Falling confidence requires further action

The confidence of Queensland’s property industry has dipped below the national average, signaling that more action is required to generate economic activity and job creation.

The latest ANZ/Property Council industry survey shows that Queensland’s confidence has dropped nine index points over the last quarter to 129, putting the state two points below the national average and trailing New South Wales, Victoria, Tasmania and the ACT.

Queensland Executive Director of the Property Council, Chris Mountford, said the results demonstrate that more needs to be done to attract investment to Queensland.

“The property industry currently employs 240,000 Queenslanders and contributes $33.8 billion to the local economy. The health of the sector will be critical to Queensland’s economic recovery,” Mr Mountford said.  

“With the Queensland industry confidence dipping below the national average, it is clear that the southern States have made themselves more attractive destinations for investment.

“The results show that the correct policy settings need to be applied to turn Queensland into a magnet for investment.

“Queensland needs the new planning legislation, currently before the Parliament, to be passed and successfully implemented, and complimented with a revised SEQ regional land-use plan which facilitates growth.

“Certainty around the delivery and funding of key infrastructure projects is a crucial component of industry confidence, the further exploration of innovative funding models would provide the best opportunity to unlock economic growth.

“This confidence poll was taken before the State Government’s Cross River Rail announcement; the industry has welcomed this news and would like to see more investment in similar game-changing infrastructure.”

The latest industry confidence survey has recorded another decline in Queensland residential capital growth expectations. With the Government banking on a $3 billion stamp duty windfall this financial year, declining residential confidence may create budgetary problems.

“Stamp duty should not be relied on to save the State Budget. The time has come for the Government to look seriously at weaning themselves off this inefficient and highly volatile tax,” Mr Mountford said.

“Queensland’s industry confidence has fallen behind our key competitors, but with the right policy setting in place, the industry will generate the prosperity and job creation that our state needs in a post-mining boom economy.”

Media contact:  Chris Mountford |  M  0408 469 734|   E  cmountford@propertycouncil.com.au