The future of building for Australia - will we change for the better?

Discussion in 'Development' started by Nir, 30th Jun, 2021.

Join Australia's most dynamic and respected property investment community
?

Will the industry move with the times by 2025? e.g.tech to bring Aussie home build costs to a third.

Poll closed 26th Apr, 2022.
  1. Yes

    8.3%
  2. No

    83.3%
  3. Unsure

    8.3%
  1. Nir

    Nir Well-Known Member

    Joined:
    31st May, 2019
    Posts:
    74
    Location:
    Melbourne, VIC
    Building a home in Australia tends to be an unpleasant, stressful experience for a lot of people.

    • The industry is generally inflated, protected by crooked politicians and ways of working are outdated.
    • The laws don't protect the buyer adequately (e.g. the stunts developers were allowed to pull with sunset clauses).
    • Once settled, warranties mean little. Industry full of dodgy players who seem to get by with little consequence.
    • 1 in 10 Australians work in construction, so the arena has become an extremely inefficient job program as well.
    • In terms of getting screwed over - this environment disproportionally impacts poorer people.

    At the same time, across the globe we can see new technology that can be used to build homes faster, cheaper, greener (by a mile). The tech is seemingly already tried and tested. If the inability of visionless politicians and lobbying power of the builders can be overcome, doesn't it make sense for us to be building homes well under $100k now?


    I wonder whether this should be a part of individual longer term strategy?
    Building a 4 bed, 2 bath, double garage family home costs at least $250,000 in VIC (keeping it basic with no fancy inclusions). If one can do that for less than $100k in a few years, that's pretty good incentive to wait.


    My question to those who know much better about this industry than me - is that expecting too much from our system? The capability is there. But it's hard to gauge if the honest intent ever will be.


    Some interesting content on the subject for those interested:



     
    perthgal likes this.
  2. bashworth

    bashworth Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    258
    Location:
    Dandenong
    In my 30 years watching the Australian building industry the two biggest issues decreasing the affordability of the average house are:
    • Cost of land.
    • Growth in the size of houses.
     
    wylie likes this.
  3. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,184
    Location:
    Perth
    I once had a discussion with someone I can't recall some years back and apparently the unions have a say as well as the brick manufacturers as there is a lot at stake if alternative building methods take off and I can see it happening in small pockets already and will likely be a growing trend.

    I'm doing some work with a builder/developer/REA team who sell H&L packages using alternative materials, approximately 30% cheaper for equivalent standard brick and tile and half the time to erect.
     
    perthgal and Archaon like this.
  4. Archaon

    Archaon Well-Known Member

    Joined:
    20th Mar, 2017
    Posts:
    1,896
    Location:
    Newcastle
    Do they do work around the Newcastle area?
     
  5. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    5,331
    Location:
    In the Tweed
    For years I've been amazed that Colorbond roofing is the same/similar cost as a tile roof :confused:

    Surely the manufacturer costs of each are similar, yet the size/weight difference is substantial adding to transport cost, also the installation cost (tiles having more battons, weighing more = stronger truss roof, higher installation cost)....

    So no, when I look at the 17% increase for reo bar from tomorrow, I don't see the actual cost doing anything but increasing any time soon :(
     
    Archaon likes this.
  6. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,184
    Location:
    Perth
    Perth based only.
     
  7. Archaon

    Archaon Well-Known Member

    Joined:
    20th Mar, 2017
    Posts:
    1,896
    Location:
    Newcastle
    No worries, thanks, ive heard of a bit of progress building practices happening over there, guess Perth isn't 3hrs and 30years behind like ive been led to believe ;)
     
    craigc and Colin Rice like this.
  8. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,184
    Location:
    Perth

    @Westminster does some creative projects over here.
     
    Archaon likes this.