Will election result usher in new investor confidence?
A TOTAL lack of investor confidence in the months prior to the federal election is responsible for a decline in dwelling approvals in March, according to figures within the Queensland building industry.
After a boom at the start of the year, the sharp decline has been put down to a lack of confidence leading into the election and to a lack of activity in regional projects, according to Central Queensland's Master Builders regional manager, Dennis Bryant.
With only 21 dwelling approvals in March, which is down from 30 in February, Mr Bryant said potential changes to negative gearing may have kept people from purchasing investment properties.
"I put it down to a total lack of confidence in what was going to happen with the election," he said.
"I think people were very reluctant to make any investment commitments when they were looking at possible change to negative gearing and capital gains tax, both of which have been removed by the election of the LNP."
Hopeful that the end of the election will signal a return in investor confidence, Mr Bryant said the next three months could see a spike in the approval numbers.
"I think we will see an increase in confidence for investors.
"I'm hoping that with proposed changes to the First Home Owners Loan Deposit Scheme we will see a bounce, but until that is introduced I think they will hang off, so I hope it happens quickly," he said.
"I do think investors will have a much more positive attitude to building, and demand should go up in the next three months.
"We are at pretty low levels at the moment.
"And the building approvals overall were pretty terrible from a national and statewide point of view for the year," he said.