ARTICLE
2 April 2026

Residential Focus: Price Rises 2.0: From Covid To Conflict

HR
Holding Redlich

Contributor

Holding Redlich, a national commercial law firm with offices in Melbourne, Canberra, Sydney, Brisbane, and Cairns, delivers tailored solutions with expert legal thinking and industry knowledge, prioritizing client partnerships.
In the month since the commencement of the Iran war, the initial impacts on fuel prices have spread to materials and labour affected by either the rise in transport costs or the rise in the cost of oil as an input in the manufacturing process.
Australia Real Estate and Construction
Christine Jones’s articles from Holding Redlich are most popular:
  • with Senior Company Executives and HR
  • with readers working within the Property and Construction & Engineering industries

In the month since the commencement of the Iran war, the initial impacts on fuel prices have spread to materials and labour affected by either the rise in transport costs or the rise in the cost of oil as an input in the manufacturing process.

We have heard anecdotally of PVC plumbing supplies increasing 36% over the course of a week and concrete rates being reset weekly. Some suppliers have begun charging fuel levies.

It is too early to tell whether the federal government’s three month halving of the fuel excise will significantly arrest or reverse this trend.

The speed of these market responses may exceed those of the price impacts of Covid, although perhaps they are just gathering pace along a path already forged.

Indeed, many contractors will be dusting off their price shock playbooks from six years ago as well as avoiding anything other than cost plus.

Then, as now, the legacy choice of contract and the elements within it as well as the ability to negotiate/strength of negotiating position, are key to the outcome for project owners and contractors alike.

In the media

Home building industry facing COVID-like price spikes due to Middle East war

Alarm bells are ringing in Australia's residential building industry, with some describing "considerable" supply chain disruption and price surges on crucial items as being "like COVID" again. Suppliers are bringing in "emergency fuel levies" for everything from sand to concrete as petrol prices soar due to the war in the Middle East. Major companies that supply pipes for plumbing are even warning of shortages. Read more here.

Housing affordability falls as 5% deposit scheme lifts first-home buyer demand

Australia’s housing affordability worsened in the December 2025 quarter as more first-home buyers entered the market under the expanded 5% Deposit Scheme, according to the latest Housing Affordability Report from the Real Estate Institute of Australia (REIA). The federal government’s widening of the scheme has lifted participation among new buyers but has also coincided with higher average loan sizes, placing additional strain on household budgets. Read more here.

HIA: Interest rate rise risks worsening housing shortage

The Housing Industry Association’s Chief Economist, Tim Reardon, said the Reserve Bank of Australia’s latest decision to increase interest rates reflects the ongoing challenge of bringing inflation under control, but warned that higher rates will further restrict the supply of new homes. Read more here.

HIA: A response to claims that Australia “has enough homes”

Recent commentary has suggested that Australia does not face a shortage of housing, but rather that housing affordability problems arise because too many homes are owned by investors instead of owner-occupiers. This argument has some superficial appeal. Investors can be highly visible participants in the housing market, particularly at auctions, and they can influence prices at the margin in the short term. However, the claim that Australia “has enough homes” fundamentally misunderstands how housing markets operate. Read more here.

Record property profits see home owner wealth surge despite rising interest rates

Rising prices have created a surge in housing equity, which provides a "buffer against rising interest rates and inflation" for existing owners, a report from the real estate firm has found. As many mortgage borrowers face higher home loan rates after the Reserve Bank's second rate hike in as many months, being able to resell property at a profit could provide some financial relief, but also entrenches the gap between home owners and those locked out of the market. Read more here.

In practice and courts

Ministerial Reconstruction Area (Northern Rivers) Amendment Order 2025 (dated 11 March 2026)

On 23 June 2023, the Minister declared the local government areas of Ballina, Byron, Clarence Valley, Kyogle, Lismore, Richmond Valley and Tweed a reconstruction area (the Northern Rivers Reconstruction Area) in the Order. The object of this Order is to amend the Reconstruction Area (Northern Rivers) Order 2023 to specify that the Residential Tenancies Act 2010 and the Residential Tenancies Regulation 2019 do not apply to a head lease granted by the NSW Reconstruction Authority to a social housing provider to facilitate the use of a residential property in the reconstruction area for the purpose of social housing. Read more here.

