Real Estate Industry Shines In Latest ABS Data
31st May 2016 | Category: Australia, News, Research, Residential | Staff
The real estate and property industries had a stellar 2015
financial year, according to a report from Commsec based on new statistics from
the Australian Bureau of Statistics (ABS).
year the ABS releases data highlighting the size, importance and performance of
Australian industries. While data is regularly produced on the top-level 19
industry sectors, greater insights are possible when you drill down through the
96 sub-sectors (80 of which there is regular data available).
sub-industry “Property operators and real estate services” was the fourth
biggest sector in 2014/15 in terms of Industry value
added; second highest in profitability; second highest on the investment rate;
and 85 per cent of businesses in the sector made a profit in 2014/15.
data showed that ‘property operators and real estate services’ recorded a
profit margin for the year of 49.8%, the highest profit margin of all
sub-sectors. The category includes real estate agents and managers of residential, commercial,
and agricultural property, according to the ABS.
While oil and gas extraction recorded the highest capital expenditure for the
year at $59.3 million, property operators and real estate services
recorded the next highest capital expenditure with $36.0 billion.
chief economist Craig James said: “The results are notable because it is clear
that the ‘baton pass’ from mining to the property sector is happening across
two sectors that are similar in size and importance.”
James said real estate can be seen as having greater flow-on benefits to the
economy than mining.
the multiplier effects from the property sector are broader and more
significant than the mining sector,” he said.