Gold Coast building sector figures reveal $350-million drop in project investment

The Gold Coast building sector has taken a hit during coronavirus lockdowns with new figures revealing a massive drop in new project investment across the city.

THE Gold Coast building sector has taken a hit during coronavirus lockdowns with new figures revealing a $350 million drop in new project investment across the city.

But those in the industry remain optimistic, attributing the dip to nerves early in the outbreak, and land shortage.

New building approval investment dropped 15.4 per cent year on year to March, according to the New Australian Bureau of Statistics (ABS) data.

By comparison, during the previous five years the Coast saw an average increase of 7 per cent year on year.

Figures for new homes dropped most significantly, with 400 less approvals on 2019 figures, down 20 per cent.

New figures have revealed a massive drop in new project investment across the city. Picture: Glenn Hampson

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Merrimac, Coombabah and Palm Beach all saw the most significant drop in activity.

Building supplies sales manager John-Paul Biondo said he noticed a drop in activity late March and early April but believes confidence is returning.

Mr Biondo said when coronavirus was first detected there was panic.

“For two weeks it was all doom and gloom, a lot of projects that were ready to start were put on hold,” Mr Biondo said.

“They were dropping like flies for a bit and then everyone started coming back again.

“People didn’t know what was going to happen in the property market so understandably they held off, there was also a lot of money tied up in investments that were hit overnight.’’

But he said it had bounced back “much better than I thought we would”.

“It is still hard and some people have been laid off but I don’t think we are looking into a big black hole anymore’’ Mr Biondo said.

Surfers Paradise Skyline. Picture: Jerad Williams

Long time Coast developer Norm Rix predicted the real impact of the outbreak won’t be felt until later this year.

“With the unemployment figures rising there is certainly concern renters will no longer by there,” Mr Rix said.

“Previously there were indications of a mild recession, now because of the outbreak that will be more deeply felt – particularly around November, October when Job Seeker payments end.”

Mr Rix said a shortage in land could also be behind the decline in approvals

“Right now we all need to work together, council and the state government have the ability to cushion the blow through things like a drop in infrastructure charges.”

Biggest drops in construction work:

% drop 2020 , spend financial year to date (FYTD)

Merrimac: - 96.1%, $252,800

Coombabah: - 89%, $1,754,200

Palm Beach: - 82.4%, $31,865,900

Benowa: - 71%, $13,828,300

Clear Island Waters: -63.4%, $2,949,200