Ahead of the State Budget next week, the Real Estate Institute of Queensland (REIQ) is calling out the woeful state of the housing crisis and pushing for an accountable delivery plan from both parties.<\/p>\n\n\n\n
REIQ CEO Antonia Mercorella said it was important to lay bare the facts regarding the state of Queensland\u2019s housing market today, 19.5 months on from the landmark Housing Summit – warning the data painted a bleak picture.<\/p>\n\n\n\n
\u201cThe latest ABS data on our state\u2019s building approvals, dwelling commencements and completion times does not tell a story of a State that\u2019s headed towards housing recovery,\u201d Ms Mercorella said.<\/p>\n\n\n\n
\u201cOn the contrary, it appears Queensland is falling deeper into the housing crisis, and without some major systemic changes it\u2019s hard to see how we\u2019ll claw our way out.<\/p>\n\n\n\n
\u201cOur overall building approvals, dwelling commencements and completions remain stuck below 35,000 new dwellings each year \u2013 which is well below what\u2019s required to catch up to demand.<\/p>\n\n\n\n
\u201cABS building approval data shows that in the 12 months to April 2024 there was a 13.5 percent decline in private dwelling apartment approvals in Queensland.1<\/sup><\/p>\n\n\n\n \u201cDwelling commencements in the private sector dropped by 7.4 percent2<\/sup> in the last calendar year, while completions dropped by 1.4 percent.3<\/sup><\/p>\n\n\n\n \u201cSocial housing completions of new builds over the past two years are at historic lows, which is concerning given our state\u2019s waitlist of more than 40,000 people.\u201d<\/p>\n\n\n\n Ms Mercorella said plummeting construction productivity was a pain point that continued to cost Queensland dearly.<\/p>\n\n\n\n \u201cQueensland has the longest completion times for apartments in the country at 26 months. Ten years ago, this was only 14 months,\u201d she said.4<\/sup><\/p>\n\n\n\n \u201cDue to soaring costs and poor productivity, the apartment market has skewed towards the upper end of the market, creating a \u2018missing middle\u2019 in housing product diversity.<\/p>\n\n\n\n \u201cThis is clearly demonstrated on the Gold Coast where developments catering to larger, luxury apartments with a correlating price tag of $1 million or above are now almost exclusively the norm.5<\/sup><\/p>\n\n\n\n \u201cIt\u2019s easy to assume big Government infrastructure projects worth $100m+ have little impact on residential housing, but our tradies are being absorbed by these projects which is affecting costs and productivity across the entire construction sector.<\/p>\n\n\n\n \u201cIt is now taking more than 50 percent longer to complete a house in Queensland than it did 10 years ago. This points to declining productivity in the sector.\u201d<\/p>\n\n\n\n She said that it was disappointing to see Queenslanders continue to be left with lip service when it comes to on-the-ground action to ease the housing crisis.<\/p>\n\n\n\n \u201cWe\u2019re not saying that the principles of the Homes for Queenslanders plan aren\u2019t sound, but we are wondering how they can deliver their targets in the current market conditions,\u201d she said.<\/p>\n\n\n\n \u201cIt\u2019s not surprising to hear government-funded organisations praising this plan given the millions in funding they receive, but it\u2019s an interesting change of tune when you consider how little has been delivered since the Housing Summit was called for.<\/p>\n\n\n\n \u201cIn an election year, it can be convenient for parties to set lofty targets and make promises that they may never have to fulfill.<\/p>\n\n\n\n \u201cWe fear that none of these announcements will translate into the new houses we desperately need, and in the meantime, they\u2019ve legislated the life out of the property market – whether you want to buy, build or rent, there\u2019s no appealing prospects left.<\/p>\n\n\n\n \u201cRecent ill-considered rental reforms are already causing confusion and uncertainty in the market, and we question whether they deliver on their intention to benefit tenants.<\/p>\n\n\n\n \u201cQueensland should be the state to watch, with huge opportunities on our horizon, but the sentiment is that we\u2019re simply not set up for success. We need a vision that will bring back hope and optimism to Queenslanders.\u201d<\/p>\n\n\n\n Ms Mercorella called on both parties to use State Budget week to move beyond short-term sweeteners and to lay out a long-term vision for Queensland housing.<\/p>\n\n\n\n \u201cWe need an accountable delivery plan from both parties that will provide the pathways to secure housing for Queensland, supported by necessary infrastructure and services,\u201d she said<\/p>\n\n\n\n \u201cWhile we welcome the setting of targets, it means nothing without accountability – the government should commit to open and transparent monthly reporting against set KPI\u2019s.<\/p>\n\n\n\n \u201cThis will ensure that houses added to the social housing tally represent additional supply and are not just repurposed dwellings from other parts of the housing market.<\/p>\n\n\n\n \u201cAdditionally, we would like to see a budget that builds and encourages pathways to home ownership. The Homes for Queenslanders plan barely touches on this with Queensland holding the title of lowest homeownership of any state in the country.<\/p>\n\n\n\n \u201cThe State Government seem to have forgotten about aspirational buyers and how we can help them take that very first step to get into home ownership.<\/p>\n\n\n\n \u201cThe Help to Buy scheme relies on the Federal Government, and we\u2019d like to see Queensland showing leadership with initiatives of its own to help people realise their dreams of home ownership.\u201d<\/p>\n\n\n\n\n