9 June 2023
QUEENSLAND'S total dwelling approvals continue to fall, dropping a further 23 per cent over April, including a drop of 4 per cent for detached houses and 49 percent for unit approvals.
The latest drop means that dwelling approvals have now fallen 6 per cent over the year, equating to 2,000 fewer homes being built.
While all regions are in the red, the fall is largest in the southeast across Greater Brisbane (-49 per cent) and then Far North Queensland (-42 per cent). Townsville is the one exception with an increase of more than 100 additional approvals during the month.
This drop in new housing, comes in the face of a growing population. Last year 100,000 additional people called Queensland home, needing 44,000 more homes, with only 34,000 built.
In the midst of a housing crisis, there is no question that we need to get on with building more housing. However, the Queensland Government seems intent on reducing affordable housing in this state.
Master Builders CEO, Paul Bidwell says Queensland laws due to commence in October this year will raise the cost of building a home, without adequate benefit for homeowners.
“Minister Mick de Brenni promised to undertake a cost-benefit analysis for proposed developer licensing law to ensure real benefit before making a decision. Yet, the Minister is bringing in construction code changes this year despite the cost-benefit analysis showing the costs outweigh the benefits,” he said.
With falling dwelling approvals, another interest rate rise and soaring inflation, Queensland builders are desperate for the government to take action now.
Mr Bidwell says while builders are resilient and resourceful and right now are working hard to deliver affordable solutions for their clients, their hands are tied behind their backs.
“The Queensland Government needs to soften the blow for homeowners and adopt the changes proposed by industry.”
On Thursday, Master Builders hosted a lunch where Minister de Brenni talked to a full house of commercial and residential builders and trade contractors, and manufacturers and suppliers about these very problems and he acknowledged how tough the conditions are.
“The government has shown it is prepared to sit down with industry, but so far the real solutions are being ignored,” Mr Bidwell said.
He urged the government to take action ahead of next week’s Queensland State Budget.
“We need government to take action. If they’re intent on increasing building costs, the government must provide cost offsets for consumers in the Budget.
“We need them to take action and make a decision to ensure our laws don’t negatively impact on housing affordability.”
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