What happened in Residential Construction this week? 6-12-2024

Howdy Readers 👋

In this newsletter, you'll find:

📰 Our latest blog post: Is Your Construction Project on Solid Ground? 🚧

Earthworks booked in or just finished? Use our Earthworks inspection checklist to spot problems and get a quality result.

The earthworks phase can feel like uncharted territory, but it's what your home's stable foundation depends on. From grading the site to managing drainage, it sets up everything that follows. That's why we created the C4A Earthworks Inspection Checklist, a step-by-step guide to finding issues before they derail your project.

🌱 What’s inside?

• Practical tips to assess sediment control, retaining walls, and grading.
• Key questions to ask your builder to avoid costly mistakes.
• Pro advice to protect your investment with smart site inspections.

Don't start your site works the wrong way. Assess them, then move forward with confidence.

On with the news from this week 😄

🚀 The latest residential construction news from new sources around Australia for the news week ending 05-12-2024

If you're new to Constructor, a warm welcome to you! 👋 You've come to the right place to learn all about residential construction and quality management.

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What else is happening in the construction sector?

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Kevin R.

🖥️ Software of The Week

A new section on software and productivity tools I find useful and thought you might too.

KanbanFlow

KanbanFlow is an excellent tool for managing projects and business processes. We use it to run our back-end operations. Its standout feature is Work In Progress (WIP) limits, which make it ideal for a lean, Kanban-style pull system where the team only takes on new work when there's capacity.

It's affordable, powerful and easy to use. Setting up boards, swimlanes and WIP limits is a breeze, and you can add coloured tags and custom fields. We use custom fields to track SLA timeframes, priorities and client approvals.

The reporting tools show how long cards spend in each stage, so you can spot bottlenecks. You can also upload files, add subtasks, compare estimated and actual time, and comment directly on tasks.

I'll publish a full review of KanbanFlow soon, but for now I highly recommend checking it out at https://kanbanflow.com.

KanbanFlow - Lean project management. Simplified.

KanbanFlow is a Lean project management tool allowing real-time collaboration between team members. Supports the Pomodoro technique for time tracking.

KanbanFlow

We've highlighted our favourite news articles for the week by marking with a 👉️ and this formatting.

The theme for this weeks news articles from various sources is:
"Australia's Housing Crisis: Mounting Challenges and Fragmented Solutions"

Why do we think this?

This week's articles keep circling the same issue: Australia's housing crisis. Prices, rental affordability, supply shortfalls and systemic inefficiencies, met with a mix of bold policies, private-sector initiatives and piecemeal fixes, none of which look like enough. Key subthemes:

• Policy and Legislative Efforts: The government continues to introduce measures like prefab construction, social housing investments, and housing accords. However, these are critiqued for falling short or facing significant delays, highlighting inefficiencies in execution and planning.
• Supply and Demand Imbalance: Articles discuss rising dwelling approvals alongside a persistent supply gap, exacerbated by immigration and speculative investments driving demand.
• Industry Struggles: Builders face insolvencies, cost blowouts, and rising regulatory pressures, questioning the sector's capacity to scale output despite policy ambitions.
• Affordability and Equity Issues: The divide between homeowners and those locked out of the market grows, with discussions on tax reform, capital gains, and the impact of skyrocketing property values. These exacerbate generational inequities and economic disparities.
• Innovative Solutions and Criticism: Build-to-rent, prefab housing, and alternative lending models are presented as potential solutions but are met with skepticism over their scalability and effectiveness.

29th November 2024

How Australia's biggest state is supercharging new home building - LINK

‘Ghettos of the future’: Public slams Chris Minns’ housing designs - LINK

Design for first public housing towers to be demolished - LINK

Canberra Expands Free TAFE Construction, Housing Courses - LINK

Mecwacare’s $30M Ballan VIC aged care redevelopment to begin in January - LINK

Residential Focus - LINK

AVJennings board backs takeover bid from Proprium Capital and AVID Property Group - LINK

Our Comment: And to think construction will get cheaper with PE firms hoovering up Australian construction companies? Think again.

Perth builder penalised for faking insurance certificate - LINK

Our Comment: What an absolute mess. Insurance is typically included in the cost of the house—meaning the client pays the builder, who then pays for the insurance. Why would anyone even bother faking it? It’s a straightforward task that takes about 20 minutes to complete. This kind of behaviour raises serious questions about the ethics and professionalism of the builder involved.

And a $5,000 fine? That’s hardly a deterrent. It’s difficult to believe this penalty alone will prevent such actions from happening again.

Gold Coast’s La Mer development hits the market - LINK

Housing construction rises to a three-year high - LINK

👉️ Labor’s new housing deal needs three tweaks to be game changing - LINK

Our comment: When the market falls and the owner sells a house purchased under the Help to Buy - does the Government lose 30-40% of its investment, or the purchaser?

