Bright outlook for state’s builders
THE worst is behind us when it comes to dwelling approval falls in Queensland, according Housing Industry of Australia economist Diwa Hopkins.
Ms Hopkins' comments came on the back of data released by the Australian Bureau of Statistics yesterday (October 10, 2018), which revealed Australian dwellings approvals dropped by 1.9 per cent in August 2018 in trend terms.
Ms Hopkins said, despite Queensland's "trend" dwelling approvals being flat, the state's monthly results still showed a decline of 8.4 per cent.
"That was mainly driven by a fall in multi-unit approvals."
Ms Hopkins said while the HIA expected a downturn to continue for detached houses and multi units in Queensland, the worst had occurred.
"But of degree of those declines, we think the worst of those declines has occurred," she said.
"We think that that occurred in 2017 and that in the coming years, so for the rest of 2018 and in 2019 as well the declines we're forecasting are much more modest.
"New home building declined by 17 per cent in 2017, that's in Queensland for both detached houses and also multi units.
"By the time 2018 has concluded, we're expecting the decline to be in the order of 5 per cent, and then in 2019 another similarly modest decline of 4 per cent before we expect activity to then return to growth in 2020."
over recent years, for quite a sustained period of time and you don't get that same degree and duration of growth in Queensland," she said.
ABS director of construction statistics Justin Lokhorst said the national fall was mainly driven by private dwellings excluding houses, which decreased by 2.7 per cent in August.
Among the states and territories, dwelling approvals fell in August in Victoria (5.1 per cent), South Australia (3.6 per cent) and New South Wales (1.6 per cent) in trend terms.
Dwelling approvals rose in trend terms in Western Australia (2.7 per cent), Tasmania (2.3 per cent), Northern Territory (1.5 per cent) and Australian Capital Territory (0.1 per cent).
Dwelling approvals were flat in Queensland.