COAST'S HOUSING CONSTRUCTION PAINS HIT CLOSE TO HOME

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.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

ACCC cracks down on greenwashing, fake online reviews

ACCC cracks down on greenwashing, fake online reviews

The nation’s consumer watchdog is cracking down on businesses...

Going green: Investible backs eight climate tech companies through $30 million fund

Going green: Investible backs eight climate tech companies through $30 million fund

A cohort of eight innovative technology companies contributing to d...

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

In a sign that the heat has yet to come out of the Gold Coast prope...

Mandatory COVID isolation to end nationally mid-October

Mandatory COVID isolation to end nationally mid-October

National Cabinet has today determined that mandatory isolation peri...