New figures show Queensland still off the mark to meet ambitious housing target

New data reveals work began on 10 per cent fewer homes in Queensland in the first three months of the year than in the previous quarter.

Queensland is still not on track to meet its ambitious five-year housing target, with new data revealing building work began on 10 per cent fewer homes in the first three months of the year than in the previous quarter.

Days after Treasurer Jim Chalmers declared the government’s national 1.2m homes by 2029 target could be met, new ABS figures give credence to inadvertently released Treasury advice which warn otherwise.

From January to March, building commenced on 8371 homes in Queensland, a 10.3 per cent decrease on the three months prior.

Work finished on 9043 homes, a 3 per cent improvement compared to the previous quarter. Both figures are still well short of the quarterly target of 12,287 needed to get to 245,740 new homes by 2029.

Nationally, work began on 47,645 dwellings, a three year high that marked an 11.7 per cent uptick from the previous quarter but still well short of the 60,000 three-month target. There was a four per cent decline in completions.

The federal government considers approval and commencement figures as the most important indicators, but acknowledges completions aren’t where they should be.

Housing Minister Clare O’Neil said there were green shoots, but “we know there’s more work to do to build more homes”.

Master Builders CEO Denita Wawn said there was “room for optimism that the worst is now behind us”.

Treasurer Jim Chalmers this week. Picture: Martin Ollman/NCA NewsWire

“(But) the Government and industry need to play catch-up if we’re going to meet the 1.2m new homes target.”

Queensland Property Council executive director Jess Claire said “today’s actions will set the groundwork for tomorrow’s success”.

Each year that our housing deficit grows, the smaller the room for error becomes, reinforcing the need for policymakers to continue to work closely with industry and do everything within their power to unleash supply at scale and ensure a home for every Queenslander.

After subheadings of Treasury’s incoming government brief, including one warning the housing target “will not be meet” were released in error, Dr Chalmers this week stood by Labor’s pledge.

“We’re talking about a target which is still four years away. And we acknowledge, as we have publicly on a number of occasions, that we need to do more, and we need to do better to hit that target in four years’ time,” he said on Monday.

Housing advocates are hoping next month’s economic roundtable puts housing delivery at the heart of the national productivity agenda.

Master Builders Queensland CEO Paul Bidwell said he was cautiously optimistic the state could reach its targets, pointing to productivity inroads and the LNP government’s crackdown on the CFMEU.

But he warned the biggest challenge remained people.

He predicted an average annual shortfall of 18,000 construction workers over the next eight years.

“There is work being done, but there are still not enough people in the sector,” he said.

Originally published as New figures show Queensland still off the mark to meet ambitious housing target