The last year has been an incredibly challenging one for the building industry – with the pandemic having an effect on prices of all materials and also disrupting supply chains across the world.
As we begin to take our next steps out of the pandemic, it seems that these challenges are going to be with us for a while longer. The industry is seeing increased demand for housing, but due to multiple and extended lockdowns we have seen large delays in shipments supplying Australia – while strike action in several ports has added to the difficulties and timings in obtaining essential building materials.
According to the Cordell Construction Cost Index (CCCI), over the past decade, the costs of building a new home have increased steadily, and the demand over the past year has seen the biggest growth in cost since 2008,
We delve a little deeper into the effects of this on the building industry, and how Manor Homes is committed to bringing you your lifestyle dream in these testing times:
In any industry, whenever we see increased demand and restricted supply prices inevitably rise. This is especially true in construction as key materials are required by all builders in order to complete homes. At Manor, while we keep a close eye on the prices of materials and put in place plans to deal with this, the demand on key materials across the world has seen shortages in almost every country, including Australia. The RBA states that the price of structural materials such as timber and steel have jumped by as much as 40% at times this year. Not only this but the high demand for builders has also led to increases over every aspect of the industry, including labour costs.
Timing of your build
Thankfully, our homes are built in our factory making us a manufacturing facility and allowing us to continue to build homes for our clients with many less disruptions than many traditional builders have faced. We have still had to deal with the effects of these disruptions, as our suppliers have had to operate with a heavily reduced output, and in some cases not been able to get hold of materials at all.
Our factory is in full operation to help bring you your dream homes, and we are doing everything we can to help you realise your lifestyle dream. We are however asking clients to prepare for longer timelines when building with Manor. As demand for regional and rural properties has shot up, Councils have also struggled to keep up with planning applications and approvals, and many other builders across Australia have full schedules that they are struggling to deliver on, leading to many builds being stopped completely.
The process of modular building means that we are able to plan and forecast build timings and order materials needed much further ahead than other traditional builders, allowing us to let you know of any changes in timelines well in advance. Although this may mean that the start of your build within our factory may be a little later than hoped, this will often be much sooner than with other builders.
While we are doing everything we can to mitigate any supply shortages, sometimes stock issues mean that some selections have lengthy lead times for orders, or are unavailable for the foreseeable future. If this is the case with an item you have selected, we can help to reduce delays by suggesting an alternative finish or selection that is available and will still suit your themes and styles. We want you to achieve the look you want for your home, and we certainly don’t want you to change your choices if you do not want to, however if you are flexible it means that we can use products and materials that are in stock or available quickly, reducing your wait time and allowing us to complete your home.
We will work with you every step of the way to make sure you are aware if any of your selections may cause longer delays, and to help achieve an outcome that suits your lifestyle dream but also allows you to get into your new home as quickly as possible. Our relationship with you remains our top priority and as such we will always be open and give you the most up to date information we can no matter what stage of our process you are at.
The Value of your Land
These factors may have led to increasing prices when it comes to the building of your home, but the demand has also affected the real estate market, leading to a rise in the overall value of homes and land. With many people now re-assessing their priorities and wanting to make a Lifestyle change, the value of regional and rural homes has reflected this – the price of residential land has increased at nearly double the rate of material prices, and with land in tight supply this has meant that finished homes and land value has increased by over 25%, so although your new home may cost a little more to build, the overall value in the current market may well have increased too.
We’re here to help
Here at Manor Homes, we operate with honesty and transparency. While this is a challenging time for the construction industry, we will always do what is best for our clients. Positively, since we have been consistently constructing homes for over 29 years, we have established supply lines, excellent key supplier relationships and solid contractor arrangements Price rises and delays may be an inevitable knock on from the pandemic, but we are doing all we can to make sure the impact on your dream home is minimal.