As I have discussed previously, relatively weak economic conditions in several Queensland regions, including Townsville and the outback, have been partly due to the mining downturn (see my post from last Saturday). At the same time as capital expenditure on the Curtis Island LNG plants has naturally wound down, the bust in commodity prices has meant that there has been a drop off in mining projects invested in. So we have seen a huge decline in the value of heavy or engineering construction work done in Queensland (see chart below based on ABS data released yesterday), a decline that is proportionately greater than that which has occurred in WA. Obviously, this has posed a big challenge to the Queensland economy and has been a major drag on economic growth in recent quarters.
Queensland Economy Watch 
Gene your graph is a reminder of how difficult current conditions are in Qld, this type of downturn effects many levels of supply and labour. Despite spruikers of inner Brisbane units who want to tell everyone that the future is bright many believe the same sort of graph will be applicable to that industry over the coming years.
Yes, the apartment supply coming online in the next year or two is extraordinary and should mean we won’t see much new development for a while.
Good time to follow NSW leed and build infrastructure? M1 and M7 widening and extending/upgrading heavy rail come to mind for SEQ. Debt is always an issue, but if it’s being spent on a quality asset (assuming a favorable Cost Benefit Analysis) then it could be a good time to make use of low interest rates and use up spare capacity in the Queenslsnd economy.