Gladstone construction could boom after COVID-19

Gladstone construction is up and down say the Master Builders Association but a boom could come after COVID-19

Holland America Line cruise ship MS Maasdam docked in Gladstone on November 19, 2019. Also pictured is construction site of East Shores stage 1B.

A LACK of market confidence from investors, and tradesmen taking up better-paying jobs in the mining industry, is hampering construction in Gladstone, according to the Master Builders Association.

But a boom could launch as soon as September if the Morrison Government's stimulus packages called for by the association are delivered.

MBA Central Queensland regional manager Dennis Bryant said Biloela was experiencing a surge in growth, while Gladstone was up and down.

"From the point of view of the whole Central Queensland region Gladstone is not faring as well as elsewhere, but that was happening prior to COVID-19 restrictions anyway."

"But the Central Queensland region as a whole is probably doing better than it has done in the last three years."

When the Curtis Island gas plants were being built in 2013- 15, Mr Bryant said the Gladstone construction market was booming.

"There were an awful lot of houses built, then the bottom fell out of the market and house prices dropped and rental rates went down which caused a lack of investor confidence," he said.

Higher paying jobs in the mining industry have also lured Gladstone's tradesmen off local jobs.

"If you can go out to the mine and make $100,000 a year for just going to work and coming home again, it's more attractive than being in business for yourself and hoping to make $80,000 a year, and spending your nights worrying whether you are going to get paid or not," Mr Bryant said.

The slowdown could be only temporary now that the rental market has tightened.

"All it takes is some mum and dad investors with some cash to spare, or a few people with a million dollars to invest from down south, and the confidence to do it, and everyone would be flat out again," Mr Bryant said.

"The stimulus packages we are calling for from the Federal Government would encourage spending and construction on the back of that.

"There has also been some reluctance on the part of the lending institutions to lend simply because they aren't getting the valuations people need to borrow the money."

Ray White Gladstone director John Fieldus said with a rental vacancy rate of less than 2 per-cent, it was time to build more houses.

"That would indicate it's a prime time to build more houses but we just need the mum and dad, or bigger investors to come along," Mr Bryant said.

"Things are tightening in the rental market so it's time to start building more houses again," Mr Fieldus said.

With the tightening of the rental market, Mr Fieldus said they had the second largest rental roll for Ray White in Queensland.

"People have moved to Gladstone because the rents were low and the lifestyle is great, but we are going to have to build more houses than they are currently, and soon," Mr Fieldus said.