by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
REIQ Journal : October 2008
16 FEATURE Leigh Warner, Director of Research, Jones Lang LaSalle In the short-term the resources sector’s contribution to the Queensland economy will grow; not because of the weakness of other sectors but rather because of the strength of the global coal market. Queensland has actually endured a number of capacity constraints that have hampered production levels and the volume of coal exports. These include mine flooding, and equipment failure at major mines and at the Dalrymple Bay Port. With these constraints now past and coal prices rising further in the interim, Queensland is poised for a massive jump in the value of coal exports over the next two years. This export boom will be a further income boost to the State and is likely to support the continued strength of the local business services sector. Beyond this temporary pick up in coal exports, we will see a return to strong balanced growth across all sectors for the foreseeable future. MrMcIntyre agrees that investors will continue to be attracted to the long-term prospects of Queensland, even in a period of uncertainty. “Commercial property is ultimately a longterm investment and astute investors will look through short-term credit turmoil and look to capitalise on the demand fundamentals of a market,” he said. Indeed, the report notes that Brisbane has seen more transactions in 2008 than most markets, accounting for almost 40 per cent of all investment dollars allocated to major office acquisitions this year. “Deals have taken place in Brisbane because returns have been so strong over recent years that vendors are more willing to take a 10 to 15 per cent decline in 2007 valuations. On the other side of the transaction, many investors have identified that the current turmoil is credit-driven and not market-driven, and as such, now see an opportunity to capitalise on Brisbane’s long-term prospects at a discount that may not be present when credit conditions ease in late 2009,” MrMcIntyre said. “The credit crunch has had the impact of thinning out the commercial property supply pipelines in Brisbane across all sectors, which will further put investors at ease that the oversupply risk that emerged through 2007 has now lessened.” REIQ Journal October 2008