Home buyers to be slugged extra $20,000 for energy push

It could soon cost an extra $20,000 to build a new home in Queensland with the government pushing ahead with energy efficiency reforms.

New homes could cost up to $20,000 extra in Queensland if the State Government pushes ahead with energy efficiency building reforms this year.

Master Builders Queensland chief executive Paul Bidwell says while other states have delayed the reforms to the National Construction Code, they are set to start here on October 1.

Bidwell says the reforms while supported in the long term could not have come at a worse time given surging interest rates and cost of living hikes.

Master Builders is urging Queensland to follow Victoria’s lead and delay the introduction until next year to provide breathing space for homeowners and builders. Under the changes, new homes will need a star energy rating that could include redesigns of rooms and hallways, extra insulation and installation of ceiling fans.

The Victorian Government this week acknowledged that “the building industry is experiencing significant global economic challenges” and announced an extended transition for the requirements – moving the mandatory commencement date out to May 1 2024.

“Queensland should follow Victoria’s lead and give builders more time to prepare for the construction code changes,” says Bidwell.

“The changes will add around $20,000 to the cost of building and nothing has been done to educate homeowners on what the changes will mean in practical terms.”

Dwelling approvals continued to fall, dropping a further 23 per cent in April amid more pain for the struggling sector. “Now is not the time to add more cost and complexity to new housing, particularly in the face of the current housing crisis,” he says. “We need to build more homes and they must be affordable.”

Public Works and Procurement Minister Mick De Brenni says Queensland remains committed to meet the October 1 timeframe with the option for an 18-month extension on some provisions following feedback from industry. “Analysis by the Australian Building Codes Board shows emissions will be reduced due to the measures and will save homeowners $185 year on their energy costs,” says De Brenni. He says the construction industry has known about a range of these changes for more than a decade.

Master Builders QLD chief executive officer Paul Bidwell.

Doug Tynan’s GCQ Fund outperforms

Former Terrace boy Doug Tynan was in town during the week to update investors on the performance of Sydney-based GCQ Funds Management, where he is chief investment officer. We hear Tynan is pretty happy with how the fund is travelling even with the current global market volatility.The flagship fund’s portfolio net return for the month of May was 5.1 per cent with a net return for 35.6 per cent since its inception in July. Tynan was one of four presenters at the Global Best Ideas session at the Morgan Stanley Australia Summit in Sydney last week attended by 800 institutional investors and Morgan Stanley clients. Tynan highlighted the performance of one of the fund’s key investments Hemnet – effectively the REA Group of Sweden. Hemet emerged as an industry cooperative in 1998, listed on the Stockholm Stock Exchange in 2021 and now has A$2.4bn market cap with no debt. It has now positioned itself as Sweden’s monopoly real estate advertising portal.

Doug Tynan