The surge in new home builds and its impacts
This is great news for the economy and has provided much relief to the building industry, supporting jobs and businesses throughout the supply chain.
However, there are some impacts to be aware of if you are currently building a new home, which we have explained below.
The key statisticsFirstly, here are some relevant figures that paint the picture:
The positive impacts
- Economic impacts - This huge increase in demand on the building industry has provided relief and much-needed certainty throughout the supply chain. The benefits are felt before construction even begins, through to the finishing touches – from the suppliers of materials such as timber, steel, windows, and concrete, through to the builders and landscapers, and the entire workforce in between.
- More Australians being able to afford to build their dream homes– The record value of home loans being approved for new builds and the increased financial support from government means more and more Australians are fulfilling their dream of building a new home.
The challenges it has brought
- Unforeseeable delays- The construction boom has had some uncontrollable impacts on the building industry, from approvals right through to sourcing materials. Many of these delays are outside the builder’s control, including local council and water authority approvals, financial institutions processing loan applications, and land titling.
- Limited access to building supplies - The coronavirus pandemic also continues to impact global and local supply chains. This, coupled with the surge in demand, is causing unprecedented delays in the supply of building materials such as slab materials, windows, timber and steel.
- Increased costs - Such significant demand for new homes, combined with limited availability of some building materials, has seen the cost of housing construction increase. It is a matter of supply vs demand – and is another uncontrollable factor that has a flow-on effect across the entire industry. Costs are rising for everyone, from the cost of labour through to building materials. This isn’t isolated to Australia either. Countries across the world are experiencing similar issues as construction forms a key part of their economic recovery from the coronavirus pandemic.
What you can do
- Ask questions – we are here to help you – If you are unsure of anything throughout the build process our team of experts can help you.
- Be prompt on things we need your help to arrange – Throughout the build process there are certain things only you, as the customer, can arrange. For example, finance, appointment confirmations and elements of your land settlement. We will keep you informed on what we need your help with but ask you to be prompt so we can ensure that your build runs as smoothly as possible.
- Be prepared that you may face some uncontrollable delays – There may be delays outside our control, so we ask you to be prepared to discuss an extension of time if this occurs. This will help to ensure your build continues progressing.
What we will do
- Keep our builds moving as fast as we can – We give you an estimated build timeline and we aim to stick to it. Our large network of suppliers, trades and stakeholders mean we can keep construction moving and often have multiple trades on site.
- Keep our customers constantly updated – We are committed to keeping clear, honest communications with our customers, so they know what’s happening with their builds at all times. If there is to be a delay at any stage, we will formally notify you of the reason and the likely timeframe.
- Keep working closely with our trusted suppliers – We have been building homes since 1983 and have great relationships with our trusted build partners. We are in regular communications with them to understand their supply chains and are managing the situation closely with them.
- Keep our price freeze guarantee - Our 12-month price freeze will also offer additional comfort during these uncertain times. If you buy a home with Burbank but your land has not titled yet, then we will freeze the price for up to 12 months from your initial deposit date, so you won’t have to worry about price rises.
You can rely on Burbank.We are an award-winning, Australian owned and operated business and have been building homes for over 35 years. You can trust our expert knowledge and experience to make the journey towards building your dream home as seamless as possible.
And being part of the Burbank Group means we have affiliate companies that can help to streamline the build process, reducing our reliance on third parties.