Housing finance has climbed well above decade averages

The State of the States report has detailed how residential and commercial spending are tracking across each state and territory.

Home lending is “above decade averages” said CommSec. Nearly every state and territory saw an increase in the value of home loans:

1. Western Australia (up 37.8 per cent)
2. Queensland (up 32.3 per cent)
3. South Australia (up 19.7 per cent)
4. Victoria (up 14.6 per cent)
5. NSW (up 13.9 per cent)
6. Tasmania (up 8.6 per cent)
7. ACT (up 2.7 per cent)

The Northern Territory was the only area to see a decrease in home lending, down 7.1 per cent. Western Australia has outperformed both in this quarter and in yearly numbers, up 26.3 per cent from the same time in 2023. Similarly, NSW is up 11.2 per cent year on year, South Australia 9.4 per cent, and Tasmania 2.2 per cent. On the other hand, the NT is down 1.2 per cent and ACT down 3 per cent.

Equipment investment levels were also broken down, led by ACT, which saw a substantial increase on decade averages over the March quarter. Just about every state and territory was up:

1. ACT (up 47.2 per cent)
2. Western Australia (up 29.5 per cent)
3. Tasmania (up 26 per cent)
4. Queensland (up 17.7 per cent)
5. Victoria (up 17 per cent)
6. NSW (up 12.5 per cent)
7. South Australia (up 2.8 per cent)

Similar to home finance, the only area to see a drop in equipment investment in the quarter was the NT, down 12.1 per cent on the decade average. South Australia saw a decrease of 8.8 per cent from the same time last year. NSW was down 1.2 per cent and the NT 0.6 per cent.

Dwelling commencement statistics paint a gloomier picture. Every state and territory saw decreased numbers compared to the decade average:

1. South Australia (down 4.6 per cent)
2. ACT (down 7.8 per cent)
3. Victoria (down 13.6 per cent)
4. Queensland (down 18.2 per cent)
5. Western Australia (down 24.6 per cent)
6. Tasmania (down 30.5 per cent)
7. NSW (down 35.3 per cent)
8. The NT (down 64 per cent)

Despite this, things are looking good for the wider economy in Australia. A variety of factors are driving strong growth.

“Across the country, the economic performance of Australia’s states and territories is being supported by both strong employment and population growth, at a time of higher-than-desired price inflation,” said Ryan Felsman, senior economist at CommSec.

Ranked, the states and territories with the strongest economic growth over the quarter were:

1. South Australia
2. Western Australia
3. Victoria
4. ACT
5. Queensland
6. Tasmania
7. NSW
8. The NT

Once again, the NT is lagging behind the rest of the country. South Australia, however, has taken the top spot for the third quarter running.

“South Australia’s continued high-ranking is being driven by a solid job market and construction activity. While South Australia retains first place, Western Australia is seeing the strongest annual economic momentum, so it will be interesting to see how this plays out in the coming quarters,” said Felsman.

“NSW, Tasmania and Queensland slipped down the rankings this quarter. Generally speaking, state economies have slowed as consumers respond to higher borrowing costs and price pressures. The future economic path will be dependent on the resiliency of the job market and interest rates.”

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.