Thursday, July 31, 2014

Building approvals: the south fights back?

Building approvals data from the ABS were generally weaker than expected in June although there was a decent bounce for the month in Cairns. Details and trend analysis at Conus: Building approvals slip but the FNQ data holds up

Pete has some commentary there of an improving trend on the Cassowary Coast. Looking at the regional SA2 data the way was led by Cairns-South with 38 approvals including 18 at Edmonton. That is the first time since 2012 that the South has strung together two successive monthly wins over the Aquis-infused North. So it could be that the southern regions in general may be looking stronger and approvals more balanced across the region.


For the now completed financial year that still leaves Cairns LGA languishing in last place for approvals relative to population compared to other large councils. However there have been reports that the significant strata proposal from Singapore's Aspial may not be far away : Approval sought for $200m seven-tower project on Spence St Cairns

I also previously posted on the most recent land valuation for this vacant Spence St site from the Valuer-General: Land valuation weirdnesses revisited. I did send a query to the V-G but didn't receive a reply.

It will be interesting to see how this project is marketed with overseas investors being significant players in capital city apartments. While this has mostly been from China there has also been growing interest from Singapore following restrictions there to cool the property market: Singaporean investors hungry for a piece of the Australian housing market; Singapore's central bank warns residents against investing in overseas property markets; Singapore house prices are now falling


Note: despite the comment by the Cairns Post that Aspial is a "major builder around Australia" as far as I am aware they haven't yet built anything here, but have acquired some high profile sites in the past year. The acquisition of the Melbourne residential tower project has been suggested by some pundits as brave given the project had been on the drawing boards a while in the well supplied Melbourne market.

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