ACOSS applauds $500 million investment to retrofit social housing and cut power bills - LINK

Housing construction costs and completion times have blown out – can this be fixed? - LINK

Housing witnesses subdued inflation - LINK

30th November 2024

.id demographers reveal big risk in government’s 1.2 million home National Housing Accord plan - LINK

Victoria’s home building market plummets in rankings after once being the nation’s leader | HIA - LINK

City development preparing 2,000 brand new homes over the next few years - LINK

HIA 2024 in review - LINK

Aqualand unveils plans for North Sydney’s first BTR project - LINK

👉️ Two new housing policies, both doomed to fail - LINK

Article excerpt: "There are two things you can do to make something cheaper. You can increase supply or decrease demand."& "The problem is on the demand side. Over the past 20 years there has been a big increase in investment demand for housing." & Finally "But what both the major parties should fear is the growing anger of those trapped out of home ownership and those burdened with massive mortgages. More phony housing affordability policies that do nothing to fix the problem will only fuel voter disenchantment."

Our comment: Hear, hear! In my opinion, demand-side settings such as investor tax concessions and migration levels deserve as much attention as supply. More people entering the market brings more money, drives up demand and soaks up supply. Combine that with a generation that could leverage itself into soaring prices, and we have a recipe for an unsustainable housing market.

Yes, these investors took financial risks, but the payoffs have become absurd. When you can strip out holding costs and expenses, then turn a 3x, 5x, or even 10x return on your property costs while enjoying a capital gains tax (CGT) discount—that’s like having your cake and eating it too.

Why not introduce measures to give back to the market that’s being exploited? For example, if your gross realisation is more than 2x your input costs, why not repay some of the CGT discount? No one helped these investors initially, sure—but does that mean they shouldn’t contribute to making the system fairer, especially when housing affordability is so out of reach for those earning stagnant wages

👉️ 20 people in a two-bedroom apartment: the growing health and safety risks of 'hot bedding' - LINK

Our comment: For one of the most resource-rich countries in the world, this is a poor result. How is this even possible? It's a question worth asking, and one that demands answers.

Housing market remains strong with “impressive” 28% growth - LINK

Qld ranks first on the Housing Scorecard - LINK

Homing in on Australia’s housing crisis - LINK

Why abolishing stamp duty could bring balance to the housing market - LINK

👉️ Build‑to‑rent bill paves the way for the construction of 80,000 homes - LINK

Aussies promise housing policies will shape 2025 federal election outcome - LINK

1st December 2024

How Australian workers' superannuation is funding new housing and property developments overseas - LINK

New boutique-scale apartment building planned for Unley Road - LINK

Inside the $12m mansion inspired by an eight-year-old’s scrapbook - LINK

Joint media release: Cutting power bills for more social housing tenants - LINK

👉️ The Senate has passed the Help to Buy housing scheme. It will help, but not much - LINK

Can first-home buyers get on the property ladder without the 'Bank of Mum and Dad'? - LINK

Five ways to get a leg up on the property ladder (including one new one) - LINK

Our comment: In my opinion, this reads more like a promotional piece than analysis.

2nd December 2024

Residential Focus – In The Media; Published Articles, Papers And Reports; Cases And Legislation - LINK

👉️ House price growth slows as market cycle winds down - LINK

Our Comment: has the worm finally turned? It's only been 15 years in the making!

House values tumble in Sydney, Melbourne as economy struggles - LINK

Labor makes housing major issue at WA and Federal election, unveiling $450m package - LINK

John McGrath – Sydney market resilient amid higher rates - LINK

Joint statement – Landmark partnership to deliver nearly 1,800 new social and affordable homes for Western Australians - LINK

Why you should consider real estate investments in 2025 - LINK

👉️ Federal government pushes prefab construction - LINK

‘Not that simple’: What’s really causing Australia’s housing and rental crisis - LINK

Bayside backlash: Brighton grumbles about fast-tracked housing plans - LINK

Legislating super for housing just became harder - LINK

👉️ House prices rise just 0.1 per cent in weakest result since January 2023, CoreLogic data shows - LINK

3rd December 2024

👉️ ORDE Financial sees brokers respond to construction loan - LINK

Our Comment: Dealing with banks for business loans is a nightmare. They provide little to no support for businesses, instead focusing on the easier and more profitable task of writing home loans. This is where the alternative loan market steps in—investment bankers creating secured notes to fund development and construction loans.

It’s astonishing that we live in a society where businesses are left unsupported, forcing private companies to fill the gap. Of course, this void comes at a cost—non-bank lending is typically more expensive than traditional bank loans, making it a lucrative market for these alternative lenders.

No let-up in builder claims pressure as insolvencies surge - LINK

Our comment: so the government wants more output yet more builders are going bust? How does that work?

