The October State of the States report from CommSec highlights New South Wales as the best of the bunch for broad economic performance.
This is the first time the number one state has changed since July 2011, which may attract attention of Australian property investors - no matter their location.
CommSec's reports looks at a number of economic indicators to establish how states are performing, from dwelling commencements to population growth.
The shining star
NSW came out on top for overall economic performance during the June quarter.
Of the sub-categories analysed, the eastern state also scooped up top rankings for dwelling starts and population growth, while it had the second-best rankings for unemployment, retail trade and business investment.
"NSW remains the strongest in the nation for new home construction, with starts over 36 per cent above decade averages. In addition in the June quarter the number of dwellings started was 7.3 per cent higher than a year earlier," the report noted.
While the state's population growth is only the fourth fastest of all of Australia's states and territories, its 1.55 per cent annual growth growth is an incredible 32.1 per cent higher than the decade average. With population booming in NSW, demand for housing will no doubt remain strong. This may encourage individuals seeking out investment properties in the likes of Sydney.
Solid performance in the east
Other states performed well in particular sectors, even if NSW was the overall front-runner. While Queensland slacked behind a little, coming in as the third-strongest state overall, it placed third for three separate indicators.
Dwelling starts in the state were 17.3 per cent higher than one year prior, indicating promise for a boost to housing supply in coming months. Queensland's retail spending was up 13.9 per cent on the decade average, too.
Victoria claimed the second-highest spot for housing finance, with commitments 6.4 per cent higher than the 10-year average, ahead of NSW (up 3.4 per cent).
Those toying with the idea of real estate investment in Melbourne and its surrounds will be pleased at the continuing low official cash rate (OCR) environment.
Aside from selecting a property with promising rental yields, investors must also consider their finances carefully.
The Reserve Bank of Australia (RBA) board retained the 2.5 per cent cash rate when it last met on October 7, noting the promise of moderate economic growth domestically.
The flow-on effect of this is a selection of affordable financial products suitable to investors, including interest-only home loans.
It's important to secure the right investment finance for your needs and buy in an area that's got plenty of promise. Chat with investment property experts today to see how to grow your wealth in the future.
