Saturday, July 21, 2012

Delloite Queensland Index: Galah Edition

Delloite Access Economics have released a gala 2012 edition of their Queensland Index. I'm not exactly sure why it's a gala edition, as it doesn't say, and given the definition of Free Online dictionary:
1. A festive occasion, especially a lavish social event or entertainment.
2. Chiefly British An athletic competition, especially a swimming contest.
1. Marked by lavish or festive celebration: a gala ball after the inaugural ceremony.
2. Characterized by sumptuous social pleasure: the gala life of the very rich.
Perhaps that last description is a reference to Clive Palmer? Never mind. The index itself, which compares listed companies with a link to Qld with the ASX is basically fatuous marketing balloonjuice.

It could be a gala edition because of its effervescent outlook on Queensland despite references to the two speed state:
Queensland’s economy sees the two speed split in Australia writ large. Not only are different sectors doing very differently, so are different cities within the State.
Wow, that's a new perspective?  Cynicism aside, the report is worthwhile skimming particularly for the positive outlook for Queensland and also the contributions on agribusiness and infrastructure funding. The low speed housing sector also attracts comment:
Yet the prospects shown in the chart still aren’t as healthy as they could be. ‘Two speed troubles’ have hit a number of sectors. One of them is the pace of housing construction – a traditional driver of growth for the wider Queensland economy – where the combination of flood replacement, pent-up demand and a bit of Government cash is so far yet to generate much by way of a recovery. Some signs of turnaround are evident in improving housing finance figures, but the real action will be in the levels of building approvals and then housing starts, and so far neither is gaining traction at present.
So what else is needed to start the housing construction revival in this State?
Confidence and population are the keys to turning good prospects into a strong housing sector. The credit crunch that followed the GFC still spooks investors, as does the fear of a repeat performance if the global economy were to stumble. And not only is State population growth closer to the national average than any time since the end of the 1960s, national population growth isn’t that great either.
Yet those negatives are likely to recede somewhat, or even reverse, as the State’s mining development begins to really hit its straps. Once that happens the giant that is residential construction in Queensland may finally return to its usual rude health.
The CRC budget is presented tomorrow. Loose Change has previously commented on the Council policy to target the commercial property sector with relief on headworks charges rather than housing. 

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