Living and Lifestyles

The 'National Housing Supply Council' 2010 State of Supply Report

The Report has found that the demand for housing in Australia is expected to grow over the next 20 years with an additional 3.2 million dwellings needed to meet underlying demand by 2029, and that the gap between supply and demand is also likely to continue to grow over this period with a projection of a 640,600 shortfall.

Housing demand in Australia is continuing to increase due to national population growth, changes in household formation and historically high levels of immigration, and this will have major implications for housing affordability.

The Report shows that solving Australia's housing supply-side problems must be a high priority for Australian governments.

The adequate supply of land to support new housing is the principal driver for ensuring the maintenance of housing affordability in Australia, so unless the supply-side issues are rectified, housing will increasingly become less affordable for Australians...

This will see an increase for Western Australia of more than 419,000 new households during this period!

History of Western Australia's Economy...

In many respects, Western Australia's history, relative to other Australian States, is unique. Unlike New South Wales and Tasmania, which were settled primarily as penal colonies, the establishment of a Colony at the Swan River in 1829 was largely in response to enthusiastic marketing by Captain James Stirling of opportunities for business and profits. It was also the first British Colony in Australia founded exclusively for private settlement based upon a land grant system.

State of Economy

Western Australia's economy is in a process of transition from the expansion that peaked in 2007-08 to much weaker economic conditions forecast for 2009-10. Different parts of the economy are at different stages of that transition, resulting in some mixed economic data.

The State's housing sector has been in decline for more than two years, but there are some signs it may have passed the bottom of its cycle.

Western Australia's strong and diverse economy has recently come to the forefront of economic activity across Australia with Gross State Product accounting for $ 146.4 billion, almost 13 .5 % of GDP in 07/08.

Western Australia's key economic drivers are mining, manufacturing, construction, property and business.

With business costs amongst the lowest in the developed world and telecommunication costs amongst the lowest in the Asia Pacific region, Western Australia is an ideal business choice and world class business partner.

Western Australia's stable Government, solid and reliable infrastructure and world class enabling technology are among the many reasons why companies choose to do business in WA.

From a strong mining, manufacturing and construction base, WA industry has diversified greatly in recent years and is now energetically embracing today's modern driven economy, with innovation and a strong entrepreneurial spirit driving the next wave of trade and industry opportunities within the State.

Long-run projections suggest Western Australia's economic growth will continue to be strong over the next 20-30 years.

  • The demand for labour will continue to grow faster than the State's ability to supply workers from natural population increases and current migration plans.
  • By 2016 Western Australia will need an extra 224,000 workers.
  • Demand for training, housing, utilities, infrastructure and social services will grow dramatically.

The question is; How will the State meet this challenge...

Overall, Western Australia offers:

  • Strong economic growth performance.
  • World-class industries in resources and agriculture.
  • A proven track record of successful resource projects.
  • A wealth of mineral opportunities.
  • Political stability and low sovereign risk.
  • In same time zone as Singapore, China and Hong Kong.
  • Extensive industrial land and infrastructure.
  • Abundant and competitively priced energy.

Population & Growth Demand...

WA's population grew the quickest of any Australian state last year, new figures show...

The ABS figures revealed there were 2,204,040 people living in the state at the end of 2008, up 3.1% from 12 months earlier.

The State's population was made up of 1,117,090 men and 1,086,950 women.

The figures also showed there were 10,945 interstate arrivals in the last three months of the year, the highest quarterly figure in the past 28 years...

Living in Western Australia

With a Mediterranean climate, friendly multi-cultural population and a beautiful capital city known for its cleanliness along with a pristine coastline, Perth is one of the most unique major cities in the world, with a quality of life second to none.

Western Australia offers an attractive lifestyle for the international investment community with its open, relaxed and multicultural environment, and Perth offers an affordable way of life, with world class beaches and vineyards.

In the 2010 survey by the Economist Intelligence Unit (EIU), Perth was ranked the ninth most livable city in the world.

Perth's central business district is just seven kilometres (or five minutes) from the clean, sandy beaches of the Indian Ocean. Thanks to an extensive and toll-free freeway system, the city's industrial areas, efficient shipping port and airport are never more than 30 minutes away.

This bustling capital is truly multi-cultural - 30 per cent of its population of 1.3 million was born overseas.

The standard of Western Australia's schools, hospitals, legal and accounting practices, banks, entertainment services and recreational facilities provide an enviable quality of life to its people and businesses.

Housing Growth & Affordability...

The 2009 year had a slow start but ended strongly in the second half of the year with residential price growth recorded across most of Perth.

Rising interest rates however, meant that affordability featured as a key issue throughout the year of 2010.

Strong signals that the prestige property market pain is almost over and there appears to be signals that demand is now starting to resurge.

2011 should therefore feature a well received shift of sales activity predominately from the investors market (which is now offering genuine opportunities) and the owner occupiers (in the middle price level).

With solid employment figures and buoyant business sediment, along with growing consumer confidence and the return of interest rates to a 'stable' level, should guarantee back market confidence in WA.

Experienced property buyers should not be deferred by recent market speculation of "property price crashes" as house prices and rents throughout the Perth Metropolitan region are likely to continue to move in a positive direction through the coming year and beyond.

(Sources: Western Australian Government / Tourism of Western Austrlian/Australian Bureau of Statistics)

(The information supplied is considered as general facts and statistics and should in no way be relied upon when making an investment decision. Parties interested in making an investment decision should carry out their own due diligence and seek independant advice)

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