The Reserve Bank’s decision to hold interest rates steady has been welcomed by Master Builders SA, offering short-term relief for builders, developers and homeowners navigating a challenging economic environment.
“The pause will help stabilise confidence across the sector, particularly as businesses continue to manage high material costs, workforce shortages and tight margins,” said Will Frogley, Master Builders SA CEO.
“Holding rates gives builders and clients a moment of certainty in an otherwise volatile market.
“Stability matters when projects involve long lead times and significant upfront investment.”
The decision is expected to support project viability, particularly for residential housing and smaller commercial builds, where financing costs can quickly determine whether a project goes ahead.
“However, conditions remain fragile and sustained confidence will depend on policy settings beyond interest rates,” Mr Frogley said.
“A pause is welcome, but it doesn’t erase the pressures the industry is still facing.
“The industry needs a stable pipeline of work, efficient approvals and a skilled workforce to keep delivering homes and infrastructure.”
Master Builders SA is urging governments to focus on planning reform, skills development and measures that encourage investment, to ensure the sector can continue contributing to jobs, economic growth, and housing supply.
“The building and construction industry is critical to Australia’s economy. With the right settings, it can keep delivering what communities need,” Mr Frogley said.
Media contact: For more information, contact Amy Osborne on 0435 229 974.
