As the accountants prepare for the parties and to wish each other a happy new year, the economists are looking forward to the release of new data to find out how we went in the 2017-18 financial year. For those looking at the numbers in the west, the last year has marked a real turning point in the fortunes of WA. Population growth is increasing, employment has increased two per cent in the past year, mining investment is back (particularly iron ore and lithium projects) and new hotel and retail investment is driving construction activity.
The recent economic climate in Perth and Western Australia has not been mild, with the effects of the post-commodities boom still reverberating across the State since around 2012-13. The latest economic picture from the WA Treasury indicates a fall, in real terms, in the Gross State Product (GSP) by 2.7% in 2016-17, which was the lowest rate of change across all states and below the national Gross Domestic Product (GDP) growth of 2%.
Over the past five years, 2,695 new hotel rooms have been opened in Perth to make up for an undersupply in the market. Another 1,700 rooms are under construction, plus another 896 rooms are committed. This will provide around 5,291 additional rooms in total built within in a decade… and there are more that will happen but are yet to be formally announced. This investment has also introduced around 1,000 rooms at the premium end of the market, including the Como, Crown Towers and The Westin.
Denis is a Manager at MacroPlan with over nine years experience in undertaking economic and market assessments related to retail development projects. Denis joined Pitney Bowes Business Insight in January 2007 as an Analyst and has since continued to strengthen his experience in the retail industry. Denis has built a solid expertise in market assessments for retail developments, including sales forecasting; supply and demand analysis; strategic reviews of shopping centres; economic impact assessments (EIA); and store network reviews.
Reports are telling us that the WA economy is strengthening and business confidence is improving, but how should business owners be feeling in today’s market? Stuart McKnight, General Manager – WA of MacroPlan recently spoke at Grant Thornton’s ‘Focused on Growth Series’ event. Stuart provided an update on the key infrastructure projects currently in progress and on the horizon for Perth. He also shared his insights into commercial and residential property market trends.
Western Australia has always been well-connected to the rest of the world: WA is in the same time zone as one quarter of the world’s urbanised population; international migration is the source of most of Western Australia’s population growth; WA is the focus of international investment in the resource sector; it’s also the national powerhouse of commodity exports and now, it is the first city in Australia to have direct flights to London.