According to The Australian Financial Review, Australia’s largest builders are preparing for price rises as the supply contracts that have kept them cushioned from surging costs come due for renewal.
Home-building, a key focus of the federal government’s efforts to stimulate the economy that is already rebounding from last year’s COVID-19 recession, is not the only sector facing inflation. Fruit and vegetables are already rising and consumer goods from bicycles to cars also set to surge.
While smaller builders have already felt the hit of higher costs including supplier CSR’s 4 per cent price increase last month on its Gyprock plasterboard products, the country’s biggest players say local shortages and increased global demand for some materials, particularly timber, will hit them, too.
Subscribe to our English Newsletter