Master Builders Deputy CEO, Paul Bidwell, says the latest ABS data shows approvals for detached dwellings were up a staggering 52.3% in Mackay and the Whitsundays for the year.
Highrise unit construction has undoubtedly met its heyday in Queensland but rising confidently from the shadows is another sector, fit and ready to fill the void.
Master Builders Deputy CEO, Paul Bidwell said the latest Building Approvals data from Australian Bureau of Statistics (ABS) painted an optimistic picture for the sunshine state and specifically, regional Queensland as detached dwellings – houses move to the fore.
The strongest results in Queensland are seen in Mackay and the Whitsundays where detached dwelling approvals are up a staggering 52.3 per cent year on year. In the last 12 months, 405 detached dwellings have been approved, an increase from 266 in the 12 months prior to that.
“This is great news and a welcomed relief for a region that is coming off the back of the coal downturn. Whilst it is not the thousands of approvals we saw during the mining boom in 2013, what it does represent is a steady return to stable growth for Mackay and the Whitsundays,” Bidwell said.
“The Mackay region is very resilient and the building approval data confirms that conditions are improving. This will go a long way in boosting confidence in the region, supporting the local industry.”
And it’s not the only region showing strong results in detached dwelling approvals. Far North Queensland recorded a 31.4 per cent rise, Greater Brisbane, 15.1 per cent and the Darling Downs, 14.6 per cent.
“What’s important to note is that from our forecasts, there is strong reason to believe the growth in this sector should continue into the future,” he said.
Bidwell said it was a different story for the Gold Coast where standalone approvals dropped 23.6 per cent in the past 12 months and attributed the difference to a land shortage.
The detached dwelling data for Queensland comes in contrast with the SV Partners March 2018 Commercial Outlook report, released this week, that claimed 3.2 per cent, equating to 434 construction businesses were at risk of financial collapse in the next 12 months.
“We recognise there is a clear shift from high rise unit construction in Queensland, but that doesn’t automatically mean doom and gloom for the industry,” Bidwell said.
“What it does mean is that work will come from other places and detached dwellings will form just one part of that shift. We are also seeing a rise in renovations and extensions that will provide yet another steady avenue of work and income for those in the industry.”
In 2018 Master Builders is forecasting a total of 36,000 dwelling commencements (70 per cent detached dwellings - houses, 30 per cent units).
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