Invest
Perth no longer Australia’s wealth haven
Sydney has surpassed all other capital cities to claim the crown of Australia’s wealthiest location, a new study has shown.
Perth no longer Australia’s wealth haven
Sydney has surpassed all other capital cities to claim the crown of Australia’s wealthiest location, a new study has shown.
It’s in stark contrast to the year preceding the global financial crisis, when Perth’s net wealth or assets minus debt per capita was the highest in Australia, well ahead of its east coast rivals.
However, new research released by Roy Morgan shows that by March 2019, Sydney was in the top spot, followed by Melbourne, leaving the west coast capital lagging behind the other major cities.
Roy Morgan’s wealth report has revealed that the average net wealth of Sydneysiders in the year to March 2019 was $570,000, followed by Melbournites, with an average net wealth of $491,000.
Canberrans came in third, with the ACT’s inhabitants sitting on an average net wealth of $441,000.
Perth has fallen significantly behind the eastern seaboard, with its population owning $358,000 in net wealth on average.
This figure is just $20,000 higher than the city’s 2007 average net wealth.
Commenting on the findings, Roy Morgan CEO Michele Levine said that despite an increase to Australia’s overall wealth, not all capital cities share the sentiment.
“Although overall net wealth per capita in Australia has shown a strong recovery from the GFC, being up 59.7 per cent (or +23.8 per cent CPI adjusted) since 2007, not all capital cities and country areas have benefited equally,” said Ms Levine.
The CEO explained that strong growth in the east coast’s residential market has pushed up its comparative wealth.
“These wide variations in growth rates have a lot to do with real estate prices where Sydney and Melbourne have generally shown the greatest increases,” she said.
“Evidence for the impact of this is that there is a much higher proportion of personal wealth in NSW held in owner-occupied homes (52.9 per cent), compared to some other lower value states such as SA, where it is only 42.9 per cent, and 46.1 per cent in WA,” the CEO highlighted.
While the east coast has flourished, nearly doubling its wealth size, a post-mining boom Western Australia has struggled to reach similar heights.
Ms Levine highlighted that gains in average net wealth across Australia range from a high of 95 per cent for Sydney, down to zero for country WA and just 6 per cent for Perth.
Country Western Australia’s wealth has also experienced a marked decrease in contrast with other areas, having been ranked only behind Perth and the ACT back in 2007.
In 2019, it is ranked below every Australian capital city.
RELATED ARTICLES
About the author
About the author
Stock market
FOREX.com launches in Australia to empower self-directed traders
StoneX Group Inc. (NASDAQ: SNEX) has announced the Australian launch of FOREX.com, expanding access for self-directed traders to a global suite of Contracts for Difference (CFD) products across ...Read more
Stock market
Westpac and CMC Markets strengthen partnership to enhance online trading services
In a significant move that underscores the evolving landscape of online trading in Australia, CMC Markets Stockbroking has been chosen as the preferred vendor by Westpac Banking Corporation to extend ...Read more
Stock market
Portfolio reviews as an operating discipline: turning volatility into a competitive edge
In a higher-rate, higher-volatility world, portfolio reviews are no longer an annual hygiene task; they’re a core operating rhythm that protects cash flow, unlocks tax alpha, and sharpens risk ...Read more
Stock market
Fee war on the ASX: Global X’s A300 turns up the heat on core Aussie equity ETFs
Global X has lobbed a 0.04% management fee into Australia’s core equity sandbox, launching the Australia 300 ETF (A300) to take on entrenched giants. Read more
Stock market
Challenger IM shakes up the ASX with private credit note and a side of risk
Challenger Investment Management has taken private credit mainstream with an ASX-listed note structure—LiFTs—that secured roughly $100 million in cornerstone commitments within a day of launch. Read more
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
Stock market
FOREX.com launches in Australia to empower self-directed traders
StoneX Group Inc. (NASDAQ: SNEX) has announced the Australian launch of FOREX.com, expanding access for self-directed traders to a global suite of Contracts for Difference (CFD) products across ...Read more
Stock market
Westpac and CMC Markets strengthen partnership to enhance online trading services
In a significant move that underscores the evolving landscape of online trading in Australia, CMC Markets Stockbroking has been chosen as the preferred vendor by Westpac Banking Corporation to extend ...Read more
Stock market
Portfolio reviews as an operating discipline: turning volatility into a competitive edge
In a higher-rate, higher-volatility world, portfolio reviews are no longer an annual hygiene task; they’re a core operating rhythm that protects cash flow, unlocks tax alpha, and sharpens risk ...Read more
Stock market
Fee war on the ASX: Global X’s A300 turns up the heat on core Aussie equity ETFs
Global X has lobbed a 0.04% management fee into Australia’s core equity sandbox, launching the Australia 300 ETF (A300) to take on entrenched giants. Read more
Stock market
Challenger IM shakes up the ASX with private credit note and a side of risk
Challenger Investment Management has taken private credit mainstream with an ASX-listed note structure—LiFTs—that secured roughly $100 million in cornerstone commitments within a day of launch. Read more
Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more
Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more
Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more
