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Employment figures are tied to investment potential, quickly pointing out the hot, and the not so hot, suburbs and states in Australia.
Job creation and low unemployment are key markers of areas that will be successful for property investors – particularly those looking for a quick increase in prices.
Economics and associated growth are key things investors need to consider when it comes to finding a hotspot, Positive Real Estate’s CEO, Sam Saggers told Smart Property Investment.
“Investors should stick to service centres and towns with diverse employment sectors. You don't want to be on the tipping point of a transient work force leaving or a major industry or employer shutting down,” said Mr Saggers.
Australian Bureau of Statistics data, released yesterday, saw the national average rise to 5.2 per cent for the June 2012 period.
“Low unemployment means higher wages, higher incomes, which means more money to drive house prices upwards,” Mr Saggers explained when detailing how to use the unemployment rates as an indicator for investment potential.
Western Australia outshone all other states and territories, with a drop of 0.3 per cent, to 3.5 per cent.
“The latest figures show that full-time employment across WA increased by 6,500 jobs in June to an all-time high of 934,400,” said treasurer Tony Buswell.
“This demonstration of the strength of the State’s labour market is clear evidence of the requirement for continued investment in infrastructure,” he said.
In the Northern Territory, unemployment sat at 4.2 per cent.
“This strong result is supported by figures released earlier this week showing the Territory job advertisements rose 20.7 per cent in the past year; the only jurisdiction to record an increase,” said treasurer Delia Lawrie.
“Now with major projects secure, immense private investment is flowing back into the Territory, and will create thousands more jobs right across our economy,” Ms Lawrie said.
Tasmania’s minister for economic development, David O'Byrne responded to the state’s 7.3 per cent rate, which has remained unchanged for the past three months, by saying that attempts to diversify the economy are currently being made.
"There are signs that the unemployment rate has now stabilised. The challenge now is to rebuild confidence and create new jobs in the economy," said Mr O'Byrne.
He pointed to the state’s $758 million construction investment and 1,000 Pacific Aluminium and TEMCO, Bell Bay, jobs in the pipeline.
Queensland's 5.3 per cent rate, a drop of o.4 per cent, is a 'sign of recovery' for the state, according to treasurer Tim Nicholls.
"This shows confidence in the Queensland economy despite some very challenging global conditions," he said.
Seasonally adjusted, Victoria recorded an unemployment rate of 5.3 per cent, South Australia, 6.4 per cent, Queensland at 5.4 per cent and New South Wales 5.1 per cent.
Canberra recorded an unemployment rate of 7.8 per cent.
Mr Saggers recommends looking at the unemployment figures in concert with population growth figures, demographics, supply, infrastructure and yields to choose the best investment spots.