Tuesday June 2, 2020

Action Plan’s passive path blocks homebuilders

Indigenous mid-sized builders need a new funding model that lets them expand output

5th March, 2017

The residential construction sector has gone through a turbulent decade. Ten years ago, it produced more than 90,000 units annually, vastly more than was needed. Now it struggles to produce 15,000 units a year in a market where up to 25,000 are needed per annum. The sector’s inability to respond to demand is rooted in a total loss of capital that needs to be replaced before it can start meeting demand.

Residential property development is capital...

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