South Australians are being urged to keep building despite rising construction costs, as more homes are the key to ending the housing crisis.
South Australians are being urged not to stop building properties.
Housing Industry Association SA executive director Stephen Knight said rising material prices, ongoing labour shortages and most recently soaring fuel costs as a result of the Middle East conflict had caused “pain” in the construction industry.
But he said it was important people didn’t turn their backs on construction because as long as there was an undersupply, property prices would continue to rise.
“In the current housing crisis we need as many houses we can get,” Mr Knight said.
Rising construction costs have caused “pain” in the industry of late.
“High demand clearly puts pressure on prices and for SA particularly we’re going to continue to have high demand.
“We need to continue doing whatever we can to keep prices down.
“The fuel crisis has just come on top of everything else, which is unfortunate, it’s added another layer of complexity.
“There’s definitely some pain with the current increases that we’ve had.
“The good news is that fuel prices are falling.”
MORE NEWS
Trick to cashing in on soaring building costs
Sobering report reveals SA’s ‘impossible’ rental market
Quirky Adelaide home comes with pint-sized pub
Mr Knight said those in the process of building, or considering it, should keep communication open with their builders.
“If you’re talking to a builder about building a home, keep talking to them,” he said.
Master Builders SA chief executive Will Frogley said the consumer price index rise to 4.6 per cent in the year to March – from 3.7 per cent in February – showed the severe cost pressures already hitting builders, contractors and project owners.
Fuel prices are the latest factor to hurt the industry. Picture: Evan Morgan
“A combination of rising material prices, ongoing labour shortages and higher financing costs has pushed many projects to the brink, with some at risk of delay or cancellation,” he said.
“Price increases as a result of the Iranian conflict are still hitting construction harder than the broader economy.
“Combined with rising inflation, businesses cannot keep absorbing these increases.”
Mr Frogley said the constant rise in costs threatened housing supply and infrastructure delivery.
However, he said the state government had fortunately delayed the introduction of further changes to the National Construction Code.
“We need more flexible government procurement, faster planning approvals and targeted workforce initiatives to stabilise the sector and keep the construction pipeline moving,” Mr Frogley said.
English (US) · 