RATE RISE RATTLES CONSTRUCTION CONFIDENCE

Written on the 10 May 2010

RATE RISE RATTLES CONSTRUCTION CONFIDENCE

THE sixth interest rate rise in seven months will place further strain on the Gold Coast’s construction sector as it battles to proceed with stalled development projects, according to the Gold Coast Urban Development Institute of Australia (UDIA).

The UDIA has condemned the RBA’s move to further raise rates, highlighting the decision’s potential to stall some redevelopment options along the light rail route and undermine confidence in projects about to commence.

“The industry is just going to slow-down further as rate hikes lessen public confidence and this is not good news for the Gold Coast,” says Gold Coast UDIA vice president Steve Harrison.

“The light rail system, in particular, is going to bring more than 6000 jobs along the route, but the city is also banking on thousands more construction jobs off the track via the regeneration of urban hubs along the line.

“The first stage of the light rail system will be commissioned in 2014 and there needs to be a critical mass around the route to ensure its success.”

Harrison says the third rate rise in as many months will have property buyers thinking they’ve missed the window of opportunity.

“The RBA’s arm has been twisted by the rise in property prices in the capital cities, but that level of buoyancy is discernibly absent on the Coast,” he says.


Latest News

SLATER & GORDON AND MAURICE BLACKBURN SHOWDOWN IN BELLAMY'S CLASS ACTION

FIERCE rivals Slater & Gordon (ASX: SGH) and Maurice Blackburn have secured funding for class actions against Bel...

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter