Perth, Western Australia

The significance of iron ore in Western Australia’s mining sector is highlighted by a few key statistics. Of the 12 biggest mining projects under way or likely to proceed this year, seven are in the iron ore sector. The expected investment in the iron ore projects is $17 billion, out of a total investment of $20 billion across the top 12 projects. In a similar vein, the big iron ore developments will generate about 11,000 construction jobs, dwarfing the number created in other commodities.

Western Australia’s exports surpassed $160 billion in the year to June 2019, as Australia recorded its largest ever trade surplus. As a nation, Australia sold about $42.4 billion in goods and services into foreign markets in June, while importing about $33.8 billion. This meant the trade surplus was about $8.6 billion, the highest on record.

China continues to play a huge role in WA’s trade. In June alone, WA exported about $9.3 billion to China. WA exports to China over the full year to June 2019 totalled $81.3 billion, just over half of the state’s total exports.

(Source: WA Business News)

The established Perth residential market has seen a continued reduction in supply with the number of properties on the market at 14,119, down 7.2% from at the same time in 2018, and 11.5% from 15,963 in July 2018. Weekly sales of 557 properties was up nearly 10% on 508 from the previous month.

Lot sales data in the UDIA graph below shows a slight decrease in volumes during August.

The rental vacancy rate has risen 0.1% to 2.7% and the median rent is steady at $360 per week. There are currently 6,812 properties available for rent, compared to 8,304 vacant properties at the same time in 2018. This represents a fall in properties for rent of 18% over the year. This is seen as one of the lead indicators of an improvement in market conditions. This is of more relevance when viewed in combination with the fall in established properties for sale, as it represents a decrease in the overall stock of available housing. (Source: UDIA/REIWA)

Employment in Western Australia grew by 24,400 or 1.8% for the 12 months to July 2019. Western Australia’s seasonally adjusted unemployment rate increased by 0.1% to 5.9% in June. The only states with lower unemployment in July were Victoria and New South Wales at 4.8% and 4.4% respectively (Source: ABS)

1 See important disclaimers at the end of this document