The Real Estate Institute of Queensland (REIQ) is welcoming the Crisafulli Government’s restoration of the Queensland Productivity Commission (QPC), as an important step towards tackling rising construction costs and improving housing affordability.
Yesterday, the Queensland Productivity Commission 2024 Bill passed in Parliament allowing the QPC to be officially established and appointments to soon follow.
REIQ CEO Antonia Mercorella said the establishment of the QPC will be instrumental in maximising productivity in the construction sector, which has long been on the decline.
“Improving productivity in the construction sector is critical for reducing construction costs and ultimately, improving housing affordability for Queenslanders,” Ms Mercorella said.
“The Australian Productivity Commission found that labour productivity in the sector had declined by 12% since the mid-nineties, while productivity across the broader economy increased by 49%.[1]
“Queensland has seen some of the highest increases in construction costs across the country, with the Producer Price Index for house construction rising by 47% from December 2020 to December 2024, compared to 39% nationwide. [2]
“This productivity slowdown and cost escalation has serious implications, and the QPC’s focus on investigating the drivers and researching solutions is a win for housing and the economy.”
Ms Mercorella said the Housing Industry Australia (HIA) recently released data that shows that a large part of the cost of housing is due to taxes, regulatory costs and infrastructure obligations. [3]
“The QPC could play an essential role in identifying and addressing additional costs imposed by taxes, duties, regulations and constraints on housing supply,” she said.
“We are also optimistic about what improved productivity and reduced red tape and costs could mean for unleashing innovation in the sector, and how it could open new creative avenues to address Queensland’s complex housing challenges.
“The REIQ called for a focus on Queensland’s productivity challenges in our state election policy platform, and we are pleased to see this issue being addressed in order to support our economy and a healthy and sustainable housing industry for all Queenslanders.”
ENDS
Media enquiries:
Claire Ryan, REIQ Media and Stakeholder Relations Manager, M: 0417 623 723 E: media@reiq.com.au
Read another media release from the REIQ: REIQ leads the way on real estate CPD changes.
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