Dwelling approvals fall flat with industry ahead of Federal Budget

14 May 2024

Queensland’s building and construction industry is calling on all levels of government to double down on removing barriers to increased housing supply, ahead of tonight’s Federal Budget.

The March figures from the Australian Bureau of Statistics (ABS) confirm approvals of new homes continue to flatline, with a 1.0 per cent decline in the first three months of 2024.

It comes as Premier Steven Miles has stated that Queensland’s booming population will leave the industry struggling to build the number of homes needed to keep pace with demand.

The ABS figures reveal a small decline in approvals for detached houses, which is being offset by the small increase in units over the three-month trend.

The exceptions include the Gold Coast, which has seen approvals double over the past three months. The upward trend for this region is shared across both detached houses (+19.7 per cent) and units (+126.7 per cent).

Both Mackay & Whitsunday (+18.1 per cent) and Central Queensland (+10.9 per cent) were also strong performers.

Master Builders General Manager – Policy & Advocacy, Dyan Johnson, said the figures also show the state remains no closer to its target of 49,000 new builds each year – its share of the five-year National Housing Accord.

“At -15.3 per cent, we are still well down on where we were 12 months ago,” Ms Johnson said.

“At the same time work on non-residential buildings continues to proceed at a pace (+55.1 per cent over the three-month trend), with approvals for factories leading the charge.

Number of new dwellings percentage change QLD December 2023

“There are some small positives out of these latest figures, but the bigger picture remains the same – we are in the middle of a housing crisis, and the number of new dwellings being approved is flatlining.

“Earlier this month, the state government introduced legislation to Parliament supporting the federal Help to Buy program, aimed at helping 8,000 Queenslanders to purchase their own home, if it passes the Senate.

“The Albanese Government is also reportedly set to announce around $11.3 billion for housing in tonight’s Federal Budget, to help reach its National Housing Accord target of 1.2 million homes across Australia by 2030.

“This is all welcome news – but in the meantime, there are levers the Queensland Government can pull now to help our industry get on with the job of building the homes our communities need, sooner, and more affordably.

“This includes rolling back of red tape, like the unwarranted changes to the National Construction Code. Inclusivity and accessibility are important for all, but these changes to accessible housing and most recently, energy efficiency, are adding to building costs without a clear benefit.

“Our industry is continuing to suffer from a shortage of skilled labour – we just don’t have enough  people to get the work done.

“It’s great to see 20,000 new fee-free TAFE places will be funded nationally as part of the Federal Budget, but it remains to be seen what this will deliver for apprentices and industry as a whole here in Queensland.

“We also need Best Practice Industry Conditions (BPICs) applied in a way that is flexible, boosting productivity on construction sites, without cutting corners when it comes to worker safety or build quality.

“Our research shows that housing is among the top three concerns for Queenslanders right now – and we need government to back us to deliver for the good of everyone in our state.”

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