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New Queensland housing construction at near five-year high

ABS figures released today point to an increase in the construction of new houses, units and apartments in Queensland over the last quarter.

According to the ABS data, the construction of new houses rose strongly by 27.2 per cent in the March quarter to $1.59 billion – the highest level since the June quarter 2010.

This was also accompanied by the construction of new medium to high density dwellings which continues to trend upwards to be 16.1 per cent up over the year.

Treasurer Curtis Pitt welcomed the figures, especially for the construction of new houses, which has seen minimal growth over the last few years.

“Construction of units, townhouses and apartments in the south east corner in particular has seen strong growth over the last year,” Mr Pitt said.

“This is largely on the back of investor demand fuelled by expectations of a sustained period of low interest rates, coupled with more attractive rental yields in Queensland’s south east than in Sydney or Melbourne.

“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 housing.

“While the result for the construction of new housing this quarter is positive, we look forward to seeing a return to sustained growth.”

The overall volume of construction work done in Queensland fell in the March quarter, driven by the wind down in engineering construction related to the $60 billion investment in the three major LNG projects in Gladstone.

Mr Pitt said confidence was returning to the Queensland economy, as business and industry get behind the Palaszczuk Government’s positive economic agenda.

Source: News Release, Queensland Government, 27 May, 2015