Porter Davis collapse a ‘shadow’ of the problems housing industry faced last year

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The collapse of building company Porter Davis is a “shadow” of the problems the housing industry faced last year, says Housing Industry Association Chief Economist Tim Reardon.

“Rapid increase in material prices, longer build times, meant that builders were carrying more cash

or more liability over a longer period of time than what they typically do,” he told Sky News Australia.

 

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So its ok to bail out quantas, but during a housing crisis wont bail out builder

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‘It will get worse’ for large building companies as Porter Davis collapses“It will get worse” for large building companies as they attempt to rescue collapsed building company Porter Davis, says Association of Professional Builders’ Russ Stephens. “That’s simply because the damage that has been done since the back end of 2020 with those contracts being signed,” he told Sky News Australia. “That is all beneath the surface, it’s not clearly visible to anyone outside of the company having access to those financials to see that the true damage those price rises did.”
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