Queensland’s economy is being increasingly driven by non-residential construction and investments from businesses, according to the latest figures from CommSec.
Commsec’s quarterly report highlighted the strengths and weaknesses of the country as a whole, as well as each of the states. In Queensland, non-residential building is a stand-out area, recording the third-highest ranking across the country.
Investments from businesses also achieved third place across the country, suggesting this is a continued area of strength for the state as a whole.
While non-residential building work remains strong in Queensland, the study also pointed to the development of a number of other areas that have rapidly expanded in the last quarter. For example, Queensland has seen a 6.4 per cent annual change in house prices, while dwelling approvals have also increased in number.
Part of the reason for the strong construction figures in Queensland may be connected to the ongoing strength of population growth. The state has seen population growth of 1.6 per cent in the last year, putting it slightly behind Western Australia and Victoria in national figures for new residents.
While these figures point to strong trends across Queensland, the country as a whole has also seen strong growth. Across Australia, dwelling commencements are up 36 per cent on the decade average, while economic growth is 13 per cent higher than the decade average.
As Queensland’s economy continues to be driven by developments in the construction industry, along with strong figures from business activity, this will likely see an increase in property development, in particular developments offering buyers the ability to purchase property “off-the-plan”. It is important to be aware that “off-the-plan” contracts can be complex transactions, irrespective of whether they are for commercial or residential property, and are regulated under statute. You should seek appropriate legal advice before entering into these forms of contract.