State housing construction ‘on the cusp’

RESIDENTIAL PROPERTY

Dwelling projection figures recently released confirm the underlying strength of the housing construction industry, according to Master Builders, Queensland’s peak body for housing and construction.

While the industry’s long-term prospects are positive, underpinned by strong population growth, Master Builders’ Director of Housing Policy, Paul Bidwell, said that the latest finance commitment figures tell a different story about current conditions.
The figures came from Queensland Treasury’s Household and dwelling projections Queensland local government areas 2010 report that predicts that Queensland will need an additional one million dwellings, or 40,000 homes per annum, to meet the projected population growth during the 25 years to 2031.
Yet, in 2008/2009 just 35,700 new dwellings were built in Queensland.
“These predictions make the medium to long term seem rosy; however, the latest finance commitment figures released by the Australian Bureau of Statistics clearly highlight the fragile nature of Queensland’s housing construction industry,” Mr Bidwell said.
Finance commitments for the construction or purchase of new dwellings have fallen for ten consecutive months, with the largest declines occurring since the Reserve Bank of Australia began to lift interest rates in October 2009 and the end of the First Home Owners Boost in January.