How consumer trends are changing the building industry.

ADELE KATELANIS, BUILDER PARTNER SPECIALIST

It has not been an easy feat for our builder partners over the last 12 months; however, it is continuing to be business as usual with many of our builder partners delivering on some incredible built initiatives in both the home and medium density space. There have been many concerns and discussions throughout the year surrounding the shortages of trades across Victoria, as well as the scarcity of timber, which was affected by exports around the globe, to eventually impacting building materials which we did not anticipate would effect both the builder and end consumer.

Given the concerns surrounding the higher cost of living, and impacts around supplies globally, consumers’ budgets will now be tighter than ever. The golden days of future homeowners wanting to splash out and make their home a sanctuary have quietly disappeared. Now that borders have opened and restrictions have dropped, dodging an icy Melbourne winter for a summer holiday in Europe has never been more enticing. Homeowners no longer have the desire to create homes that are a beautiful oasis, as their additional oasis money would rather be spent visiting exotic locations overseas.

Double storey homes continue to be a very strong trend for our builder partners, with many new homeowners having the desire to maximize their home by increasing their square footage. As affordability continues to be at the forefront of many homeowners, many buyers continue to consider purchasing a smaller block of land and maximizing as much as they can on the built outcomes of their new home.

Multi-functional rooms, and access to amenities are just as important as the home itself, with many businesses and employees operating and working remotely. It continues to be a bit of a juggling act for our buyers, with many purchasers wants out pricing their needs. With many of our purchaser opting for the smaller block sizes, it seems many still want a double garage regardless. This was prevalent during Covid times to help assist family with multi-functional spaces. This will be tricky for both land and builder partners to navigate around the smaller block sizes, and still assist their purchasers around the desirability for single garage home.

Looking forward to 2023, there will be some incredible and innovative built outcomes within the building industry.

Energy Efficient Homes

In the coming months, homes will be required to hit 7 stars. What does this mean for our purchases and builder partners? Excitingly, for new homeowners they will have a fresh selection of newly designed floor plans from our builders’ partners, as well as new additional upgrade packs to help comply with these new requirements. For our builder partners it means that they are hastily working towards new floor plans and initiatives to help hit the 7 Star building requirements. Although initial challenges may arise it creates a great opportunity to provide additional value to purchasers and create a set of innovative products that purchasers will start to demand and want.

It’s predicted that in Australia, major public infrastructure activity will approximately double over the next three years. With the building industry forced to reconsider their building practice and deliverables, and the increase cost of materials we will start to see builders explore other ways to reduce material costs. New materials and product development will be considered that both positively impact the environment and helps reduces costs for the end purchaser.

Customer Centricity 

In previous years we have seen many purchasers shopping around excessively and selecting a builder prior to receiving titles however we expect to see a trend of purchasers selecting a builder very quickly. These purchasers will expect a quick turnaround with their chosen builder and will most likely select a builder that delivers a quality customer experience. With the difficulties that many builders have faced over the last couple of months, many purchasers will select a builder that can promise both reliability and experience as well as delivering on a memorable customer journey.

It’s going to be a challenging but exciting time in the building space, and we look forward to working alongside and supporting our builder partners during these times.