Queensland’s housing sector is performing well, which could have a positive impact on construction and renovation activities across the state.
Real Estate Institute of Queensland (REIQ) statistics from November showed residential property sale figures hit their highest level in 10 years, with south-east suburbs especially popular.
House values in Brisbane have been steadily rising since June 2013. In fact, the Queensland capital has reported quarterly median price increases of 1.7 per cent on average over the last 18 months.
Improvements in the real estate sector could result in more traineeships and apprenticeships in Brisbane for trades such as bricklaying, particularly if recent national building approval figures continue their upward trajectory.
Figures from the Australian Bureau of Statistics (ABS) revealed a seasonally adjusted 7.5 per cent jump in the number of properties given the green light in Australia in November.
Peter Jones, chief economist at Master Builders Australia, said the results were better than expected and showed good momentum going into 2015.
“The 17.2 per cent seasonally adjusted rise for other dwellings (units and apartments) confirms the changing face of dwelling demand as higher density living becomes increasingly accepted,” he explained.
“The results point to a sustained pipeline of work over the next 18 months, which will result in more jobs in the residential building sector.”
Queensland housing market
ABS data revealed there were 3,116 new dwellings given building approval in Queensland in November. This was 2.4 per cent lower than the previous month.
However, REIQ CEO Antonia Mercorella claimed some of the state’s key regions are experiencing very healthy real estate transaction levels.
“In the 12 months to September, median house values rose 6.6 per cent in Brisbane with buyers increasingly confident of steady and sustainable growth going into 2015,” she stated.
“The market fundamentals in south-east Queensland are very strong – we’re seeing quicker selling times, reduced vendor discounting and a higher percentage of profit-making sales.”
Houses and apartments in the Gold and Sunshine coasts are growing in value, which could create opportunities for people seeking apprenticeships in these areas.
Commenting on the national construction sector, Australian Industry Group Chief Economist Julie Toth said house building is one of the few bright spots heading forward.
“New orders look to have stabilised after growing strongly for much of 2014,” she said.
“This stability bodes well for the pipeline of work that will commence in the all-important new housing sector in 2015.”
Housing Industry Association Economist Diwa Hopkins made similar remarks, noting that the construction industry had eased somewhat in the closing months of the year, but residential building had helped offset these losses.