This article is from the Australian Property Journal archive
WHILE Queensland saw strong migration rates across 2021-2022, construction is failing to keep up with housing demand.
According to Master Builders Queensland, while the 2021-2022 migration resulted in 40,000 new households seeking a home in the Sunshine State, just 34,775 new homes were built.
While Queensland topped CommSec’s latest State of the States report, recording above average growth across five of the eight economic indicators, it fell behind in the three indicators related to housing: construction work, housing finance and dwelling starts.
“Finding our way through the housing crisis is going to be extremely challenging – it will take a concerted effort from government to tackle blockages in housing supply. But in the end, it’s a no brainer: we must address the cost and complexity of building a new home,” said Paul Bidwell, CEO at Master Builders.
“We’ve proposed agenda items for the government’s next Housing Roundtable that outlines how the government must look at its own regulation as a starting point. The reality is, they are presently leaving builders to work with one arm tied behind their back.
Recent building approval data for November 2022, dwelling approvals across the state dropped by the 14.3% for the quarter, with approvals for houses down 8.3% and units down 24.3%.
At the same time, construction costs are still on the up with the cost to build a home in Queensland up 18% over the last 12 months and 42% over the last three years, according to the ABS.
“We’re fighting for a delay to the National Construction Code changes, no further roll out of project trust accounts, simplifying the Minimum Financial Requirements (MFRs), streamlining of licensing approvals and a state-wide Housing Code,” added Bidwell.
“New regulation is adding more and more cost to building Queensland homes without an equal benefit justifying the cost imposed.”
Bidwell did note that while declines are widespread across the state, Brisbane’s unit approvals have seen an increase, likewise with Wide Bay’s house approvals.
“If the government is committed to fixing the housing crisis, they must also commit to doing what they can to drive down the cost of new housing,” Bidwell.
