Perth-based builders Prostruct and Flexible Homes have folded, the latest companies to go under amidst an industry grappling with increased construction costs and supply chain issues.
The Australian Securities and Investments Commission (ASIC) site shows Flexible Homes and Prostruct to be in liquidation as of June 27 2023.
HLB Mann Judd’s Gregory Paul Quin and Kimberley Stuart Wallman have been appointed liquidators for Flexible Homes, and WA Insolvency Solutions’ (a division of Jirsch Sutherland) Jimmy Trpcevski and David Hurt for Prostruct.
The Prostruct website lists a few commercial projects, including a two-storey warehouse in Henderson and an office fit-out in Jandakot.
Flexible Homes website and social media appear to have been erased, but it is speculated that up to 19 homes could be affected by its insolvency.
Tough times continue for the housing industry
The news of these two collapses comes days after Parcel Property pulled the plug on its apartment development arm. It also happens amidst the ongoing and broader challenges in the building and construction industry is facing.
In February this year, experts said the construction industry was expected to go through a slowdown as the Federal government’s HomeBuilder programme drew to a close.
The real estate market was stretched to its limit as experts observed both a cooling market, a continued rise in construction costs, and the pandemic-induced demand for space eroded.
These factors were further fuelled by the sharp interest rate rises, with the official cash rate now sitting at 4.10%.
Other collapses earlier this year include Hamlen Homes, EQ Constructions, Delco Building Group, and LDC.
