James Elliott (pictured above) from the Red Dog Group, a civil engineering firm on the Gold Coast, argued that builders are not responsible for the climbing costs associated with home construction.
Instead, Elliot attributed the rise to bureaucratic processes and excessive government regulation.
Elliott said that excessive fees, prolonged delays, and slow approval processes primarily driven by local and state governments are significantly impeding building projects.
The Red Dog managing director highlighted a stark contrast in governmental efficiency over time.
“Commonwealth and state governments managed to create over 50,000 dwellings in 1950 when our population was one-third what it is today, but the current government ambition is just 30,000 over five years,” Elliot said.
According to Elliott, the construction industry has failed to communicate effectively, leading to misconceptions about the source of cost increases.
“Builders are taking most of the blame for the flow-on of construction price rises but also haven’t helped themselves by properly communicating that this just isn’t the case,” he said.
“The reality is there is still too much red tape, increases in local planning costs, and unaffordable infrastructure levies, all of which are stymying new approvals and ultimately pushing prices up.”
The recent increase in insolvencies among small to medium building companies exacerbates these issues, putting additional pressure on the sector.
“The economic stress caused by the bankruptcy of thousands of builders has forced subcontractors to favour government projects for financial security and shun the private sector,” Elliott said.
This shift has further strained the already tight labor market, compounding skills shortages and delaying project completions.
Elliott pointed out that despite varying trends across states, there is a general downward trajectory in building approvals, with a 3.6% decline overall. This trend, he warned, is likely to continue, further complicating the landscape for future construction projects.
