Property market slowdown to impact on state's wellbeing

The recent slowdown in Queensland's construction and property sector could have serious implications for the state's economy, according to a study conducted by a leading industry body.

The Master Builders Association of Queensland (MBAQ) has carried out a survey of its members, asking questions about current business levels, changes in building rates and expectations of future market conditions.

Results released by the MBAQ show that the industry may be set for a difficult quarter, with construction levels already down by 40 per cent - a key concern for property management programs around the country.

Approval rates for new developments and dwelling in the state's far north have moved from an average of 200 per month to just 15 - an indication that demand for new properties may be reaching a floor.

Executive director of the MBAQ Graham Cuthbert has expressed concerns about the knock-on effects to the rest of the economy, stating that increased levels of confidence were required across the board before the industry was out of danger.

He asserted: "We create five jobs off-site for every on-site job - the curtain manufacturers, the tiles, the carpets, the kitchens, the hot water systems - they are all manufactured off-site so we have a multiplier effect."