Congratulations! Victoria surpassed NSW for the first time and became the Australian economy No 1!

In CommSec’s latest release of “State of the States” in Australia’s state economic performance rankings, Victoria is finally proud, surpassing NSW in one fell swoop, becoming Australia’s NO. 1!

This is also since the appearance of this ranking in 2009.
Victoria won for the first time!

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Therefore, if you mention Victoria in the future, it will not only be Australia’s “Education Capital”, “Art Capital”, but also the well-deserved “Economic Capital”!
This is also the first time in four years that NSW has lost its title.

The main reason is that the real estate market in NSW, especially Sydney, is not performing well, while the housing market in Melbourne is relatively stable.

In the year ending June this year, the price of Sydney detached houses plummeted 4.5%! Set the biggest annual decline in 10 years since 2008!

In contrast, housing prices in Melbourne have risen during the same period, with independent homes up 0.5% and apartments up 0.9%.
The biggest factor in the Victorian housing market is that it is better than NSW.

Victoria’s population grows more and more rapidly

According to the demographic data released by the Australian Bureau of Statistics, in the past five years, Melbourne has added 1,859 people a week, with a population growth rate of 12.1%!

Sydney has an annual increase of 1,656 people and a population growth rate of 9.8%.

In the year ending June 2017, Melbourne’s new population reached 125,400, a growth rate of 2.7%.

There are 10 new suburbs in Australia with the most populous suburbs, and 5 of them are in Melbourne!

Among them, Cranbourne East also won the most population growth in Australia!

In June 2016, the population of this district was 26,826. By June 2017, it had increased to 34,164 people, and 7338 people had been added in one year, with a growth rate of 27.4%!

and so,

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Whether it is population growth or growth rate
Melbourne ranks first in Australia!

Among them, overseas immigrants contribute the most.

Of the 125,000 new people in Melbourne, 87,000 are overseas immigrants, accounting for 64%!

Craig James, chief economist at CommSec, said, “With a large population, there is a high demand for housing and infrastructure, and more consumption, which will promote employment.”

and so,

Population growth is the most important factor driving Victoria’s economic development!
The report’s rankings refer to a total of eight indicators, including: economic growth, retail consumption, equipment investment, unemployment, construction, population growth, residential credit and housing starts.

Victoria’s performance on six of the indicators is higher than the Australian average, especially the economic growth.

In the past year to March of this year, Victoria’s economic growth rate was 26.5% higher than the average of the past decade!

And all of this is inseparable from the rapid growth of the Victorian population.

Therefore, it is not necessarily a bad thing to have more people, at least for the Victorian economy.

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