November 2024: the construction pipeline cracks
Multinational builder Beechwood Homes collapsed in late November. Several smaller Tier-3 builders followed. Build-cost inflation re-accelerated.
The transmission
Builder failures compressed the active builder universe by ~8% through Q4 2024 alone. Lead times on detached new builds stretched to 14+ months in NSW and 12+ months in QLD. Per-square-metre build costs rose materially.
What I told viewers
Sky News asked if this killed the new-build thesis. The opposite: builder consolidation tightened the supply pipeline further, supporting capital growth on existing new-build stock. Investors holding completed new builds saw their relative scarcity increase.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.