Approvals decline as industry pushes for productivity overhaul

10 June 2025

A worrying plunge in approvals of new homes across Queensland has industry again urging government to make productivity priority one in the race to reach ambitious housing targets.

The latest figures from the Australian Bureau of Statistics (ABS) show approvals for detached houses remained steady (+0.2 per cent) in the three months to April. However, approvals of new units, townhouses and duplexes took a -2.3 per cent dive over the same period.

In the regions, North Queensland (Townsville) continued to be the standout performer, moving up 44.5 per cent over the past three months.  Approvals are now 65.6 per cent higher in Townsville than they were over the previous 12 months. Wide Bay Burnett was the other standout, up 31 per cent in the quarter, and 33 per over the year. The Gold Coast (+27 per cent) and Greater Brisbane (+6.1 per cent) also posted positive results.

Central Queensland slipped back -14.9 per cent for the quarter; a wobble after posting +61.9 per cent over the last 12 months. Mackay & Whitsunday (-15.2 per cent), Far North Queensland (-15.3 per cent), the Sunshine Coast (-8.8 per cent) and Downs & Western (-0.9 per cent) each posted a decline.

The figures come as Master Builders has made its preliminary submission to the Queensland Productivity Commission (QPC) inquiry into the construction sector.

“From the time the Crisafulli Government came to office, we have made our position clear: restoring productivity is crucial to driving our state forward,” Master Builders CEO Paul Bidwell said.

“In addition to the lagging approvals numbers, the ABS also tells us it’s taking an average 10 months to get a new home from approval to completion – three months longer than it did five years ago.

“Stripping back red tape would mean faster build times and smaller price tags for completed projects, including new homes.

“We need a bold, coordinated approach, not only to tackle the housing crisis, but the $59 billion construction pipeline for 2025, plus the 2032 Olympic and Paralympic Games delivery plan, particularly as the skilled labour shortage persists.

“Our priorities include permanently repealing Best Practice Industry Conditions on state government projects; making the energy efficiency and livable housing requirements in National Construction Code (NCC) 2022 voluntary; and scrapping Project Trust Accounts. A mandatory Queensland Housing Code and a more transparent, risk-based regulator focused on its core regulatory functions are among our other recommendations.

“We’ve met with the new leadership of the QBCC to discuss our calls for reform, and we’ve welcomed the extension of the First Home Owner Grant boost, helping more Queenslanders get into their first home.

“We value our seat at the table with the Productivity Commission, as we work towards a shared vision of establishing our state as the home of the best-positioned and most productive construction industry in the nation.”