Action needed on housing

PROPERTY NEWS

Queensland Premier Bligh needs to develop an urgent joint rescue plan for the Queensland housing and properties industries before property in Queensland passes the tipping point, a respected independent property analyst believes.

Speaking at an Urban Development Industry Association (UDIA) function in Brisbane, independent property analyst Michael Matusik said the jobs of tens of thousands of Queenslanders hinged on a kickstart to the home building industry.
“Things are not going to get better unless the public and private sectors work together to make it happen. It is time for government, at all levels, to stop using the property industry as a taxation milking cow,” Mr Matusik said.
He also said Premier Bligh’s promised “Building Revival Forum” to be held early in the New Year would emerge into a waste of time “talkfest” unless the State Government takes urgent steps to speed up approvals and scales down the bureaucratic process.
“We have seen it all before – talkfests that produce all talk and no action. Let’s hope this one is different.” Results from a UDIA membership survey earlier this year indicate four key impediments to building new homes in Queensland. The biggest impost was the current restrictive government regulations, with a lack of development finance coming in a distant second. Also noted were limited market demand and a shortage of labour.
“We need a new plan from government to get things moving again because the current malaise we find ourselves in doesn’t have enough go forward by itself,” Mr Matusik said.
“While the mining industries generate wealth, building new homes helps distribute this wealth and keeps it in Queensland. This distribution system is broken in this state. As a result, new construction in Queensland is at record lows.
“This is not helping full-time job creation. Sadly up to 25,000 people in the home building trades have lost their jobs in Queensland over the last two years. “Without serious action, and I mean now, we cannot really wait for the planned forum next year. 2011 is going to be a very bleak year for home builders in this state; more jobs will be lost and with them end values are likely to continue to fall.
“If we end up in the same position as we are today, which isn’t great in anybody's language, this time next year we would be lucky.”