Rate hike will hit Aussie home building 'extremely hard', builders warn

The Reserve Bank of Australia raised the cash rate by 25 basis points to 4.1% on Tuesday, as it tries to combat rising inflation locally while also dealing with the impact of increasing oil costs resulting from the conflict in the Middle East. Builders say the latest interest rate hike will make building new homes more expensive and slow down the delivery of much-needed housing supply. Read more here.

Another milestone reached as thousands more move into new public housing

The Minns Labor Government has delivered 3,500 new public, community and affordable homes marking a significant milestone that is helping people right across NSW, including victim-survivors of domestic violence, find safety and rebuild their lives. Read more here.

Empty warehouse becomes innovative solution to boost housing in Western NSW

The NSW Government continues to find innovative and adaptive ways to address the housing crisis in regional areas, transforming a former commercial warehouse site in the Central West into 14 new social homes. After sitting vacant for more than two decades, the ageing sheds in the heart of Narromine have been knocked down and given a new purpose in the local community. Read more here.

Publications

HIA: Independent economic modelling cautions against more tax on housing in Federal Budget

Australia’s building, construction and property industry associations have called on the Federal Government to ensure the upcoming budget delivers an increase, not a decrease, in the supply of new housing — which won’t occur with more tax on new homes. The associations have released modelling by Qaive and Tulipwood Economics, on the impacts to housing supply of potential Capital Gains Tax (CGT) Discount and negative gearing changes, which reveals that in a range of scenarios, reducing access to either will only result in a reduction in new housing supply. Read more here.

55 new social homes on the way for Goulburn amid regional building blitz

The Minns Labor Government is accelerating its historic social housing roll-out across regional and rural NSW, with Goulburn the latest community to benefit from the state’s largest-ever investment in social housing. Under the record-breaking Building Homes for NSW Program, the Minns Government is investing $6.6 billion to deliver 8,400 new, modern social homes across New South WalesRead more here.

Arncliffe Central boosted to 75% social and affordable homes

The Minns Labor Government is keeping true to its promise to build more and better social and affordable housing, with more than 800 new homes under construction in Arncliffe. Thanks to additional investment by the NSW Government and the Commonwealth’s Housing Australia Future Fund (HAFF), there will be an increase in overall supply and 75% of the homes built at this site will now be dedicated to social and affordable housing. Read more here.

ABS — Building Approvals, Australia

The Australian Bureau of Statistics (ABS) provides an overview of the number of dwellings and value of buildings approved. The January 2026 seasonally adjusted estimate revealed that total dwellings approved fell 7.2% to 14,564. Private sector dwellings excluding houses fell 24.5% to 4,393 and private sector houses rose 1.1% to 9,753. The value of total residential building fell 1.2% to $9.48b. Access the release here.

Cases

Culleton v Tonks [2026] NSWSC 174

ADMINISTRATIVE LAW — Hearing rule

ADMINISTRATIVE LAW — Reviewability — Where internal appeal has been heard of primary NCAT decision under review

ADMINISTRATIVE LAW — Ground of review other than procedural fairness — Unreasonableness

CONSUMER LAW — Misleading or deceptive conduct — Liability of company director who made representation — Defence of ‘mere puffery’

Civil and Administrative Tribunal Act 2013 (NSW), ss 3(d), 34(1), 32, 44, 80(2)(a); Competition and Consumer Act 2010 (Cth) Sch 2 — Australian Consumer Law, ss 2(1), 18, 236; Corporations Act 2001 (Cth), ss 119, 1041H; Fair Trading Act 1987 (NSW) ss 28, 79N; Home Building Act 1989 (NSW), ss 4(1), 5(1), 18BA; Supreme Court Act 1970 (NSW), ss 69, 75; Uniform Civil Procedure Rules 2025 (NSW), r 59.5

