Development applications lodged with Maitland City Council stayed stable from 302 in 2006-07 to 301 in 2007-08, despite seven interest rate hikes in two years and the highly publicised bankruptcies of Beechwood Homes, Excellence Developments and County Prestige.

Building approvals figures issued yesterday showed the Hunter not only dominated the State’s building industry, but defied State-wide and nation-wide trends where building was in decline.

Housing Industry of Australia (HIA) Hunter Region executive director Steve Jeffries said the region was buoyant in the face of economic factors and the collapse of several leading builders.

“When the public see that (the business collapses), they do tend to lose a bit of confidence,” he said.

“But it has to be kept in perspective: the industry is not falling down around our ears.

“There is enormous confidence in the Hunter Region.

“When you look at the number of licenced builders and companies across NSW, the impact is minimal.

“I understand how it affects people and suppliers, but the industry is still strong.”

Maitland-based builders McDonald Jones Homes, one of the five largest home builders in NSW, still had high demand despite a national slowing in the new home market.

Director Andrew Helmers said company growth was in line with an influx of people to the region.

“Our company is optimistic about the future and we certainly have as many new homes under construction right now as we have had over the past few years,” he said.

“While we are building in all the local government areas in the Hunter, our major markets are in the Port Stephens, Maitland, Cessnock and Muswellbrook.

“And those areas offer high quality lifestyle, education and jobs, and land that is affordable.”

But Mr Helmers said a slowdown in the market was a possibility for the Hunter.

The HIA’s New Home Sales Report for May, issued this week, showed a five per cent fall in the sale of houses and units among Australia’s largest builders and developers.