North Queensland builders explain the issues within the housing market

Developers have revealed what is missing from the building industry as housing crisis continues to take hold.

Ellis Developments managers Darren Hawkins and Sarah Wheatley at the Haven Estate in Garbutt. They said the Townsville construction industry needs an increase in tradespeople, and more approved land to build on, if housing needs were to be met. Picture: Evan Morgan

Townsville developers have said more tradespeople are going to needed for the construction industry, if billions of dollars are being poured into fixing the housing crisis.

Ellis Developments is already facing growth of demand from incentivised first home buyers that was spooked by numerous interest rate rises but encouraged by the doubling of an incentive to $30,000.

General manager Sarah Wheatley said 500 defence personnel expected to move to the city in coming years wiould also increase the demand which already exists.

Deputy Premier and Treasurer Cameron Dick also announced a $3.1b support package to increase the availability of homes across Queensland in the next 22 years, by increasing the private market, expanding social housing, and generating more rental stability.

Ellis Developments does often receive government contracts through entity QBuild and are likely to play a part in the government’s plans, but Ms Wheatley said the company needed further details on how much of that money would flow into Townsville.

She said it was essential that social housing was built immediately, and not in 10 years time, because the demand was higher than the speed of what was being built.

The vacancy rate was at about one per cent and this was expected to lower.

“We’re not only facing a rental crisis and a housing crisis for the retail market, but we’ve also got to find housing for all those defence staff to live in,” she said.

“A lot of them will want to buy and build their own homes, that’s going to be great for us.

“The capacity of builders is there, what it is going to come down to is trades and the potential shortage of trades.”

Construction manager Darren Hawkins said developers were preparing by developing floor plans for Defence Housing Australia which had been asking local builders to find investors.

Deputy Premier Cameron Dick and Resources Minister Scott Stewart at a new public housing project in Pimlico as they announce the Homes for Queenslanders package. Picture: Evan Morgan

“They’re wanting to rent stock as opposed to invest in building stock … so that’s what we’ve been doing, putting together some packages that they can put in different areas around town together,” Mr Hawkins said.

“So then we’ve got to try and attract the investors on board.”

Ellis Developments employs 26 people and is currently constructing 103 houses in Townsville, as it focuses on its Haven estate in Garbutt.

Between 80 to 100 houses was a “comfortable number” for a business the size of Ellis Developments, Mr Hawkins said.

Before the COVID-19 pandemic it was building about 50 houses before it spiked to 140 during the pandemic due to government incentives.

“If it picks up again like Covid levels the town won’t keep up because we just don’t have the trade base here to enable that many builds to happen,” Mr Hawkins said.

“There’s 10 other builders in town trying to do the same and we just don’t have the base of trades in town to facilitate that many builds at once.”

He said there needed to be more emphasis on encouraging young people to work as carpenters, plumbers, electricians.

Blocklayer apprentices were especially rare in North Queensland, because it was “hot heavy work”.

Originally published as North Queensland builders explain the issues within the housing market