Down Under back in favour
Tourism services exports hit the highest level in 41 months in May, and tourism to Australia is on track to hit record highs by as soon as this coming summer.
It's also adding to demand for Airbnb stock and other accommodation.
Exports increased 5 per cent in May, driven by gold and services exports.
It's been an awesome boom for the value of Australia's exports, though this is probably on its last legs as key commodity prices such as coal, iron ore, and gas are either now declining or well off their highs.
Import of consumption goods increased, largely due to record new vehicle imports.
There was a wild rush to buy new vehicles by the 30 June deadline for the very generous tax write-offs, so June will see record new vehicle sales which will then immediately drop off a cliff in July.
Overall, piecing it together, Australia is still running a very large trade surplus.
What does it all mean?
Australia has benefited a lot from very high coal and gas prices, but this boom in export values will evidently be easing in due course.
On the demographics side of things it looks like Australian tourism is going to be back with a bullet in summer, and with more landlords opting to go down the Airbnb route it's having a knock-on impact on the rental shortage.
PropTrack reported on its index this month that rents are rising fastest in Melbourne, and this is before land tax rules are extended and increased for landlords in Victoria, while the cost of renting in Queensland is now higher than in Victoria.
Domain reported Sydney unit rents up at an even faster at +28 per cent over the 2023 financial year.
Domain's full rental report is here.
