Regional building approvals the "lowest on record"
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Feb 14, 2019
Regional building approvals the "lowest on record"
Master Builders have forecast a "grim" year ahead for regional Queensland after the latest figures from the Australian Bureau of Statistics reveal building approvals have dropped again.
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Image via PixabayMaster Builders have forecast a "grim" year ahead for regional Queensland after the latest figures from the Australian Bureau of Statistics reveal building approvals have dropped again.
The green shoots of recovery seen during 2018 are officially gone, according to Master Builders Deputy CEO Paul Bidwell.
“Despite a strong start to last year, approvals for detached houses have taken a turn for the worse, declining in the second half of 2018 and ending 6 per cent down on the previous 12 months,” Mr Bidwell said.
In Queensland, approval numbers for the 12 months to December 2018 are at 39,995, representing the lowest figure since July 2014.
Mr Bidwell says this figure is in stark contrast to the peak of 52,000 approvals in August 2016 and is a "strong signal that building and construction will travel a rocky road during 2019".
Pictured: Paul Bidwell. Image supplied by Master Builders.
“The figures also reveal the slide in unit approvals has slowed, and are down 4 per cent when compared to the previous 12 months."
According to Master Builders, unit approvals now make up 39 per cent of total approvals, well below the peak of 54 per cent in April 2016.
Mr Bidwell told WILLIAMS MEDIA regional areas outside South-East Queensland are set to bear the brunt.
Building approvals in regional areas have dropped to 5,714 per cent over the past year - the lowest level in over 15 years.
Source: Master Builders
“These figures don’t bode well for regional Queensland in 2019, which is shaping up to be a tough year all round for residential construction," Mr Bidwell said.
Central Queensland and North Queensland are the hardest hit regions, with 45 per cent and 39 per cent drops respectively over the year.
But with the current flood disaster in North Queensland, it's expected the building industry will be kept busy with flood repair work for the foreseeable future.
Cairns and Downs & Western have less severe reported drops, while Brisbane, Gold Coast and the Sunshine Coast have remained relatively stable.
Source: Master Builders
Mackay has bucked the trend over the 12-month period, with a $639 million construction injection.
Calls to bring back the Boost for the First Home Owners' Grant
Mr Bidwell told WILLIAMS MEDIA it's never been more important to identify measures for stimulating demand, particularly within the residential sector
“Government expenditure on capital projects is one thing, but we desperately need to increase demand for residential construction. A good first start is to bring back the Boost for the First Home Owners' Grant in regional Queensland. The data has shown that the Boost works and any stimulation in these areas will be welcome.
"Regional Queensland needs a shot in the arm and the $5,000 Boost was that vital tool for first home buyers to get their foot in the door of the housing market.
“Without the Boost, as the data shows, home ownership has been put even further out of reach.
“If we can bring back the $5,000 Boost, we can bring back prosperity for our regions, give would-be homeowners a leg up and stimulate demand for regional Queensland.
“We also strongly urge the government to consider this challenging outlook when making any further policy decisions.
"Our industry is already grappling with the implementation of a number of additional reforms in 2019.”
Related reading:
Queensland's building sector faces "challenging" year ahead
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