South Australia’s building sector is in a healthy position going into 2025, but how the year plays out will hinge on builders’ ability to get homes out to the market.
Weeks Building Group chief executive officer Peter McIndoe said it was encouraging to see the market adapt to new, more stable conditions after several years of heightened demand and costs fuelled by the coronavirus pandemic.
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“This was probably the first year that we’ve had regular supply of labour and materials,” he said.
“Material costs haven’t been out of control and I think builders were able to keep up with pricing.
“Labour at the front end of the build – concreters, bricklayers and framers – are probably back to normal demand, but some of the finishing trades are still quite busy, particularly people laying flooring and tiling.
2024 has been great for the building sector and things bode well for 2025. Pic: supplied.
“It’s certainly been a welcome relief that labour and material costs have settled down.”
Mr McIndoe said purchaser confidence had improved as uncertainty around build times and costs abated.
“We do see some people looking to buy a completed home because they don’t want to go through the pain of the journey, nor the risk of having a builder not complete it, but I’d suggest that’s not a major challenge anymore,” he said.
Peter McIndoe, Chief Executive Officer at Weeks Building Group. Supplied
“Announcements of land releases are very welcome. The challenge now is for the government to be able to get them all through the planning stages and, once they’re approved, getting the infrastructure in place. That’s probably the biggest challenge for builders next year is the supply of shovel-ready land.
“I think next year should be another good year in relation to sales, with the caveat being how much registered land is going to be able to be built on, and a lot of that will come down to the housing road map Premier Malinauskas has put in place and how much infrastructure SA Water can get in place.
“All builders are looking for clarity on how many blocks of land will have water and sewer put to them next year and the following years.”
Sights l, like this hinge on the government being able to get infrastructure to approved development sites. Pic: Supplied.
Hickinbotham Group managing director Michael Hickinbotham said South Australia had a tremendous opportunity to capitalise on a defence boom.
“There is a significant opportunity for South Australia to underpin economic growth through the provision of high-quality housing that is affordable,” he said.
“The key to achieving this is a planning system that is highly responsive to market demand, land supply, and the timely and cost-effective provision of infrastructure.
Hickinbotham Group managing director Michael Hickinbotham. Pic: Supplied
Every state is faced with the same challenges. If South Australia can get this right, it will give our state a significant economic advantage over every other state; it will drive quality of life, growth and jobs, and it will help South Australia with the international competition for people and capital.”
Mr Hickinbotham commended the Malinauskas Government on getting more land to market since coming to office, with significant releases under way.
“But this is a long-term problem, and the backlog in planning and infrastructure will require innovative solutions if we are to keep the cost of housing affordable,” he said.
There are enough workers to meet current demand, but more will be needed as land is unlocked. Pic: supplied
“The planning system is the gate through which every investment decision must pass. We have to get planning, land supply, and infrastructure right if South Australia is going to successfully capitalise on the huge opportunities in the defence space that are currently open to us. If we don’t, those opportunities will be lost to other states.”
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