BSI results show strength in economy

Spending-strength-and-continued-growth-in-house-prices-makes-Sydney-a-key-city-for-real-estate-ownership_157_68085_0_14095976_300Spending across Australia has been growing steadily, according to an April release from CommBank.

The news bodes well for Sydney property owners, with strong economic growth having the potential to encourage further housing construction and growth.

Spending during March was steady, highlighting the¬†19th consecutive month of growth, according to CommBank’s most recent Business Sales Indicator (BSI).

The BSI increased by 0.6 per cent in trend terms month-on-month to March. According to the CommBank statement, the BSI is a “key measure” of economy-wide spending.

“This is a good, solid result, with sales continuing to grow at a sustainable rate. It shows that business conditions remain largely positive around the country, with almost all regions and industries experiencing healthy spending growth,” explained CommBank Executive General Manager for Local Business Banking Adam Bennett.

While the BSI is not a direct reflection of housing market activity, it certainly provides a helpful insight into the health of the economy.

However, activity in the Sydney market is certainly just as positive as the results of the CommBank survey, with strong growth underpinning the city’s highly active¬†real estate market.

For instance, house prices in the NSW capital reached a stratified median price of $763,169 in 2013’s final quarter, on the back of incredibly strong yearly growth. While the national growth in house prices during 2013 was a favourable 9.8 per cent, Sydney sped ahead of this figure, exhibiting 15.1 per cent annual growth to December 2013, according to the Australian Property Monitors.

Alongside strong growth in Sydney’s house prices, units also fared well, which is why so many investors have taken an interest in the city.

The capital’s units had 10.9 per cent year-on-year growth to December 2013, well ahead of the 8 per cent national average, noted Australian Property Monitors. The average unit price in the city is now $541,992.

With spending potentially indicating economic confidence, home owners in Sydney are placed in a comfortable position.

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