The first quarterly Development and Construction Industry Performance Report has been released by the Queensland Urban Development Industry Association (UDIA) today.
The purpose of this new report is to closely monitor building approvals and unemployment in the development industry in these difficult economic times. A further purpose is to compare the performance of the various markets around Australia to more fully understand why some markets have significantly difficult periods and yet others appear to be able to continue functioning at a very successful level.
The report contains some interesting and very perplexing findings, with state government and local authority legislation and policies citied as the major issues causing the significant underbuild and under performance of Queensland development industry today. The complexity of legislation, significant overregulation of the industry, and more complex subdivision and building requirements are adding to the cost of property purchases. The report also discloses that the state is currently building at around half the rate that is required to meet underlying demand.
Housing affordability is another concern, with the same developers in Victoria as those who operate in Queensland delivering the same house in Victoria for $100,000 to $125,000 less. The report also highlights that the continued implementation of user pays charges for head works infrastructure has done little to ease matters. However, some local authorities have taken steps to phase in or restrict the impact of these charges as they are aware that an uncompetitive environment is the enemy of affordability.
In conclusion the report emphasises that the combination of an expensive market, the GFC and increased taxes and charges have already cost 18,800 construction and development employees their livelihoods and asks the question - “Where to from here?”
To read the full report click here
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