Cadence (90) Investments Pty Ltd v Aspire Constructions Pty Ltd; Aspire Constructions Pty Ltd v Cadence (90) Investments Pty Ltd [2026] NSWSC 136

BUILDING AND CONSTRUCTION — contract — damages — defects — whether geothermal heating and cooling systems, design and construction of internal access roads and general building works defective — whether breach of statutory warranties under s 18B of Home Building Act 1989 (NSW) — whether breach of statutory duty of care under s 37 of Design and Building Practitioners Act 2020 (NSW) established — whether plaintiff entitled to damages for rectification costs and/or loss of opportunity

BUILDING AND CONSTRUCTION — contract — payment — whether money paid in accordance with adjudication determination properly payable — whether builder entitled to recover amounts paid to sub-contractors under various invoices and balance of fixed builder's margin

EVIDENCE — expert evidence — admissibility — whether any weight should be given to the evidence where the independence of the expert is in question

Building & Construction Industry Security of Payment Act 1999 (NSW), s 32; Design and Building Practitioners Act 2020 (NSW), ss 3, 37; Home Building Act 1989 (NSW), ss 4, 10, 18B, 18BA, 18F; Uniform Civil Procedure Rules 2005, sch 7

Lee v Big Dipper Constructions Pty Ltd; Big Dipper Constructions Pty Ltd v Lee [2026] NSWDC 43

BUILDING AND CONSTRUCTION — contract — termination — repudiation — prevention principle — where property owner refused entry to builder — rectification of defects

Civil Procedure Act 2005 (NSW) s 100; Competition and Consumer Act 2010 (Cth) Sch 2 cll 54, 55, 60, 61; Design and Building Practitioners Act 2020 (NSW) Part 4, s 37; Home Building Act 1989 (NSW) Part 3 (Div 1), s 18B

Pajic v Secretary, Department of Customer Service [2026] NSWCATOD 35

Administrative Law — Owner builder permit; dual occupancy; special circumstances

Administrative Decisions Review Act 1997; Home Building Act 1989

Sader v Renbar Construction Pty Ltd [2026] NSWCATAP 77

APPEALS — whether leave to appeal should be granted —no question of principle

Civil and Administrative Tribunal Act 2010 (NSW), s 80; cl 12 of Sch 4; Civil and Administrative Tribunal Rules 2014 (NSW), r 25; Design and Building Practitioners Act 2020 (NSW), s 37; Home Building Act 1989 (NSW), s 18E(2)

Owers-Brown v The Owners-Strata Plan No 92562; Nakkan v The Owners-Strata Plan No 92562 (No 2) [2026] NSWCATCD 11

COSTS — application to vary costs order — Civil and Administrative Tribunal Rules 2014 (NSW) r 38 — each party substantially successful against the other party — each party to bear its own costs

LAND LAW- Strata title — Strata Schemes Management 2015 (NSW) ss 104 and 232 — when it is appropriate to make an order

Civil and Administrative Tribunal Act 2013 (NSW); Civil and Administrative Tribunal Rules 2014 (NSW); Evidence Act 1995 (NSW); Strata Schemes Management Act 2015 (NSW)

The University of Sydney v Multiplex Constructions Pty Ltd (No 4) [2026] NSWSC 91

CIVIL PROCEDURE — Pleadings — amendment — Plaintiff sought leave to amend claim to raise further alleged defects in building works — whether the delay in raising those matters has been explained — whether the grant of leave would cause prejudice to Defendants — whether the proposed amendments would lead to loss of the hearing date — whether First and Second Defendants have lost, by expiry of long-stop period, a viable and realistic cross-claim in respect of the alleged defects — no substantial prejudice established — leave granted

Civil Procedure Act 2005 (NSW) ss 56, 57, 58, 64, 65; Environmental Planning and Assessment Act 1979 (NSW) s 6.20; Design and Building Practitioners Act 2020 (NSW)

Sydney Gold Bullion Exchange Pty Ltd v The Owners- Strata Plan 34794 [2026] NSWCATAP 75

APPEAL — STRATA TITLE- application to amend unit entitlements- valuation evidence necessary.

