7 minute read
St George Economic Update
Marching to the Beat of its Own Drum
Canberra marches to the beat of its own drum and the Canberra housing market is no exception. The residential housing market in the nation’s capital is displaying greater resilience than the national housing market. Dwelling prices expanded by 0.6% in Canberra in April and by 2.6% in the year to April, according to CoreLogic data. The combined performance of the eight capital cities across Australia was much weaker; prices in the combined capital cities contracted 0.3% in April and fell by 0.3% in the twelve months to April.
The resilience of the Canberra housing market can be explained by a number of key economic factors. A buoyant jobs market, strong population gains and a robust economy are helping to support demand for housing. The jobless rate remains one of the lowest of all the jurisdictions, business and household spending is solid, regional and international flights have been expanded, helping to boost tourism to reach record highs and enhance international trade. Infrastructure investment and capital initiatives have, and will, continue to contribute positively to the economy and stimulate business.
Canberra’s rental market is also in better shape than most other capital cities around Australia. Gross rental yields in Canberra stood at 4.3% for houses and 5.6% for units in April, which are among the highest of the capital cities in Australia.
The Canberra housing market might be more resilient, but it is not immune to the slowdown in the housing cycle that the rest of Australia is experiencing. The housing market in Canberra has passed its peaks in terms of both approvals to build dwellings and price growth.
Besa Deda
It is a right that benefits both parties as it recognises that in a modern Australia, each workplace is different.
New building approvals reached record highs in September 2016, largely supported by mid-to high-density dwelling starts. Apartments represented almost 80% of construction approvals – a step up from the 67% average over the past decade.
Dwelling price growth peaked at an annual rate of 8.8% in Canberra in April and May 2017. Canberra dwelling prices have continued to rise (albeit it at a slower pace) and annual dwelling price growth remains in positive territory, unlike some of the other capital cities. The slowdown in housing has been spurred by the widening of macro-prudential measures by APRA last year and the combination of weak wages growth and high household debt. Furthermore, considerable supply of housing stock, especially apartments, means the demandsupply fundamentals have shifted.
The slowing in Canberra’s housing cycle has further to run, but the softening will be moderated by the positive fundamentals underlining the Canberra economy.
Besa Deda, Chief Economist St.George Bank
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Welcome to the team Ashlee Berry
An important landmark was reached last month when The Master Builders Association of the ACT appointed its first Director of Legal and Compliance.
Reflecting the MBA’s continuing emphasis on compliance and corporate governance this new position is testament to our organisation’s commitment. Ashlee Berry is a most welcomed addition to the team and joins us via Backhouse Legal.
Her impressive skills were developed while practicing in country New South Wales as well as here in Canberra.
Ashlee led the litigation team at Backhouse legal so is well equipped for her new role.
With a discerning interest in insolvency law, commercial litigation and debt recovery, Ashlee also has a keen awareness of the building industry. Her combination of skills and interests gives her a unique perspective on matters pertaining to the bulk of our membership, small and medium enterprises.
We all join in wishing Ashlee a warm welcome to MBA.
MEMBER PROFILE
Delnas
Established by licensed plumber Daryl Leishman, Delnas Metal Roofing has had a highly productive journey. From humble beginnings as a sole trader in 1993 Daryl has led the team to become part of a highly respected, award winning company.
While residential projects were the primary focus in the early days, gradually more and more commercial opportunities presented themselves. The trend has reversed and now approximately 95% of Delnas client base is commercial. However the residential component will always remain an important part of the company.
Working with visionary designs and using a broad range of innovative products has made the balance between commercial and residential projects exciting and diverse. And with an absolute focus on customer service Delnas’ growth has been steady and strong. While it’s easy to say a company offers excellent customer service and quality workmanship, Delnas made a conscious decision from the outset to live by self imposed high standards. “We have pride in our work ethic, our brand and extremely high quality workmanship. Our clients deserve only the very best quality and service because they’re the reason we open for business every day,” said Managing Director Daryl Leishman
Daryl and Nicole Leishman quickly learned that exceptional customer service was, and is, the most effective marketing tool. “When we deliver above the expectations of our clients’ our company is rewarded, so why wouldn’t we focus on it.” Added Daryl.
Delnas is proud of the accolades they have received.
Subcontractor of the Year – Winner Twice
Best Use of Material – Winner on Multiple Occasions
Technical Difficulty – Winner on Multiple Occasions Highly developed skills and working knowledge has seen Delnas become the contractor of choice for many builders. Not only are they proficient at the installation of all metal roofing products and facade profiles, they consistently invest in new machinery and technology in order to meet the technical and diverse nature of client requirements. This also enables them to maintain their position at the forefront of the industry.
Delnas’ impressive range of equipment includes:
An 8.2m folding machine enabling the fabrication of flashings and sheet metal products
Specialist machinery and skills required to manufacture steel structures
Canberra’s largest Press Brake (6.2m), enabling endless possibilities in metal fabrication
Access equipment such as telehandlers, various sized boom lifts and rough terrain and electric sizzor lifts A 4.8m CNC machine capable of cutting products such as composite panels and sunshades of any shape or size
Daryl and Nicole lead by example and are really proud of the work ethic of their employees. “We’ve always fostered a philosophy of building and maintaining a strong, reliable and cooperative team environment. And by letting them know how valuable they are to the business simply means they consistently strive to provide excellent work, so it’s not rocket science.” Nicole Leishman said
“We are also happy to offer advice for anyone thinking of entering the industry. We say give it a go. Yes, you’ll get your hands dirty but the possibilities are endless. You can literally ‘build a city’, Daryl concluded.
