NQ and Mackay region builders the least optimistic

buildingindustryoutlook

I just noticed Master Builders Queensland released its latest survey of industry conditions last week. While it shows a positive outlook on average across all regions, the outlook is only just positive in the North Queensland and Mackay regions (see chart above). In contrast, Brisbane, the Gold Coast and Darling Downs-South West have relatively high levels of confidence. The lukewarm confidence in the Mackay region is probably related to the slowdown in the resources sector in that region, but the lukewarm confidence in North Queensland is less easy to explain. Townsville builders obviously aren’t convinced by commitments made by political leaders over the years to the further expansion of the city, which both sides of politics have designated as Queensland’s second capital (see e.g. Community Cabinet comes to Townsville).

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6 Responses to NQ and Mackay region builders the least optimistic

  1. Jim says:

    Gene

    I’m actually surprised that builders in North Queensland (I assume that means Townsville, Cairns, Cape York etc) are even neutral. There is very little (if any) meaningful commercially viable development going on in the north of the state that would actually trigger population growth and building activity.

    While governments at all levels participate in lots of wishful thinking about development of the north of the State, the region lacks any major competitive advantages that are likely to see the wishful thinking realised in the short to medium term (if ever).

  2. Mark Beath says:

    Looking through the building approvals and rentals data recently it may be that Townsville simply got ahead of itself and created an oversupply, at least in residential. Certainly Mackay now appears to be oversupplied.

    http://www.townsvillebulletin.com.au/lifestyle/renters-paradise-of-affordability-and-choice/story-fnjfzqxz-1226820456630

    • Jim says:

      Mark

      I think you are right. Given the fact there is still a fair bit of contraction in DIDO employment in the region west of Mackay that still hasn’t occurred, I suspect the oversupply of housing in Mackay will be further exacerbated in the next 2 years.

    • Gene Tunny says:

      Thanks Mark. Good point about oversupply in Townsville.

  3. BJ says:

    Jim, you say further contraction in DIDO employment west of Mackay. Can you elaborate

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