12 December 2023
Building approvals for new dwellings have continued on a downward trajectory across Queensland, leaving the state well short of the number of homes needed to address booming demand.
The October data from the Australian Bureau of Statistics (ABS) reveals just 34,303 new dwellings have been approved across the state in the preceding 12 months – a decline of over 6 per cent. It means Queensland continues to be well short of the mark of the 48,000 new homes needed each year to meet the state’s share of the national five-year target of 1.2 million dwellings.
There is some positive news. Greater Brisbane, Sunshine Coast, Central Queensland, North and Far North Queensland regions saw detached housing approvals trending upwards over the three months. These regions would be performing strongly if the unit approvals could match this performance.
Master Builders CEO Paul Bidwell said these small glimmers of positivity were not yet enough to shift the three-month trend into the black.
“It remains clear that across the board, the supply of new housing is still headed in the wrong direction,” Mr Bidwell said.
“The soaring cost of living, critically-low rental vacancy rates, and mortgage stress, are being felt by all Queenslanders – and additional pressures are compounding the situation for our building and construction industry.
“The changes to the National Construction Code (NCC) that commenced in Queensland this year, including livable housing provisions, are clearly having an impact. While we of course support inclusive and sustainable housing, we also support affordable housing. The cost to build in Queensland has increased as a result of the new requirements.
“Also in October, we welcomed the state government’s announcement that its First Home Owner Grant (FHOG) for new homes would double from $15,000 to $30,000. This will go some way towards offsetting the increased costs of housing as a result of the recent changes to the NCC. We believe this will help more Queenslanders enter the housing market, which is great news for our residential builders.”
When it comes to non-residential work, it appears the majority is already in the pipeline, with approvals dropping back after a period of record highs. Far North Queensland proved the top performer the last three months with a 169 per cent increase in dollar value terms, with Central Queensland (up 94 per cent) and Greater Brisbane (up 54 per cent) rounding out the top three.
“The housing sector continues to languish, while the government’s capital works program of new hospitals, along with private sector investment in new offices and warehouses, continues to bolster the non-residential sector,” Mr Bidwell said.
“The housing approval figures prove it’s imperative the government cuts red tape and implements measures that will help us get on with the job of building more homes, more affordably, and pull Queensland out of this housing crisis.
“We’ve proven we can do it – we built 50,000 homes in a year in 2015 – and that’s what’s needed right now.”
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