2023 may well end up being the year of adversity across the construction industry, with interest rates, supply chain and cost issues all playing a role.
Master Builders Queensland are concerned the changes to the National Construction Code will ultimately add further costs and time to building homes. The demand for new homes is also on the decline, with dwelling approvals dropping 7.2 percent over three months to October, as per the ABS.
Master Builders CEO Paul Bidwell says the Queensland Government needs to give sunshine state tradies and subcontractors time to implement the changes made in the code in late 2022.
“Other states have provided more time for their local industry to respond. Queenslanders need this too. But the Queensland government refuses to budge,” he says.
“All this at a time when housing supply is in crisis – we need more housing, not less. 2023 is not the time for the government to introduce significant costs to the construction of new housing.
“Unless the changes are pushed out at least until 2024, next year will be crunch time for housing in Queensland.”
ABS statistics indicate building approvals for units are down across the entire state, with the exception of the Gold Coast. Detached house approvals in Greater Brisbane and Central Queensland have lessened the severity of approvals on the downturn.
Further falls are expected in regards to building approvals for North Queensland, the Sunshine Coast and Downs & Western when statistics are updated.
MBQ believes interest rates, rising costs, trade shortages and NCC changes will see a continued slowdown of residential construction in 2023.
