ANZ Research is watching house prices closely given their flow-on effects to the remainder of the economy are extensive. House prices impact household balance sheets, household spending, saving decisions, investor’s appetite for purchasing and the construction of dwellings.
Victoria, ACT, Queensland and Tasmania have been the beneficiaries of the outflow of people leaving NSW, all having seen net inflows of interstate migrants.
Tasmania is in a similar position to NSW – above trend growth, but slowing momentum. South Australia, ACT,Queensland and Victoria all saw above-average growth and building momentum in the three months to March.
The resources-affected west and north of the country demonstrated quite different paths. Western Australia’s economy slipped in the March quarter, with the state in the bottom left quadrant of the ANZ Stateometer. That indicates an economy growing below trend and decelerating.
WA’s population-growth rate has slowed dramatically over the past five years and house prices have been edging lower for three.
The Northern Territory also grew at a below-trend rate but has accelerated relative to the end of 2017. The end of the construction phase of the Ichthys liquefied natural gas project has been a negative for labour market and investment activity.