Queensland residential construction numbers at national low

QUEENSLAND has recorded the worst level of residential construction activity in the country, according to new figures.

QUEENSLAND has recorded the worst level of residential construction activity in the country, according to new figures.

But the poor results contain a silver lining for home buyers, with rates increasingly likely to stay on hold as the non-resource economy continues to splutter.

Data from the Australian Bureau of Statistics shows for the March quarter the overall value of construction work in Queensland was down 3.8 per cent, while nationally it was up 0.7 per cent.

But singling out residential activity and Queensland activity fell 5.2 per cent, compared with a national decline of 4.9 per cent.

Director of Economic Research and Policy for the Urban Development Institute of Australia (Qld) Duncan Maclaine said while the natural disasters in early-2011 impacted on construction activity, the latest figures showed a longer-term slump.

"Residential construction activity in Queensland in particular has been subdued for quite some time, with average quarterly declines of -2.0 per cent in the last year. In contrast, the corresponding quarterly average growth for Australia was +1.5 per cent," Mr Maclaine said.

"The residential construction sector has been particularly weak for quite some time now in Queensland, with activity in the first quarter of 2011 still 35 per cent below the pre-GFC peak."

In contrast, activity in the national residential construction sector has recovered to be about equal to, or higher than, the levels observed pre-GFC in every other state.

Mr Maclaine said the increased level of caution among potential homebuyers and investors could see the sector remain subdued "for quite some time".

Frazer Dean of Insite Constructions said the first few months of the year had seen significant downtime due to poor weather. But he said bureaucracy and financing were ongoing issues.

"Finance is a big one because banks aren't lending the money like they used to," the Sunshine Coast-based builder said.

"Government bureaucratic red tape and blue tape and white tape and whatever other coloured tape they want to put out there. That's all conspiring against us."

He said the longer term was looking "bright", but some short-term stimulation was needed.

"By capping infrastructure charges so high, that's not going to work for us here on the Sunshine Coast," he said.

"It might work in Brisbane, but in the regional areas it's just not going to cut it."