The forecast for the Queensland housing industry is getting grimmer, with dwelling commencements down to just 39,000 for the past 12 months, according to Master Builders. This is also the first time housing starts have dropped below 40,000 in the past five years. 

Master Builders Deputy CEO, Paul Bidwell said the industry is wondering when things will turn around.  

“The ABS figures paint a bleak picture at the moment, not only are commencements at a considerable low but the total dwelling approvals are also down 20 per cent for the 12 months to May,” Mr Bidwell said.

“Despite this, there is a range of recent factors that could increase economic growth.

At a glance:

• Queensland dwelling commencements down to just 39,000 for the past 12 months, according to Master Builders.
• The housing market has fallen by almost 50 per cent in the Far North Queensland, and 34 per cent in central Queensland over the past 12 months, according to the latest statistics from the Australian Bureau of Statistics (ABS).
• Mr Bidwell said there for the first time in a long time, all regional centres enjoyed a rise in dwelling approvals over the last month.

“Things like the latest tax and interest rate cuts may influence confidence and its good news that we no longer have the spectre of negative gearing and capital gains tax changes hanging over our heads," he said. 

Mr Bidwell added that there is also a small sense of hope within regional Queensland, as, for the first time in a long time, all regional centres enjoyed a rise in dwelling approvals over the last month.

“While we’re welcoming this dim light at the end of the tunnel, it is unfortunately somewhat offset, by some negatives at a state level. The effects of the new waste levy, the tranche of building industry payment regimes and the Professional Indemnity (PI) insurance challenges are all being felt.”

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Number new dwellings approved percentage change from May 2018 to May 2019. Source: Master Builders.

These changes have created uncertainty and added costs to buildings and projects.

“The reality is, the housing sector is in a state of freefall but we are hopeful that economic conditions will turn around; the question just remains when we’ll see that change.

“Our message to all levels of government remains to consider the outlook for our industry when making any policy decisions," he said. 

For more information on the report visit here. 

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