Material charges hammer builders

NEARLY 30,000 Queensland first-home buyers have signed on to the government’s HomeBuilder scheme, final data has revealed, but what should be a golden age for residential builders has been marred by supply chain issues.

Final HomeBuilder application numbers, provided by the federal government, show Queensland accounted for 21 per cent of the 137,621 signups nationally – second only to Victoria.

The grant program, which was announced in mid-2020, was designed to boost the construction industry after it had hit a wall amid the pandemicinduced economic downturn.

Master Builders Queensland deputy chief executive Paul Bidwell said HomeBuilder had been an “important” part in increasing demand for new construction, alongside factors such as low interest rates and people opting to flee to the largely Covid-free Sunshine State.

But Mr Bidwell said what should be “golden days for builders” had been marred by serious supply chain issues sparked by Covid-19, with freight problems anticipated to last “into 2023”.

Supply chain issues have in turn pushed up the cost of building a new home by about 20 per cent in Queensland, with the costs largely borne by builders, Mr Bidwell said.

Some companies unable to wear that cost have consequently collapsed.

The federal government, acknowledging “Covid-19 related supply constraints”, in April changed the rules so applicants had 18 months to commence construction instead of six.

According to the government, Master Builders Australia analysis has put the potential economic boost of HomeBuilder-supported projects at $120.62bn, with the program “directly supporting 374,340 full-time jobs” nationally.

Housing Minister Michael Sukkar said the HomeBuilder program meant “more work in the pipeline and more jobs”.

Of the 137,621 HomeBuilder applications received nationally by the April deadline, 28,957 applications were from Queensland.