Civil and Administrative Tribunal Act 2013; Civil and Administrative Tribunal Rules 2014; Strata Schemes Development Act 2015; Strata Schemes Management Act 2015

Lane v The Owners Strata Plan No 2404 [2026] NSWCATAP 73

STRATA TITLES- whether amendment to exclusive rights by-law required consent of owners benefited by existing by-law- whether owners corporation erroneously exercised discretion to amend exclusive rights by-law

Civil and Administrative Tribunal Act 2013 (NSW); Interpretation Act 1987 (NSW); Strata Legislation Amendment Act 2023 (NSW); Strata Scheme Management Act 2015 (NSW)

The Owners – Strata Plan No 87231 v 3A Composites GmbH (No 10) [2026] FCA 351

REPRESENTATIVE PROCEEDINGS — representative proceeding under Part IVA of the Federal Court of Australia Act 1976 (Cth) — consumer class action — action brought by strata corporation on behalf of entities with a (former) proprietary interest in a building with Alucobond PE or Alucobond Plus cladding.

CONSUMER LAW — where product manufactured by foreign corporation and supplied in Australia by Australian distributor — whether Australian Consumer Law (‘ACL’) and Trade Practices Act 1974 (Cth) (TPA) apply to foreign manufacturer — whether foreign manufacturer engaged in impugned conduct in Australia — whether foreign manufacturer carried on business in Australia

CONSUMER LAW — guarantee of acceptable quality in section 54 of the ACL — actions in respect of goods of unmerchantable quality in s 74D of the TPA — whether products supplied in trade or commerce — whether products were goods of a kind ordinarily acquired for personal, domestic or household use or consumption —whether products were “supplied” to a “consumer” — whether strata corporations derived title to the products “through or under” the developers of the relevant buildings — whether the products were consumer goods — whether product affixed to building by professionals can be a consumer good — consideration of passive use — whether a third party used up or transformed the products — whether products were of acceptable or merchantable quality at time of supply — whether products were capable of being used safely and in compliance with the legislative requirements during the relevant period — relevance of theoretical possibility of use compared with practical likelihood of use in all the circumstances including cost — relevance and role of professionals involved in the acquisition and affixation of products and design and construction of buildings — relevance of knowledge of professional intermediaries — where legislative framework and expert evidence demonstrates safety and compliance of products can only be determined through individual assessment of specific buildings — where products not inherently defective — claim not established.

CONSUMER LAW — false or misleading representations about goods or services contrary to section 29 of the ACL — misleading conduct as to the nature etc. of goods contrary to s 33 of ACL — materially the same as sub section 53 and 55 of the TPA — whether marketing material published by one or other of the respondents alleged to have been misleading — whether foreign manufacturer liable for material published by Australian distributor — when task of assessing if conduct was misleading is approached by reference to a class of persons or requires assessment of individual circumstances if monetary damages sought by specific person or persons — where voluminous marketing material relied on which is in materially the same terms — marketing material alleged to have conveyed that products were safe and compliant — allegation of failure to provide warnings — whether representations were as to future matters — where a representation as to an inherent quality of a product cannot be a representation as to a future matter — consideration of context and knowledge of professionals — claim not established.

DAMAGES — whether applicant and sub-group representative suffered loss or damage because of non-compliance with statutory guarantee — where issue specific to each applicant and group member — consideration of requirements of s 272(1)(b) of the ACL — whether inferential case of causation sufficient — consideration of proportionality in establishing fact — Necessity of evidence of actual reliance on alleged misleading conduct.

PRACTICE AND PROCEDURE — whether pleading amendments take effect from date of commencement of proceeding or date of amendments — where amendments to class definition in representative proceeding — where default position is that amendments to group definition in representative action take effect from the time the definition is changed — where additional cause of action added — where amendments do not arise from the same or substantially the same facts as those which had already been pleaded — amendments take effect from date of amendment.

