Hope for Far North Queensland's Building Industry

A SURGE in housing approvals this year has given the Far North's construction industry its strongest sign yet that it is emerging from a three-year slump.

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An analysis of data released by Master Builders yesterday revealed the region had experienced a 75 per cent increase in total housing approvals in the April quarter, compared with the same four months last year.

The Australian Bureau of Statistics' Building Approvals report shows about 1000 new houses were approved in the Far North in the 10 months to April this year.

Local builders say the upward trend could signal the beginning of an industry recovery.

"The industry's moving and we're starting to see some green shoots coming through," Master Builders Cairns regional manager Ron Bannah said.

Mr Bannah said the strong first quarter was largely a result of the former state government's extension of the Building Boost grant.

Builders who persisted in their search for work since construction activity slowed to a trickle about three years ago were reaping the rewards, he said.

"The biggest issue we've all faced is the lack of confidence," Mr Bannah said.

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"That's holding us back.

"For an industry that's been down on its knees, there have still been some people chipping away and making things happen.

"Yes, it's still tough but some of the project home builders, whilst their numbers might be down, have got a reasonable number of jobs on their books."

The Master Builders' analysis shows regional centres had recorded a strong start to the year, with an increase of 92.2 per cent in approvals in Mackay and 64.2 per cent on the Darling Downs.

But the southeast corner was lagging compared with the rest of the state, with the Gold Coast dropping 0.3 per cent and Brisbane (West Moreton) increasing by just 0.5 per cent.

Master Builders' director of housing policy Paul Bidwell said while the housing sector was slowly recovering, governments needed to take a lead in ensuring costs were affordable.

"We're particularly concerned about the impact of the carbon tax and how escalating costs will further exacerbate the price divide between new and established housing," he said.

"We're urging all levels of government to consider key reforms and stimulus measures aimed at the building sector that will boost consumer confidence and activity levels."

Article printed in The Cairns Post
Wednesday 13th June 2012

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.