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New figures showing Queensland has the highest unemployment rate will undermine property investment confidence in the sunshine state, according to the president of Property Club.
ABS research found that at 6.5 per cent, Queensland has the highest unemployment rate out of any state in Australia.
Commenting off the back of the stats, Kevin Young, president of Property Club, voiced concerns that the figures would present a significant hurdle in attracting property investors to the state.
“ABS figures also show that during September 2019, Queensland recorded the biggest fall of 7 per cent in property investment lending in Australia,” Mr Young told SPI.
“In addition, a survey of Property Club members throughout Australia reveals that 80 per cent of members are reluctant to invest in Queensland property because of concerns over the very high unemployment rate in the state.
“Our members are concerned that this high unemployment rate in Queensland may have a negative impact on property values moving forward.”
Mr Young said members are adamant that more needs to be done to address the unemployment rate as a means to fuel the Queensland economy and bolster activity in the state’s property market.
“The clear message is that if the Queensland government can quickly reduce the state’s unemployment rate from 6.5 per cent to 4.5 per cent, which is the RBA national target, then the Queensland property market will receive a major injection of capital from investors throughout Australia,” he said.
“It will also lead to a construction-led jobs boom as more houses and apartments are developed following the influx of property investment funds into the Queensland economy.
“Property investment is all about confidence, and as long as Queensland has the highest unemployment rate in Australia, then property investors will be shy about putting their money into the state.”
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.
Unemployment occurs when a skilled worker or a professional who wants to work is unable to find jobs.