What happened in Residential Construction this week?

🤗 Howdy Readers

In this newsletter, you'll find:

Post 1: Super for Deposits: Will It Push House Prices Higher?

Post 2: Prefab Construction: Can It Really Fix Australia’s Housing Mess?

Post 3: Why Your Home’s Energy Rating Might Be Lying—And How to Fix It

Post 4: Why the Government Loves Red Ink—and Your Rising Home Value

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13-06-2025 - The Fixing Stage Checklist will finally be finished this weekend and published next week. We’ve been a little “distracted” trying to kick off the preliminaries for our next two projects, which has meant a lot of time spent on project initiation, phone calls, and emails. You know—work stuff 😄

📬️ Post 1: Could Using Super for a Home Deposit Backfire?

A recent analysis by Professor Chris Leishman from the University of South Australia suggests that allowing Australians to use their superannuation for home deposits might have unintended consequences.

While the policy aims to assist first-time buyers, the study indicates it could lead to a surge in housing demand without a corresponding increase in supply, potentially driving up property prices by 7.4% to 10.3%.

That could make housing even less affordable, especially for renters and low-income households without much super to draw on. And pulling money out of super early leaves people with less to retire on. In short, a policy meant to help first-home buyers could widen the gap between those who can buy and those who can't.

👉 Read the full article by clicking on the link below:

📬️ Post 2: Can Prefab Construction Solve Australia’s Housing Crisis?

Prefab homes are often touted as a quick fix for Australia's housing problems (we're a fan)—promising faster builds, lower costs, and improved quality. But is it really that simple?

Drawing insights from the UK's housing plans, in this post we explore the potential of prefabricated construction in the Australian context. While prefab methods offer advantages, challenges like planning delays, regulatory hurdles, and workforce shortages remain significant obstacles.

Can prefab truly change the housing sector, or is it just another political football? We also look at the systemic changes needed to get the full benefit.

👉 For a comprehensive look at the role of prefab in addressing Australia's housing crisis, read the full article by clicking on the link below:

📬️ Post 3: Is Your Home's Energy Rating Misleading You?

Ever been told your home is a 7-star energy beacon of awesome, only to be hit with sky-high power bills?

Turns out, many energy ratings are based on ideal conditions and don't reflect real-life performance. This gap between design and reality means your "efficient" home might be leaking energy—and money.

In this post, we look at why assessment tools like NatHERS and BASIX might not be giving you the full picture, and the practical steps you can take to make sure your home really is energy efficient, from smarter assessments to effective upgrades.

Don't let a misleading rating or a builder's sales pitch drain your wallet. Click the link below to read the article:

📬️ Post 4: Why the Government Loves Red Ink—and Your Rising Home Value

Ever feel like no matter how hard you try, buying a home in Australia just keeps slipping further out of reach? You're not imagining it—and it’s not just about supply or immigration.

In this article, you'll dive into how government budgets (yep, those deficits and surpluses you hear about on the news) actually tie into property prices. When the government runs a surplus, it’s pulling money out of the economy—your economy. But when it runs a deficit, it’s injecting money back in, which helps keep things moving.

Here’s the part you might not expect: the government benefits massively when property prices go up. More stamp duty. More land tax. More capital gains tax. So those rising house prices? They’re not just a market glitch—they’re a revenue stream.

It’s a deep dive, but we’ve added plenty of YouTube videos featuring some wise and well-informed voices to help explain the topic and its ripple effects.

Built something recently using a Builder or Trade Contractor? We'd love to get your feedback.

It takes less than 30 seconds and no email is required. We're simply interested in the general consensus, and whether anyone cares about this topic.

💾 Software of the Week: Password.link - Share Sensitive Info Securely

Ever needed to send a password, credit card number or other confidential info, but hesitated to use email or chat? Or, like me, do you wear a tinfoil hat like a beret, half on, half off, so you can hide it before anyone notices your mild privacy paranoia?

