Steady momentum in building and construction in Hobart propped up by residential developments

Steady momentum in building and construction in Hobart is a positive sign for economic recovery, but the industry is largely being propped up by residential developments. SEE THE EXCLUSIVE ANALYSIS >>

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HOBART’S building and construction sectors are continuing to maintain momentum despite the impact of the coronavirus pandemic, the city’s Lord Mayor says.

The Hobart City Council’s planning department has crunched the numbers on planning applications for the 2019/20 financial year, with 918 approved in 2019/2020 – an increase from 875 in 2018/19 and 861 in 2017/18.

The value of the 918 applications was $285 million, which was a slight drop from $296 million the previous year.

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Lord Mayor Anna Reynolds said while building approvals were just one indicator of “economic vibrancy, job creation and city wellbeing,” it was a positive sign during a period of such uncertainty.

Construction approvals are up this year, however there has been a slight monetary drop. Picture: RICHARD JUPE

Cr Reynolds said building approvals were down around the state as less projects were moving from planning to construction.

“When it comes to building approvals data from the Australian Bureau of Statistics, we currently only have the June 19 – May 20 data at this stage, but nevertheless the building approvals data also shows a promising picture for Hobart,” she said.

“The City of Hobart continues to lead the state in the value of building approvals for that period – $206 million in Hobart followed by $188 million in Clarence and $132 million in Launceston.”

Cr Reynolds said the Hobart figures had been buoyed by a number of inner city residential planning approvals including 68 apartments at 179 – 191 Murray St, 55 apartments at 90 Melville St, 28 apartments at 9 Sandy Bay Rd and 25 apartments at 283 Liverpool St.

“Our vision of having more people living in the inner city is something the market is starting to recognise also,” she said.

Artists impressions of a proposed development on Patrick St, Hobart. Designs: HBV Architects. (Heffernan Button Voss Architects)

Local developer Mary Brownell’s apartment complex The Rox is due for completion in March.

She said she had confidence in city’s recovery post-pandemic.

“I do think there will be a blip for a while, but Tassie is such a wonderful place and there will be a lot of people wanting to get out of the big cities and investment will flow from that.”

ABS data released on Thursday showed the number of dwellings approved in Tasmania fell 10.8 per cent for the month of June, but Master Builders Tasmania executive director Matthew Pollock said it was a 25 per cent increase on the same month last year.

Rendered image of what The Rox will look like.

“I think this shows the government’s stimulus measures for the building industry is for now ensuring work is continuing,” he said.

“There’s still some weak points and the commercial construction industry is particularly vulnerable at the moment.

“It’s important there is an ongoing commitment to ensure we have a planning system that does encourage as much as possible private sector investment into major projects over the next 12 months.”