Issue 6 | March 15th, 2018 | Queensland Sees A State-Wide Resurgence
Whilst the Games have been such a stimulant of economic activity here on the Gold Coast, we have also been part of a State-wide resurgence. The recent Suncorp CCIQ Pulse Survey shows that Queensland’s business has got its mojo back and has recorded a significant increase in optimism for the first time in 4 years.
The quarterly survey pinpointed the upcoming Commonwealth Games, together with political stability from a newly elected majority Government and strong commodity price increases for the reason for the mood uplift.
What is pleasing to see is that regional Queensland, which has really been struggling for quite a number of years, is also joining in on the optimism; particularly because of commodity prices. There really is some significant great news for Queensland with so many of our business sectors from tourism to mining to crop production and so on all on the upswing. We have always been the holder of some of the country’s best natural resources and it was just a matter of time until those resources were back once again in strong demand as they are now. The actual holding of the Commonwealth Games will just be another major stimulant to Queensland, and of course in particular the Gold Coast.
Reserve Bank Express Continued Optimism about Household Finances
On another front, you have probably been reading from time to time about the rising concerns of Australian household debt and what may happen as interest rates start to rise. It is usually the Reserve Bank that is sounding warnings but, lo and behold, it was actually the Reserve Bank that had hit back against the doomsday forecasters; expressing renewed optimism that wages growth will gradually firm and renew consumer spending, and ease any burden that future interest rate rises will bring. It is also interesting to note that the Commonwealth Bank just released a report that also shows that there has been an economy-wide spending surge in January, which was the largest increase in 4 years.
We certainly know that wages growth will be a double edged sword. Wages growth will be almost the last piece of the equation that will start to see inflation rise back into the Reserve Bank’s target band of 2-3 percent. Once we are back into that band we can start to expect some interest rate rises. So, whilst wages growth is good for households, it does in fact bring on some interest rate rises down the track.
The Gold Coast property market continues to tick over with great activity, although it remains price sensitive. We have been enjoying price growth of between 8-10 percent per annum over the past couple of years but that can’t continue forever. And so whilst there is excellent volume of buyers in the marketplace they can easily jump on any one of a dozen or more apps and quickly identify a property’s value today. Correctly priced properties are selling in a very good timeframe and overpriced properties are sitting on the market unsold. Nothing new; that has been the case since Adam was a boy.
$45,000 raised for Surfers Paradise Surf Life Saving Club!
Can I also reach out and thank all of those who came to our Business Meets Sports fundraiser for the Surfers Paradise Surf Club. We raised around $45,000 for the Club which goes straight into more rescue equipment. The equipment, of course, is vitally necessary as the Surfers Paradise beach, being an open beach, conducts more rescues than any other beach in Australia, and largely because of the huge volume of tourists who unfortunately are not good swimmers but enthusiastically dive into our water without the awareness of the dangers. The Club saves countless lives every year and we are thrilled to be their major fundraising source.*One more eNewsletter before the Opening Ceremony of the Commonwealth Games. If you haven’t already made plans to come you can still go online and pick up tickets to many of the events, and there is accommodation available both through the Mantra Group and Airbnb, plus most of our major hotels. Come and be part of the biggest party in Australia for the next 10 years or so and see some of the world’s best athletes performing.
Until my next news update, stay safe.
Andrew Bell, OAM
Chief Executive Officer
The Ray White Surfers Paradise Group