ASIC data shows more than 2,500 construction companies entered liquidation, administration or receivership since mid-2021, with Porter Davis collapsing in March and leaving about 1,700 homes unfinished. UDIA president Maxwell Shifman called the casualties shocking and warned up to 30 per cent of sales will not proceed.
As I told the ABC: “This is across the board, every builder will be re-forecasting profitability, every developer, it is one of those things where there is this perception everyone is making a lot of money in building construction and development”
I also said: “But it has actually been far from it for the last few years.”
And I added: “So up to 30 per cent of existing sales are no longer going to proceed to build and that is going to cause an issue down the track where we have gone from this profitless boom of too much work and making no money, to possibly not enough work coming quickly ahead of us.”
I went on to say: “The factors that are at play now are absolutely unprecedented, it is the worst I have ever seen.”
the ABC, 17 May 2023 — Read the full article