COAST’S HOUSING CONSTRUCTION PAINS HIT CLOSE TO HOME

Written on the 18 May 2012

COAST’S HOUSING CONSTRUCTION PAINS HIT CLOSE TO HOME

STAFF retrenchments and a migrating workforce continue to dog the Gold Coast’s ailing housing construction sector.

Master Builders Queensland’s (MBQ) latest regional survey of industry conditions shows the ‘glitter strip’ is the worst performer in the state, with low confidence despite a slight rise in building approvals during the first three months of 2012.

Housing policy director Paul Bidwell (pictured) describes the city as a battleground for commercial survival.

“Employment levels fell with one in two local businesses reducing the size of their workforce,” he says.

“More and more trade people will be forced out of the Gold Coast to find work. The Coast is different from Cairns and the Sunshine Coast in the way it has skyrocketing growth before crashing right down.”

The building and construction body reveals key constraints on business growth include poor demand and availability.

“It is also due to the high cost of finance and infrastructure charges as well as lengthy planning approval processes,” says Bidwell.

“The MBQ business performance turnover indicator ranged between 30 and 40 for the Gold Coast – nowhere near the acceptable level of 50.”

However, employment levels and wage bills are tipped to stabilise in the June quarter.

“We think the building industry will improve, it is just a question of when. We hope the 2018 Gold Coast Commonwealth Games and Reserve Bank of Australia’s May interest rate reduction will drive growth.”


Latest News

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter