Tasmania’s $8 billion building boom the strongest growth in a decade

Tasmania’s construction sector is expanding at record levels with billions of dollars worth of projects under way or in the pipeline. SEE THE MAP OF DEVELOPMENTS

Roofing sections being lifted into place at the community hub in the Kingston Park development. Picture: SAM ROSEWARNE

TASMANIA’S construction sector is expanding at record levels with billions of dollars worth of projects under way or in the pipeline.

A phenomenal $8.072 billion in building works is possible in coming years, ranging from new mines on the West Coast to luxury hotels in Hobart and school and hospital upgrades across the state, a Mercury analysis has revealed.

The Mercury has mapped 68 of the higher-value developments either under construction, under consideration or possible in the next five years.

These projects would create almost 12,000 construction and ongoing jobs and provide record levels of growth in the state’s economy.

We’re seeing a pipeline that’s looking pretty healthy for at least the next five years – Master Builders Tasmania executive director Matthew Pollock

The latest economy figures out on Friday showed Tasmania had seen its strongest growth in a decade, with Gross State Product rising 3.3 per cent to $30.3 billion for the 2017-18 financial year.

Master Builders Tasmania executive director Matthew Pollock said there was more work at the moment than could actually be done.

“Most of our members have pretty full books for the next 12 months,” he said.

“Over the next couple of years we’ve got $700 million in commercial construction projects to complete, new housing commencements are predicted to top 2500 per year and there’s around about $2 billion worth of civil engineering projects under way with another few billion to commence.

“We’re seeing a pipeline that’s looking pretty healthy for at least the next five years.”

Second year apprentice Bree Kelly, left, site manager Dallas Millhouse and tradesman Matt Fielding at the Parliament Square redevelopment in Hobart. Picture: CHRIS KIDD

The state’s capital is buzzing with activity with the potential construction of more than 2100 hotel rooms worth $1.16 billion, including the Parliament Square and Hyatt Centric Hotel developments that are nearing completion.

Tourism Industry Council Tasmania chief executive Luke Martin said it was great to see a vibrant visitor economy fuelling a construction boom.

“We do need them,” Mr Martin said.

“The brakes are on the destination until we get some additional accommodation.

“Hopefully it will ease the pressure on housing because some of the market will shift from short-stay to hotel accommodation.”

A crane reaching high at the Royal Hobart Hospital construction site.

Mr Martin said the “rule of thumb” was for every two hotel rooms there was one permanent job created.

“When you start thinking about the scale of some of these hotels and the number of rooms, you’re talking about really healthy job projections,” he said.

While hotels were plentiful, apartment housing complexes were less prevalent, with Housing Industry Association executive director Rick Sassin saying they wanted to see more high-density housing like the nation’s East Coast cities.

“I was really proud of the Welcome Stranger proposal, that someone wants to develop 52 units in the middle of the city,” he said. “We need diversity of housing types and to bring people into the city.

“Developers are really keen to build but they get stuck in the planning process.”

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The paranaple Centre at Devonport. Picture: CHRIS KIDD

Health and education projects are also prolific, totalling $1.01 billion, which includes the plagued Royal Hobart Hospital redevelopment and the potential for new schools at Brighton, Sorell, Glenorchy, Legana and Penguin.

To help staff the building boom, the State Government has set a target of a 40 per cent increase in apprentices and trainees in the private sector by 2025, Building and Construction Minister Sarah Courtney said.

Infrastructure Minister Jeremy Rockliff said the Government had developed an infrastructure pipeline that lays out the state’s priorities for the next decade.

The pipeline forecasts $13.9 billion will be spent on projects in the next 10 years.

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“These infrastructure projects will help to further underpin the growth of our economy, support thousands of jobs, boost business confidence and support our growing population,” Mr Rockliff said.

An artist’s impression of the proposed UTAS northern campus. Picture: SUPPLIED

There is also a hive in activity in Tasmania’s North-West with a mix of wind farm, urban, mining, aquaculture and tourism developments valued at $1.54 billion, stretching from Devonport and Burnie to the more remote Granville Harbour near Zeehan.

West Coast Mayor Phil Vickers said while the increased investment was positive, they could always do with more.

The Woolnorth wind farm.

“There’s room for as much development as anyone wants to give us,” he said.

“We’re constantly trying to improve our tourist developments and the expansion in mining is good.”

He said while there would be work in the area in the future, maintaining the population base was their major challenge.

Mr Pollock said he expected more activity in the North and North-West over the next couple of years.

“The next phase of activity is more spread out than the current phase,” he said.

“It’s a great opportunity for building businesses in those regions but we’ve got to make sure we’ve got the people there to actually deliver on the projects.”

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