A number of South Australian building companies have collapsed or are on the brink of collapse due to the national housing downturn.
Adelaide construction company Tudor Homes has gone into liquidation and JML Home Constructions has already shut.
This follows a number of recent shutdowns, including ODM Group, OAS Group and Platinum Fine Homes.
According to Master Builders SA chief executive Ian Markos, low population growth, stricter lending policies, planning laws and a lack of land release have all contributed to the fall of local building companies.
The latest data from the Australian Bureau of Statistics (ABS) shows that dwelling approvals fell by 27 percent nationally over the last year.
“The government needs to sit down with the industry and start working out how we can get more houses built in South Australia and work out how the thousands of people employed have a job for the future,” says shadow treasurer Stephen Mullighan in a comment to the ABC.
Markos says Master Builders SA’s ‘Make Housing Great Again’ plan could be the answer.
The plan includes five initiatives, such as a boost to the first home owner grant and a Productivity Commission review of land and property taxes and charges.
Treasurer Rob Lucas says that while some of these initiatives are being considered, budgetary pressures will not allow for the financial incentives suggested by the plan, and that only “non-financial” measures are being considered.