City slump blamed for state’s slowness
THE Brisbane and Gold Coast markets are holding back the housing construction industry, according to the Housing Industry Association.
While there is activity in Queensland it appears to be only really having an impact close to our mining towns.
Unfortunately, the lift in activity in these towns hasn’t flowed on to the rest of the state.
According to the HIA, the Brisbane and Gold Coast markets account for more than half of all the home building activity in Queensland and drops in interest rates and good offers from builders have not been enough to spark any lift.
The Sunshine Coast has seen its approvals increase by 21 per cent from this time last year. Having said that, the market was in a pretty dire state at this time last year, so it’s coming off a low base.
Other strong performers were Hervey Bay, Toowoomba, Mackay and Townsville in the three months to June. Mackay was a standout performer with approvals rising 129 per cent during the period.
The HIA reckons it’s buyer confidence that is missing.
The latest CommSec report can see a shift in confidence in the right direction.
It says nationally the housing market is on the mend with construction loans for owner-occupiers up 4.9 per cent in June – the best result in almost three years.