28 July 2023
The latest inflation figures and construction cost index will feed Queensland’s deepening housing crisis, with the cost to build also set to rise further on 1 October 2023.
Inflation figures, released this week by the Australian Bureau of Statistics, saw Brisbane’s rental inflation rate for the 12 months to June 2023 at the highest of all capital cities at 8.9 per cent. At the same time, the latest Cordell’s Cost Index saw the cost to build a home in Queensland rise by 9.9 per cent in the 12 months to June 2023 – on the back of a 42 per cent rise over the last three years.
The community is now facing conditions where the lack of housing is driving up rents, but in stark contrast, the increasing cost of construction coupled with high borrowing costs are dragging down the demand for building or buying new homes.
Master Builders CEO Paul Bidwell said these latest figures reinforce why now is not the right time to add to the cost and complexity of new housing.
“While for the rest of the country there are signs that pressure on construction costs is easing, that’s not the case for Queensland – mainly because the Queensland Government is hell-bent on introducing new regulations that will increase the costs even more.
“We need to ask the Queensland Government why they are forging ahead with the decision to introduce the National Construction Code changes. When all other states have acknowledged the economic climate and housing crisis, why hasn’t the Queensland Government done the same?” Mr Bidwell said.
Livable housing and energy efficiency provisions will come into effect on 1 October 2023, with the changes expected to add $20,000-$30,000 to the cost of building.
“While this is dependent on a number of factors like the type of home, the climate zone and the lot size, they really are conservative figures. We’ve heard of some examples where these figures are much higher.”
Master Builders has supported inclusive, sustainable, and affordable housing throughout their discussions with government and various stakeholders and tried to achieve sensible and practical outcomes for implementation.
“Unfortunately, the expertise and knowledge of industry experts have largely been ignored. The government should give Queensland homeowners an explanation as to why they’re so intent on increasing the cost to build in the middle of a housing crisis.”
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