Lost productivity costing Queenslanders homes, says REIQ

The Real Estate Institute of Queensland (REIQ) says the Queensland Productivity Commission’s interim report into Construction Productivity, released today, has revealed the shocking cost of inefficiencies – tens of thousands of unrealised homes.

According to the Commission, productivity in the Queensland construction industry has declined by 9 per cent since 2018 - a downturn that equates to a staggering loss of 77,000 potential dwellings. That is equivalent to over 1.5 years of dwelling completions (at the national target competition rate).

REIQ CEO Antonia Mercorella said that in the midst of a housing crisis, those unrealised homes represent more than just a missed economic opportunity - they’re a lost lifeline for around 193,000 Queenslanders.

“This report confirms what those in the industry have long known - Queensland’s construction productivity problem is systemic, and it’s contributing to our housing crisis,” Ms Mercorella said.

“It’s senseless that 77,000 homes have been lost due to inefficiencies and inaction.

“With an average of 2.5 people per household, this productivity decline has potentially denied housing to a population the size of Toowoomba.” [1]

Ms Mercorella said the REIQ welcomed the Commission’s focus on improving approvals processes, streamlining regulation, and encouraging innovation such as prefabricated and modular construction - all issues raised in the REIQ’s submission to the inquiry.

“We’re encouraged to see the Commission recognising the drag that planning and regulatory burdens have placed on housing delivery,” she said.

“When it takes more time, more paperwork, and more labour to deliver the same outcome, it’s no wonder Queensland is struggling to meet its housing needs.

“As the peak body for real estate in Queensland, we’ve repeatedly called for a more agile and integrated housing system - one that supports innovation, cuts unnecessary delays, and balances community interests with the urgent need for greater diversity and density of housing.

“As one of the stakeholders engaged in the consultation process, we made a series of observations and recommendations, and we’re pleased to see a number of them acknowledged in this report - including the impacts of Best Practice Industry Conditions (BPIC), support for greater labour mobility (including from skilled immigration), and a call to repeal foreign investor surcharges on transfer duty and land tax.”

The report reveals that if BPICs had not been paused, remaining in place until 2029-30, the net costs could be up to $20.6 billion and a further 26,500 homes lost.

She said the REIQ also backed recommendations to overhaul government procurement and modernise occupational licensing.

“We cannot afford to keep kicking the can down the road. Productivity gains don’t just improve efficiency, they’re key to making sure every potential and precious home is delivered,” Ms Mercorella said.

“The timing of this report is ideal given the upcoming Productivity Roundtable in August, giving more reason for the Federal Government to put housing delivery on the agenda.

“We urge the Queensland Government to treat these findings with the urgency they deserve, and we remain ready to assist in shaping meaningful housing reform.

“We need to restore confidence, cut waste, and get Queensland building again.”

ENDS

Media enquiries:
Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland
M: 0417 623 723 E: media@reiq.com.au

Read another media release from the REIQ: No room to move: Queensland's rental market is holding tight.

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