WA wealth surge highlights start-up opportunities

New data reveals an increasing number of Australia’s wealthiest suburbs are located in Western Australia, suggesting new opportunities for start-ups catering for the high-end market.

The latest data from the Australian Bureau of Statistics shows four WA suburbs were included in the top 10 richest areas in 2008-09, compared to just one suburb five years prior.

While the NSW suburbs of Mosmon and Woollahra take out the top two spots, with average incomes of $130,637 and $116,922 respectively, Mosman Park in WA comes in third.

Mosman Park counts an average income of $116,197, while neighbouring suburb Peppermint Grove records an average of $104,148. Also in WA, Cottesloe has an average of $102,847, followed by Nedlands with $91,033.

In Sydney, the five suburbs with the highest average incomes included Mosman, Woollahra, Hunters Hill, North Sydney and Ku-ring-gai, while the highest in Victoria were Prahran, Brighton, Malvern and Kew.

The richest in Brisbane were Hamilton, Ascot, Bardon, Balmoral and Bulimba.

The ABS said the highest concentration of the wealthy are found in a few key areas, including the Sydney Harbour region and some areas of Perth, Brisbane and Melbourne.

Bernard Salt, an advisor on cultural and demographic trends at KPMG, says start-ups should take note of these areas if they’re looking to offer a premium service.

“Residents in these areas have high levels of discretionary spending… so you need to have something that no one else has,” Salt says.

“The challenge is to try to make your product range appeal to well-heeled clients who will be prepared to pay a premium.”

“Whether you’re going to be a butcher or a hairdresser in a wealthy suburb, you need to be the best, which means more than just being technically proficient – it’s about your marketing ability to engage that population.”

The ABS data reveals average growth of income in WA has been stronger than usual as well, with incomes rising 8.7% to an average of $51,614, compared to the national growth rate of just 5.6% to $46,904.

However, actual wages and salary incomes were highest in the ACT, WA and NSW, at $54,747, $$50,438 and $48,793 respectively.

Average wage and salary income came to $45,246 in Victoria, $44,501 in Queensland, $41,896 in South Australia, $39,398 in Tasmania and $48,049 in the Northern Territory.

Income growth was slowest in New South Wales, up by 4.9%, while incomes grew in Victoria by 5.3%, Queensland by 5.6%, South Australia by 5.4% and Tasmania by 4.9%.