Strong Queensland economy points to lucrative investment
The economy in Queensland has continued to become stronger over the last few months, which has led to fantastic conditions for anyone interested in purchasing a real estate investment.
A February 27 release from the Queensland government stated the economy has grown significantly over the September quarter last year. In fact, this activity was so strong that Queensland has become a leader for economic growth in Australia, after experiencing growth approximately twice the rate of the national average.
"Queensland has now outperformed the rest of Australia for the past 10 quarters straight, showing the state's position as the economic powerhouse of the nation," said Treasurer Tim Nicholls.
Rises in exports from the goods and services sector and increases in household spending were the two areas that helped to make the Queensland economy stronger. What this shows is that businesses in the area are regaining confidence, investing in the economy and providing employment for local residents and migrants to the state.
A strong economy affects the owners of investment property in a number of ways.
First, a higher rate of business investment can lead to more people moving to the state for employment due to the increased number of jobs available in the region. Therefore, those who own a Queensland rental property could see a reduction in vacancy rates as the pool of tenants begins to widen.
Secondly, higher numbers of accommodation seekers leads to potentially lucrative results for rental price growth, as weekly median rents can be affected by the level of competition in the market.
Finally, as more people move to the area to purchase property, it can help to drive up prices of houses for sale on the market, leading to positive capital growth for investors who wish to sell in the future.
Economic growth spurred on by resources
While business investment is high in Queensland, it appears that the resources sector is still a strong driver of growth in the economy. With the recent announcement of an expansion to the Broadmeadow coal mine in the Bowen Basin, it's evident that there are no signs of the resources sector in the state slowing down in the near future.
At the same time, the government has expressed its intent to turn the resources sector into one of the four pillars of the economy, leading to stronger support for this area in the state in the future.
Currently, the resources sector provides more full-time jobs to Queenslanders than both the hospitality and agricultural sectors, showing just how crucial this industry is to the state as a whole. With increased support for this sector by the government, there's no telling just how much of an effect this could have on the economy.