Page 14 - Tropic Magazine Issue 29

TROPIC • CONSTRUCTION

1 2
1. Integrity New Homes
2. Maxa Constructions

Building boom

TRADE DEMAND
The HomeBuilder scheme has
now ended but it will continue
to stimulate the construction
sector well into the future. “Despite the figures easing, it won’t put Builders, particularly the
a dampener on the industry, with the
Words: Renee Cluff smaller businesses, can’t
pipeline of work set to carry it through
The building industry is riding a wave well into 2022.” absorb the price hikes
of new home approvals driven by the The government grants haven’t been forever
 Federal Government’s latest building entirely responsible for construction Sharon Vella,
stimulus, of home and renovation grants
stimulus. Low interest rates,
between $15,000 and $25,000. In the
Master Builders
year to March, when the scheme ended, interstate migration and early access Queensland
to superannuation funds have also
single dwelling approvals in Far North contributed to the boom, resulting in Regional Manager
Queensland had climbed by 48.4 per what Ms Vella described as a ‘perfect
cent. In the Cairns Regional Council area, storm’ for builders. While the residential housing sector
house approvals in January and February However, there is a flipside. The strong is flat out, it’s a different story for
were up 134 per cent on the same time the demand has resulted in shortages of both approvals of non-residential buildings.
previous year. tradespeople and materials, which could The withdrawal of private investment
Sharon Vella, the Regional Manager for push the cost of building up. has led to a 63 per cent drop over the past
Master Builders Queensland, told Tropic “We’re hearing growing reports of a year. Again, government stimulus could
while the rush has ended, the industry shortage of trades and materials, which help turn the tide, with the Palaszczuk
will remain busy for some time yet. in turn are causing delays and increased regime’s fourth round of the Works for
“The latest ABS Regional building prices across the board, but in particular Queensland program setting aside over
approvals figures have revealed an on timber and steel,” Ms Vella said. “The $48 million for Far North Queensland
anticipated softening in numbers for new industry is managing the situation for councils. Cairns Regional Council will
homes,” Ms Vella said. now, but we are monitoring it closely. receive more than $12 million. “This will
be much-needed work,” Ms Vella said.
“Resulting projects will be a major shot in
Far North Queensland the arm for this sector.”
house approvals Eligible projects range from roadworks
% to town beautification, parks and
Year to Jan 2020: 795 | Year to Jan 2021: 1,180  48.4 playground upgrades, renewable energy,
Source: Master Builders Queensland & ABS tourism and water, with submissions
closing in April.

14 • Tropic • Issue 29