For decades, the resources boom was the major driver of the Australian economy. While some predicted economic calamity when it began its decline, other sectors of the economy quickly stepped in to fill its place. Monitoring these other areas is an important part of planning your own property investment, and anyone interested in commercial real estate in Surfers Paradise should try and stay up with where the state is doing particularly well.
In the latest edition of Commsec's State of the States report, eight economic indicators were gauged against averages for the past decade for each state and territory in the country. While Queensland did not come out with the strongest economy (that honour went to New South Wales yet again), there were several areas in which the Sunshine State has performed well against its performance over the last 10 years.
While the growth of the state economy is down 1.1 per cent on the same time last year, Queensland is still more than 10 per cent ahead of its decade average for overall economic growth. It outperformed New South Wales, Victoria, South Australia and Tasmania in this area.
According to a budget paper on 2014-2015 by the Queensland government, this growth is only expected to rise in the coming months. This paper says that gross state product (GSP) will rise 3 per cent during the current financial year, and 6 per cent in 2015-2016. Compared to national averages of 2.5 and 3 per cent for each respective financial year, the state economy is poised to do very well indeed.
According to the States of the States report, Queensland was the third best state or territory in the country for construction work last quarter, with the level of this activity 10.7 per cent above the decade average. Only Western Australia and the Northern Territory recorded better results, showcasing the strength of the future of Queensland real estate. Those with an eye on the Surfers Paradise commercial property market may soon find themselves with a wide variety of choices available in the near future.
This construction strength was backed up by Master Builders Australia (MBA) in a 16 April media release highlighting the number of dwelling starts occurring in the state. Discussing the Australian Bureau of Statistics' building start figures for February 2015, MBA deputy executive director Paul Bidwell noted that the forecast goal of 40,000 dwelling commencements for 2014-2015 was likely to be met.
"That's good news for industry and the Queensland economy, with high levels of building approvals being converted to work," he added.
This showcases a particular strength of the state – one that is sure to pique the interest of buyers of real estate.
Of course, owners of commercial real estate need leaseholders and customers to function. And the statistics on Queensland's population also paint a pretty picture. The Commsec report notes that as of the September quarter of 2014, the Sunshine State had the third best population growth in the country, behind Western Australia and Victoria.
Clearly, even with some areas of the economy yet to hit their peak (employment and housing finance chief among these), Queensland has many positives that can be taken from the State of the States report. Those with an interest in commercial real estate will likely have more construction to look forward to, not to mention a strong population base to work with.
To find out more about commercial properties in the Sunshine Coast area, feel free to contact your local Ray White agent.