New report shows the decrease in confidence in residential property sector which poses warning for the Palaszczuk Government that is urged to boost its infrastructure spending to stir the economy, The Courier Mail reports.
A recent survey conducted by ANZ/Property Council reveals Queensland's fair place in terms of overall industry however falls behind NSW, Victoria, and Tasmania.
For the past 12 months, residential capital growth has slumped and is predicted to continue to weaken.
NSW, Western Australia, and the Northern Territory went backwards in terms of the measure, while Victoria, South Australia, and the ACT were eclipsed by Queensland.
It follows land rent and overall taxation as well as royalty revenue having to be revised down during the Government's Mid Year Fiscal and Economic Review.
To improve the balance sheet, the state took on debt-shifting operation passing debt onto government-owned corporations.
Some believe there was not enough budget spent on major infrastructure last year.
It was not a bad year for Queensland if based on several economic signs; strong consumer confidence, the state being ahead of every other mainland state when it comes to trend business confidence and positive employment figures.
However, in terms of the property sector, stamp duty revenue is forecasted to take a hit according to Chris Mountford of Property Council Queensland, which means a bad jumpstart for 2016.
"Declining residential confidence should be a very loud warning bell for the Queensland Government, who are banking on a $3 billion stamp duty windfall this financial year," Mr Mountford said.
For Brendan Lyon of Infrastructure Partnerships Australia, everybody knew that Queensland was "facing significant fiscal challenges" and believes that the Government has mistakenly produced a budget that was "spectacularly under-equipped to deal with what's needed".
"The real problem is that the Budget doesn't have the money that the state needs even to do a small level of infrastructure investment, let alone the amount that's needed," he said.
There is so much that the state can do to help improve infrastructure spending, says Nick Behrens of Chamber of Commerce and Industry Queensland, adding that it needs to find methods to slash red tape.
"Infrastructure investment is the enabler for future economic activity and without it, you're basically setting us up to fail as an economy," Mr Behrens said.
