CITY TO REAP BONANZA

TOWNSVILLE is set for a huge economic boost from the development of new homes flowing from the building stimulus announced by the Federal and State governments, industry representatives say.

Just how much depends on the number of homes that can be developed, which if it even matches the 150 or so developed in the six months to December last year, would be about $60 million in land and home construction value.

Master Builders regional manager Emma Peters said it was too early to provide estimates on the impact of the Government’s Homebuilder package but that the flow-on effect of home building was huge.

Ms Peters said research by the Australian Bureau of Statistics indicated that for every $1 million spent on construction, $2.9 million would be generated in the wider economy, giving rise to nine jobs in the construction industry and 37 jobs in the economy as a whole.

She said the flow-on effect of home building rippled through the economy from the builders and suppliers of materials to the landscaping industry and pool developers to the suppliers of goods for the homes.

Queensland Country Bank CEO Aaron Newman said he had seen a noticeable increase in loan applications.

“There’s no doubt the combination of the government incentives and the interest rates on offer have been effective in stimulating the first homebuyer market,” Mr Newman said.

“So far Queensland Country Bank has approved loans for 26 first home buyers in Townsville under the First Home Buyers Deposit Scheme, and … we’re expecting a further boost in loan applications.”