Still in pos­i­tive on ap­provals

The Weekend Post - Real Estate - - Front Page - PASCO ROGATO

per cent in the past 12 months.

“While we are 16 per cent down on the pre­vi­ous month, I think we need to con­cen­trate on how we are track­ing over 12 months,” Mr Ban­nah said.

“From the pre­vi­ous year of 1086, this cur­rent 12 months we are ahead of that with 1166; that is pos­i­tive for our re­gion.

“If you look back in 18month blocks, to­day we are we are sit­ting at 100s (of build­ing ap­provals per month); 18 months be­fore we were in 8085, 18 months prior to that we were 74-77. So we are im­prov­ing, al­beit slowly.

“It is still very patchy. You will talk to some builders who are slow and say it is dry, but you will run into oth­ers who are be­com­ing in­creas­ingly busy. So it’s patchy but still pos­i­tive

“We would love it to be bet­ter but it is in­cline and has been for last three years.

“Oc­ca­sion­ally you’ll get a drop one month to the other, but from an an­nual point of view we are still about 100 in front of last year.”

Mr Ban­nah said what the re­gion truly needs is “a shot in the arm”, in the form of a ma­jor pro­ject.

“I wish one of these ma­jor projects would kick in; it is what the in­dus­try needs and I am aware of a num­ber of other projects wait­ing for some­one to start on a ma­jor pro­ject,” he said. “The re­gion lacks a ma­jor pro­ject. If you think of Cairns’ po­si­tion, about ev­ery two years we’ve had a ma­jor pro­ject.

“We took this mat­ter up with lo­cal state mem­bers re­cently in Cairns; you go back and look at South­ern Ac­cess Rd and all the work down there; you look at Cairns Hos­pi­tal: while there is some work still go­ing on there the over­all new work is fin­ished, and To­bruk Pool is well un­der­way; the back of that pro­ject is bro­ken and com­ing to fruition.”

Tak­ing Aquis aside, Mr Ban­nah said there were sev­eral ma­jor projects that would help the Cairns build­ing in­dus­try.

“This Aspial Cor­po­ra­tion pro­ject on Spence St is what the re­gion needs. If we can get their Nova8 tow­ers on line ... and if Benny Wu gets his Aca­cia Court Ho­tel re­de­vel­op­ment go­ing, along with a cou­ple of de­vel­op­ers who have some $10 to $12 mil­lion projects around the town, it’s the kick we need.

“Tower cranes breed cranes: you get one tower crane up and you get a sec­ond and third, and that is what in­dus­try needs.

“We rely on the com­mer­cial mar­ket and we haven’t had a lot in re­cent years.

“If you look at the Gold Coast it is 7.6 per cent up over the year, and we are 7.4 per cent.

“While we can’t be classed with the Gold Coast and we don’t want to be, it is a good ref­er­ence point.

“You talk to in­dus­try stake­hold­ers, par­tic­u­larly sup­pli­ers, for a re­gion that is still trav­el­ling steadily they are not do­ing too bad.”

Master Builders deputy ex­ec­u­tive di­rec­tor Paul Bid­well said de­spite the re­sults for July, the longer-term out­look re­mains strong.

“Ap­provals dur­ing the past 12 months are still strong, with to­tal ap­provals for Queens­land up by 15.6 per cent (sea­son­ally ad­justed). We also know the unit ap­provals were largely re­spon­si­ble for the re­sult in July, drop­ping by a mas­sive 31.4 per cent.

“While there is a rea­son­ably strong pipeline of work in Queens­land, par­tic­u­larly for the residential sec­tor, there is still a lot of scope for the Gov­ern­ment to pro­vide sup­port in the form of in­fra­struc­ture spend­ing in re­gional Queens­land.”

WA­VER­ING TREND: Build­ing ap­provals the Far North dropped in July, but year to date the fig­ures re­main pos­i­tive.

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