The dramatic slowdown in the overall economy and low levels of confidence generally has seen new industrial development on the Sunshine Coast slow considerably, according to international construction and development consultants Davis Langdon.

The company’s Industrial Index, which measures the movement in construction prices associated with industrial projects across Australia, shows that much of last year’s speculative industrial product on the Sunshine Coast is still on the market.

Davis Langdon’s national research manager Rachel Kelloway said there was also a cloud over the future direction of industrial development on the Sunshine Coast.

“The Sunshine Coast Regional Council’s decision to refuse approval of a proposed concrete batching plant at Kunda Park, which is zoned Industrial, has raised concerns that there are divisions within the recently amalgamated council that could adversely impact future development,” she said.

Ms Kelloway said recent declines in the price of steel and reinforcement, which generally make up a good proportion of industrial buildings, along with a slow down in new industrial starts has seen a contraction in prices over the past three months.

“We expect a flattening of tender prices over the next six months, as builders reduce margins in an attempt to win work,” said Ms Kelloway.

The Davis Langdon Industrial Index also painted a grim picture for the sector in Brisbane which has recorded continuing prices decreases in the past three months.

For further information, contact Meaghan Jones on +61 3 9933 8800 or email mjones2@davislangdon.com.au