Resource boom regions lead building approvals

Published: 14 February 2012

The December 2011 regional Building Approvals released by the Australian Bureau of Statistics (ABS) indicate the resources boom is driving building approval growth in Queensland, according to Master Builders, Queensland’s peak body for housing and construction.

Master Builders Director of Housing Policy, Paul Bidwell said that the December 2011 Building Approvals figures at a state level were positive and demonstrated slow but steady growth for the state.

“However, the latest regional data shows clearly that the recovery is not widespread, with growth centred around the resources boom,” Mr Bidwell said.

“The Darling Downs, Central Queensland and Mackay regions have experienced phenomenal growth between December 2010 and 2011, which can be largely attributed to the mining boom currently occurring in those areas.

“While approval figures dropped from November to December 2011 in many areas, it is extremely difficult to make an accurate month-by-month comparison, particularly in December when building activity traditionally drops off due to the Christmas period.

“However, the positive news is that the state results indicate a slow recovery for the housing sector overall, which is something we’ve been anticipating for some time.

“Housing Finance figures released yesterday by the ABS yesterday further confirm the improvement, with commitments for owner occupied housing rising by 6.9% (seasonally adjusted), which is the third consecutive monthly rise.

“While the improvements are positive news, we must remember that building activity remains well below the levels experienced prior to the GFC, which is why we have welcomed the extension to the state government’s Building Boost Grant.

“We’re anticipating conditions to remain fairly tough in the early part of 2012; but, providing the European economy holds steady, we are confident the worst is behind us. As we see the effect of interest rate cuts, we expect the recovery to take hold during the second half of 2012.”

New house approvals – by region

Region (statistical local area) Dec-10 Dec-11 % change
Brisbane & West Moreton 737 483 -34
Gold Coast 70 81 16
Sunshine Coast 123 59 -52
Darling Downs & South West Queensland 56 103 84
Wide Bay Burnett 92 102 11
Fitzroy & Central West 67 127 90
Mackay 50 128 156
Northern & North West Queensland 59 79 34
Far North Queensland 54 77 43

 

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