Home builders

Australian homebuilders are dropping like flies

The crisis facing the residential construction industry in Australia continues to deepen.

So far this year, we have seen the collapse of several high-profile homebuilders. These include major players like ABG Group, Privium, Probuild and Condev, as well as smaller companies like Home Innovation Builders, Next and Hotondo Homes Hobart.

Yesterday was reported that one of Queensland’s largest homebuilders – Pivotal Homes – has also gone into liquidation, leaving over 200 new build homes in limbo:

Sunshine Coast building company Pivotal Homes, once a sponsor of the Gold Coast Titans, went into liquidation on Thursday night.

Chief executive Michael Irwin said rising labor and construction costs had strangled the business.

“In 30 years of experience I have never seen a set of circumstances like this and we are obviously not alone in these unfortunate conditions the industry is facing,” he told the Courier Mail. …

Sunshine Coast building company Pivotal Homes, once a sponsor of the Gold Coast Titans, went into liquidation on Thursday night.

Chief executive Michael Irwin said rising labor and construction costs had strangled the business.

“In my 30 years of experience, I have never seen a set of circumstances like this and we are obviously not alone in these unfortunate conditions the industry is facing,” he said. to Courier Mail.

To add further insult to injury, construction giant Metricon continues to teeter on the brink of “imminent collapse”. As a result, the NSW Government is prepare a rescue plan for Metricon “too-big-to-fail” and industry:

The New South Wales government, at its highest levels, is working to finalize a dual bailout for the state’s building industry and customers of construction giant Metricon, fearing the company is in danger of collapsing…

One option under consideration is a bailout costing hundreds of millions of dollars that would support industry players threatened with collapse due to a confluence of factors including the pandemic, rising material costs , recent floods and labor shortages…

A second batch would be for Metricon to complete some 300 active construction sites, or compensate buyers for house and land lots that may not be able to be completed.

Sources close to the company’s finances who spoke on condition of anonymity said cash flow remained dire and without help the company was on the verge of bankruptcy.

While I’m sorry for builders struggling with skyrocketing costs, this seems like another case of “privatize the profits and socialize the losses”.

It’s a shame that the billions of taxpayer dollars spent on HomeBuilder’s revival and industry bailouts haven’t been invested in social housing projects instead.

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