Election uncertainty hits applications for new Bundy homes

The election has been blamed for a new drop in the Bundaberg construction industry. But the figures have declined for years.

Master Builders deputy chief executive Paul Bidwell said there had been a 2.1 per cent decrease in housing applications in the Wide Bay region in the last year, but that national housing numbers had decreased 13 per cent.

A LOCAL builder said the election has contributed to a 36 percent drop in house applications in the city, generating uncertainty until the outcome is clear.

Bundy Homes director Michael Randall, 58, said that Bundaberg had been unable to escape the national trend in the worsening industry.

"In my business it just means we have to do it better and smarter than we have before,” Mr Randall said.

"Bundy is a very, very stable market and none of the builders in the area are going anywhere.

Bundy Homes director Michael Randall. Picture: Max Fleet BUN110712BHM6

"The numbers are pretty stable, we all just want it better.”

In the first quarter of the year there had been 55 house applications approved in the Bundaberg area compared to 92 applications in the same period in 2018, according to data from the Housing Industry Association of Queensland.

"The election is the whammy to the scenario,” Mr Randall said.

"It's because of the uncertainty and people are holding back because the world will change on Sunday.

"But it won't.”

On an annual basis the percentage was not so extreme, with the number of house applications dropping by three percent if comparing it to the year previous.

But Mr Randall said that the percentage had been dropping for years and this was reflected from his own experience.

He hoped that governments could stimulate the sector.

"It would be really good for all or some branches of government to provide some stimulus to ensure the building industry continues to move ahead,” Mr Randall said.

Master Builders deputy chief executive Paul Bidwell said there had been a 2.1 per cent decrease in housing applications in the Wide Bay region in the last year, but that national housing numbers had decreased 13 per cent.

He said that the Federal Government's recently announced improved First Home Loan Deposit Scheme, which Labor agreed to match, could slightly improve the construction industry.

Mr Bidwell said that Labor's proposed ideas to negative gearing and the capital gains tax could further hurt the industry by $2 billion in Queensland over the next five years.

Hinkler Labor candidate Richard Pascoe was reached for comment.