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Queensland Economic Outlook ‘Positive’: Deloitte

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Queensland Economic Outlook

 

Construction and development appeared healthy to Deloitte’s analysts, who attributed some of Queensland’s strong economic outlook to high levels of interstate migration and international tourism, which have encouraged a growing list of tourism-related construction projects.

Queensland’s international tourist arrivals are expected to remain solid over the forecast period, averaging growth of 4.7 percent out to 2021.

There were reasonable gains in engineering activity in Queensland, and Cross River Rail was in the planning stages.

The report also put a focus on livability and housing affordability. In the midst of the continuing debate over house prices and quality of living, Deloitte reported that Queensland has less cause for concern.

Queensland’s place in the national picture of housing affordability is a comparative advantage. In the midst of a housing price boom, living in Queensland remains more affordable than in the southern states.

While Sydney and Melbourne house prices have experienced year-on year growth in the double digits, Brisbane has experienced a modest 3.5 per cent growth.”

Despite this optimism, Queensland was revealed to be mirroring the national trend, showing a slight decline in outright home ownership and owners who have a mortgage.

Rental stress was recorded to be higher than the national average, with more Queenslanders renting than owning their own home compared to the rest of the country.

“But with a modest decline in rent in the June quarter CPI figures, increasing vacancy rates, and new supply from an easing residential construction boom the conditions could result in Brisbane becoming a renter’s market,” Deloitte said.

Job growth was accelerating in Queensland and while population growth had “bottomed”, it was now back in line with the national average — although it remained below the level experienced in the state five years ago.

In less positive news, CommSec’s latest State of the States report found Queensland’s economic performance had slipped to sixth place, hampered by weak business investment and retail spending.

CommSec chief economist Craig James said that despite a recent surge in residential construction, oversupply is still a concern. Queensland would benefit from increased revenue generated by the state’s gas industry as well as spending that resulted from a rise in employment.

Queensland Treasurer Curtis Pitt defended the state’s ranking saying that the CommSec report understated the state’s performance.

“Most people’s economic indicator is whether they have a job or not and both the DAE and CommSec reports highlight our strong performance in job creation,” Pitt said.

Of Queensland’s population of 4.7 million, more than half were recorded to be living outside of the state’s capital city. Queensland’s south-east corner, including Brisbane, Gold Coast, and Sunshine Coast, saw a growth rate in population twice that of the rest of the state.

Despite Queensland’s size, urbanization has taken hold — 66 percent of the population living within 0.6 percent of Queensland’s total area.

Originally Published: brisbaneinvestor.com.au

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Gold Coast’s inland suburbs expected to boom —according to the Terry Ryder Price Predictor

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INVESTORS should head for the hills according to a new report which predicts prices in Upper Coomera and Nerang will rise faster than in beachfront suburbs.

The Terry Ryder Price Predictor, based on trends in sales volumes, describes the Gold Coast as a “tale of two cities”.

“(It’s) the high-rise suburbs and genuine residential suburbs,” the report states.

“We urge investors to avoid the former and concentrate on the latter.

“Many of the inland housing areas of the Gold Coast have strongly-growing markets and will deliver price growth. Our Top 30 list includes Ashmore, Carrara, Highland Park, Nerang and Upper Coomera.”

Jasmin Young and Corey Gerhardt have built a home in Upper Coomera. Supplied.

Jasmin Young and her partner Corey Gerhardt, who have built their first home at Upper Coomera, said they chose the suburb because of its affordability and strong capital growth opportunities.

“We decided to build at Highland Reserve in Upper Coomera because it was a happy medium between Brisbane where my partner works and the southern Gold Coast where I work,” Ms Young said.

“The fact that Upper Coomera continues to show strong signs of price growth was a major deciding factor in our decision to build there.”

House and land master planned community project, Highland Reserve, at Upper Coomera, developed by Stockland.

REIQ Gold Coast zone chairman John Newlands said Ashmore, Carrara, Highland Park, Nerang and Upper Coomera still offered affordable housing.

“You can buy a house for $450,000 to $550,000 in those suburbs,” he said.

“It’s just not possible for many in a lot of the beachside suburbs so it really is affordability which will drive those suburbs.”

The news is not all positive for the Gold Coast with the Sunshine Coast expected to overtake the Gold Coast’s property market’s growth.

“The trend suggests the Gold Coast is winding down – it surged throughout 2015 and the early part of 2016, but the number of growth suburbs has dropped from 25 six months ago to 20 three months ago to 14 now,” the report states.

“We continue to urge caution about the Gold Coast high-rise apartment markets because of the alarming history of boom-bust scenarios, poor capital growth record and looming prospect of oversupply.”

But Mr Newlands said he was surprised by the predicted trend.

“I really do feel that the Gold Coast is growing,” Mr Newlands said.

“We rely heavily on tourism and hospitality but we also have construction and manufacturing to the west of the Coast. Tourism is growing and we’ve also broken into the healthy industry.”

Original article published at www.goldcoastbulletin.com.au by Aleisha Pidgeon 21/10/16

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Palaszczuk Government to build three new schools

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Growing communities in Yarrabilba, Coomera and Caloundra South will each receive a brand new school by 2019.

Visiting the $4.5 billion Yarrabilba development this morning, Premier Annastacia Palaszczuk said each school would cater for around 1,000 students and was a clear indication of the Government’s priorities when it came to education.

“These three schools are in high growth corridors, with tens of thousands of new residents expected in each community in the coming decades, and are estimated to cost around $147 million.

“When combined with other new schools in Townsville, Calliope and Cairns, it brings our investment in brand new schools to $312 million, supporting over 900 jobs.

“And it comes on top of the 290 extra teachers this year, part of our election commitment to deliver 2,500 new teachers over three years, including 875 over and above growth.”

Member for Logan Linus Power said the new school at Yarrabilba was crucial for such a high-growth region.

“The population at Yarrabilba is expected to have a population of 40,000 people by 2021 and nearby schools are already at 94% capacity,” he said.

“It’s important that a new school is built to cater for the growing population so students can be best prepared for the future.”

Education Minister Kate Jones said the project would go to tender along with new schools announced for Caloundra South and Coomera as part of a joint procurement package.

“Packaging the school construction in this way will ensure we can drive efficiencies across all phases of delivery and the Government has ensured that the use of local labour will be prioritised,” Ms Jones said.

“Under the Government’s apprentice guarantee, 10% of employees working on a project must be apprentices or trainees.

“This means younger Queenslanders can benefit more from Government investment in infrastructure.”

 

Original Publish: http://mysunshinecoast.com.au/

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Auction tips: Why and when you should auction

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WHEN it comes time to sell your property, the age-old argument of auction versus private treaty naturally comes to the fore.

There is no one best practice but the general consensus among property professionals is both type of housing and market confidence play pivotal roles.

Core Logic RP Data auctions spokesman Kevin Brogan crunched combined capital city data over the 12 months to November 2015 and found higher valued and more unusual properties were taken to auction.

“If you have a house in a street and there are 10 others like it, you have a pretty good idea of what it’s worth,” Mr Brogan said.

“But if it’s unique or unusual you might not be able to pick what it’s worth so you take it to auction on the proviso there’s enough interest.

“Looking at the combined capital city data over the past 12 months to November, you see the general median price of houses that sold at auction is about $950,000.

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