Property industry supports strong economic growth

Australia’s property industry continues to drive our economy, as latest economic growth data reveals the steepest growth curve since the mining boom reached its peak. 

Latest data released by the Australian Bureau of Statistics reveals the national economy grew by 0.9 per cent in seasonally adjusted terms in the June 2018 quarter. This is the fastest rate of growth in six years. Annual growth stands at 3.4 per cent. 

Growth exceeded economists’ expectations and is at its steepest since the mining boom reached its peak. Australia’s economy is now growing faster than any of the largest seven economies in the world. 

Population growth has played a role in Australia’s headline growth, but Treasurer Josh Frydenberg emphasises that “the economy is not reliant simply on immigration to spur growth”. 

“We are seeing dwelling investment, business investment, government spending, infrastructure projects,” he says. 

Investment in new dwellings increased by 3.6 per cent for the quarter, with strong results in Victoria and South Australia. 

The construction industry grew by 1.9 per cent for the quarter, and by 5.5 per cent over the year. 

Construction within the residential property sector grew by 3.1 per cent and non-residential property sector by 1.3 per cent over the quarter.  

According to the ABS, the recent pickup in new dwelling investment reflected strong approvals in early 2018 which are now flowing through to commencements. 

“The property industry is helping to propel economic growth to its highest level since 2012, highlighting its importance as a driver of jobs and economic prosperity,” says the Property Council’s chief executive, Ken Morrison. 

“Our national economic wellbeing depends on a strong property industry, supported by smart investment in vital public infrastructure for our growing cities. 

“The benefits of growth are overwhelmingly positive, but must be locked in and supported by good planning and smart infrastructure investment to ensure all Australians reap the gains.” 

Visit the Property Council’s Data Room for more statistics and insights.