The number of new units approved across Queensland has taken a big hit, while minor growth in new detached housing is placing government housing targets further out of reach.
Australian Bureau of Statistics figures show multi-unit dwelling approvals plunged by 8.9 per cent in the March quarter, while the number of freestanding homes given the go-ahead increased by just 1.7 per cent.
With Downs & Western (Toowoomba) at -33.4 per cent, and Wide Bay Burnett at -34.6 per cent, the strong run for both regions looks to be over. The drop in approvals on the Gold Coast (-11.2 per cent) and Greater Brisbane (-3.2 per cent) is explained by the renewed challenge of getting unit projects underway. The remaining regions recorded gains.
Against the backdrop of the new Negative Gearing and Capital Gains Tax restrictions announced in the Federal Budget, Master Builders Deputy CEO Michael Hopkins said housing supply in Queensland is at risk of going backwards.
“At a time when we’re doing all we can to boost housing supply, the Negative Gearing changes will mean roofs over fewer Queenslanders’ heads. Government’s own figures show the changes will result in 35,000 less new homes nation-wide in the next decade, of which around 20 per cent would have been built in our state,” Michael said.
“There are some bright spots in the Budget. The $2bn Local Infrastructure Fund to help connect utilities like power, water, and sewerage will help fast-track new housing development. While Queensland’s share is unclear, it boosts the work the state government is doing via the Residential Activation Fund.”
As industry grapples with price hikes on building materials and fuel driven by the Middle East conflict, Michael said financial relief for small business was welcome.
“The permanent Instant Asset Write-Off for small businesses will help put money back into their pockets. The much-needed move to give builders and tradies free access to the Australian Standards will also save them up to $1600 a year, cut more red tape, and help them stay safe and compliant.”
The widening workforce gap remains the biggest problem – but aside from measures to assist skilled migrants and existing visa holders, there was nothing in the Federal Budget for apprentices, or the small businesses that train them.
“We now turn to the Queensland Government to fill these gaps with the upcoming State Budget,” Michael said.
“A subsidy of at least a 50 per cent rebate on first-year wages would better position more SMEs to take on apprentices – and subsidised access to group training would also go a long way. The $19m Small Business Apprenticeship Pilot Program needs to be expanded and extended, along with the Free Construction Apprenticeships for Over 25s program to encourage mature workers.
“With the Federal Budget done and dusted, this is an opportunity for the Queensland Government to move decisively to shore up housing supply and the workforce behind it.”
