Queensland builders are in a fight for survival as the Covid pandemic creates a profitless boom that may leave many facing collapse, claims a prominent Brisbane developer.
Glen Norris and Chris Herde August 3, 2021 - 9:10AM The Australian Business Network
Queensland’s building sector is buckling under the strain of material shortages and cost blowouts in the wake of the Covid-19 pandemic which could see a wave of future business collapses.
While Queensland did not follow NSW’s lead and mandate a construction site shutdown, a combination of population growth, government incentives sparked by the Covid-19 pandemic and record low interest rates have conspired to create a severely stretched sector.
Consolidated Properties Group executive chairman Don O’Rorke said over the past six months it has been increasingly difficult to lock down prices.
“Because there has been such a demand for building services, sub contract prices are going through the roof — things like materials, steel, timber and timber and facades are all under pressure and there have been some price increases of up to 30 per cent,” he said.