Password.link offers a secure solution: one-time, self-destructing links that ensure your sensitive data is viewed only once by the intended recipient. No Google, Apple or Facebook eavesdropping.

What is Password.link?

Password.link is a web-based tool that lets you share confidential information through links (secrets) that can be set to expire after time or views. Once the recipient accesses the link, it self-destructs, leaving no trace. This approach minimises the risk of unauthorised access or data leaks.

Why Use It?

Traditional methods like email or messaging apps can leave your sensitive data vulnerable. Password.link enhances security by:

One-Time Access: Links expire after a single use, preventing reuse.
End-to-End Encryption: Your data is encrypted before it leaves your browser, ensuring only the intended recipient can access it.
Secure chat: E2E encrypted locked chat sessions. Define user limits, link expiration, chat expiration time (how long its open after joining).
Customisable Settings: Set expiration times, add passwords, OTP (email or sms) verification, access control (geo-block, IP whitelisting, email whitelisting, delayed access) or require CAPTCHA verification for added security.
Notifications: Receive alerts when your link is accessed, keeping you informed.

Who Is It For?

Ideal for freelancers, small businesses, IT professionals, tinfoil beret wearers, or anyone needing to share sensitive information securely. Whether you're sending login credentials to a client or sharing confidential documents with a colleague, Password.link ensures your data remains protected.

Why We Like It

We like Password.link's robust (a word lawyers love) security features, including SMS verification and attachment sending (available in the basic plan and above). Additionally, the ability to set domain/email and IP whitelisting adds an extra layer of protection. The developer's willingness to offer custom plans and billing options, especially avoiding USD-only billing, is a bonus for those concerned about exchange rates.

Try It Out

Explore Password.link and enhance your data-sharing security:

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Password.link

ICYMI - the most important construction news from this week

🚀 The latest residential construction news from new sources around Australia for the news week ending 13-06-2025 🔥

Theme of the Week

"The Illusion of Action"

Across this week's news, one theme runs loud and clear: governments are scrambling to look busy, cutting "red tape", extending grants and pushing Build-to-Rent towers skyward. None of it fixes the root problem. Supply can't keep up, and demand keeps surging, driven largely by immigration policy and the financialisation of housing.

It's a week of big announcements with little substance. Governments want you to believe they're fixing it, but all they're really doing is throwing more petrol on a supply-starved fire and asking us to clap for the effort.

Music of the week

“Won’t Get Fooled Again” – The Who (1971)

“Meet the new boss, same as the old boss.”

The Who's lyrics hit especially hard when federal governments blame local councils, developers and industry bodies blame regulation, and housing ministers claim to want "sustainable growth" while cheering on policies that inflate house prices.

It's the same song and dance we've seen for years, and people are catching on.

Can't see the video embed below? Click here to watch on Youtube.

We've highlighted our favourite news articles for the week by marking with a 🌮 or five (yes, we've changed to Tacos instead of burritos).

07-06-2025

Housing market launches after RBA rate cut – [LINK]

08-06-2025

🌮🌮 Housing Minister Clare O'Neil takes aim at Australia's regulation red tape – [LINK]

Our comment: In my view, the push to "cut red tape" isn’t about helping housing supply—it’s about getting more people into homes to boost tax revenue. It feels more like a budget patch for the next four years rather than a real solution. I hope I’m wrong.

🔖 Context Reminder (from 14-12-2024): "We’re not trying to bring down house prices," declared Housing Minister Clare O’Neil on Triple J. Instead, she stated the government wants "sustainable price growth." Experts had some differing views – [LINK]

🌮🌮🌮 Badly built housing propels the heat pandemic in Asia’s cities – [LINK]

Article Excerpt: "There is evidence that up to one fifth of the value of energy savings from well-designed and implemented energy efficiency retrofitting policies comes from direct health benefits, such as reduced respiratory illness and heart disease."

