By Kate Bastable
Thorne Builders owner Peter Thorne, front, and Josh Compton, of Render Rite Plasterers, are gearing up
for a busy time with predictions Mackay will need another 28,706 dwellings by 2031.
Tony Martin
Builders are sharpening their tools and gearing up for a busy few decades, with news Mackay needs 70 per cent more dwellings by 2031.
Mackay already has a shortage of more than 1000 houses and it’s expected to need another 28,706 by 2031, industry experts say.
However, builders will have to battle the impact of interest rate rises, tough lending criteria, skills shortages and housing affordability issues to keep up with demand, according to Housing Industry of Australia executive director John Futer.
“We already have a shortage of over 1000 homes in Mackay,” Mr Futer said.
“In the last year we’ve had 2.7 per cent growth and the projections are that’s going to increase.
“This will put a strain on (housing) supply.”
Mackay’s population could reach up to 189,497 by 2031, according to Queensland Treasury forecasts.
The number of dwellings was expected to rise by about 70 per cent to 28,706 by then, Master Builders Queensland executive director Graham Cuthbert said.
Master Builders regional manager Malcolm Hull said the prediction was good news for Mackay’s building and construction industry.
“We’re going to have to supply all this extra housing,” Mr Hull said.
“Everyone needs to ensure they are geared up for potential extra population growth in the Mackay region.”
Mr Hull said 996 houses were built in Mackay last financial year and 777 were built between July 2009 and February 2010. However, an average 1367 dwellings a year could be needed to keep up with demand.
Mr Hull said this could lead to a lot more work for Mackay builders and tradespeople.
However, difficulty faced by those trying to obtain finance for new homes could prevent builders meeting demand for housing, he said.
“The tightening of lending will make construction numbers hard to meet.
“We would like the banks to be able to make borrowing money a much easier process.”
Thorne Builders owner Peter Thorne said tighter lending restrictions had already impacted upon Mackay’s building industry.
“For us bigger builders, we’ve still got all the same staff and at the current time we’re only running at 70 or 80 per cent (of our capacity). I think once the banks loosen their lending it will just go,” he said.
Mr Thorne said the housing demand could attract an influx of southern builders and tradespeople.
“Mackay seems to be one of the places (where the building industry keeps) going all year round.
“When other places are quiet, we’re busy. You’ve only got to put in an ad here now for tradies and you’ll get them, but they all need places to live in now.”
A Master Builders survey shows 55 per cent of its Mackay members expect the area’s housing affordability to worsen. About 35 per cent believe it will stay the same and just 10 per cent expect it to improve.
Taken from The Daily Mercury 19 April 2010