The single biggest driver of property markets is employment. We have taken a critical look at trends across the various industry sectors and identified the big movers going forward. Using the state of Queensland as a case study, this research article also pin-points to locations with future potential.
Australia was once renowned for its farming and ‘making stuff’. In 1985-86, agriculture and manufacturing represented 8.1% and 12.2% of total employment respectively whereas these industries now only represent 2.4% and 7.7% of all jobs.
Mining is a major revenue generator for government and business coffers, although it is not a big direct employer. Mining jobs have grown from 1.9% to 3.4% since 1985-86.
The biggest employers are tourism (419,100 Queenslanders are currently employed in retail trade and accommodation), health care (282,600), construction (230,700), manufacturing (178,500), and education (176,400).
The industries with the biggest employment growth since 1985-86 are health care (from 8.0% to 12.1%) and white collar professional services (3.8% to 7.1%).
Casting our mind to Australia’s core assets and the role which this country plays in the Asian Century, Propertyology believes that the industries with the biggest potential for employment growth are:
Tourism (retail trade and accommodation)
Education (international students)
Construction (hotels, apartments, infrastructure, resorts, ports)
Health care (our aging population)
Australian towns and cities which have a strong presence in these industry sectors will have increasingly high demand for accommodation. Specific to the state of Queensland, locations with these industry drivers include:
Simon Pressley is Managing Director of Propertyology, a full time property market analyst, and accredited property investment advisor. Simon was also been awarded for excellence in the real estate industry as 2012+2013+2014 “Australian (REIA) Buyer's Agent of the Year” and “Queensland (REIQ) Buyer’s Agent of the Year”.