Qld homebuilding figures reflect wider trends

It is no secret that the Qld homebuilding figures of the property industry in Australia, has been a reflection of the nation’s two-speed economy.

While resource-rich areas have experienced commercial growth and economic expansion, their less than well-endowed counterparts have struggled to keep up.

Recent measures of consumer sentiment point to increasing confidence in the traditionally larger markets of New South Wales and Victoria, but recent figures continue to tell the same story.

Even the non-resource related sections of Queensland cannot compete with the development occurring in the regional areas.

Qld homebuilding figures from September reveals that approvals have been greater in the locations in closest proximity to mining-related operations.

“Central Queensland and the Toowoomba regions have experienced double digit growth in home building over the last 12 months. This is overwhelmingly positive news for an industry that has struggled to climb out of a GFC-induced recession,” Housing Industry Association (HIA) executive director Warwick Temby said in a statement issued November 8.

“There is a very clear connection between those parts of Queensland where home building activity is on the rise and their proximity to resource development.”

For investors, the situation can be described as bittersweet. If on the one hand you secure a rental property in one of the rapidly developing resources areas, you may get in at the right time and secure high yields over a period of several years or a sell to make a profit.

However, the sluggishness of the not too distant economies can have negative impacts on demand and the market’s ability to rebound on a larger scale.

Other sectors need to see significant development to secure a wider recovery.

“But to have big impacts on employment in the industry the growth that has been seen in the resource areas needs to take hold elsewhere in the state,” said Mr Temby.

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.