SunshineCoastRegionalReport2ndQtr2004

                                                                                                                                                                      The residential building market
DWELLING INVESTMENT                                                                                                                                                   contracted in the three months to the
                                                                                                                                                                      June Quarter 2004, although in
BUILDING APPROVALS – SUNSHINE COAST                                                                                                                                   annual terms the value of approvals
REGION                                                                                                                                                                increased.




                                             Quarterly Growth in Dwelling Approvals
                                                                 Sunshine Coast Region
                              100.00                                                                                                 300.00
                                              New Houses (LHS)      Total Dw ellings (LHS)        Other Dw elling Units (RHS)
                                                                                                                                               The Sunshine Coast’s residential building market contracted in the three
                               75.00
                                                                                                                                     250.00    months to the June Quarter 2004 with the total number of dwelling
                                                                                                                                     200.00    approvals falling by 20.4%. The reduction was fuelled by a fall in the
 quarterly % change




                               50.00
                                                                                                                                     150.00
                                                                                                                                               number of new houses approved (down 23.0% to 648 approvals) and
                                                                                                                                               other dwelling approvals (such as flats, units and apartments, down 15.8%
                               25.00                                                                                                 100.00
                                                                                                                                               to 401 approvals). Overall, 1,049 residential new residential buildings
                                                                                                                                     50.00
                                0.00                                                                                                           were approved in the June Quarter 2004 on the Sunshine Coast.
                                                                                                                                     0.00
                              -25.00
                                                                                                                                     -50.00

                              -50.00                                                                                                 -100.00
                                         Jun-02         Dec-02             Jun-03                Dec-03                Jun-04




                                                  Annual Growth in Dwelling Approvals
                                                                 Sunshine Coast Region
                              300                                                                                                     600
                                             New Houses (LHS)        Total Dw ellings (LHS)            Other Dw elling Units (RHS)             Building activity on the Sunshine Coast was also lower in annual terms,
                              250                                                                                                     500
                                                                                                                                               where the number of dwelling approvals fell by 16.7% in the twelve
                                                                                                                                               months to the June Quarter 2004.
 annual % change, quarterly




                              200                                                                                                     400


                              150                                                                                                     300


                              100                                                                                                     200


                               50                                                                                                     100


                                   0                                                                                                  0


                              -50                                                                                                   -100
                                Jun-01        Dec-01       Jun-02         Dec-02              Jun-03          Dec-03           Jun-04




                                                    Value of Building Approvals
              $ million
              400
                                                           Sunshine Coast Region                                                               The total value of residential building approvals fell by 3.0% in the June
                                                                  Dwelling     Non-Dwelling
              350
                                                                                                                                               Quarter 2004 to $293 million, although were 23.6% higher than that
                                                                                                                                               recorded in the June Quarter 2003. At the same time, the value of non-
              300
                                                                                                                                               dwelling approvals declined in quarterly terms (down by 42.5%), and also
              250
                                                                                                                                               when compared to the corresponding quarter a year previous (down by
              200                                                                                                                              69.0%).
              150

              100

                              50

                               0
                                   Jun-00              Jun-01                Jun-02                     Jun-03                   Jun-04

Source: ABS 8731.3




                                                                                                                                               Property advisors Herron Todd White report that the Sunshine market for
                                                                                                                                               houses, units and land seems to have peaked in 2003, with the current
                                                                                                                                               market stabilising, and in some fringe locations showing weakness.
                                                                                                                                               Around Caloundra there are approximately 800 units that have been
                                                                                                                                               approved and are currently being marketed or constructed, although only
                                                                                                                                               550 have actually been sold. With a high proportion of these buildings
                                                                                                                                               being situated in secondary locations it is possible that vendors offering
                                                                                                                                               prices may have to be adjusted to reflect more realistic demand.




©0, Sunshine Coast Regional Economy, Second Quarter 2004                                                                                                                                                         - 24 -