Construction activity is set to boom across the state, with insurance policy data released by the Queensland Building and Construction Commission (QBCC) increasing by 27 per cent in two years.
Minister for Housing and Public Works, Tim Mander, said the data showed the Government was delivering on its election promise to grow construction as one of the four pillars of the economy.
“5,544 insurance premium policies were written in January 2014, compared to 4,946 in January 2013 and 4,349 in January 2012,” Mr Mander said.
“That’s a 12 per cent increase on 2013 and a 27 per cent increase over 2012, and shows dwelling construction is heading in the right direction.”
The QBCC Act requires building contractors to pay an insurance premium for residential construction work when they enter into a contract with a consumer and an increase in numbers is usually a precursor to a boost in dwelling constructions.
The premium covers home owners under the Queensland Home Warranty Scheme, against instances of defective or incomplete work and subsidence issues, for up to six and a half years.
Mr Mander said the numbers supported Australian Bureau of Statistics data showing trend dwelling approvals had grown by 2.6 per cent in January.
“The Queensland Government is delivering on its promise to supercharge the construction sector after it was allowed to stagnate under Labor,” he said.
“Our pro-growth policies are in stark contrast to Labor’s $80 billion debt legacy and anti-growth policies.”
Housing Industry Association Executive Director Warwick Temby said the Queensland Government had played an important role in restoring confidence among the home buying public.
“The return of the stamp duty concession for owner occupiers, the removal of expensive requirements for rainwater tanks and high-end hot water systems, plus the introduction of a $15,000 grant for first home buyers have made a huge difference to people looking to get into their first home,” Mr Temby said.
“The Government’s planned reforms to the planning system and infrastructure charging have also given investors confidence to put their money into the Queensland market.”