- Timber prices soared 380% to record highs this year as domestic suppliers contend with surging global demand.
- Domestic timber supplies waver following 8.5 million hectares of forest burned in the 2019/20 bushfires.
- $1.6 billion in residential construction remains on hold as 9,800 households await the completion of their dream home.
Australian builders have been left without their most critical material as a global construction boom sends timber prices into orbit, up 380% to the record high in May this year.
Domestic supplies of timber have also hit a wall following the 2019/20 bushfires in New South Wales and Victoria, which destroyed 8.5 million hectares of forest, taking decades to replace according to the Australian Department of Agriculture, Water and the Environment.
On the receiving end of critical supply shortages are construction businesses forced to wait on $1.6 billion of residential construction activity stimulated by the Federal Government’s HomeBuilder grants.
Of the 99,000 families who applied for the grant to build their dream home, 9,800 (10%) have been left in limbo, likely forced to resign their lease without knowing when construction will conclude.
You can read the full story at Grafa
THE WEEK AHEAD
TUE | 20th July | 0930 AEST
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How will investors assess the RBA’s monetary policy meeting minutes after record low interest rates were held for another month?
WED | 21st July | 0930 AEST
Australian Retail Sales (MoM) (June)
How did Aussie retailers cope with renewed lockdowns in the month of June as the Delta variant of COVID-19 landed in Australia?
THUR | 22nd July | 0930 AEST
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Did Australia’s business conditions fall in the second quarter as COVID-19 outbreaks popped up along the East coast?
FRI | 23rd July | 1600 AEST
U.K. Retail Sales (MoM) (June)
Did the easing of lockdown restrictions, and the ramped up vaccination rollout in the U.K. boost consumer retail spend in June?
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