Builders across Queensland should have noticed higher levels of residential building activity lately, although they may still be disappointed activity remains below the levels of the mid-2000s (see chart based on ABS building activity data released yesterday below). The new data is generally encouraging, given residential building is an important part of the Queensland economy, and, if the trend continues, it should help the Queensland economy eventually get out of its current sluggishness. That said, population growth still remains relatively low (see my post Qld less attractive to Southerners due to weak jobs market & growing pains), so perhaps the building industry shouldn’t expect large additional gains. For the same reason, I’m a bit skeptical about the latest forecast from NAB that Queensland will top Australia in capital gains in property in the next two years, as reported this morning by the Courier-Mail.