This past year there has been a great deal of media coverage around delays in construction and the scarcity of building materials and labour – and subsequent price rises. So how did this happen? In this article we’ll explain the various factors that have led to this unprecedented time in Australia’s building sector.
5 key factors causing the delays and cost increases
The COVID-19 pandemic and the lockdowns that resulted from it have caused delays across multiple industries, with construction one of the hardest hit. Every developed country across the world is going through a housing boom. This has never happened in history and to have such a demand on resources has resulted in supply constraints never experienced before. Global supply chains have been disrupted and the skilled labour shortage in Australia, that has long been an issue, has been compounded due to the lack of skilled migration and disruptions to training.
- HomeBuilder Stimulus
A key factor has been the popularity of the government’s HomeBuilder scheme. According to the Housing Industry Association in July alone there were 3,328 new home building approvals, up 37.2% on July 2020. Approvals for detached houses saw an increase of 41% in the same period.
- QLD population growth
Queensland has seen steep population growth with interstate migration being the biggest contributor. The Sunshine State recorded growth of 0.9% in the 12 months to 31 March 2021 – the highest of all the states and territories.
- Materials shortages
Timber is one of the key building supplies that is in short supply. Bushfires have decimated timber plantations across Australia and international imports have redirected to countries such as America leading to a shortfall in supply. Other building materials in short supply include steel, plasterboard and joinery. According to the Cordell Construction Cost Index Queensland saw the biggest increase in construction costs, with an increase of 3.8% in the September quarter and 7.1% for the year.
- Approval times
Banks and certifiers are under increased strain, meaning the time taken for financial institutions to process and approve loans and for certifiers to grant approvals has increased.
How TriFlex Homes are helping our clients through this period
We’re being honest and up front
At TriFlex Homes we’re with you for every step of your home building journey. We maintain open and honest communication throughout your experience with us.
We’ve established strong relationships with our suppliers
Being a reputable custom home builder, we have built strong working relationships with our suppliers and tradespeople.
We’re ensuring our systems and processes are efficient
We make sure that all documentation is prepared correctly and complies with legislation before being lodged to streamline the approval process and make it as straightforward as possible. It is important to get the documents right before we start building.
We continually work on our customer journey to make sure our clients are having the best experience on the way to owning their own TriFlex home. We are constantly reviewing this journey and looking for ways to improve our clients’ experience.
We are managing the cost increases
We are staying in touch with all of our suppliers and trades regularly and now know when to expect price increases. This gives us confidence in our pricing.
Building a custom home is a big step and with these challenging times we are here for you every step of the way in building the home of your dreams. Contact us today to see how we can turn your vision for your new home into a reality.
Sources: Housing Industry Association (HIA), QLD Government, The Urban Developer, CoreLogic