25 July 2024
Approvals for detached homes are on the up – but a stronger focus is needed on getting more multi-unit projects underway if we are to move Queensland closer to reaching the needed housing targets.
The latest statistics from the Australian Bureau of Statistics (ABS) reveal regional Queensland led the way on new dwelling approvals in the three months to May.
North Queensland was the top performer with an 80 per cent jump, followed by the Far North with +55 per cent, and Central Queensland rounding out the top three at +40 per cent. Downs & Western (+38 per cent) and Wide Bay Burnett (+32 per cent) were also in the black. While Mackay & Whitsunday slid into the red with an overall negative result of -3 per cent, this needs to be considered in the context of strong recent approvals.
In the South East, detached house approvals were strong on the Gold Coast at +19 per cent over the three months. In contrast, approvals for unit developments continued a steep downward trajectory at -62 per cent.
The story was similar on the Sunshine Coast where unit approvals were down (-38 per cent over 3 months) and detached houses were up (+16 per cent over three months).
Greater Brisbane was unusual in that there were strong results on both fronts, with both units and detached houses up +73 per cent and +16 per cent respectively over the three months.
“The weak result statewide for units is concerning, as it is only through a large increase in the delivery of units that we can have any hope of achieving the scale needed to meet the ambitious and necessary housing targets,” Master Builders General Manager – Policy & Advocacy, Dyan Johnson, said.
“While the one-month result is positive the trend is still negative, and we are still well down on where we need to be.
“This is evident in the 12-month total which now sits at 32,873 dwellings and is 9.6 per cent down on where it was a year ago. That’s not where we need to be as we arrive at the starting line for the federal government’s target of 1.2 million homes over the next five years – or 49,000 dwellings per year in Queensland under the National Housing Accord.
“There are some positive steps being taken. Yesterday’s release of the Queensland Government’s Infrastructure Productivity and Workforce Roadmap is something we have long anticipated after contributing significantly to its development.
“We have called for greater incorporation of and support for our industry in adapting modern methods of construction (MMC) and welcome the target of at least 50 per cent of government projects using MMC by 2030.
“To this end, we support the cross-agency pilot at the Cairns QBuild Rapid Accommodation and Apprenticeship Centre, growing regional market capability and delivery.
“Also as part of the Roadmap, we look forward to continuing to work through the Building Products Coalition to develop a digitised traceability framework for building products, and continuing to attract and retain new talent to our industry through our regional Industry Champions Program.
“However, as our Home Truths state election campaign reinforces, there are additional levers the state government can pull right now to further boost productivity in the short term.
“This includes implementing their own Best Practice Industry Conditions in a more flexible way, ensuring the major projects and high-rise unit developments we need can be delivered sooner and more affordably. Of course, worker safety and build quality must stay at the top of the agenda.
“It’s also crucial to reconsider the changes made to the National Construction Code 2022, particularly the new requirements for accessibility and energy efficiency.
“While the values of inclusivity and sustainability are important for our communities, the requirements as implemented are escalating the cost to build without a clear benefit.
“There is no time to spare. We need government to get on with clearing the unwarranted red tape to allow our industry to get on with delivering more housing.”
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