New construction is booming

Benjamin from Born to Build Carpentry Pty Ltd a subcontractor for GJ Gardner Homes.

by Khrysti Balanay

Central Queensland property market is booming, with rental vacancies at historic lows and high demand for new home construction.

This can be attributed to the combination of relative lack of supply, low-interest rates, population growth and buyers’ reluctance to purchase property that requires renovation.

Dean Phillips, Master Builders Regional Manager for Central Queensland, said, “housing construction prices have increased by 23 per cent over the past 12 months in Queensland, which is the largest increase across the country.”

“The building industry is doing it tough in the face of current market conditions and the increasing administrative burden of running a building business.

“As yet, we haven’t seen a drop in demand for new home construction, despite the increase in building costs.”

In Queensland, approvals for both detached houses and alterations and additions continued to grow over April, with the number of detached house approvals rising by 6.3 per cent.

“Central Queensland is one of our regional centres leading the charge, with the increase in dwelling approvals most pronounced here and in other regions such as the Sunshine Coast and Townsville,” Mr Phillips said.

“While April saw a decline in both houses and multi-unit approvals, 12-month periods show positive growth of 12.3 per cent.”

Heather Abraham, GJ Gardner Homes director, said despite the increased interest in new construction, they will not turn away a potential client.

“We have found a growing number of people moving to the [Central Queensland] area, particularly Yeppoon, which has kept us busy,” she said.

“GJ Gardner Homes has been established in Central Queensland for 20 years, so we have had the opportunity to build a network of subcontractors and suppliers.

“We did have a few timber supply issues but have managed to overcome that hurdle.

“GJ Gardner Homes is very productive and is proceeding quite nicely with our current houses.”