Efforts to reform Queensland's labour regulations aim to improve housing affordability, although they may conflict with current union-driven frameworks that limit construction site operations. Developers say work sites are active for only 2.5 to 4 days a week, which makes profitability depend more on catering to wealthy buyers through high-end developments.
Queensland’s construction industry, which employs 10% of the workforce and makes up nearly 8% of gross output, is now one of the least efficient in the country. Industry experts link this to inflexible scheduling under the Best Practice Industry Conditions (BPIC), outdated union-backed rules, frequent bad weather and labour shortages. It is estimated that extending site operations to five days a week could reduce apartment prices by up to 20%.
According to Master Builders Queensland, at its height BPIC enforcement caused the loss of up to 96 working days each year. This pushed up the cost of building a two-bedroom apartment by more than 30%. Although BPIC rules have recently been paused, there are growing demands for permanent reform to address rising costs and project delays.
The issue becomes more urgent when considering population growth and the infrastructure needs tied to the upcoming Olympics. A report showed that construction productivity in the state has fallen by 9% since 2018, with the sector requiring more workers just to maintain the same levels of output. Workforce forecasts show a shortfall of 50,000 to 70,000 construction workers by 2032, adding pressure to an already overstretched labour market.
These challenges are pushing developers toward premium real estate, including riverfront and high-value inner-city areas, where high sale prices can justify increasing construction costs. Meanwhile, mid-range and affordable housing is becoming scarce, as developers avoid projects with slimmer profit margins in a state where building costs are now 20% higher than in Melbourne or Sydney.
