Supply reduction is good news
Queensland's construction industry continues to improve according to the latest CoreLogic Cordell Construction Monthly report released last week.
While the national figures revealed those projects entering construction had slipped 11 per cent month-on-month in July, Queensland was bucking that trend and showed an increase.
CoreLogic executive research director Asia Pacific Tim lawless said Queensland was responsible for 167 of the 897 projects entering construction nationally.
"One hundred and sixty seven projects moved into the construction phase over the month, which is 18 per cent of the national total," Mr Lawless said.
"(That is) up 17 per cent month-on-month and 5 per cent higher year-on-year.
"Focusing on the apartments sector, there were 33 new projects entering construction, which comprised 22 per cent of the national total."
For projects entering the pipeline, the country was sitting above the five year average, yet Mr lawless said in Queensland, while quarter-on-quarter projects were up 6 per cent, they were down 11 per cent year-on-year.
"The number of new projects entering the pipeline across Queensland surged higher over the month, with 293 projects announced - the largest number since October 2017" Mr Lawless said.
He said the reduction of the new apartment projects was a positive outcome considering how weak Brisbane's market was after such as sharp increase in supply.
"The apartment construction cycle peaked in 2015 after a substantial ramp up in supply across Brisbane," he said.
"The reduction in new supply should support a gradual improvement across Brisbane's apartment market, in fact Brisbane unit values have moved back into positive annual growth over the past few months."
Nationally, new pipeline projects for apartments and units were leading the way, at 29 per cent, with civil engineering projects closely following with 25 per cent.
Mr Lawless said in Queensland, civil engineering projects were at the top of the list with 28 per cent, closely followed by apartment projects at 21 per cent.