The Block AUSTRALIA hit by massive money woes

PHOTO: Expect plenty of stress on this year’s season of The Block Australia. (Image/Martin Philbey)

According to realestate.com.au the supply chain issues in real estate construction are providing serious challenges when it comes to the availability of building supplies, combined with their spiralling costs and tradie shortages.

The challenges will certainly slow delivery of new homes, both houses and apartments, which will have ongoing impacts. The ramifications will go much wider than just affecting the delivery and pricing of new housing stock.

There’s actually been a two year pandemic-induced disruption within the industry, now combined with the inflationary hit, which will assist in putting a floor under the pricing of established stock during the emerging market downturn.

Rising costs and supply issues are set to cause plenty of drama on the upcoming series of The Block. Picture: Courtesy of the Nine Network

Viewers of the upcoming series of The Block will get to see it all on their screens as the return of the renovation show goes into around-the-clock anguish. Tortuous in its ordinary times, the recent filming sees the tree change contestant couples struggle to build five homes in rural Victoria.

The Block homebuyers are given an exclusive tour of upcoming season’s properties

Drama will ensue and it will hit the bottom line of the show as building materials have been costing Channel 9 up to 300 per cent more, according to the producer Julian Cress, citing the price of timber housing frames rising from $3.18 a metre to $9.30.

Previously the show’s producers would ring suppliers at 9am and get the delivery by 11am. But now it’s maybe in a month.

Scott Cam might be laying down the law more often than usual.

Back in the real world, the industry will see the survival of the strongest, with many under-resourced developers set to struggle to deliver project starts and completions.

Mirvac, the ASX listed company, has confirmed it was seeing inflation and supply chain issues playing out through the sector. But the veteran development company has indicated its experience and capabilities had Mirvac “well placed to manage the challenges.”

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One of Mirvac’s apartment projects is the transformation of the former NINE television headquarters at Willoughby. They expect to minimise the impact of supply chain issues on the timing and delivery of projects.

Will this year’s winners be forced to cut back on the upmarket bubbly? Picture: Martin Philbey

It has managed construction delays and supply chain risks with 83 per cent of its high rise development projects trade costs for FY23 locked in, and 43 per cent for FY24 across its many projects.