UDIA warns HomeBuilder boost ‘not enough’ to bring Qld development industry back from the brink

Urban Development Institute of Australia says the HomeBuilder boost is welcome but warns the Queensland development industry is still “very much facing that construction cliff”.

QUEENSLAND’S property development industry is still staring over a construction cliff despite the Federal Government throwing it a stimulus lifeline this week.

Urban Development Institute of Australia state chief executive Kirsty Chessher-Brown said the HomeBuilder boost alone will “not be enough” to bring the sector back from the brink.

“It’s certainly a welcome first step from the Federal Government,” she said.

“But unless the State Government comes to the party with added incentives we are still very much facing that construction cliff.”

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Ms Chessher-Brown said a pipeline survey of its 800 corporate members — including developers and other industry professionals — across the state pointed to a massive downturn on the horizon for the Queensland sector, with 54 per cent reporting their sales pipeline had fallen by 50 per cent or more due to coronavirus.

“Our early analysis of new research comparing this crisis to the GFC shows the Federal boost alone will not be enough,” she said.

Kirsty Chessher-Brown, UDIA Queensland chief executive, at the Chambers Chase development site at Park Ridge. Picture: AAP/Richard Gosling

“The survey results also reiterate the urgency of introducing measures at a State level.

“If the Queensland Government gets on board with industry stimulus it will give us the comprehensive recovery plan we need to keep people employed and housing supply in-step with population growth.”

The UDIA survey revealed more than a quarter (27 per cent) of its members had a drop in their sales of 70 per cent or more.

It also showed that 50 per cent had already deferred projects and a further 28 per cent were considering doing so. In terms of future project pipeline 46 per cent expect their project pipeline to be reduced for the next six months and 22 per cent for the next 12-18 months.

Ms Chessher-Brown said the State Government needed to work in tandem with the Federal Government to provide added incentive for a broader group of buyer groups, such as downsizers and people looking to upgrade from their existing homes or wanting to buy into different products including apartments and townhouses.

“First homebuyers are the main buyer group that will benefit from the HomeBuilder scheme but obviously the property market is much broader,” she said.

“The HomeBuilder scheme does nothing for people looking to buy new apartments or townhouses, which is why we are calling on the State to introduce a stamp duty holiday that benefits more Queenslanders.”

Ms Chessher-Brown also said because of the time limitations of the Federal boost it would predominantly only help those with existing stock on the ground that meet some of the threshold limits.

The Queensland property development industry is the State’s third largest industry of employment. It directly employs 207,677 people and a further 257,962 indirectly, pumping $14.2 billion each year into wages.