Northern Exposure report reveals strong outlook for Rockhampton’s economy

A state report has provided a deep dive into Rockhampton’s economy and revealed the region is in a strong place competitively, with relative affordability and rapidly increasing demand factors led by major projects.

Looking down Fitzroy Street towards Rockhampton CBD from The Range with Mount Archer in the background. Picture: Chris Ison

A state report has provided a deep dive into Rockhampton’s economy and revealed the region is in a strong place competitively, with relative affordability and rapidly increasing demand factors led by major projects, including Rookwood Weir and the reinstated Rockhampton Ring Road.

The latest edition of Northern Exposure by Regional Economic Advisory and Offermans was released in March and provided a snapshot of economic trends and the macro issues driving the economies of regional Queensland.

Regional Economic Advisory principal economist Matthew Kelly said the outlook for Rockhampton remained very strong, despite the headwinds of high inflation and ten consecutive interest rate rises.

Mr Kelly said the Rockhampton property market remained strong, with the report stating the median house price was sitting at $370,000, which was an 8.2 per cent increase when compared with year-on-year figures.

Offermans Partners principals Dennis Offermans and Michael Brennan and Regional Economic Advisory principal economist Matthew Kelly. Picture: Contributed

According to the report, unemployment also remained at a low 3 per cent, which was down 1.5 per cent when compared with year-on-year numbers.

Mr Kelly said the building sector was some cause for concern, with the report stating there were 729 building approvals in the past 12 months, which was an 11 per cent decrease year-on-year.

“In welcome news, the Rockhampton Ring Road project has been reinstated with works to begin in 2023 after being deferred in the federal budget,” he said.

“The reinstatement of the billion-dollar transport corridor through the Fitzroy River Floodplain is a significant win for local and regional stakeholders.

“Stage 2 Tenders for water allocations from the Rookwood Weir has also been announced, with individual proponents able to bid for up to 500ML of medium priority irrigation allocations. Economic development stakeholders led by Advance Rockhampton are promoting irrigation from the weir to establish high value cropping including macadamia, avocadoes, and mangoes in the region.

“Macro uncertainty, inflation, and cost and supply factors remain key risks to watch over the coming months.”

REIQ Zone Chairman for Rockhampton Noel Livingston.

REIQ Zone Chairman for Rockhampton Noel Livingston said Rockhampton’s property market was “still quite strong”.

“We haven’t had the effects that the city markets have had,” Mr Livingston said.

“You’re lower to medium parts of the market are still rock solid.

“If anything it is a slight slow.

“It is taking a little longer to sell some properties depending on the price bracket.”

He said Rockhampton’s rental market was “still critically short”.

“The last vacancy rates that came out were 0.6 per cent,” he said.

Looking forward to the rest of 2023, he said he didn’t see any “doom and gloom” on the horizon.

“It’s really up to what happens with economic policy in the next few months to see if that starts to hurt us at all,” he said.

“We have still got plenty of jobs in the region and we still have a price structure where the interest rates don’t affect us as much as they do in the higher markets.”

Originally published as Northern Exposure report reveals strong outlook for Rockhampton’s economy