17 July 2025
Queensland is inching closer to hitting government housing targets, but meaningful progress will depend on lifting productivity and addressing workforce shortages.
According to the latest Australian Bureau of Statistics data, 37,848 homes were approved to be built statewide in the 12 months to May – a 13.9 per cent increase, moving closer to the target of 50,000 new homes each year.
While May wasn’t a strong month in standalone terms, a look at the three-month trend across the regions shows a move in the right direction.
Leading the way was Mackay & Whitsunday, having recovered from a previous dip with a 35.6 per cent increase in approvals of houses and units. Gold Coast (+33.4 per cent), North Queensland (+32 per cent) and Wide Bay Burnett (+30 per cent) were not far behind, while Downs & Western (+15.2 per cent), Far North Queensland (+11.8 per cent) and Greater Brisbane (+10.9 per cent) also posted gains. The Sunshine Coast again suffered a decline with a hefty plunge of -25.3 per cent.
Residential supply is being helped by less activity in the non-residential sector, which was down 42.4 per cent over the past 12 months. However, with $18.5 billion in hospitals, $800 million in schools, and more than $10 billion in athletes’ villages and venues for the 2032 Olympic and Paralympic Games in the pipeline, this is expected to be short-lived.
Master Builders CEO Paul Bidwell said improving productivity was central to sustainably meeting Queensland’s need for new construction.
“We are cautiously optimistic about these gains in approvals, but red tape and workforce shortages remain the greatest roadblocks to efficiency,” Mr Bidwell said.
“Our priority actions around stripping back red tape are permanently repealing Best Practice Industry Conditions on state government projects, and scrapping Project Trust Accounts.
“We are calling for the energy efficiency and livable housing requirements in the National Construction Code 2022 to be voluntary, and for a moratorium on new provisions hampering affordability. Evidence from a quantity surveyor’s report we commissioned shows these changes have added $20,000 to $40,000 to construction costs.
“Pre-COVID, building a new home took around five months. Builders are telling us that’s now blown out to eight months—that makes the Productivity Commission’s work examining regulations vital, while prioritising safety and quality. And, continuing our dialogue with the new guard at the QBCC and the government, we’re advocating for transformation of the regulator to streamline processes for builders and consumers.”
After applauding workforce measures in the State Budget, Mr Bidwell said rebuilding workplace culture was crucial.
“If we want to attract the thousands of people needed to deliver the huge pipeline of work ahead, the violence, misogynist and cruel behaviour that was exposed in Geoffrey Watson SC’s report into the culture of the CFMEU must stop for good,” Mr Bidwell said.
“We strongly condemn the disturbing acts of violence perpetrated by certain members of the union and remain committed to working alongside the Administrator towards sweeping change. We also back the Crisafulli Government’s upcoming CFMEU Commission of Inquiry.
“We stand for a construction industry where unions operate transparently, free from violence, and uphold the rights and safety of workers with integrity and respect. That’s what our sector and the community deserve.”
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