Construction subsidies create ‘unintended consequences’ for Perth’s overheated construction industry

It’s been 75 weeks since Perth couple Cassie and Julian Kirtisingham signed a contract to build a five-bedroom, two-bathroom home in the city’s southern suburbs.

Like many new home buyers, the couple signed up at the end of 2020 so they could take advantage of $20,000 from the WA government and $25,0000 in federal government stimulus grants designed to keep the construction industry alive. during the pandemic.

The slab was laid in September last year, qualifying them for the grants, and this was followed by the lower level of bricks in December.

But, as Ms Kirtisingham documented on an Instagram account illustrating the realities of building a home in Perth’s current market, there has been no construction on their block since.

“Unfortunately, even though our wood has been there for six weeks, we are almost 72 weeks away and no work has been done since early December,” she posted in early April.

The slab for the Kirtisinghams’ home in the southern suburbs of Perth was laid in September 2021.(ABC News: Provided)

However, since signing their contract, the couple said their manufacturer had given them two price increases, two contract extensions and notified them of another.

The cost of building a house in Perth jumps by 16%

Their story is not unusual in Perth’s overheated homebuilding market, where the rate of inflation is the highest of any capital city in the country and the cost of building a new home has risen by nearly 16% in the first quarter of this year.

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