The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
13
print
Print
RetailTed TabetMon 27 Jul 20

Tasmania on Top, Victoria and ACT Lose Ground

6472fa56-839b-4e10-9b86-6adf8e07ff25

For the first time in more than a decade, NSW and Victoria aren’t the nation’s top-performing economies.

According to the Commonwealth Bank’s latest State of the States report, Tasmania—which usually lags behind the mainland—has surged into pole position on the back of a growing population.

The Apple Isle has also enjoyed subsequent strong demand for new homes, as well as an improved relative performance of its job market and consumer spending.

CommSec’s quarterly report, based on eight key indicators compared with the decade average within each state, ranks each Australian state based on pure economic growth terms.

Victoria slipped to second position after leading in the last eight quarterly surveys.

The ACT remains in third position, followed by NSW—which has been in the top four economies for the past six years, but economists noted that both states had lost “significant ground” on the top two.

▲ Now in its eleventh year, the report has seen Tasmania take top position in the economic rankings in its own right for the first time since October 2009.


Tasmania, regarded as having the best-performing economy, placed first in four of the eight categories.

The state saw big gains in retail spending, up 14.8 per cent above decade average levels in the March quarter, driven by higher home prices and home building.

It also lifted from last to first with equipment investment, up 14.2 per cent on the decade average.

At the onset of the pandemic in March, Tasmania had Australia’s lowest unemployment rate, at 4.9 per cent, and continued to hold that title in June.

CommSec said the state had remained the nation’s strongest job market, with the state’s unemployment rate 7.4 per cent above the decade average.

It was also the strongest state on the relative population measure, with its 0.97 per cent annual population growth rate 65.9 per cent above the decade-average rate for the year to December.


Economic growth (state final demand plus trade)

^ Rolling annual nominal totals, percent change year to March quarter on decade average.
Source: CommSec, ABS

Victoria maintained top spot on relative economic growth.

Economic activity in Victoria in the March quarter was 26.5 per cent above its “normal”or decade-average level of output, ahead of Western Australia, with output 22.7 per cent above the “normal” level of output.

“While Victoria has slipped to second position in the rankings, largely due to Tasmania forging ahead on a number of indicators, it has generally held steady,” CommSec chief economist Craig James said.

“However, there are now greater risks for the Victorian economy given the second wave of coronavirus and a return to more stringent lockdown that has occurred in recent weeks.”

The Australian Capital Territory came third for strong dwelling starts, housing finance and for holding the lowest unemployment rate, sitting at 5.1 per cent.


Dwelling starts

^ Percent change March quarter on decade-average. Source: CommSec, ABS

Victoria to build its way out of an economic slump

In five of the states and territories, construction work in the March quarter was higher than the decade average, up from four in the previous quarter.

Victoria has retained top spot with construction work done 28.1 per cent above its decade average, bolstered by an increase in spending, up 2.7 per cent compared to a year ago.

Looking to build on its construction focus, the state has approved $3.8 billion in new projects in recent months.

The first tranche of approvals including the country’s tallest residential tower and three mega-projects were announced in April, followed by a fast-track announcement of five shovel-ready priority projects in May and seven development projects worth more than $1.1 billion in June.

Similarly in NSW, a total of 67 projects have been brought forward with the potential to create almost 40,000 jobs and $17.7 billion in economic benefit.

RetailResidentialAustraliaConstructionConstructionProject
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/tasmania-victoria-commsec