Master Builders Deputy CEO, Paul Bidwell, said statistics from 2019 paint a clear picture of the tough year that’s been, with the forecast for 2020 looking equally as tough, particularly as sweeping legislative reforms, continue to have an impact and contribute to rising costs.

“Building work completed during the year to September 2019 was down 9.2 per cent over the previous year, totalling $20 billion," said Mr Bidwell.

"Almost two thirds of this was residential building work (approximately $13 billion), with the remaining $7 billion commercial building work.

At a glance:

• Building work down 9.2 per cent to September 2019
• Housing starts down 26 per cent on previous 12 months in Queensland
• Forecasting 31,000 dwelling commencements in 2020

“It’s not all doom and gloom – we did have some bright spots during the year with alterations and additions and government buildings up 10.9 per cent and 24.3 per cent respectively.

Mr Bidwell said while these are strong numbers, they only represent a small portion of the overall work and they can’t hide the fact that the majority of Queensland’s building industry, who work in new houses, units and private sector commercial buildings, is struggling.

“Across the state, housing starts were down 26 per cent on the previous 12 months, with 32,611 new dwellings commenced over the year to September 2019," said Mr Bidwell.

Looking ahead, 2020 will continue to be challenging but signs of a turnaround are expected as the year ends, as pent-up demand begins to push through to projects on the ground.

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View here for more details on the Queensland building industry's challenges for 2020

Beyond 2020

“In the residential sector we’re forecasting 31,000 dwelling commencements in 2020, down 6 per cent from the anticipated total of 33,000 dwellings for 2019 and a further blow to an industry which has been struggling with declining numbers for several years," said Mr Bidwell.

“This is because despite record low interest rates, loans to owner occupiers to build a new home and first home buyers are both down significantly.

"Tightening access to finance is affecting all parts of industry with restrictions on development finance, builders’ overdrafts and customer mortgages leaving no one unaffected.

Mr Bidwell said as early as 2021 a recovery can be expected which will continue to strengthen.

"We’re forecasting 35,000 commencements in 2021, increasing to 40,000 by 2022. Over this time, we expect alterations and additions to continue their strong trajectory," said Mr Bidwell.

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