In spite of the fact that the national withdrawal in housing activity all over the southern states of Australia, Northern Queensland is standing strong with a local booming economy.

There was an almost 4.3 percent drop nationwide in the housing activity. Even Queensland was affected by the drop but the State average has greatly improved due to a positive growth in the Northern part of the state. There is almost a thirty four percent increase in the housing approvals that was given the Northern region in the last financial year. This amounts to almost $340 million worth of housings approval. This figure was released by The Master Builders Association.

A growth rate of one percent in the detached housing sector has been seen in places like Cairns, Townsville and Mackay. This kind of a growth in the North’s housing sector is being seen despite a shortage of skills in the construction sector, interest rate hike twice, steep price rise of real estate, and the and the inflationary strain on fuel and products.

These factors are a major pressure on the housing industry in the other states of the country with many of the states not able to sustain the pressure. In New South Wales the decline in the housing activity is almost 14.5 percent. Darren Barlow, the director of housing for Masters Builders Queensland believes that this kind of growth can continue for a longer time.

 This kind of boom has been attributed by the fact that this region there is an increase in the number of defence personnel in the city. This has resulted in the rise in the increase in demand for housing.

Tourism is another reason for the increase in demand for housing. This part of the country has seen a great increase in recent months in terms of tourism. There is also a rise for old commodities. This too is a factor for the rise. There is also a population boom in the region by almost three percent. The development of recourses with five billion dollar mineral and energy projects assigned for in the region. A multi-billion dollar pipeline project considered for Cape York and Papua New Guinea will be very beneficial for Cairns. The mining sector is poised for growth in the region.  These development in the Northern region will give rise a population boom and it invariably lead to a push in the demand for housings and rentals.

Mr. John Futer, HIA’s Executive Director for North Queensland feels that the growth could have been much more. Had they been more skilled workers, they could have met the rising demand for detached housings.

 In 2005 and 2006 almost five thousand four hundred new houses were permitted for construction in Townsville, Cairns and Mackay but there is a need for almost six thousand seven hundred and fifty houses. If they were enough skilled workers then this short fall could be met. The northern part of Queensland now seems to the healthiest sector of the state.