LIMITATION OF ACTIONS — issue individual to applicant — ACL s 236(2) — times that causes of action arose — whether requirement for applicant to undertake reasonable inquiries — no requirement to know of specific defect of product — sufficient to have knowledge that consumer guarantee has not been complied with — applicant’s consumer guarantee claim brought within time — section 273 of the ACL, section 82(2) of the TPA — when link between the physical manifestation and the underlying defect is known or ought to be known — relevant knowledge is as to actual physical defect in the structure, not legal responsibility for the cause of the defect — applicant’s misleading conduct claim time barred.

Culleton v Tonks [2026] NSWSC 174

ADMINISTRATIVE LAW — Hearing rule
ADMINISTRATIVE LAW — reviewability — where internal appeal has been heard of primary NCAT decision under review
ADMINISTRATIVE LAW — ground of review other than procedural fairness — unreasonableness
CONSUMER LAW — misleading or deceptive conduct — liability of company director who made representation — defence of ‘mere puffery’

Lee v Big Dipper Constructions Pty Ltd; Big Dipper Constructions Pty Ltd v Lee [2026] NSWDC 43

BUILDING AND CONSTRUCTION — contract — termination — repudiation — prevention principle — where property owner refused entry to builder — rectification of defects

Matching text — Home Building Act 1989 (NSW) Part 3 (Div 1), s 18B ... issued under Division 1 of Part 3 of the Home Building Act 1989 (NSW) (“HBA”); ... warranties implied by section 18B of the Home Building Act 1989...

Leto v Secretary Department of Customer Service [2026] NSWCATOD 26

ADMINISTRATIVE LAW — application for review of decision to refuse contractor licence following company liquidation — whether there is evident risk to the public — whether all reasonable steps taken to avoid liquidation — whether sufficient risk mitigation measures to avoid future liquidation — application of s 33B, s 33C(3) and s 33(4) of the Home Building Act 1989


Legislation

Bills introduced by Government

Crown Land Management Amendment (Statutory Review) Bill 2026

Regulations and other Miscellaneous Documents 

Commencement Proclamation (2026-71) LW 2 March 2026

Environmental Planning and Assessment Amendment (Planning System Reforms) Regulation 2026 (2026-72) LW 2 March 2026

Environmental Planning Instruments

Queanbeyan-Palerang Regional Local Environmental Plan 2022 (Amendment No 9) (2026-78) LW 6 March 2026

State Environmental Planning Policy (Biodiversity and Conservation) Amendment (Miscellaneous) 2026 (2026-79) LW 6 March 2026

Strathfield Local Environmental Plan 2012 (Amendment No 15) (2026-80) LW 6 March 2026

Ballina Local Environmental Plan 2012 (Map Amendment No 11) (2026-88) LW 13 March 2026

Ballina Local Environmental Plan Amendment (Exempt and Complying Development Codes—Emergency Work and Repairs) 2026 (2026-89) LW 13 March 2026

Lismore Local Environmental Plan 2012 (Map Amendment No 7) (2026-90) LW 13 March 2026

Mid-Western Regional Local Environmental Plan 2012 (Map Amendment No 18) (2026-91) LW 13 March 2026

Port Stephens Local Environmental Plan 2013 (Amendment No 47) (2026-92) LW 13 March 2026

Bayside Local Environmental Plan 2021 (Map Amendment No 9) (2026-99) LW 20 March 2026

Coffs Harbour Local Environmental Plan 2013 (Map Amendment No 23) (2026-100) LW 20 March 2026

Cooma-Monaro Local Environmental Plan 2013 (Map Amendment No 1) (2026-101) LW 20 March 2026

Lismore Local Environmental Plan 2012 (Amendment No 60) (2026-102) LW 20 March 2026

Mid-Western Regional Local Environmental Plan 2012 (Map Amendment No 19) (2026-103) LW 20 March 2026

Willoughby Local Environmental Plan 2012 (Amendment No 42) (2026-104) LW 20 March 2026

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More