Econ­o­mist warns eco­nomic in­sta­bil­ity likely to slow con­struc­tion in­dus­try

Port Douglas & Mossman Gazette - - NEWS -

THERE were 55 dwelling ap­provals in the Dou­glas re­gion for 2010/11 com­pared with 64 in 2009/10, a de­cline of 14.1 per cent.

The 2010/11 re­sult was also 14.1 per cent lower than the 2008/09 re­sult.

Hous­ing In­dus­try As­so­ci­a­tion econ­o­mist Matthew King said across Queens­land, house­hold con­fi­dence is suf­fer­ing un­der the weight of an in­ter­est rate tight­en­ing cy­cle, se­ri­ous weak­ness in key in­dus­try sec­tors, ner­vous­ness in re­la­tion to the car­bon tax, and in­ter­na­tional eco­nomic in­sta­bil­ity.

“Com­bine that poor sen­ti­ment with on­go­ing sup­ply side ob­sta­cles in the new home build­ing in­dus­try, namely a re­cent his­tory of in­ad­e­quate land sup­ply and ex­ces­sive in­fra­struc­ture tax­a­tion, and you have a recipe for se­ri­ous new home build­ing weak­ness,” he said.

“Cer­tainly the re­cent State Bud­get an­nounce­ment of the Build­ing Boost Grant of $10,000 for those house­holds who build or buy a new home will auger well for some ral­ly­ing in new home build­ing ac­tiv­ity in the fi­nal months of 2011.”

“How­ever, given the pol­icy wasn’t in­tro­duced un­til Au­gust and the mul­ti­tude of con­straints af­flict­ing new home build­ing, it’s likely to be tough go­ing at least un­til the fourth quar­ter of this calendar year.”

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