Queensland’s economy is shining but its property market is just starting to show signs of recovery
The state’s overall economy has been one of the key engines driving the nation’s economic growth, with more than $50bn in planned resource projects on tap. The latest figures show Queensland’s economy grew 3.5% in the September quarter of last year, compared to just over 2% nationally.
Australian Property Monitors’ senior economist Andrew Wilson says the clouds look as though they will part in the Sunshine State. “Queensland is showing early signs of rejuvenating,” he says. “Certainly its export performance is back on track, particularly its coal exports. There are still issues with the tourism industry, but there is a vibrancy about the Queensland economy.”
He says the recovery effort in Brisbane following last year’s major flooding is just one of the factors that have helped bring down the region’s unemployment rate by a full percentage point.
Baby steps
The good economic news and a little distance from the impacts of the devastating flooding, Wilson says, are bringing confidence back to the market. “We are actually seeing the decline in prices now start to level out. We even saw growth in the Brisbane unit market over the December quarter [0.4%] and that is the first growth recorded in either the house or unit markets in seven quarters.”
A drop in migration, currently at 30% below its 10-year average, has exacerbated the downturn, but APM’s Wilson says there are signs that this is already improving.
“You will see with the economic opportunities that there will be a shortage of skilled labour, so wages will increase, as is already starting to happen, and you will again see an increase in population growth in south-eastern Queensland.”
