Two social housing developments sit idle amid state’s crisis

Two social housing developments are sitting idle with delays confirmed, while the Planning Minister refused to be drawn on details of the proposed rental cap. VOTE IN THE POLL

• Editor’s view: Making it up as they go

Two social housing developments are sitting idle as Queensland’s housing crisis intensifies, with the state government confirming the completion of one complex will be delayed nearly a year.

Details of the delay emerged as Deputy Premier and Planning Minister Steven Miles said the government was committed to ongoing discussions about introducing a cap on private rentals, but refused to be drawn on how controls would be placed on landlords.

Facing the media 24 hours after Premier Annastacia Palaszczuk said she was “very seriously” considering a cap, Mr Miles said there needed to be a conversation on whether a limit should be placed on the size and frequency of rent increases.

He accepted that investors needed to see a return on their investment.

“In an environment where inflation is very high, where property prices have increased and where interest rates are increasing, that investors will need to see an increased return,” Mr Miles said.

Last year, the government announced construction work would be underway by the end of 2022 to build a complex in Ethel St, Chermside, with tenants to move in by September.

But the block, proposed to feature 28 one-bedroom and six two-bedroom units, remains an untouched patch of grass with tenants now expected to be accommodated in mid 2024.

The Chermside development remains untouched. Picture: Steve Pohlner

As part of the announcement, the state government also said an 84 single bedroom apartment complex on Sutton Street in Redcliffe for social and affordable housing would begin works last year but construction is yet to commence.

The government said, however, this project will be underway in the coming weeks and was on track to deliver on its promise of accepting residents in late 2024.

A spokeswoman for Queensland Treasury said the company responsible for the construction of both developments, Brisbane Housing Company, had experienced delays in contracting builders.

“Queensland’s construction industry is experiencing unprecedented pressure,” they said.

“Queensland Treasury estimates that as of December last year, there were around 13,000 fewer approved dwellings completed than would have occurred under normal, pre-Covid-19, conditions.”

UNSW housing researcher Hal Pawson, who authored a comprehensive report analysing the state’s crisis, said the uncertainty related to the delivery of social and affordable homes was indicative of a lack of transparency.

He told The Courier-Mail the lack of detail provided “means governments are unaccountable”.

Deputy Premier and Planning Minister Steven Miles on Tuesday. Picture: Dan Peled/NCA NewsWire

“These kinds of housing investment programs that have been announced in Queensland over the last two or three years are certainly impressive on paper and put states like New South Wales to shame,” he said.

“(But) how quickly are these things in fact being delivered? How specific are the commitments that are made about the timescale for delivery?”

Professor Hawson said this issue was common with governments across Australia “but Queensland is certainly no better and possibly a bit worse than some others”.

“It (Queensland government) does a lot to hold back that information and without that being public, the government can’t be held to account for delivery of the program.

The government said it was on track to commence more than 13,000 new social homes by 2027 but when asked what it uses as a definition for “commencement”, they said it was when legal contracts are signed rather than the actual beginning of construction.

Opposition Leader David Crisafulli said the government had “gone big on an announcement but has done nothing”.

“This was a promise made to Queenslanders crying out to just have a roof over their head and instead all the government delivered was a vacant promise and a vacant lot,” he said.