The Federal Government has committed to build 1.2 million new homes over the next five years as operators say they have never seen the market for building new developments so challenging in 40 years.
Four years ago, the cost of debt was around 2.5% to 3%. Today, it is closer to 6.5%.
Large Government infrastructure projects, including the Brisbane Olympics scheduled for 2032, as well as the mining boom are also taking construction workers out of the residential market because the wages on offer are so much higher.
“It could be five to 10 years before off the plan works again,” Luke Berry, Founder and Director – UK Australia at property developer Third.i, said.
Read more in this week’s issue of SATURDAY