"Despite some Australian governments declaring a ‘climate emergency’ and releasing net-zero plans, these efforts have had limited impact on improving new housing or renovation standards."

Our comment: This article misses the mark IMO. Comparing India to Australia isn’t helpful—there’s already excellent local research on this. For a thorough understanding of how well (or poorly) we build in Australia, check out the 2016 scoping study on condensation by the ABCB and the Federal Government—especially pages 29, 39, 60, and 91 - HERE.

The recommendations are sitting there, but politics, costs, and time keep them ignored. We already know how to build better—what’s missing is the will to act. Articles like this just point at the symptoms instead of tackling root causes. We’re deliberately avoiding real solutions, and that’s the problem. If journalists want to help, they should be interviewing the experts who authored that report, not writing clickbait comparisons.

🌮 Cliff Notes: responsive policy – [LINK]

*Our comment:* The way I see it, the Big 4 banks are just servicing the government’s debt machine. The government creates money, the banks push the mortgages, and the RBA sets the price. It’s a blunt view, but it sums up our economy.

🌮 Worsening global housing affordability crisis presents major risks to Australians – [LINK]

Byline: Not one of 95 global housing markets is considered affordable, and Australia ranks among the worst. Bubble risk is real.

Article Excerpt: Even if housing prices dropped 30%, the RBA says only 10% of borrowers would face negative equity.

Construction sector keeps economy afloat as GDP growth slows – [LINK]

Our comment: GDP measures the economy's total output, and construction is a big part of it. The government leans heavily on the private sector here, but private developers are finding it too expensive to build outside the high-end market. The lower end of the supply curve is on life support. It's time for the government to step in and close the housing supply gap.

09-06-2025

🌮🌮🌮 The great housing gaslight – [LINK]

🌮🌮🌮 Australians are being lied to on housing – [LINK]

10-06-2025

Building approvals continue to drop, deepening Australia’s housing crisis – [LINK]

Fury as Sydneysiders build their mansions, then ‘ask forgiveness later’ – [LINK]

Our comment: This kind of behaviour angers people—double standards kill public trust. Everyone just wants a fair go. Once the game is rigged, the fallout is only a matter of time.

Build right, build strong, build legally: essential lessons for success – [LINK]

Current state of the construction and infrastructure market – [LINK]

🌮🌮 ACCC probes real estate giant REA Group over price gouging amid soaring costs – [LINK]

Our comment: Even if REA is found guilty, will the penalty be meaningful, or just a slap on the wrist? Commissions haven't changed, but property numbers and prices have gone up. Agents are essentially order takers right now, rewarded regardless of effort. In theory agents add value by enabling sales, but most leads are generated online now. Unless you're at the very top or bottom of the game, there's not much separating one agent from another, especially the ones that feign demand: "Present your best offer or you'll miss out. Another $10k and it's yours, a done deal!" We've all heard that one.

O’Neil says she’s not a YIMBY, but here’s how she plans to help fix the housing shortage – [LINK]

Article Excerpt: Slow and rigid planning regulations are blamed for Labor falling more than 200,000 homes short of its 1.2 million target by mid-2029.

Our comment: Seems like local councils are being blamed for federal policy failures. We don’t lack productivity—we lack labour to meet the increased demand from immigration. Pausing immigration isn’t about xenophobia—it’s about giving the system time to catch up. Every added person increases demand, and the supply side simply can’t keep up. I suspect immigration is being used to project future tax revenue to fund long-term budget plans. If true, it’s dangerous and shortsighted.

11-06-2025

Australia’s wildly expensive housing just got a bit more affordable – [LINK]

One of Australia’s biggest home building grants has just been extended – [LINK]

32-Storey Build-to-Rent Tower is Rising Fast Over Brisbane River – [LINK]

12-06-2025

🌮🌮 Monthly Housing Chart Pack – June 2025 – [LINK]

Our comment: If you want fresh, unfiltered data, go straight to the source—CoreLogic/CoTality. Everyone else just paraphrases it.

