18 Nov VIDEO – Queensland grows but RBA still concerned
Queensland is shrugging off the mining downturn amid declining housing investment and a decreasing pipeline of construction work, according to the RBA. The Reserve bank of Australia board is optimistic about economic conditions in the Sunshine State, citing evidence of a recovery from the mining downturn, rising commodity prices and the sustained strength in construction. The RBA stated that while unemployment rates in Queensland had remained high relative to earlier periods, employment growth had risen and that suggests the labour market adjustment to the earlier decline in the terms of trade and falling mining investment was progressing. The board observed that economic conditions in the state had generally strengthened over recent quarters, reflecting continued growth in consumption and a pick-up in business investment and demand. Strength in tourism and other service industries has supported growth in aggregate demand in Queensland. In contrast, however, population growth has been below average, reflecting lower net overseas and interstate migration. The RBA noted dwelling investment remained at a high level, but building approvals had stepped down and the pipeline of residential construction work appeared to have passed its peak. The board, in its report, pointed out that investment in dwellings in Queensland has declined from very high levels and the stock of work in the pipeline was being worked down gradually. The RBA continues to be concerned about the number of new apartments scheduled to be completed in Queensland in the period ahead. Meanwhile, South Australia has topped a recent list of most popular regions in Australia for retirement. CoreLogic has released a report which compares Australian suburbs by age demographic and that reveals that South Australia dominates the nation’s Top 50 regions most popular among retirees. Although Queenscliff in Victoria has Australia’s highest number of residents aged over 65 – 40.3% in fact, South Australasia’s Victor Harbour came in a close second at 37.7%. CoreLogic’s head of research Cameron Kusher noted that not one of the 50 council areas highlighted in the report is located within a capital city, suggesting that perhaps retirees are getting priced out of the big cities.