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Qld sentiment is weakening: Australand

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AAP

2013-02-07

A leading property developer says Queensland is a weak spot in the economy as it copes with floods and state government cutbacks.

Australand reaped $180 million in full year profits in 2012, marking a 28 per cent jump on 2011.

But the group - which has $2.3 billion worth of investments in residential, commercial and industrial assets across Australia - is particularly concerned about Queensland.

Managing director Bob Johnston said the strong Australian dollar and the state government's sacking of 14,000 public servants was hurting consumer sentiment.

"I'm not overtly bullish about the outlook for Queensland," he told AAP.

"You've got a government trying to improve its balance sheet.

"Sentiment in Queensland will be soft for a while. They're more exposed to the tourism sector and the high Australian dollar.

"I don't think we're going to see a recovery for six to 12 months."

The company's executive manager of residential, Rod Fehring, told analysts in Sydney that the 2013 floods would hit confidence.

"Business sentiment remains weak and the effect of recent floodings will further impact sentiment," he said.

Brisbane prime industrial vacancy rates for December 2012 of 6.3 per cent were also much higher than Melbourne's 2.5 per cent and Sydney's 2.7 per cent.