The Build BriefIssue 002

A deep pipeline means good trades are already committed. Book early. When you are ready, post your project.

Documentation quality decides how fast a job moves from permit to site.

The backlog is real work. Sequencing and cash flow matter more than chasing new leads.

Longer builds stretch construction facilities. Check expiry dates before drawdown.

Source: ABS Building Activity, Australia, March quarter 2026 (released 8 July 2026).

Market Watch · Signal 2 of 3For everyone in the build

02 · Cost Pulse

Residential is not only competing with residential anymore.

100%

Australian and New Zealand cities reporting construction labour shortages

cost inflation forecast 5.4% in 2026

Markets reporting construction labour shortages. Share of surveyed construction markets reporting labour shortages, by region.
Series	Share of surveyed markets
Australia & New Zealand	100%
European Union	93%
North America	79%
Global average	71%

Turner & Townsend rates Australia and New Zealand the most labour-constrained construction markets in the world, with shortages reported in every city surveyed, against a global average of 71%. Labour availability is now the single biggest driver of construction costs. Input costs, by contrast, have stabilised over the past year.

The pressure has become sectoral. Data centres are the top performing sector in both Melbourne and Sydney, and 83% of markets report shortages in the mechanical, electrical and plumbing trades those projects consume. May's record $10.83 billion of non-residential approvals was driven by large data centre projects in Victoria and New South Wales. Add health, defence and the run-up to Brisbane 2032, and the trades a home needs are being bid for by projects a home cannot outbid.

Regional construction cost inflation is forecast at 5.4% this year, easing to 4.9% in 2027.

What this means for you

Waiting does not automatically make a build cheaper. Trade availability, not material price, will set your timeline.

Design complexity now has a clearer labour-cost consequence. Bring buildability forward.

Your mechanical, electrical and plumbing subcontractors are being courted. Capacity is a strategic question, not a back-office one. When you have room, browse projects that fit your capacity.

Labour escalation can move a final build cost after approval. Contingency is doing real work this year.

Source: Turner & Townsend Global Construction Market Intelligence, reported by Build Australia, 9 July 2026; ABS Building Approvals, May 2026.

Market Watch · Signal 3 of 3For everyone in the build

03 · Market Mood

The market has moved from theatre to negotiation.

30%

national auction share of new listings, June 2026

clearance rate 52.7%, lowest since July 2022

Auction share of new listings. The national share of auctions to new listings fell from about 45% in November 2025 to just over 30% in June 2026, against a long-term average of around 28%.
Series	Auction share of new listings
Nov 2025	~45%
Jun 2026	~30%
long-term average	28%

The national share of auctions to new listings fell from nearly 45% in November 2025 to just over 30% in June 2026, led by Sydney and Melbourne, against a long-term average of around 28%. Some of that is the ordinary swing from spring selling season to winter. The part that is not seasonal is the clearance rate, which fell from a peak of 72% in late September 2025 to 52.7% in late March, the lowest since July 2022.

As clearances fall and withdrawals rise, vendors are choosing private treaty over a public campaign that might not sell. Cotality attributes the broader cooling to the cumulative effect of rate rises, cost of living pressure and policy uncertainty. With the share still above its long-run average, there is room for it to fall further.

For anyone buying a site, a knockdown or a renovator, the negotiating table has moved.

What this means for you

There may be more room to negotiate on land and renovator stock than there was six months ago. Before you commit, get a preliminary estimate.

Clients may take longer to commit. Stage feasibility so the early decisions feel safe.

The pipeline is less automatic. Clarity and trust before contract matter more.

Pre-approvals, valuations and deposit positions need closer monitoring in a softer market.

Source: Cotality Monthly Housing Chart Pack, July 2026.

The FeatureThe Build Brief · Issue 002

Victoria's building rules changed on 1 July. Here is what actually moved.

The largest change to Victorian domestic building regulation in years commenced this month. Three things matter most, and one date decides which set applies to you.

The Building Legislation Amendment (Buyer Protections) Act 2025 commenced on 1 July, alongside provisions from the Building Legislation and Treasury Legislation (Tax Relief) Amendment Act 2026. Three things matter most.

Insurance: from last resort to first resort

Domestic Building Insurance has been replaced by the First Resort Home Warranty Scheme for contracts signed on or after 1 July 2026, on work over $20,000 in buildings of three storeys or less. Cover rises from $300,000 to $400,000.

The phrase that matters is "first resort". Under DBI, an owner could claim only if the builder died, disappeared or became insolvent. Under Home Warranty, an owner can claim where work is incomplete, defective or non-compliant and the builder is unable or unwilling to put it right. Major defects are covered for six years, others for two.

The Building and Plumbing Commission is now the sole, not-for-profit provider. The private domestic building insurance market closed on 1 July. Existing DBI policies run on their own terms until they expire, and cover does not transfer.

Rectification orders: a ten-year reach, backwards

The BPC can now direct a builder or a developer to fix defective, non-compliant or incomplete work, up to ten years after completion, extendable by VCAT. The power is retrospective, so it reaches homes finished before 1 July. The BPC can also issue a rectification costs order, recovering the cost of investigating and monitoring compliance.

Registration: financial standing becomes a licence condition

The BPC can set minimum financial requirements for domestic building practitioners. A two-year transition runs to 30 June 2028, with the requirements expected to apply from 1 July 2028. Practitioners will need to satisfy them to become registered and to stay registered. It is the same direction the platform takes with verified builders on BuilderHQ.

Three practical notes

The premium is paid to the BPC within ten business days of the contract being signed or work starting, whichever comes first, and the owner is covered from signing. Victorian HIA contract templates issued before 1 July should not be used for new jobs. And industry has asked that dispute resolution keep pace with the new cover, which is a fair point: the scheme's value to owners and builders alike depends on claims moving quickly.

Also worth knowingthe fine print

Developers of apartment buildings of four storeys or more must notify the BPC before applying for an occupancy permit, from 1 July 2026.
Developer bonds of 2% of total build cost do not effectively commence until 1 July 2027, applying where a building permit is issued on or after that date. Decennial insurance will be an alternative.
A new building permit levy of 0.37 cents in the dollar applies to non-regional Class 2 to 8 buildings where the cost of work is $1.5 million or more, replacing the cladding rectification levy.
Further Domestic Building Contracts Act reforms are expected from 1 December 2026.

What this means for you

Check your contract date. It decides which scheme covers you. When quotes arrive, compare tenders side by side.

Defect definitions now sit closer to documentation. Specify clearly.

New contracts, new premium timing, new obligations. Update the paperwork this month.