The Queensland government has tasked the Queensland Productivity Commission with investigating conditions across the residential and non-residential construction sectors.
The inquiry comes amid concerns that the state is falling behind its housing targets under the National Housing Accord.
“By launching this inquiry, we’re getting on with the job of making it easier to build in Queensland because the current system isn’t working for builders and it’s certainly not working for the tens of thousands of Queenslanders waiting for a place to call home,” said Sam O’Connor (pictured left), Queensland minister for housing and public works.
The inquiry will include public consultations with industry groups, unions, businesses, and regulators. The commission is required to report back within six months.
Under the National Housing Accord, Queensland, which still grapples with efficient land use and development processes, is expected to deliver 247,000 new homes by 2029.
However, the Property Council of Australia’s “Smarter Incentives, More Homes” report forecasts that only 151,000 homes will be completed, leading to a shortfall of 96,000 homes.
Nationally, Australia is facing a deficit of 462,000 homes against its overall target of 1.2 million.
The inquiry follows alarming findings from the Productivity Commission’s “Housing construction productivity: Can we fix it?” report, which revealed that Australia’s residential construction sector now delivers about half the number of homes per hour worked compared to 1995, realestate.com.au reported.
The inquiry is the latest measure by the Queensland government to tackle its housing challenges.
It follows the Crisafulli government’s move to axe stamp duty for first-home buyers purchasing new builds—a key promise during David Crisafulli’s 2024 election campaign.
The government also announced leadership appointments to strengthen the inquiry process:
Industry leaders have welcomed the move as a much-needed step toward solving the state’s housing supply crisis.
“This inquiry provides a welcome opportunity for industry to work collaboratively to make generational change, we know we need to attract more trades, and this could be a catalyst in boosting participation in the construction sector,” said Jess Caire (pictured right), Property Council of Australia Queensland executive director.
“Queensland is already facing a significant housing deficit, and the longer it takes to build a house the more it costs and the wider this deficit grows.
“The Property Council and its members look forward to contributing to the inquiry and working with Commissioner Moody to arrest Queensland’s falling productivity, which has contributed to a lack of supply across all property types.”
For more information, read the government media release and the realestate.com.au report.
