An economic revival in New South Wales has been greatly supported by the state's solid residential construction industry, according to the Property Council of Australia. However, the industry commentator has also called for a revision of existing planning laws to push further infrastructure projects to success.
For Australian property investors, this is likely to come as good news. Building a portfolio in an area undergoing growth - and tipped for a favourable economic future - is essential to any wealth creation strategy.
So what is it about NSW that's producing positive results for the economy?
"A mix of well-targeted incentives, infrastructure investment, lower borrowing costs and favourable market conditions has helped NSW achieve its best housing starts in a decade," Property Council of Australia NSW Executive Director Glenn Byres said on October 20.
Mr Byres also explained that the broader economy performs well when the property industry does so. The state's property industry pays more than $16 billion in wages and accounts for one in ten jobs in the state, highlighting just how significant its contribution is.
However, while property investment opportunities in Sydney and elsewhere in NSW are attractive to investors, it's important to keep an eye on the ball.
"The real challenge is sustaining the current momentum – and the robust pipeline of current and next-generation infrastructure projects will fuel more investment," Mr Byres noted.
NSW recently shot to the top in the CommSec State of the States report, tipping Western Australia off its perch to claim the number one spot for overall economic performance.
Of the eight indicators analysed, NSW achieved a significant number of top places. It was dubbed the top state for new home construction, with starts a whopping 36 per cent higher than 10-year averages, CommSec explained.
Sydney's impressive 14.3 per cent year-on-year house price growth was also highlighted, which will no doubt interest those with their eyes on investment opportunities.