The Queensland building industry is experiencing a surprising shift, with the Gold Coast bucking the statewide recovery trend. Building approvals in the region have dropped by 20.7%, signaling a stark contrast to the growth seen in other areas across Queensland.
While most regions in the state saw a rise in building approvals in the 12 months to November 2024, the Gold Coast’s decline is especially alarming, particularly as the city is already grappling with a housing shortage. Statewide, building approvals surged by 4.7%, with Far North Queensland showing a notable increase of 41.4%. Other regions, including Downs and Western Queensland (31.2%) and Central Queensland (26.6%), also posted substantial gains. The Sunshine Coast (8.7%), Greater Brisbane (7.6%), and Wide Bay Burnett (16.1%) maintained positive momentum, while Mackay and Whitsunday remained steady.
Despite this broader positive trend, the Gold Coast’s decline raises concerns within the local construction sector. Paul Bidwell, CEO of Master Builders, expressed optimism about the state’s overall growth but warned that the Gold Coast’s downturn highlights deeper challenges. He emphasized that increasing productivity is essential to address the gap in housing supply, noting that Queensland is far from meeting its ambitious target of 50,000 new homes annually by 2044. In fact, the state has only reached this number twice in the past 31 years.
Bidwell called for regulatory reforms to remove red tape hindering construction, particularly within the Queensland Building and Construction Commission (QBCC). He urged swift action to ensure more homes are built to meet demand.
Andrew Bell, a board member of the Real Estate Institute of Australia, pointed out that the Gold Coast’s approval decline reflects worsening housing affordability, particularly in entry-level developments. He noted that while the demand for high-end properties remains strong, the rising costs of land and building materials, combined with higher interest rates, have made development projects in the more affordable market increasingly unfeasible. Buyers are also wary of entering agreements for new builds due to the uncertainty about whether projects will be completed on time and within budget.
The latest figures underscore the challenges Queensland faces in addressing its housing needs, particularly as the state strives to meet its long-term targets while navigating economic pressures and a rapidly evolving real estate market.
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