State of Markets – QLD March 2012

QUEENSLAND

QLD resources group attacks mines ban
Somerset Regional Council’s proposed ban on coal seam gas and coal mining threatens the wealth creation of residents and the prosperity of the area, the Queensland Resources Council (QRC) has claimed.

“I find it difficult to imagine that the 22,500 people in Somerset LGA are happy with the notion that their council wants to forgo that wealth creation in their community,” QRC Chief Executive Michael Roche said.

Mayor of Somerset Graeme Lehmann said the decision came about due to concerns about the effects of mining booms.

“There has been a great deal of concern in the local and broader community about the potential impacts of the proposed coal exploration and potential for coal seam gas mining in the Somerset region,” he said, citing health risks as the main problems for locals.

There are 150 employees of mining and gas companies living in the Somerset Regional Council area.

“Mining and gas companies also buy $7 million worth of goods and services from Somerset businesses, which in turn means that over 400 local jobs depend directly and indirectly on these industries,” Mr Roche said.

Don’t shun the Gold Coast: researcher
Investors should not shy away from Gold Coast properties solely because of the tourist rental market’s poor performance, according to a leading researcher.

Savill’s national head of research, Tony Crabb, told Smart Property Investment that investors need to do their homework, since while the sector suffered during 2011, the residential market has remained steady.

“It’s a residential market and it’s a tourism, holiday house market but people often get the two confused,” Mr Crabb said. “That’s where a lot of the problems lie in terms of the information that runs around and how various assets perform.

“The tourism market is in a fair amount of trouble for several reasons,” he added. “[But] there’s plenty of residential on the Gold Coast and the residential there performs much like everywhere else.”