BGC is aware of a media report today concerning a potential class action against the BGC Housing Group.
We take this matter seriously and BGC Housing Group will vigorously defend any action.
BGC Housing Group is committed to its customers and we have been diligently working our way through our existing home builds. As a result of a severe lack of labour and materials in the building industry – something beyond the control of BGC Housing Group – we have taken the unprecedented step of ceasing new home sales until the backlog is cleared.
We are acutely aware of the impact of delays on homeowners, and we remain focused on finishing all homes we currently have under construction.
There is no easy solution to resolving the labour and materials shortages and constraints, that we see across Western Australia, in all industries and sectors. However, BGC Housing Group has been diligently seeking to build as quickly as possible, while maintaining quality and safety.
Last month BGC Housing Group had a record production month, where approximately 70 homes per week were completing roof carpentry, roof cover and lock up.
The number of sales BGC Housing Group took on through the building stimulus period were well below previous sales in recent strong markets such as 2015/2016 and our market share of home sales remained at historic average levels.
A key driver of extra pressure into the housing construction industry in Western Australia has been the total take-up of stimulus grants. Like all builders, BGC Housing Group was unaware of the total take-up (as later revealed by the Government) was in the order of 25,000 homes in a market completing 11,000 homes in the prior twelve months to June 2020.
There simply is not enough capacity in the market. Western Australia has ~22,000 homes currently under construction while build completions across the State remain at ~12,000 per annum. This issue will continue until chronic labour shortages are addressed.
Michael Cairnduff, Cannings Purple
Phone: +61 (0) 406 775 241
Email: [email protected]