As the number of people moving into the nation continues to increase, the local economy also sees degrees of development as jobs and employment needs rise as well. If you're interested in investing in commercial real estate in Surfers Paradise, the latest release from the Housing Industry Association (HIA) could be encouraging – especially with regards to increasing populations and the potential for investment opportunities developing in the Gold Coast.
In fact, residential construction has become the key source of growth for several states across Australia over 2013/14, offering some insight into the growing role of real estate throughout the nation. With six out of eight states and territories seeing a growth in construction figures – including Queensland – now could be a brilliant time to consider making moves into the local Gold Coast market for investment in commercial real estate.
HIA economist Diwa Hopkins said this was in stark contrast to the previous year, where seven of the eight regions in Australia saw declined levels of construction. Now could be a a great time to take advantage of the recovery and expand your own investment portfolio.
"Today's results also show the important role that new home building and home renovating activity is starting to have for state economies. In previous years residential construction had been a drag on overall state economic activity. In 2013/14, activity in residential construction contributed to overall growth," said Ms Hopkins in a 21 November statement.
"In New South Wales, for example, where gross state product grew by 2.1 per cent, 0.2 percentage points of this were directly attributable to residential construction, Similar developments are evident in Queensland, Western Australia and Northern Territory. The very low and stable interest rate settings characterising the current cycle are having the desired effect of realising much pent-up demand for new home building."
Over the 2013/14 financial year, there were various jumps in gross state productacross the nation, including a 2.3 per cent growth in Queensland. Outside of this were increases in the Northern Territory (6.5 per cent) and Western Australia (5.5 per cent).
During the same period, dwelling investment rose by 4 per cent in Queensland, offering some insight into the role of the real estate market in the development of the region's economy. Ms Hopkins went on to say that it was essential for policy makers to understand that future policy changes would need to be embraced to help sustain these levels of growth.
"The effects of excessive taxation and restricted land supply are stifling the industry's ability to respond to increases in demand. These issues require all levels of government to take action and the coming federal reviews on taxation and the federation are the obvious starting point to make real progress," said Ms Hopkins.
Maintaining these levels of residential investment have a direct flow on to local economies, which stimulates the development and growth of commercial investment opportunities across the nation.
Speaking of changing policy, the development of Gold Coast markets has been encouraged after a number of red tape reductions for market operators to allow for the growth of markets in the region.
Mayor Tom Tate said the removal of regulations would help bolster support for local business and benefit the development of the region's economy as a whole.
"By slashing the red tape we're nurturing local business and supporting our creative industries. We're opening the way for a greater diversity of markets to operate on the Gold Coast as well as a greater variety of gourmet food and beverage products to be sold at markets," said Mayor Tate in a 21 November statement.
Now could be a great time to get in touch with a local real estate agent and begin working towards securing your own slice of commercial property in Surfers Paradise in the coming months.