Commercial Construction 2022

Last month we discussed how the construction industry has been impacted in recent months, and the roll on effect this has had on residential property.

Towards the end of May we heard of two more building companies that have gone into liquidation, including Surfers Paradise builder Pivotal Homes, and Cleveland-based Solido Builders, which specialised in bespoke luxury homes. There was also news Metricon received a $30 million capital injection from its owners to keep afloat. The struggle continues.

This month, we discuss commercial property.

Essentially, the same things that have impacted the residential construction market are impacting commercial as well.

COVID-19 lockdowns and infections have certainly played a part over the past two years, as well as lower rates of international shipping for products coming into Australia. And in 2022, we’ve experienced flooding as well and a lack of supply for products needed in the building process. Due to this lack of supply, those suppliers who do have stock have been able to hike their prices – higher demand usually leads to price increases.

According to reports, steel and timber have increased in price by more than 60%, and people like tilers and bricklayers are charging 50% or more than they were three years ago.

So, where does this leave the commercial construction industry?

Let’s take a look.

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