While Queensland (and the rest of Australia) is a bit behind New South Wales right now in terms of population growth, retail trade and commercial development, it’s still showing signs of reasonable growth in housing development.
Although it’s not to the same extent as in New South Wales, Queensland is still in the middle of a housing deficit—and proportionally large numbers of high-density dwellings are popping up, even in traditionally low-density, high socioeconomic status outer suburbs. And while it’s uncertain whether the current pace of growth for units and apartments will continue much longer, many reputable sources,including the Housing Industry Association, predict steady growth in detached housing builds and renovations moving into the new year.
This is good news for Queenslanders. While the demand for earthmoving services in the south is increasingly competitive, Queenslanders are reaping the benefits of maintaining a comfortable dollar value for their labour and construction work—and we’re not shying away from our residential development projects.
Rising dollar value
Construction is booming in New South Wales, with workers flooding in from interstate to grab a piece of the pie. The downside of this is that getting work is a competition—which has caused a big drop in the pay that contractors and suppliers are willing to accept to win the job. It’s also an example of how civil construction is moving towards national outsourcing. With the big projects on offer—like the Pacific Highway and M4 upgrades—contractors are scrambling to win work.
This has been good a real benefit to Queensland’s residential construction sector: with low competition for the contractors who are staying away from the big commercial projects, dollar values are rising. Strong growth has been predicted for the next few years until interest rates start hardening up (they’re predicted to rise by half a percent by 2018)—and the detached housing sector is predicted to move out of its slump and increase in value by about $7 billion.
Increased demand in Queensland
Brisbane’s house prices are predicted to grow steadily over the next three years—and it’s also predicted to be the only capital city that won’t suffer a fall.
Apartments in Brisbane are still delivering comfortable rental returns, but like the rest of the country, they’re moving to oversupply. This means that commercial and high-density housing earthmoving projects will be slow for a while, but there’s plenty of cash waiting to be had in detached housing—and it’s extending as far as the golden triangle of the Gold and Sunshine Coasts, and Cairns, where big price dips have been followed up with slow construction to contribute to an increasingly urgent housing shortage.
But make sure you’re getting in now: the growth won’t last long, as housing demand and supply will start to balance pretty quickly in the next few years.
There hasn’t been much in the way of employment or investment in earthmoving equipment in Queensland recently, due to the flat residential and commercial construction sectors, and the fact that so many earthmovers have moved into New South Wales to grab their slice of the boom.
This is surprisingly positive for Queensland earthmovers—there’s not much competition around, and there’s plenty of residential work coming—but there’s no solid consensus on how long it will last. The availability of work in the short term is looking promising, but there’s still uncertainty as to whether investing in equipment is worthwhile for contractors, who could end up on another growth plateau in a few years.
Luckily, if you’re an earthmoving or construction contractor looking for residential jobs in Queensland, there’s no need to invest in equipment anyway. You can still reap the benefits of steady growth in the sector over the next few years without outlaying for equipment that you’ll still be paying for when the work drops off—just contact Emjay Plant Hire, and we’ll give you everything you need to get your jobs done, the fast, safe and affordable way.