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Why Perth is the richest Western Australia city

Why Perth is the richest Western Australia city?

Australians living in Perth have known a secret for a long time: they take in more disposable income than any other person in other states. That’s right, Perth residents have more money left over after bills.

This can be attributed to the increasing interest of investors looking to grow promising cities. Business investment was identified as the largest contributor to the Western Australian economy expansion. 

Business investment rose by 9.4 percent in 2020, which was noted as the first positive improvement in seven years. This development can be seen in new infrastructure projects and increasing business ventures from local and international entrepreneurs.

Factors in Western Australian Economic Rise

Factors in Western Australian Economic Rise

The rise could be due to more health-focused awareness among Australians. 

Clinics that offer eye health services, cosmetic enhancements, and surgical procedures didn’t even seem to be affected by the current health crisis.

Net exports grew by 2.4 percent, which was identified as Western Australia’s second largest contributor. The mining industry was particularly vital to this factor, rising by 4.9 percent.

The mining industry continued to thrive even through the health crisis, making the industry of particular importance to the national and state economies.

The lifting of travel restrictions has seen the hospitality and tourism sectors recover and rebound quite vigorously. This is a sign of positive outcomes and the possible increase in Western Australia’s continued booming economy.

Western Australia Suburbs in Figures

Western Australia Suburbs in Figures

Western Australia has been enjoying an unprecedented economic improvement. Brentwood residents in particular have the highest amount of excess money after mortgage and tax deductions. 

This means residents can focus more on improving their health and wellness by visiting dentists, dermatologists, and even psychologists.

The average annual income for Brentwood residents is $113,324 after taxes. The annual mortgage cost averages around $37,926 since suburb homes are priced at $827,500. 

This leaves residents with around $75,400 in excess and disposable income.

Willagee is a close second to having residents with the most amount of disposable income. This suburb is also south of Perth, where residents usually end up with around $70,191 net after payment obligations.

In third place is Cottesloe with an average disposable income of $69,412 for its residents. North Dandalup follows the list with an average disposable income of $68,745.

Fremantle residents enjoy an average of $66,756 disposable income. Ardross follows with $64,513 average disposable income and West Perth at $62,888.

Excess disposable incomes mean that residents get to spend more, thereby boosting the economy as a whole. These can be seen in the following 2020 economic movements:

  • Western Australia had the highest growth rate among the states at 1.4 percent from 2019 to 2020.
  • Gross State Product (GSP) increased to $292.3 billion.
  • Western Australia contributed the largest portion of the national economy from 2019 to 2020.

Looking at Western Australia’s Future Growth

Looking at Western Australia’s Future Growth

The economy in Western Australia has been growing steadily for three consecutive years under the McGowan Government. The final year of the previous liberal national government was the only economic contraction that was recorded.

The Australian Bureau of Statistics (ABS) noted that the national economy shrank by 0.3 percent. However, if it were not for Western Australia’s substantial economic contribution, the figure would have been 0.6 percent.

Western Australia continues its winning streak with a 15% national Gross Domestic Product (GDP) share from 2019 to 2020. The domestic economy increased by 0.9 percent, as observed by the State Final Demand (SFD).

Western Australia is the only State to record economic growth from 2019 to 2020. With its planned developments for the future, many investors are now watching Western Australia through new speculative eyes.

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