Jobs spark confidence in housing
AN improving jobs market is driving confidence and Townsville’s home building sector is recovering, according to the Housing Industry Association.
The association’s principal economist, Tim Reardon, in the city yesterday to provide an industry update, said the city had seen the worst of a downturn that hit rock bottom during 2016 and that activity was returning.
“For the building industry in Townsville, you are past the worst,” Mr Reardon said.
“The market is starting to pick up. We have seen some growth in the numbers.”
The home building market has been subdued since 2016 with reports by property consultants Herron Todd White indicating home building approvals are running about 48 a month – around a 60 per cent decline since 2013 – while the jobless rate in the Townsville region for April was 8.5 per cent – down from a peak of around 12 per cent. Mr Reardon said growth in employment would drive population growth and, in turn, help provide a recovery in the building sector.
“Employment is at the core of new home building,” Mr Reardon said. “In order to grow the population base, you need to grow jobs.
“With employment growth starting to rise again, workers will shift back to North Queensland.”
The association’s regional director, John Futer, said, economically, Townsville probably had been caught “in a bit of a rut” but that an improving market was expected on the back of infrastructure projects in defence, water security and port development.
“There’s a lot of projects that are coming up and there’s a lot of things that are going to be improving infrastructure,” Mr Futer said.
“That means both jobs and a better community, which will attract people to come north.”
Last month award- winning Townsville builder Finlay Constructions was placed straight into liquidation after being unable to survive the city’s difficult residential construction market.
Liquidator Moira Carter of BRI Ferrier said Finlay Constructions was a victim of the difficult home- building sector and the downturn in the local economy generally.
She said home building and transport were two of the hardest hit industry sectors, with industry players “scraping by” on very low profit margins.