Queensland Productivity Commission reinstatement welcomed by REIQ
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The Real Estate Institute of Queensland (REIQ) has welcomed the reinstatement of the Queensland Productivity Commission (QPC), describing it as a crucial step in addressing rising construction costs and improving housing affordability.
The Queensland Productivity Commission 2024 Bill passed in Parliament this week, paving the way for the re-establishment of the QPC and the appointment of key personnel.
REIQ CEO Antonia Mercorella said the commission’s return was vital for reversing declining productivity in the construction sector.
“Improving productivity in the construction sector is critical for reducing construction costs and ultimately, improving housing affordability for Queenslanders,” she said.
Ms Mercorella cited findings from the Australian Productivity Commission, which reported a 12 per cent decline in labour productivity in the construction sector since the mid-1990s, while productivity across the broader economy increased by 49 per cent.
“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 per cent from December 2020 to December 2024, compared to 39 per cent nationwide,” she said.
She said the commission’s focus on identifying the causes of productivity slowdowns and cost escalations would be beneficial for the housing sector and the wider economy.
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Ms Mercorella also pointed to recent Housing Industry Australia (HIA) data, which highlighted the impact of taxes, regulatory costs and infrastructure obligations on housing prices.
“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.
She added that improved productivity and reduced regulatory barriers could encourage innovation in the housing sector.
“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,” she said.
Ms Mercorella said the REIQ had previously advocated for a stronger focus on Queensland’s productivity challenges and welcomed the government’s response.
“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,” she said.