A CommSec report has found that Queensland is greatly underperforming in the area of residential construction and housing finance. The state shows the lowest amount of growth in the state, which is a major concern for new premier Campbell Newman.
Homes under construction in the state have dropped 12 per cent this past year, with the overall statistics showing a decade low. Commitments to housing finance have dropped a massive 22 per cent.
Newman has stated that the QLD economy is drastically disproportionate in its reliance on different sectors.
“Queensland at the moment in terms of its economic position, in the view of the government, it is like a chair or a table that has had three out its four legs sawn off,” says Newman. “If it was not for the coal and gas sector right now, this state would be doing it really tough.”
However, with the mining efforts in the state finding unsteady ground in terms of long term overall effects to job opportunities and the rising cost of living in Queensland, the opposition is pushing against a reliance on the mining efforts to prop up the economy and urging the state government to take steps now to boost the housing sector before the issue gets worse.
Opposition leader Annastacia Palaszczuk is putting forward a proposal to extend the $10,000 Building Boost initiative in order to support and stimulate this drooping sector.
“The housing sector cannot afford for the premier and the treasurer to sit on their hands for six months while the sector struggles,” says Palaszczuk.
There are suggestions though, that this plan may too be flawed. Treasurer Tim Nicholls suggests the Building Boost has not instilled confidence in the housing market, with the state government instead backing a $7000 stamp duty concession.
Action needs to be taken to rectify this situation very quickly in order to divert further economic issues for the state. If it is as the premier says, and one leg of the table is holding it up, it is only a matter of time until the table tips over.