There has been a lot reported on the mining investment downturn of late, which appears to be having a dramatic impact across many segments of the economy. As a result, conditions in mining states have become more challenging as commodity prices have fallen further. But, it is not all doom and gloom. Let us shift our focus for a minute and explore some of the positives about Australia’s current economic situation. Yes, the positives.

Such as how, to a varied degree, further depreciation of the AUD is expected to improve the competitiveness of our exporting and importing firms. Other areas seemingly on the up include solid employment growth and lower petrol prices – both of which will sufficiently support household incomes and consumption.

 While these are all great, one of the most interesting examples (especially for Brisbane investors) is how the depreciating dollar (which is now AUD to USD66c) is expected to have a positive effect here on our home soil. This will become most apparent amongst the services sectors, such as hospitality, retail and education, especially those benefiting from tourism and international student arrivals.  

It seems, the states that will be particularly supported are (yes, you guessed it), sunny Queensland and the Northern Territory – the two Australian states in which tourism-related activity makes up a large proportion of the economy. Both of these states are expected to outperform all other Australian states in terms of overall gross state product in coming years.

The question is how? How are key tourist destinations benefiting from the lower AUD? The answer is strong interstate visitor arrivals! More and more Australians are expected to holiday right here in their own backyard as opposed to venturing off overseas. Thankfully Queensland is one of the top tourism destinations in the country, proving that while things might be looking somewhat differently for other states, right here in Brisbane, the future is very bright.

However, it is important to know that we are not saying that Queensland won’t be effected at all by the decline in mining investment. All we are saying is that fortunately for Queensland this decline will be offset by exports and a very strong tourism market.

This is great news for any Brisbane investor, just ask Alan Oster from the NAB.

In a recent article, Alan Oster wrote that he believes key tourist destinations are benefiting from the lower AUD (with interstate visitor arrivals particularly strong). Alan also said that domestic demand growth is slowly improving.

“More attractive rental yields and housing affordability than in NSW and Victoria are driving dwelling investment in Brisbane,” said Oster.

Once again proving that the future of the sunshine state shines very bright indeed and demonstrating, yet again, just another reason why now is the perfect time to purchase an investment property in Brisbane, or even look to expand your existing Brisbane portfolio.

For a complete list of available investment opportunities contact Hannah on 0419 782 133.