2020: What are the projections?
Only 8,482 settled apartment sales were transacted in the year to November 2019, the lowest level of activity seen in at least the last decade.
Key points:
- Settled apartment sales and house building approvals down
- Outlook for Queensland positive despite these results
Only 8,482 settled apartment sales were transacted in the year to November 2019, the lowest level of activity seen in at least the last decade.
In addition, building approvals for houses were also down to around 38% on the 10-year average, and the State is regularly underperforming in the State of the States report by CommSec.
Despite this news, the outlook remains bright. The Institute recently held an event, Economic Outlook, where members heard from Dr Shane Oliver from AMP Capital and Eliza Owen from CoreLogic on 2020 projections.
Critical takeaways for Queensland included:
- Weak inflation and wages growth
- Fair employment growth
- Levels of infrastructure spending are underpinning activity in the Sunshine State
- Financial effects Coronavirus expected to be relatively short-lived
- House prices increasing
- Brisbane rental yields are more favourable compared with Sydney and Melbourne
- Queensland consumer sentiment better compared to Sydney and Melbourne
- Building approvals at the bottom and expected to improve
- Off the plan settlement valuations coming back to normal levels
- Good overseas and interstate migration levels.
With investor activity still down around 25 percent but likely to improve, and the oversupply of apartments now likely consumed, the outlook is favourable.
Any comments or thoughts can be sent to Martin Zaltron.