Home building costs soar as builders raise prices to protect themselves
The collapse came days after another Victorian builder, Snowdon Developments, went into voluntary administration leaving 550 homes unfinished. On Friday another major private developer, CBD Developments, blamed government lease relief measures and the COVID-19 pandemic for the collapse of six of its companies. Credit reporting agency Creditor Watch expects more bad news to come in the building sector. “We’ve seen the bankruptcy numbers start to creep up,” said chief executive Patrick Coghlan, though he noted the bankruptcy numbers were still below 2019 levels. After the COVID-inspired lull, Australian banks and the Tax Office have begun issuing final notices to struggling businesses, something that hasn’t been done since the pandemic hit. Many construction companies have a hard time paying their bills on time – a sure sign of trouble ahead. Creditor Watch data shows nearly 12 percent of construction companies are late paying bills 60 days. Coghlan says builders small and large are now