Kyrillos Ghaly

Australia’s most expensive office renovation, underway at the Reserve Bank’s Martin Place headquarters, has morphed into a financial saga marked by unexpected setbacks and spiralling costs. Originally projected at a considerably lower figure, the renovation costs have now ballooned to nearly $1.1 billion, with completion pushed to 2029. This spiralling cost has been largely driven by the discovery of extensive asbestos contamination far exceeding initial estimates and other critical structural issues, including non-compliant fire resistance in pivotal areas. Such findings necessitate a comprehensive overhaul, transforming the project into a complex endeavour involving significant demolition and reconstruction to meet current safety standards. The Reserve Bank’s decision to proceed with the renovation, despite these challenges, underscores a commitment to preserving the iconic heritage-listed building while addressing severe safety and compliance issues. The choice was made from multipl...

The Australian housing market faces an intriguing paradox, underscored by a recent KPMG analysis. As of December 2023, nearly 40,000 approved housing projects across the country remain uninitiated. This significant backlog includes 15,593 dwellings in New South Wales and 7,897 in Victoria, signalling a stark inertia in urban development. Economist Terry Rawnsley points out that Sydney and Melbourne, cities at the forefront of this phenomenon, host nearly half of these dormant projects. The primary culprits? Escalating construction costs and high interest rates, which dampen both developer initiative and buyer purchasing power, particularly affecting medium to high-density projects such as townhouses and apartments. This scenario unfolds against a backdrop of governmental efforts to expedite housing availability, including New South Wales’ Transport Oriented Development Program and Victoria’s ambitious plan to create 800,000 new homes over the next decade. Yet, these initiatives face a ...

In a revealing article by business reporter Gareth Hutchens for the ABC, the profound implications of Australia’s housing crisis on the building industry are meticulously outlined, with a specific focus on the challenges that building surveyors and inspectors face. The Albanese government, recognising the severity of the situation, has committed a dedicated chapter in the 2024–25 federal budget to address this “historic underinvestment” in housing, which has exacerbated a significant supply shortage. The budget details, illustrated through more than 20 graphs, show that Australia significantly trails other Organisation for Economic Co-operation and Development (OECD) countries in housing supply per 1,000 people. This deficit has not only escalated property prices but also tightened the rental market, with vacancy rates dropping below the balanced market threshold of 3%. For building surveyors and inspectors, these statistics underline a growing demand for rigorous inspections and compr...

  The recent federal budget has highlighted the government's significant focus on addressing Australia's housing crisis, bringing crucial implications for the building inspection and surveying industry. As a professional building inspector, I see these developments as both timely and essential for our sector.   Increased Demand: The government's pledge to construct 1.2 million new homes by 2029 is set to substantially boost demand for our services. This growth is not just a business opportunity; it's a call to ensure that these homes adhere strictly to the highest building standards.   Stricter Compliance: The tightened building standards underline the increasing importance of our roles. Every construction site must meet the highest quality and safety standards, and we are the frontline ensuring this compliance.   Professional Development: The budget significantly invests in our professional growth, offering fee-free TAFE places and access to construction-relat...

Author: Kyrillos Ghaly In an illuminating piece by Jordyn Beazley for The Guardian Australia, a troubling trend has emerged across the nation's strata properties: owners are being hit with unexpected and substantial special levies for urgent repairs, often not disclosed at the point of sale. These levies, which can exceed $100,000, typically cover critical waterproofing and structural issues, underscoring a systemic failing within the sector.   Amanda Farmer, a strata lawyer, notes that 90% of the disputes she encounters are linked to failures in repair and maintenance. Buildings frequently require large sums of money at short notice to address these deficiencies. Supporting this, research from the Australian Apartment Advocacy reveals that between 50-60% of new apartments across Australia are afflicted with defects, significantly contributing to the frequency and scale of these levies.   Despite requirements for strata-titled properties to maintain maintenance plans, th...

Author: Kyrillos Ghaly In a recent exposition on LinkedIn, Mr Chandler, the NSW Building Commissioner, elucidated the strides made in construction reforms across New South Wales. Since its inception in December 2023, the Building Commission of NSW has been instrumental in pinpointing and mitigating risks posed by the less scrupulous elements within the residential building sector. Mr Chandler underscored the necessity of fortified intelligence and investigative efforts, which underpin the Commission’s strategic undertakings encompassing inspections, enforcement, licensing, and policy formulation. This comprehensive integration has yielded palpable results, notably through the utilisation of 'Heat Maps'. These innovative tools enable focused surveillance of over 70,000 residential building sites throughout NSW, boasting an impressive 95% success rate in identifying sites likely to engage in non-compliant building practices. For building inspectors and surveyors, Mr Chandler’s di...

  In a recent article by Carolyn Cummins for the Sydney Morning Herald, the spotlight is on the b ooming build-to-rent sector in Australia . Pressure is being exerted all levels of government for legislative reforms to strengthen the foundation of the build to rent market . Leading developers like Mirvac, Lendlease, Greystar, and Novus are at the forefront, capitali s ing on this sector to help alleviate the national housing shortage.   T his sector has an estimated value of $16.87 billion, despite representin g just 0.2% of the total residential housing sector, according to EY. B uild-to-rent is poised for explosive growth , with planned expansion including projects like Melbou rne’s G urrow a Place at Queen Victoria Market, which integrates build-to-rent units with commercial spaces.   Key to th e sustainability of this growth will be legislative reform. Recent draft legislation proposes a significant incentive: reducing the managed investment trust (MIT) with...

  In Australia, a prefabricated home is defined as a dwelling manufactured off-site in advance, typically in standard sections that can be easily shipped and assembled on-site. According to the Prefabrication Industry Roadmap 2023-2033 by prefabAUS , prefabrication could halve construction times and cut costs by up to 20% compared to traditional building methods. The roadmap extols several benefits of prefabricated homes including higher quality, affordability, better environmental performance, greater resilience to climate change, and lower life cycle costs.   Despite these advantages, significant concerns were raised by NSW Building Commissioner David Chandler at a recent Property Council event in Sydney. Chandler argued that prefabrication is not the immediate solution to Australia's housing challenges, citing a gap in digital maturity and innovation, especially among smaller builders and contractors who are crucial for delivering affordable, medium-density housing. Notably...