Property developer leaders are calling for a major shake-up of immigration policy, bringing in more tradies to meet the shortfall.
Some big players in the real estate industry have blamed the policies of the Albanese government for the crisis facing the building industry.
More than 1500 construction firms in NSW were forced to shut down in the past financial year, according to an ASIC report, with close to 3500 closing their doors across the country.
The biggest affordable housing builder in the state, Bathla Group, $3.6bn in debt, says “there’s no cash”, it can’t afford to pay its staff and may be shut by the end of the week.
The director of a major off-the-plan marketing firm, David Milton of SRM Residential, didn’t mince words when asked how to solve the crisis, saying the Federal Government should have done more to alleviate rising building costs.
He was also critical of its immigration policy, even linking the building firms’ woes to the return of the so-called “ISIS brides” to Australia from Syria in May and June, saying the focus should instead have been on bringing in young tradespeople.
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SRM Residential director David Milton says: “Albanese needs to go.”
“This is a huge day of reckoning .. builders have borne the cost of increased construction cost for years .. the industry has been left holding the baby,” Mr Milton said.
“We need to sack the Labor national government, Albanese needs to go .. his policies do not solve the housing crisis and he‘s overtaxing everyone and killing innovation for work and business development.”
He also said that while his firm dealt only with developers with a proven record of delivering, many others were struggling because of the rising costs and the fact they don’t have enough apprentices or skilled workers.
“Forget the ISIS brides, bring in more tradies,” Mr Milton said.
“We need more apprenticeships and better immigration policies that recognise construction workers as skilled labourers … there are not enough people building.
“Now we’ve got the Americans at war in Iran which is affecting supply lines … the plastic used for pipe, for eg, is made from petroleum.”
Meanwhile, Justin Brown, founder of leading property developer Abadeen, which builds high-end apartments across NSW, Victoria, Qld and Western Australia, said: “The industry really hasn’t recovered since Covid.”
A Bathla Group project at Rouse Hill … the developer says it can no longer afford to pay its workforce.
He said a dramatic rise in construction costs had been increased by disruptions to the supply chain but also “the bureaucratic nature of our government and the heavy-handedness of the building commissioner that added 30 to 40 per cent to the cost of new product and remedial work”.
Mr Brown said this had been compounded by the “perfect storm” of interest rates rising, global tension and wars.
He said the recent Budget changes, which saw negative gearing and capital gains tax reforms, were “the icing on the cake”.
“Currently now, unless you are in the highest end to premium end of the apartment market, you can’t deliver product at a commercial level and that is what is sending some contractors and builders to the wall,” Mr Brown said.
“The other problem is that we simply do not have enough tradespeople.
“What we need to focus on is productivity and the workforce and realistically the taxes on the property industry.”
Because of construction blowouts and delays in the approvals process, he said the cost of building a typical two bedroom apartment had doubled in the past eight years, rising from $460k to $950k.
Abadeen Group Managing Director Justin Brown … “we do not have enough tradespeople.”
And now developers were trying to pass these extra costs on to buyers during an affordability crisis.
“If you are trying to produce apartmnts in Sydney’s western suburbs, they are worth somewhere between $700k and $750k, but cost $900k to produce by the time the construction and taxes costs are added.
“That’s why the Goverment is never going to meet its targets and there will be further pressure on the house-and-land building base, plus the Government is a decade behind producing essential services like water, power and sewerage.”
Data released from the National Centre for Vocational Education Research in June showed that just 105,790 construction apprentices were in training at the end of 2025 — the lowest number in five years.
The centre said that Australia needs more than 300,000 additional infrastructure workers by 2030, alongside a further 116,000 housing construction workers.
Master Builders Australia’s Chief Economist, Shane Garrett, said the trend was deeply concerning.
Master Builders Australia CEO Denita Wawn said Australia needed more workers to build its way out of the housing crisis.
“We need more Australians to complete apprenticeships and to get on the tools, backed by a migration system that brings in trade‑qualified workers ready to contribute from day one,” she said.
“This combination will deliver a positive net impact on housing supply.”
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