Building times for apartment blocks shot up 80 per cent over a decade and a half
Apartment building times have increased from 18.5 months to 33.3 months – heaping even more pressure on government's plans to build 1.2 million homes.
THE stark reality facing the government and its plan to build 1.2 million homes over the next five years is that construction productivity is in freefall.
Master Builders Australia analysis of Australian Bureau of Statistics data shows both detached home and apartment building times continue to blow out.
“Fifteen years ago, it took on average 9 months to build a stand-a-alone house. Fast forward to today and it now takes 12.7 months – an increase of over 40 per cent,” said CEO Denita Wawn.
“It’s even more grim for apartment building with an average of 18.5 months from approval to completion to a whopping 33.3 months – an increase of 80 per cent.
“With advancements in technology and construction methods, we should be building homes faster, not slower.”
With the need to build more high-density housing as part of the National Accord, the analysis will be tough reading for policy makers.
Ms Wawn highlighted a raft of contributing factors including labour shortages, declining productivity, union pattern agreements, supply chain disruptions, complex regulatory requirements, occupational certificate backlogs and critical infrastructure delays.
“As a result, we’ve seen productivity decline by 18 per cent over the last decade,” Ms Wawn added.
“Productivity is more than an economic buzzword. This data proves what happens in a construction environment without meaningful reform.”
The organisation is calling for action to address these bottlenecks and inefficiencies in the construction process.
“Streamlining regulatory approval processes, encouraging adoption of digital solutions, introducing incentives to grow the workforce through domestic and international means, and strengthening the domestic supply chain are just some examples,” Ms Wawn said.
