Optimistic on region’s prospects as new challenges take hold
UNFORTUNATELY, Townsville is not immune to the economic challenges facing the world right now. Inflation has reached its highest level in more than two decades and in response, interest rates have begun a steep rise.
Added to this has been another wave of Covid exacerbating staff shortages.
These issues are having a direct impact on the property sector. Many commercial leases are tied to the CPI measure of inflation, which means that businesses are seeing larger increases in rent than they have in a long time. Property investors themselves are faced with increased expenses and higher costs of debt. Nobody is escaping the impacts of inflation. I know that many local businesses are feeling these impacts, particularly after the difficult few years they have come through. Nevertheless, I continue to be optimistic about our region’s prospects.
The large number of major local investments and industry development is ensuring that investor interest in our local property market is holding strong despite the economic challenges. It’s been great to hear of the interest in the new initiative to address another major challenge for local businesses – workforce shortages. Townsville Enterprise’s Designated Area Migration Agreement is now up and running with a number of applications already received for the new program. The DAMA gives employers who can’t fill a position locally access to a new visa pathway to access skilled migration with more than 200 occupations covered under the program.
Economic bottlenecks, such as being unable to fill a critical position, can hold back an entire industry and sector. The benefits of this program will flow to more than just the businesses that use it but right through our region’s economy.