According to a recent economic report published by the real estate agency PRDnationwide, Australia is the country which is experiencing the highest growth and prosperity. The present economic boom combined with the low rates of unemployment means that the country has not experienced any recession in the past two decades.
It is interesting to note that 20 years without any major recession is a record not only for Australia but for any nation. This firm’s CEO Aaron Maskrey thinks that Australia has a strong economy, stable real estate market, and significant improvement in retail spending.
He considers the main weakness of the Australian economy to be weak consumer confidence. Maskrey emphasizes that the number of multi-residential dwellings has increased to 58.7% in May 2012 in comparison with the same period during the previous year.
This growth is large as a result of several high-scale projects in New South Wales, Victoria and the Australian Capital Territory Furthermore, the report shows that the percentage of new homes increased during the second quarter of 2012 with nearly 24%. On a national level, the province Victoria leads by having a number of new dwellings commenced, which is 37% of the dwellings commenced on a state level.
According to Maskrey, the prices of Australian houses will not grow during the year 2013. The report of PRDnationwide shows that the retail expenditure in Australia has increased as well. In the period between 1st May 2011 and 1st May 2012 Australians are spending with 3,4% more in comparison with the previous year.
The retail expenditure in Western Australia, where the current resource boom is concentrated, grew with 9,9%. All other states registered an increase as well. The smallest one was in Tasmania – just 0.3%. The Australian dollar had an extraordinary performance on the international currency market. Its value appreciated with some 4,8% during the last year.
According to Maskrey, however, its upward movement will probably stop as a result of the global economic crisis and the weaker Australian productivity