Rising demand for new builds amplifies urgency to slash red tape

13 November 2024

A rise in building approvals across most of the state has led the industry to urge the Crisafulli Government to back it by eliminating unnecessary regulations hindering new construction.

While Queensland remains some way off its annual National Housing Accord target of 49,000 homes, with 35,169 new dwellings approved in the preceding 12 months, the Australian Bureau of Statistics (ABS) figures report a strong showing overall.

Central Queensland was the clear leader with a 54.9 per cent increase over the three-month period, followed by Mackay & Whitsunday (+32.2 per cent). Wide Bay Burnett (+18.9 per cent), and Far North Queensland (+12.1 per cent) also posted positive results.

A 19.4 per cent decline in Downs & Western was attributed to a drop in unit approvals, while those for detached housing remain strong. The muted -30.4 per cent decline for North Queensland accounted for a dip in both detached houses and units but remains strong over the 12 months at +19.5 per cent.

Brisbane was the top performer in the state’s South East at +13.5 per cent, followed by the Sunshine Coast (+6.9 per cent) and Gold Coast (+2.4 per cent).

After the Queensland Government declared they are ‘laser-focused on delivering housing supply,’ with ‘a place to call home’ among their key commitments, Master Builders CEO Paul Bidwell said industry has an action plan to drive the state forward.

“Red tape is slowing down building, pushing up costs, and stifling productivity,” Mr Bidwell said.

“It’s all well and good to welcome an increase in new dwelling approvals, but it will mean nothing if regulation stops us getting these buildings off the ground.

“This week, we are meeting with the new state government to discuss our plan for urgent reform. This is crucial as we work to deliver not only housing, but the hospitals, schools, infrastructure and upcoming Olympic and Paralympic Games projects our communities need.

“This includes halting the expansion of the project trust account regime to smaller private projects. We need to stop the planned rollout to those of $3m value in March and $1m in October, to avoid the possibility of businesses going to the wall.

“The Best Practice Industry Conditions (BPIC) need to be stripped from new government tenders immediately. Put simply, government can’t deliver projects on time and on budget as long as BPIC applies in its current form.

“Swift action is also needed on the changes to the National Construction Code (NCC) 2022 that we know are pushing up costs and causing technical problems. The review already underway on this must be comprehensive and completed urgently – and we have a list of 10 essential changes based on feedback from builders working to the new rules.

“While reviews provide a positive path forward, these issues demand urgent decisions to be taken quickly. We need government to provide our industry with the right tools to overcome these challenges.”

Read more about Master Builders’ Building Our Future plan.

Graph showing QLD regional building approvals 3 months to Sep 2024

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