australia’s annual change in retail expenditure increased 3.6 per cent from the previous year – aided in large by the increase in spending in May,” said Mr Maskrey.
Resource rich Western Australia continued to spend well above the national average to incur the greatest increase in retail spending with a 9.9 per cent surge in 12 months.
“All states recorded an increase in spending, with Tasmania registering the smallest growth at 0.3 per cent,” he said.
Overall rental vacancy has tightened to 2.4 per cent.
“Sydney remains the tightest rental market with a 1.6 per cent vacant rate followed by Perth and Darwin at 1.9 per cent.”
Australia's dollar fared well, recording a 4.8 per cent increase over the month of June.
However PRDnationwide anticipates it is likely to depreciate due to weaker global economic data and lower Australian productivity.