Kitchen builder fined $24,000 for string of renovation gaffes - LINK

👉️ Government under pressure to fund and build more social housing amid 'extremely severe' shortage - LINK

Young couple reveal how they bought their first home amid housing crisis - LINK

Federal Government already 20,000 homes behind target, Housing Accord ‘shaping up to be one of the greatest policy failures’ - LINK

National housing policy not a one size fits all solution for every local community - LINK

National Housing Infrastructure Facility - Crisis and Transitional (NHIF CT) - Update - LINK

Is Tax Reform the Key to Close Australia’s Housing Supply Gap? - LINK

October building approvals rise as apartments surge - LINK

Signs emerging that worst is behind building industry - LINK

Rise in apartment approvals offsets house fall in October - LINK

Land audit unlocks bureaucratic stalemate to deliver 2,300 homes - LINK

The two states where new apartment approvals have exploded - LINK

Prominent Adelaide developer snags massive eastern suburbs landholding - LINK

Building data nailed but future framework doubts linger - LINK

Stockland kicks off new SEQ community - LINK

4th December 2024

Property Council welcomes housing construction trades on core skilled occupation list - LINK

👉️ New home price record as building approvals struggle - LINK

Mirvac commences construction of $400m residential tower in Melbourne’s Docklands - LINK

Dwelling approvals hit 22-month high - LINK

Communities Silenced in a Win for Developers - LINK

400 new homes for Defence Force personnel to be built in Townsville ahead of influx of troops - LINK

Indi Footscray build-to-rent project tops out in Melbourne - LINK

The next inner-city hotspot - LINK

👉️ Court Rules Bezos’ Superyacht is Fitted Bow to Stern with Illegal Teak - LINK

Australia's housing market faces mixed signals as 2024 closes - LINK

‘Yes in God’s backyard’: Labor offers cash for church housing - LINK

Housing Australia funds its first temporary accommodation - LINK

👉️ New research shows Australians think housing crisis is getting worse - LINK

Ben moved 28km for cheaper housing. There he found a hidden cost - LINK

Affordable-housing project opens in Bellingen for local women over 55 - LINK

Review to examine Homes Tasmania's 'effectiveness' as housing waiting list blows out to nearly 5,000 - LINK

5th December 2024

How much does it cost to build a house in Tasmania - LINK

👉️  The build trends buyers want in their new homes for 2025 and beyond - LINK

Article Excerpt: "Today, much more than in the past, buyers are concerned with build quality and sustainability from both a social responsibility perspective and as a long-term value add for their home, given the ability of sustainability measures to reduce running costs," he explained.

Our Comment: This is exactly why Constructor exists—to empower you with the knowledge of what should and must be done to build a quality new home. When you know what to look for, you can ask better questions, understand the importance of witness and hold points, and confidently identify red flags throughout the process.

Unfortunately, you can’t always rely on others to act in your best interest—they’re often looking out for themselves. And beware of anyone who says, “Trust me,” or, “I’ve been doing this for years.” That’s your cue to run! Knowledge is your best defence, and we’re here to help you build with confidence.

New construction watchdog hammers home priorities for Building Commission NSW  - LINK

👉️  Build-to-rent bills pass Senate, unlocking 80,000 new homes - LINK

Our Comment: Mark my words—this will be a short-term win with long-term consequences. Build-to-Rent (BTR) desperately needs regulation; otherwise, users will inevitably face rising costs as private investors maximise their returns.

It’s a familiar playbook: attractive rents up front, then the screws tighten once tenants have nowhere else to go. We’ve seen this game play out before, and it’s no different with BTR. The wolves are circling, and without oversight, it’s the tenants who will pay the price.

👉️ Zoning law reforms in Queensland: What developers need to know - LINK

Changes to Vacant Residential Land Tax - LINK

Stage one works commence at Bentley Redevelopment Project - LINK

👉️ Could you own a house with 40 mates? These tradies do - LINK

7 in 10 Aussies say housing crisis worsened in 2024 - LINK

👉️ Master Builders Australia survey: Housing crisis getting worse - LINK

Social housing solar and energy efficiency upgrades get a $500 million boost - LINK

It’s the first glimpse of Melbourne’s future public-housing tower designs. Here’s what architects say - LINK

Our comment: This may indeed be an example of thermally efficient design, using thermal mass to lower heating and cooling costs. However, half the challenge we face, in my opinion, lies in our very definition of what a home is. For the past 70 years, society has been sold a fixed image of what a home should look like—and it’s time for that to change if we want meaningful progress.

We can’t keep doing what we’ve always done and expect the issue to resolve itself. But don’t worry—times like these, while appearing as "problems," are actually opportunities in disguise. It’s in these moments of challenge that we have the greatest chance to shift course and explore new directions.

MEDIA STATEMENT: 47,820 Queenslanders left waiting for social housing under Labor - LINK

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