Housing shortage remains top industry concern

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Housing shortage remains top industry concern

The latest results from the Property Council’s September sentiment survey reinforce that housing supply and affordability remains overwhelmingly the most critical issue for the property sector as Queensland closes in on 12 months since the 2022 Housing Summit.

Queensland’s property sector experienced a marginal increase in sentiment from 110 points in the June 2023 quarter to 114 index points in the September 2023 quarter, with industry sentiment in Queensland remaining in positive territory. A score of 100 index points is considered neutral.

Property Council Queensland Executive Director Jen Williams said the latest results reiterated the trend from recent sentiment surveys with housing supply and affordability being the most critical issue for the property industry.

“Nearly 50 per cent of respondents rated housing as their core concern and this was followed by ‘planning and regulation reform’ and ‘property taxes and charges’ – issues that contribute to the cost of housing,” Ms Williams said.

“Since the 2022 Housing Summit there have been a range of announcements from state and local government aimed at addressing the housing crisis.

“Despite many positive initiatives, the reality is that little in the way of new housing has been delivered on the ground.

“Issues surrounding the cost and shortage of labour, inflation, consumer sentiment and rising interest rates, combined with decades of increasing regulation and taxation on the property sector, has rendered many potential projects unfeasible.

“The only way to circumvent this issue and get housing on the ground in the short term is to reduce the planning, regulatory and financial barriers to development.

“This may include government decisions to reduce infrastructure charges, foreign tax surcharges or remove some of the regulatory burden that can add time and cost to development.

“Brisbane City Council’s recently announced infrastructure charge incentive scheme recognizes that with housing approvals at decade lows, every lever must be pulled to fast track the delivery of housing.

“The Property Council implores the state, local governments and utility providers to pull every lever at their disposal to get more dwelling construction started sooner.

“Queensland’s population is not getting smaller. New homes take time to plan and build. Through fast-tracking decisions that will bring new supply online, Queensland will have the best chance of getting ahead of this crisis and ensuring a home for every Queenslander,” Ms Williams said.