Queensland building boom on the rise
Builders, plumbers and other tradies throughout Queensland should be busy going into the next financial year.
For the most part, contractors may see themselves managing several bids for residential projects. According to figures collated by the Australian Bureau of Statistics (ABS), authorities green-lit 276 dwelling units for construction over the 2014-15 period.
Overall, Australia’s home building economy seems to be performing well. Despite a 0.4 per cent decrease in residential approvals between March and April, this number rose 16.5 per cent between April 2014 and April 2015.
Queensland Treasurer Curtis Pitt commented on another ABS report, which showed the state’s home construction rate rose 27.2 per cent in the first quarter of 2015, amounting to $1.56 billion worth of activity.
“Trends in dwelling approvals, along with recent information on the value of housing work yet-to-be-done suggest that strength in Queensland’s dwelling sector is likely to continue, particularly in medium to high density (sic) housing,” said Mr Pitt.
Builders operating in the Brisbane/Gold Coast area will likely manage higher-value construction contracts than those building homes in different parts of the state.
A December 2014 report by the Real Estate Institute of Queensland (REIQ) showed that Brisbane City Council’s median home value surpassed the $600,000 mark. Across the state, 2014 residential sales hit a five-year high.
These figures suggest that demand for homes throughout South East Queensland is increasing. In general, the area has shown signs of an improving economy. One symptom of a robust market is the demand for public services and authorities’ willingness to oblige.
For example, Brisbane City Council recently updated a transportation plan for the city. The Council is examining the primary road corridors used to enter Brisbane to deduce how upgrades, additions and public assets can be used to make commuting more convenient.
After thorough analyses are completed, the Council will likely open tenders to head contractors interested in tackling major civil infrastructure endeavours. Once these projects are completed – sometime in the next decade or so – it’s likely that home values will continue to increase throughout the area as a result.