Building approvals looking up – but housing targets remain a challenge

10 September 2024

Strong numbers for both units and detached housing are leading an upward trend for building approvals in Queensland, providing a glimmer of hope as the industry continues to call for action on the housing crisis.

The latest figures from the Australian Bureau of Statistics show all regions enjoyed a jump in approvals in the three months to July. North Queensland led the charge with a standout 94.7 per cent increase, followed by a strong 71.6 per cent hike on the Gold Coast, and Downs & Western at 40.1 per cent.

There were also positive approvals for the Sunshine Coast (38.2 per cent), Central Queensland (28.2 per cent), Far North Queensland (27.4 per cent), and Greater Brisbane (21.5 per cent), as well as Mackay & Whitsunday (13.4 per cent).

The one exception was Wide Bay, which was flat (-0.3 per cent) but it too is a good news story. Approvals have remained at a consistently high level, with the region largely avoiding the falls experienced in the rest of the state.

The only sign of weakness was for unit approvals in regions where units do not make a large proportion of the market, including Downs & Western, Mackay & Whitsunday, and North Queensland.

Master Builders General Manager – Policy & Advocacy, Dyan Johnson, said while the July figures were encouraging, there was still room for improvement.

“Approvals for detached houses are now firmly on the up, increasing 4 per cent over the past 12 months.  Units are still well down over that same period (- 23 per cent) but the growth over the recent months is a promising sign that might be set to change,” Dyan said.

“However, the 12-month rolling total for Queensland to July was 33,433 new dwellings, meaning our state’s National Housing Accord target of 49,000 new homes each year remains a challenge right now.

“Master Builders Australia’s (MBA’s) latest forecast for our state reaffirms this, with 224,282 new homes expected to be started in our state over the next five years, making for a shortfall of almost 22,000 on the Accord target.  Higher density dwellings are predicted to account for 42.4 per cent of this total.

“MBA also anticipates that non-residential building work will increase by a third over the next five years as we build the hospitals, schools, water and Olympic and Paralympic Games projects our state needs.

“The forecast highlights the shortfall in housing at the same time non-residential work ramps up. This lends itself to our consistent calls for a stronger focus on getting more projects underway to reach the targets set by government and tackle the housing crisis.

“There is action that can be taken, now, to get things moving while preserving build quality and safety.

“As called for in our Home Truths state election campaign, stripping away the productivity-sapping elements of the government’s own Best Practice Industry Conditions (BPIC) would be a great start. Our analysis shows BPIC in its current form is driving up construction costs and slowing productivity.

“Other levers that can be pulled include scrapping project trust accounts and rolling back changes to the National Construction Code 2022 that don’t show clear benefit.

“We’re just six weeks away from heading to the polls, and it’s time for all sides of politics to commit to freeing our state from the red tape that has a stranglehold on housing.”