INDUSTRY NEWSNEWSQLD

Growth in Queensland employment over inflated, Propertyology

The growth in Queensland employment is being artificially inflated by one sector, according to research from Propertyology.

The growth in Queensland employment is being artificially inflated by one sector, according to research from Propertyology, a professional services property investment firm.

“Every state needs to be a champion at something. New South Wales is Australia’s financial and insurance capital, Victoria holds the trophy for manufacturing and major events, and Queensland has become the champion of ‘administrating’,” said Simon Pressley, Propertyology’s Head of Property Market Research.

“Over the past two calendar years, Queensland produced only 14,476 new jobs, yet public administration and safety added more than 29,600. One can only speculate whether the soaring number of public servants was intentional or not, given the continued lacklustre performance of the Queensland economy.”

While the public service added nearly 30,000 jobs over the past two years, Mr Pressley said a similar number of jobs were lost in key industries such as health, education, professional services, real estate, transport and warehousing, and mining as well as electricity and utilities.

“It’s clear that Queensland’s economy is weaker than how it appears on face value,” he said.

“Commentators have been predicting big results for the Brisbane property market for a few years now, but the poor jobs market hasn’t supported their rampant optimism.”

Mr Pressley said it was disappointing that Queensland’s job sector continued to be weak given its abundance of tourist attractions and the Sunshine State’s proximity to Asia at a time when international tourism is booming.

He said Queensland’s international visitor numbers painted a picture of enormous lost opportunity, which was reflected in the disappointing job figures for retail trade as well as accommodation and food.

“Economic activity is a precursor to property market performance. Brisbane’s underwhelming property market performance over the last few years is a bi-product of the broader Queensland economy. Bold decisions are needed if the potential is to ever be unlocked.”

The job volumes attached to new infrastructure projects currently in the pipeline did not inspire great confidence either, he said.

“Unless the upcoming State Election produces a range of major new infrastructure projects, Propertyology anticipates Brisbane’s property market to continue to mirror the underwhelming job numbers,” Mr Pressley said.

“Several nation-building infrastructure projects are needed to get the economy cranking again. This, plus a sophisticated tourism campaign and Queensland’s affordable housing and lifestyle, could drag annual interstate migration above 20,000 and get cash registers ringing again.”

Mr Pressley said that the Cairns property market had significant potential from an impressive list of job-creating projects in the pipeline, enormous potential for economic development in this Asian Century, and very affordable housing.

Toowoomba, Scenic Rim, and Gold Coast also have a good outlook, Mr Pressley said.

Propertyology is a national property market researcher as well as buyers’ agency specialising in investment property. Simon Pressley is also a three-time winner of the REIA and REIQ Buyers’ Agent of the Year award.

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Azal Khan

Azal Khan was a in-house features writer for Elite Agent Magazine.