Gold Coast building figures tumbling

Gold Coast housing approvals have taken a steep dive as the industry scrambles to find new build opportunities. 

GOLD COAST building approvals have slumped as builders face a COVID-19 downturn and dwindling land stock.

Australian Bureau of Statistics figures show the region approved 424 new houses on the Gold Coast in the last financial year-to-date, worth $166 million. It is a drop of 21 per cent on the same time last year with 540 homes and $201 million.

Gold Coast Builder Scott Bishton.Photograph : Jason O'Brien

Master Builders Deputy CEO Paul Bidwell said mixed results across regions added weight to industry calls for Federal HomeBuilder first home grants to be extended until the end of 2021: “It makes sense to make the most of the existing demand and ensure anyone who is in a position to take advantage of the grant can do so. What we don’t want to see is demand fall away once the grant is off the table, leaving builders and our economy high and dry once the current crop of homes is complete.”

Master Builders regional manager Adam Profke said while application numbers put forward to Gold Coast City Council have been high, building approval numbers are based on new approved dwellings.

“There have been a lot of renovations, which could also be behind that, and a push ahead of city plan changes. Of the issues on the Gold Coast we see a lack of land avaliblity which stifles home building and growth in that space.”

The September figures also highlight the ongoing shortage for the commercial sector. In the last three months these continued to languish, down 42 per cent on the Gold Coast, the heaviest hit region.

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IN JULY: ALMOST half a billion dollars was wiped from the Gold Coast building market in the financial year to May as approval rates dropped over the COVID-19 period.

The latest data from the Australian Bureau of Statistics shows the overall value of building works in 11 months dropped 15 per cent on the same period last year.

The financial-year-to-date (FYTD) data shows the Gold Coast industry was worth $2.3 billion, down $500 million on the $2.8 billion at the end of May 2019.

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The value of work in the non-residential building sector fell 30 per cent, or $290 million.

Overall residential approvals declined by 6.2 per cent, with 1693 houses and 2531 other residential dwellings on the go up to May 2020.

However, spending on renovations and alterations increased 2.3 per cent on the same time last year, as homeowners forked out $168 million to do up their pads.

ABS data has revealed another drop in Gold Coast building approvals.

Master Builders Queensland Gold Coast regional manager John Duncalfe said while the figures did not show a good result for the financial year to May, the numbers were not as dire as expected.

“When we look at a three-month period the drop isn’t as significant. The approval figures are consistent,” he said.

The COVID-19 pandemic aside, a number of factors had affected housing approval rates on the Gold Coast, namely a shortage of land.

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“We are really expecting the more serious decline to happen around September, when we see JobKeeper and everything else come into play,” he said.

“However, the federal HomeBuilder grant hasn’t kicked in yet, so we may get a little support from that.

“Ultimately, most of the members I have been speaking to are reporting they have been busy.

“I do think the renovations are also propping up the market and there has been no decline on the higher end of the housing market.

“Some renovations add an amazing value. One job we are aware of was up to $1 million.”

Mr Duncalfe said while there had been an overall drop in approvals due to a lack of consumer confidence, spikes were recorded in the north and west of the state.

“I don’t believe this is the story all over, and it’s not all bad news,” he said.

“Consumer confidence is down no doubt, but that is because those working in hospitality and tourism here aren't likely to renovate a bathroom or build a home at the moment. With things opening up again that could change. That then flows on to retail, as building does support the retail sector.”