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Housing approval figures slump in Qld

Posted December 5, 2008 09:18:00

Official figures show approvals in Queensland fell nearly 26 per cent in October (AFP: Greg Wood, file photo)

• Map: Brisbane 4000

The Housing Industry Association (HIA) is confident the building industry will pick up, despite Queensland recording the worst drop in building approvals in the country.

Official figures show approvals in Queensland fell nearly 26 per cent in October, compared to the national figure of 5.4 per cent.

HIA spokesman Warwick Temby says the first home buyers' grant and rate cuts will eventually boost confidence.

"We're pretty optimistic that the combination of the tripling of the first home owner's grant for people building a new house, the State Government exempting stamp duty for first home buyers, buying up to half-a-million-dollar homes and the falls in interest rates, will all make it a pretty good environment for people to get over their lack of confidence and sign a contract and build a home," he said.

He says population growth is still very strong in Queensland.

"The flow of people from southern states has slowed a little bit, but there's still very strong overseas migration directly into Queensland," he said.

"We need to build about 45,000 houses a year, just to house our growing population and we haven't been doing that for a little while.

"So there's quite an under-supply out there at the moment that needs to be fixed."

Mr Temby hopes the new government measures will help.

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