News & Advice

2024 has arrived and is now well underway.
One word we are hearing already, and we expect to constantly hear this year from Perth builders is the term Capacity.
Perth home builders in the project building market, are now reviewing the jobs and the workload they are taking on to avoid the past problem of build times.

Many are now cleaning house and handing back deposits and copyright to the owners, telling them, we now don’t want to build this home, or its too complex, or it’s just not what we want to build anymore!

Some Perth project builders are closing the books off per month with limited numbers, and some have even told the sales team not to look at another sale a until at least March.

So why is this happening?

The investor market has filled the books of many big brands, to the point that the Perth home builders are now bringing in even stricter rules for the sales teams to get deal acceptance. This is a result of the large number of sales they have had from about August 2023 onwards.

Some of the rules for example are things like, no narrow blocks under 12m wide, no sloping blocks with 1m of fall or more, no custom home designs, and even closing off the two-story homes design sales.

Each Perth builder is applying rules to sales teams differently to suit their capacity.

So, what does this mean for the Perth residential home buyer?

Well unfortunately for those in that situation, it will cost them more money, in both getting quotes from other builders, and of course each individuals own holding costs.
Now as bad as that may sound, I’m always all for Perth home builders staying in their lane, what we don’t want is thousands of new homes in Perth taking 3-4 years to build.

What happens going forward?

The main workload/WIP of the industry will be spread amongst more builders, that was always going to happen when BGC decided suspend new sales. BGC filled the spot for a long time, building three to four thousand new homes per year, so it should be seen it as a positive that the workload will now spread to more builders.

WA has some very good home builders that do not spend big on advertising and marketing so are not always well known. The opportunity for these builders to participate in the construtcion of these homes is to me, an exciting one.

NHBB has a number of top quality home builders available that many people don’t know about, some of which we have been working with since 2009 and have delivered positive outcomes for our clients.

Should you find yourself in this situation or want advice building a new home, touch base with our independent team today and see if we can help you going forward.

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About the Author

Tristan Kirkham | Managing Director

Tristan has managed some of Australia’s major building companies, both project and private. His commitment to customer service and providing market leading communication product for the home building industry has led to a role as regular Judge in the HIA Green Smart, HIA Kitchen & Bathroom Awards and the major Housing Awards. Winning multiple awards throughout his career in the housing industry, he is dedicated to improving the industry standards and practices. Tristan's vision is to provide a better way to build homes for all parties.