20 July 2023
Latest dwelling commencement data from the Australian Bureau of Statistics shows the supply of new homes is falling, with just 35,000 dwellings commenced in Queensland in the 12 months to March 2023.
Representing a drop of 22.8 per cent on the previous year, and with an average of close to 40,000 dwellings commenced annually over the past 10 years, the numbers fall short of where Queensland needs to be to address the growing housing crisis, particularly given Queensland’s strong population grown, which saw the population swell by 116,000 during 2022.
Master Builders CEO Paul Bidwell said the latest dwelling approvals data also confirms the fall, down by 7.4 per cent in the 12 months to May 2023 with 35,726 dwellings approved.
“We’re definitely not seeing the numbers move in the right direction and that’s a big concern right now,” Mr Bidwell said.
“There are signs that pressure is easing on construction costs nationally, but that’s definitely not so in Queensland.
“In fact, the Queensland Government is hell-bent on introducing new regulations that will see costs go up from 1 October 2023.
“Our conservative estimates based on industry feedback is that costs to implement the National Construction Code (NCC) 2022 livable housing and energy efficiency provisions will increase the cost of new homes to the tune of around $20,000-$30,000 in Queensland.
“However, the costs will certainly vary depending on factors like the type of construction, the climate zone, topography and lot size.
“We were disappointed by last week’s announcement by Minister de Brenni that implied there would be more extensive delays to commencement of the National Construction Code’s (NCC) livable housing and energy efficiency provisions and promises of an exemption for traditional ‘Queenslanders’.
“We had asked the government to delay the provisions until at least May 2024, along with a raft of practical solutions.”
As part of its 2023 Queensland Budget submission, Master Builders called for a rebate scheme to fund energy efficiency measures for new and existing homes – similar to the government’s successful Household Resilience Program.
“Given the government’s position that the cost of implementing the new provisions will be up to two per cent of the construction cost, we’re renewing our calls for a rebate scheme for homeowners to fund both the energy efficiency and livable housing provisions.
“There are numerous ways the scheme might work, for example, the scheme might fund any independently verified costs to achieve compliance exceeding two per cent of the total construction cost, or provide an exemption from having to comply with the requirements where the costs exceed two per cent of the contract price.
“The NCC changes are going to be a substantial disruption to the industry and combined with ongoing tight labour market conditions, the ask of the industry to build more homes and quickly to deal with the housing crisis is a tall order.”
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