Geraldton building permit applications surge 120 per cent in February

Geraldton is on the cusp of a housing construction boom, with the local council reporting a 120 per cent surge in building permit applications last month. On the back of State and Commonwealth stimulus measures, there are concrete pads and house frames popping up all over Geraldton suburbs in a positive sign for the local economy. But local builders are warning of a downside — with the rise in demand likely leading to a shortage of supplies and trades and increase in costs. Last month, the City of Greater Geraldton received 68 building permit applications — more than double the 31 lodged in February last year. In the six months from September 2020 to February 2021, there were 384 applications — an almost 40 per cent jump on the 276 applications submitted in the same period 12 months prior. The summer months of 2020-21 were much busier than the year before, with a 46 per cent surge in the number of building approvals sought in that three-month period. Geraldton builder Warren Taylor said although the temporary State and Commonwealth subsidies were a “fantastic” initiative, they demanded unrealistic time frames. “Everyone has to have slabs down by June to get both grants,” he said. “The WA Government extended it out until the end of the year, which the Federal Government should have done. “We are going to run out of supplies, we are already running out of good tradesmen, and it is putting pressure on everyone.” Mr Taylor said the price of some steel products had risen 25 per cent in a year, and timber costs were up 10 per cent. Master Builders WA executive director John Gelavis said construction employed 9.4 per cent of Geraldton’s workforce in 2016, but building then fell into the doldrums. “What occurred then is that the HomeBuilder and Builder bonuses have been extremely successful and we have been able to build a pipeline of work for residential building,” Mr Gelavis said. He said the MBA encouraged the WA Government to continue to release construction projects to support commercial construction. “We are promoting a program called Community Build, applying the HomeBuilder concept to the commercial sector, for a not-for-profit or community organisation trying to raise funds, like a hockey club,” he said. “If they can only raise a certain amount, we are saying that group should be able to go to the Government and apply for a grant to build that project for the next four-six years.” Mr Gelavis said the MBA was also pushing for more investment in social housing, not only for new builds, but also renovations. “Geraldton is a strong construction district,” he said. “If they keep the sector working through COVID, which they have done, that money circulates through the local economy. Building workers buy a choc milk on the way to work, a bacon roll for lunch, and a six pack on the way home.”