Builders call for more stimulus as unit crash looms in property

Home builders have called for the Morrison government to extend the HomeBuilder scheme to tide the industry over.

HIA chief economist Harley Dale said the pandemic had compounded what was already expected to be a difficult year for the building industry. Picture: NCA NewsWire/Bianca De Marchi

Home builders have called for the Morrison government to extend the HomeBuilder scheme to tide the industry over until international migration returns, amid fears that the apartment sector may be crippled by a fall off in demand.

The number of building starts for detached residential homes to the end of June 30 remained consistent with the previous year and was likely to keep pace on the back of federal stimulus, according to the latest Housing Industry Association figures. But the outlook was far more gloomy for apartments, with forecasts showing a fall in demand in major cities.

HIA chief economist Harley Dale said the pandemic had compounded what was already expected to be a difficult year for the industry.

Construction boss Scott Hutchinson has warned the momentum that propelled the recent apartment boom is likely to slow over the next 18 months as the sector bottoms out.

The quantum of residential work started by construction companies Hutchinson Builders and Multiplex over the last financial year caused the duo to surge up the HIA’s ranking of builders by volume in the latest Housing 100 Report.

Multiplex saw a huge 646 per cent increase in the number of new starts year-on-year linked to numerous high-rise developments and it is also hoping for support for units.

Simonds Group joint chief executive Kelvin Ryan said the outlook was “much better” due to the introduction of the HomeBuilder package and backed calls for it to be extended.

“It should be extended and they should change the criteria and open it up to permanent residents,” he said.

“That will bring a lot of people into the market and hopefully by that time overseas migration will be back on track.”

Mario Biasin, founder of Metricon Homes, was “quietly optimistic” about the future and even suggested confidence would return post-Christmas.

He said in his 50 years in the property industry he had never seen a better time for first home buyers to enter the market.

Metricon Homes emerged as the country’s most prolific builder for the fifth year in a row in the Housing 100 Report.

Hutchinson rose rapidly up the list to be named the second most active builder in the country, followed by Multiplex, ABN Group and MJH Group.