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Australia’s Biggest Home Builder Opens Up About Survival

Australia’s Biggest Home Builder Opens Up About Survival

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 The building industry in Australia 2025 is still feeling the ripple effects of COVID, supply chain chaos, and builder collapses, and we wanted to know what it actually looks like to survive all that. So we brought in Brad Duggan, CEO of Metricon, to pull back the curtain on what went wrong, what they got right, and what others need to understand if they’re going to build homes (and stay afloat) in this market. Brad doesn’t hold back. He talks about the grind; the fixed-price contracts, the cost blowouts, the tough calls they had to make just to finish the work they promised. We got into what shifted for buyers too: smaller homes, simpler choices, and a stronger demand for turnkey builds. There’s a reason Metricon pivoted in that direction, and it’s not just about profit, it’s about stability. We also talked through some of the bigger picture issues shaping the building industry in Australia 2025. Delays in planning, lack of trades, materials tied up in tunnels and infrastructure jobs, councils dragging their feet. Brad’s got strong views on all of it, and some practical thoughts on what actually needs to change. If you’re buying, building, or even just trying to wrap your head around the future of housing in Australia, this chat cuts through the noise. So let's dive in and get started. Episode Highlights: 00:00 - Introduction 01:11 - Who is Brad Duggan? 01:33 - How bad has it really been for builders in the last few years? 04:14 - The toughest truths Brad had to face in stepping in as CEO 05:56 - How much building capacity did the industry lose due to insolvencies? 07:26 - If builders went under, why is there still a skilled labor shortage? 09:05 - What’s driving the increase in home building costs today? 11:45 - How much of the 50% cost increase is due to materials vs labour? 14:48 - Is outsourcing builds to China a practical solution to supply shortages? 16:05 - What makes modular construction so expensive and hard to scale? 18:29 - Are Australians too picky about customisation for mass-market housing to work? 20:31 - Why aren’t apartments a good entry point for young buyers? 21:21 - What types of builds make up Metricon’s current portfolio? 22:41 - What are the cost and risk differences between custom builds and volume builders? 25:19 - The risk of cookie-cutter suburbs in affordable housing 29:38 - Has construction productivity actually improved in Australia or not? 32:43 - Should buyers focus more on land content for better capital growth? 36:38 - Have all affected customers from collapsed builders been helped? 37:45 - What role should regulators play in builder accountability? 39:05 - Are investors finally returning to the market? 40:07 - What’s wrong with how some investment properties are sold? 47:14 - Does protecting the ‘neighbourhood feel’ stall progress? 51:39 - Brad Duggan’s property dumbo About Our Guest: Brad Duggan is the Chief Executive Officer of Metricon, Australia’s largest home builder. He stepped into the CEO role in July 2023 after serving as the company’s Chief Financial and Operating Officer. With over two decades of experience in finance and construction, Brad has held senior leadership positions at Probuild, WBHO Infrastructure, Australian Unity, and PwC. He holds a Bachelor of Commerce in Accounting and Finance from the University of Tasmania and is a Chartered Accountant. Brad is known for his pragmatic leadership during one of the most challenging periods in the construction industry, guiding Metricon through a successful financial turnaround while maintaining its position as the country’s top residential builder. Connect with Brad Duggan: LinkedIn https://au.linkedin.com/in/brad-duggan-96160818Website https://www.metricon.com.au/ Resources: Visit our website https://www.theelephantintheroom.com.auIf you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast questions@theelephantintheroom.com.auLooking for a Sydney Buyers Agent? https://www.gooddeeds.com.auWork with Veronica: https://www.veronicamorgan.com.auLooking for a Mortgage Broker? https://www.alcove.auWork with Chris: chrisbates@alcove.au Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now! Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcastSubscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765See omnystudio.com/listener for privacy information.

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