Chris Childs


Queensland’s investment defies predictions

It is no secret that the resources economy is past its boom, and investment in states like Queensland will wane a little as this sector moves completely into the production phase. However, as other sectors pick up the slack and the economy strengthens, it appears that investment into the Sunshine State has actually defied the predicted slowdown more than people expected.

This is good news for property investors, as it suggests that growth will continue right across the state. More investment means more infrastructure, more jobs, and potentially more property hot spots!

What sort of construction investment has been occurring in Queensland?What sort of construction investment has been occurring in Queensland?

Billions on the way into the state

Deloitte Access Economics has released its Investment Monitor for the December quarter of 2015, which showed that Queensland's $168 billion stream of incoming investment had not significantly dropped as many predicted, but instead remained pretty steady.

Curtis Pitt, Queensland Treasurer, was fairly pleased with this – especially as it means we are ahead of Victoria and New South Wales, and second only to Western Australia.

"In addition, the $15.4 billion value of committed projects excluding LNG in Queensland for March 2016 is the highest it's been since September 2013," he added.

So clearly, even with a 0.6 per cent decline over the quarter, the amount of money still coming into construction projects across the Sunshine State is quite impressive. But what do you do about it as an investor?

Watching the pipeline

A separate report from Deloitte, the Queensland Business Outlook, was released in March 2016. It showed that while there was a year-on-year drop in the domestic economy, there was a quarterly increase in economic growth of 0.1 per cent. While miniscule, it's the first time this has happened since June 2014.

It's good to see Deloitte recognise the stability of Queensland's economy.

Having described the engineering boom as a "once in a lifetime" investment, it's good to see Deloitte recognise the stability of Queensland's economy. We were never going to keep going with construction and investment at the same levels as we did during the resources boom, so to come off this high point with such a strong ongoing position is quite impressive!

For property investors, this means we have a strong base upon which growth can build. One of the keys to a successful investment strategy is seeking parts of the country where growth is likely to occur in the coming years, finding new real estate in these spots, and making it a sound investment.

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