As a result of the devastating floods that occurred in January, Queensland did not have the best start to 2011. The natural disaster hit most sectors of the Queensland economy, including mining, agriculture, housing, retail, tourism and the ports/rail operators, among others.
We've now reached April and it is fantastic to see that the economic recovery process has started. From my perspective in the real estate industry, I am particularly happy to see that the rental market in some areas of the state continues to be strong, which shows that residential accommodation in Queensland is still in demand.
According to information from the Real Estate Institute of Queensland, demand for rental homes in resource-rich regions of Queensland is continuing to drive up rental yields in some mining areas. For example, the mining suburbs of Dysart, Blackwater and Moranbah in Central Queensland saw gross yields of between 14.5 and 8.9 per cent over the December quarter 2010, as a result of demand remaining stronger than supply.
Additionally, the REIQ reports that figures from the Australian Bureau of Statistics indicate investor numbers in Queensland have increased in February 2011 from January 2011. Although these numbers are still at historic lows, it is pleasing to see some improvement.
The Chairman of REIQ, Pamela Bennett, acknowledges that the natural disasters in Queensland at the beginning of the year no doubt had an impact on buyer confidence, however she points out that February saw an increase in the number of dwellings financed across all buyer segments – further good news for the Queensland residential property market.
Pamela hopes that this increased activity will continue, given the general subdued nature of property prices across Queensland, along with the fact that interest rates are looking to remain steady at 4.75 per cent for sometime into the year at least.
I am also hopeful that the Queensland residential market continues to pick up, as do all the sectors affected by the floods. If we can take the robust demand for housing in Queensland's mining areas as any indication, we can be encouraged that the Queensland real estate and resource sectors look to be starting the road to recovery.