Tasmania remains Australiaʼs worst performing state in terms of construction and the outlook for property industry capital growth and should Gunns pulp mill not proceed virtually no growth in overall civil construction activity is slated to occur over the next three years.
Tasmania remains Australiaʼs worst performing state in terms of construction and the outlook for property industry capital growth according to the Property Council-ANZ Property Industry Confidence Survey. And it is the only state in which the property industry expected a severe decline in capital growth and construction activity over the next 12 months.
Conditions in Tasmaniaʼs residential construction industry remain extremely subdued. According to ABS figures, the number of dwelling units approved for construction in the three months to February (not seasonally adjusted) was well down on the same period 12 months earlier.
In 2012, HIA expects ground to be broken on just 2560 new homes – the lowest number since 2003 – and does not expect any significant recovery in homebuilding activity in the near future.
The picture is no brighter for renovations on existing homes.
The immediate outlook for non-residential construction is helped by the redevelopment of Royal Hobart Hospital – the contract for the $31.1 million fitout of a new cancer ward has just been awarded to construction company Fairbrother.
Industry research firm BIS Shrapnel says it expects reasonable growth for Tasmania over coming years however, it depends on assumptions about energy projects such as the Musselroe and Cattle Hill wind farms s and heavy industry projects such as the Gunns Pulp Mill proceeding.
Should Gunns not proceed, BIS says, virtually no growth in overall civil construction activity is slated to occur over the next three years.
