[Queensland'sconstructionindustrymaynotbeabletomanagetheimpactoftheCOVID-19epidemiconitshousingmarketandonthehousingmarket39;economyaccordingtoexperts
A report from the Real Estate Institute of Queensland (REIQ) indicates that total housing approvals in the state fell 1.8% in March.
"A culprit could be the planned stoppage of immigration, but that does not explain why Australia as a whole has increased again during this same period" , said the REIQ.
As Australia begins to recover from last year's drop in approvals, Queensland failed to keep up. On an annual basis, housing approvals in Australia increased by 1% – Queensland, on the other hand, experienced a decrease of 7.8%.
Paul Bidwell, deputy general manager of Master Builders, said in the report that the state's residential sector did not have the solid foundation necessary to cope with the potential risks of the epidemic of COVID-19.
“The total of 12 months of housing in Australia is not far from the post-GFC low point – and that without the impact of COVID-19, which we don't really expect to start reaching before August or September 2020, "he said.
Bidwell explained that projections of high unemployment and slower population growth could cause housing construction to drop 26% this year and 31% next year.
"This will bring us back to a level never seen in 35 years that current records have been collected," he said.
Mike Roberts, Queensland executive director at the Housing Industry Association (HIA), said the government should put stimulus measures in place to boost the building industry in the state.
"The long delays associated with building a house mean that stimulus packages are needed now to lessen the impact later in the year. We cannot wait for the "The industry stops before a stimulus package is introduced; it would be a disaster," he said in the report.
Roberts said economic stimulus is crucial to the safety of the residential construction industry, which employs more than 200,000 people.
“The trades that do concreting, masonry, carpenters, electricians, plasterers, plumbers and painters will all be unemployed. The ramifications for the Queensland economy will be generalized if action is not taken as soon as possible, "he said.
The state government recently announced a $ 400 million stimulus package to stimulate the local economy and create jobs.
Prime Minister Annastacia Palaszczuk said the stimulus would lead to new projects adding to the transportation network and road improvements of $ 23 billion, 21,500 government jobs.
"Nothing has been set aside in our response to this crisis. We have talked to companies to create a package that will see more than 430 jobs enter the fold at a time when this has never been more important, "she said. "Our laser goal is to manage the impacts of the COVID-19 pandemic, and it is investing in the infrastructure and jobs that are essential to tackling these economic impacts head on."
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