Improved prospects for builders
MASTER Builders’ latest industry outlook for 2016 shows a booming building and construction industry, with record numbers of building approvals.
Master Builders’ deputy executive director Paul Bidwell said the peak industry association had forecast 46,000 dwelling unit commencements for 2015–16. This equates to an increase of 4.5% on the 43,051 starts in 2014–15.
“In 2016–17 we estimate dwelling unit com- mencements will begin to level off, returning to 43,000 starts,” Mr Bidwell said.
“Looking forward, the prospects for the residential sector during the next 12 to 24 months are strong.
“The growth will spread further into the regions and across housing types, particularly detached houses. Owner-occupiers will increasingly move into the market, while investors will become more cautious.”
The lion’s share of dwelling approvals are for multi-unit developments, up nearly 54% year on year.
For the first time in history, approvals for multiunits exceed detached housing.
But look beneath the headlines and there is more to the story, with great disparity across the regions.
Growth for the most part is concentrated in south-east Queensland. Central Queensland, Mackay and Whitsunday continue to struggle with little or no demand, while Townsville and Toowoomba/Darling Downs are in the same boat.
The forecast for the commercial sector is that 2015-16 will remain flat.