New business models could help save Australia from its housing crisis – [LINK]

Our comment: I’d replace “servitisation” with “feudalisation.” This isn’t innovation—it’s a shift toward corporate ownership. Housing is straightforward: increase supply, reduce demand, and let the system reset. We don’t need complex new models—we just need the will to act.

🌮🌮 Insolvency in the Construction Sector: Financial Red Flags and Risk Mitigation for Accountants – [LINK]

Article Excerpt: Many insolvencies stem from poor internal controls and over committing to too many projects. This strains labour, timelines, and quality, masking problems until it's too late.

Our comment: That’s a fancy way of saying “people got greedy.” Most failures boil down to the seven deadly sins. Fear and greed drive behaviour—and that’s why marketers target emotion. We haven’t evolved much.

13-06-2025

New Zealand shames Australia on housing affordability – [LINK]

Article Excerpt: NZ’s median multiple improved while Australia’s rose from 8.0 in 2021 to 9.7 in 2024. NZ understands prices need to fall. Australia keeps fuelling demand instead.

Reader reply: I’m a public housing tenant — Labor must learn from the Greens’ common sense – [LINK]

🌮🌮 ‘A smart reform’: Red tape slashed to fast-track 377,000 NSW homes – [LINK]

Property Council Welcomes Breakthrough on Dewatering Reforms – [LINK]

🌮🌮🌮 Icy homes: Why most Aussies are using their heaters the wrong way – [LINK]

Article Excerpt: Dr Sarah Robertson (RMIT) says most homes in Australia weren’t designed for winter. Energy efficiency is still an afterthought.

Our comment: Even someone like me saw this coming years ago. Check out this [LINK], or this [LINK], or this [LINK], or this one [LINK]—each highlights the same issue. We’re rushing to build more at any cost, forgetting quality until the bill comes due. Builders focus on contracts and cash flow, not future performance. Regulators listen to industry lobbyists, and the cycle repeats.

🌮🌮🌮🌮 Private credit tipped to play a $90bn role in Australian real estate funding by 2029 – CBRE – [LINK]

Our comment: If you read last week’s newsletter (see "Thought to Chew On"), we touched on this. Australian real estate is being packaged and sold to international investors like a national REIT. If you're squinting while wearing a tinfoil hat, the parallels are hard to miss. Home mortgage holders are the product—and we’ve left the front door wide open. Welcome, landlord. No need to wipe your feet, the place is already a mess.

The Last Word

“Common People” by Pulp (1995)

Pulp’s 1995 hit "Common People" tells the story of a wealthy art student who wants to "live like common people." But as the song unfolds, it becomes clear that she can't truly grasp the struggles of the working class. After all, as the lyrics point out:

"If you called your dad, he could stop it all."

For many, poverty isn't a choice or a temporary phase. It's a daily reality without an easy escape. The song criticises the romanticisation of hardship by those who can opt out whenever they choose.

It feels particularly relevant to Australia's housing situation. Policies like Build-to-Rent (BTR) aim to increase supply, but critics argue they mostly cater to higher-income renters, leaving many Australians without affordable options.

Meanwhile, high immigration rates have added pressure to the housing market. In 2022–23, net overseas migration reached 536,000, the highest in Australian history, intensifying demand in already tight markets.

Addressing the crisis requires not only increasing supply but also ensuring that housing policies are equitable and responsive to the needs of all Australians, not just constituents or lobby groups.

Can't see the video embed below? Click here to watch on Youtube.

😶‍🌫️ That's all of today

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PS: Quality Management Checklist Access

All our checklists are listed on the Checklists page, via the Checklists link in the navigation menu or directly at https://www.constructor.net.au/checklists/.

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Enjoy the checklists, we hope they help you identify quality improvements in your new home or next project - or at least, get you thinking.

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What happened in Residential Construction this week? 13-06-2025