Recent analysis of Queensland’s growth has been said to be throwing off property investors, which one business says the analysis is doing so artificially.
Propertyology believes research that compares unemployment rates to the national average does not accurately show the state’s economic performance. The business claims a detailed analysis of jobs data over two years that shows a positive job growth is due to an increase in public service activity.
“Every state needs to be a champion at something. New South Wales is Australia’s financial and insurance capital, Victoria holds the trophy for manufacturing and major events, and Queensland has become the champion of ‘administrating’,” said Simon Pressley, head of property market research at Propertyology.
“Over the past two calendar years, Queensland produced only 14,476 new jobs, yet public administration and safety added more than 29,600.
“One can only speculate whether the soaring number of public servants was intentional or not, given the continued lacklustre performance of the Queensland economy.”
Mr Pressley continued, saying despite the addition of nearly 30,000 jobs in the public services sector, Queensland’s economy appears to be weakening, even with the consistently large number of tourists that visit the state, which was stated to be due to the loss of jobs in health, education, professional services, real estate, transport and warehousing, mining and electricity and utilities.
“Commentators have been predicting big results for the Brisbane property market for a few years now, but the poor jobs market hasn’t supported their rampant optimism,” he said.
“Economic activity is a precursor to property market performance. Brisbane’s underwhelming property market performance over the last few years is a bi-product of the broader Queensland economy. Bold decisions are needed if the potential is to ever be unlocked.”
The rise of jobs related to new infrastructure projects was not enough to raise Mr Pressley’s expectations.
“Unless the upcoming state election produces a range of major new infrastructure projects, Propertyology anticipates Brisbane’s property market to continue to mirror the underwhelming job numbers,” Mr Pressley said.
“Several nation-building infrastructure projects are needed to get the economy cranking again. This, plus a sophisticated tourism campaign and Queensland’s affordable housing and lifestyle, could drag annual interstate migration above 20,000 and get cash registers ringing again.”
Mr Pressley and Propertyology predict that property in Cairns have the largest potential for economic growth, and therefore an improved property market because of a large number of projects requiring new jobs, the potential for furthered economic development in this time of positive Asian economic progress and affordable housing.
Other areas Propertyology predicts will have a positive property outlook in the future include Townsville, Toowoomba, Scenic Rim and the Gold Coast.