Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 16 June 2015

Record 362,000 new motor sales in NSW

Robust new motor vehicle sales

The ABS released its Sale of New Motor Vehicles figures for the month of May 2015 today, which revealed a healthy enough 93,479 units shifted in the month.

On a rolling annual basis total new motor vehicle sales of 1.12 million sit a little below the record high of 1.15 million set in mid-2013.

More than 372,000 SUVs have been sold over the past year in Australia, and the Sports Utility could in time become the premier vehicle of choice for Australian consumers, surpassing the standard passenger vehicle.

The firing Sydney economy has helped New South Wales to a record high of 362,773 sales of new motor vehicles over the past 12 months.

However, the national figures are being pulled back by an ongoing decline in sales in Western Australia.

While the month-to-month numbers do jump around a little erratically as one might expect, smoothing the figures on a rolling annual basis shows that it has been the "wealth effect" of rising dwelling prices in Sydney and Melbourne which have driven new motor vehicle sales over the past year.

On the other hand, Western Australia is experiencing exactly the reverse dynamic as resources investment, and correspondingly employment, continues to decline.