Recovery Plan Sought for Local Construction

The conditions of property markets in Far North Queensland are perfectly typified by the relative health of the local building and construction industry. Following the effects of the global financial crisis in 2007 the rate of new dwelling approvals in Cairns urban area took a significant hit. Despite a slight recovery in approvals experienced during 2009, throughout the past 12 months approvals have remained at a virtual standstill.

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As illustrated by the graph opposite, the current trend number of new dwelling approvals in Cairns urban areas sits well below 50 per month with almost no new units approved. Industry analysts assert that a minimum trend of 50 approvals per month is required for the region's building industry to prosper.

The Cairns Post recently reported on publication by the Urban Development Institute of Australia (UDIA) showing that $318 million has been wiped off Far North Queensland's economy in the past three years from the downturn. The UDIA also outline within their report critical actions required in order to return prosperity to the building sector.

Roadmap for Recovery in Cairns' Construction
The Cairns Weekend Post - 25th February 2012

A DEVELOPMENT hit-list has been drawn up to turn around a $300 million downturn in the Far North's construction industry.

A report by the Urban Development Institute of Australia shows that $318 million has been wiped off the region's economy in the past three years from the downturn.

UDIA Queensland president Matthew Wallace said the institute had 16 critical actions which it considered pivotal to restoring the prosperity of the sector.

"They include an overhaul of the prevailing planning culture and review systems in Queensland to deliver quicker and less costly outcomes, short-term removal of stamp duty on off the plan sales, greater leadership in the delivery of infrastructure and a senior government taskforce to undertake a training strategy to grow the construction workforce," he said.

"We now need decisive action from the incoming Queensland government to turn industry conditions around and harness the economic potential of the sector.

The report found that there had been a 26.4 per cent decline in construction in the Far North in the past three years – double that of the state decrease.

It said in the last financial year 846 dwellings were approved in the region, less than a third of the total in 2007-08 of 2994.

Despite the downturn, the region's industry remained a major employer, accounting for 10 per cent or 12,300 jobs.

Far North UDIA president Gerard Obersky said the Government had created a system that was "inefficient, prohibitive and layered in overlapping departmental assessment or consideration".

"As a result, the costs from these problems are continually spiralling. The planning process has been complicated to a point where delays, taxes and the subsequent cost of this process are making housing unaffordable," he said.

LNP candidate for Cairns Gavin King said the party had elevated the property and construction sector as "one of our top economic priorities".

"Many of the recommendations by the UDIA have been adopted and released as part of the LNP's property and construction strategy," he said.

Labor candidate Kirsten Lesina said Queensland had the lowest standard transfer duty rates of any mainland state and the Building Boost was having a direct impact on the new housing market which included a $10,000 grant for all new homes under $600,000, plus the $7000 first home buyers' grant.

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.