Over nine in every ten Western Australian builders reported average profits or above in the March quarter of 2007, according to a survey released today by Master Builders Association of WA.
Over nine in every ten Western Australian builders reported average profits or above in the March quarter of 2007, according to a survey released today by Master Builders Association of WA.
The full text of a MBA (WA) announcement is pasted below
Building industry profits remain sound despite labour and material shortages and other symptoms of a building boom according to the Master Builders Association of WA.
The latest quarterly Master Builders / Bentley's MRI Survey of Building Industry Conditions of 62 major WA builders for the March quarter 2007 showed that the building industry had shown remarkable resilience in overcoming trading difficulties to record a strong profit result. In the housing sector over nine in every ten builders (92 per cent) reported average profits or above, compared with 79 per cent in the June quarter 2006. This was despite continued problems in attracting skill labour, and timely delivery of building materials.
Sales activity in the housing sector remained satisfactory. Some post-Budget revival in the first home market was expected, although this could be more gradual as would-be buyers locked into fixed term rental leases delay their purchasing decision until expiry of their rental agreement.
New water and energy regulations are expected to have a smooth introduction. Survey respondents noted that around 40 per cent of buyers already request a solar or gas boosted hot-water service, which will become mandatory on all new housing from September 2007, at an extra cost of around $750 (for gas).
The survey noted that proposed mandatory requirements for a grey water system or rainwater tank are more problematic, with only 4 or 5 per cent of buyers currently requesting these items.
Commercial building profits and workloads are all very strong. Industry capacity remains stretched with continued labour shortages and delays in material supply.
Commenting on the survey results, Master Builders Housing Director Gavan Forster said that the survey was an accurate reflection of market conditions.
"Builders' resilience in overcoming a difficult trading environment to produce quality housing has again been borne out by the survey results," Mr Forster said.
"Prospects for the next six months remain good with continuing strong sales inquiries and display centre traffic."
"We expect well over 20,000 dwelling starts again in 2007-08. This will be the fifth successive year when we have exceeded this threshold level," Mr Forster added.
