Sydney’s “stupid housing prices” are driving people north and leading an economic boom in Queensland.
Deloitte Access Economics’ latest business outlook reveals things are looking up for the sunshine state.
“Gas exports are leaping, and Sydney’s stupid housing prices are underpinning a resurgence in population gains back above the national average,” Deloitte says.
“So state growth has recovered from tricky times amid the downturn in resource investment of just a few years ago.”
It comes as Brisbane house prices have roughly quadrupled in real terms since 1986, second only to Sydney in terms of increases.
Deputy Premier Jackie Trad said the Deloitte report, from December, highlighted the wave of interstate migration, primarily from New South Wales.
“Sydneysiders are saying goodbye to NSW and hello to our sunshine state lifestyle and who can blame them?” she asked.
“Queensland offers a more affordable and liveable lifestyle, incredible weather and booming new industries in research, LNG exports and renewables.
“Tourists are also flocking to our beaches, cities and regions, with the longest period of sustained tourism growth since the 1990s delivering a welcome boost to the retail and hospitality sectors.”
Ms Trad said the report also highlighted significant investment in new infrastructure being delivered in Queensland, both by the public and private sectors.
Meanwhile, a report by CommSec showed Queensland could not close the gap on South Australia, remaining at sixth place in the nation.
Queensland was positioned sixth on four of the eight economic indicators: retail spending, housing finance, unemployment and construction work done.
The state was ranked seventh on equipment investment.
“The key area of strength in Queensland is new dwelling starts that now sit in third spot nationally, with starts up 20 per cent on decade averages,” CommSec chief economist Craig James said.
Ms Trad reiterated said CommSec’s report looked backwards, reiterating previous comments that it compared the state to its success at the height of unprecedented mining and investment booms.
“With 186,400 new jobs created since 2015 and most major forecasters predicting strong economic growth in the coming years, we are building an economy that works for everyone,” she said.
LNP leader Deb Frecklington said she did not think many people in Queensland would “think it was OK that Queensland is battling for the wooden spoon in the economic stakes”.
Shadow Treasurer Tim Mander said Tasmania and South Australia were performing better economically than Queensland, according to the CommSec report.
“This is no good news in any circumstances at all, in any way that you spin it,” he said.
Mr Mander said people wanted to move to Queensland for its good weather, but the state did not have the infrastructure to support population growth.
Source: Brisbane Times