Welcome to the Building Industry Bulletin

The quarterly building industry bulletin aims to provide updates on the latest trends within the Queensland building industry as relevant to the activities of the Department of Public Works.
NIEIR Queensland regional construction activity update

According to the latest report from the National Institute of Economic and Industry Research (NIEIR), the immediate short term outlook is one of continued strength in Queensland construction activity. The NIEIR projections have been revised upwards since the last Bulletin largely due to the now mild nature of the dwelling cycle downturn and small increases to forecasts for the non-residential building and engineering construction sectors.

NIEIR estimates that total Queensland construction activity will reach an all-time peak in September quarter 2005 at $6.8B. Although NIEIR anticipate total construction activity will decrease marginally in December quarter 2005 they have forecast continued growth until June quarter 2007 when activity is projected to reach $6.9B. The level of non-residential building activity according to NIEIR is projected to increase steadily over the short term increasing by 13.0% between June quarter 2005 and June quarter 2006 and 17.0% over the next 12 months to June quarter 2007. Skilled labour shortages according to NIEIR, are only slowly easing with the September quarter 2005 figure of 24,800 just 4,000 less than the estimated labour shortages in the June quarter 2005.
[ View quarterly report ] [View NIEIR Annual Report 2005]
DPW Contractor Survey

Difficulties in employing subcontractors may have eased slightly during September with 60% of contractors reporting shortages compared to 64% in the April 2005 Survey. The most acute shortages are still being reported in the Fitzroy and Mackay regions with three quarters or more of these respondents experiencing difficulties. Two thirds of respondents in the Far North region also reported subcontractor shortages. Consistent with the April and February 2005 survey results, PQC Level 2 and 3 respondents were experiencing the most severe trade shortage problems whilst PQC Level 1 and 4 contractors interviewed were not experiencing any difficulties. Compared with the April 2005 survey there has been an increase in the proportion of respondents reporting difficulties employing subcontractors in the areas of concreting, joinery, painting, steel fixing and mechanical services. Whilst shortages in the areas of wall and floor tilers and formworking have remained approximately the same, reported shortages in the bricklaying, plumbing, plastering and electrical trades have declined.
[ View the full report ]
PQC Tender Activity

Although the total value of projects that went to tender in September quarter 2005 decreased by 64% from June quarter 2005, the average number of tenderers remained the same, at 3.1 per project, indicating the pressure to attract tenderers had remained unchanged during this period.
[ View the table ] Tender Price Forecast

The Department of Public Works has forecast a 1-2% increase in building costs per quarter in the period to June 2007.
[ View the table ]

Building Materials Cost Comparison

The cost of all Queensland building materials monitored by DPW have increased for the first time since the Department began reporting this data in June quarter 2004. The most significant cost rises were in 200mm standard concrete blocks and face bricks which increased by 12.7% and 10.4% respectively. Further cost increases in aluminium windows – sliding (5.0%), 25mpa concrete (1.5%) and float glass tinted – 4mm thick (0.2%) also occurred in the September quarter. According to Reed Construction Data the largest increases in material costs during the last 12 months have been in 200mm standard concrete blocks (12.7%), face bricks – settler range (10.4% and 25mpa concrete (7.3%).
[ View the full table ]