HOME BUILDING TO DECLINE 20%

Australia is staring into the headwinds of a ‘shallow’ 20% decline in housing construction over the next three years as building materials and labour shortages extend building timeframes — despite higher borrowing costs and affordability problems cutting demand, according to the Housing Industry Association (HIA).

The decline from 229,000 housing commencements in the 2021 calendar year to an estimated 183,800 in 2024 is projected based on unemployment remaining at low levels and an extension of construction times from 8.3 months to 12.2 months on average.

However, different sectors of the housing market should be expected to behave differently. A 34% decline in detached houses starts through to 2025 will be offset by an increase in apartment commencements and other attached homes — buy 14% — by 2026 as immigration increases, according to HIA’s quarterly forecast.

“Ongoing strong demand for homes is assisting builders to trade through this cycle, but rising borrowing costs and slowing demand will increase cash flow pressures, before the availability of materials improves,” the HIA report says.

“The combined impact of higher interest rates, increased cost of a new home and capacity constraints will see the volume of homes commencing construction slow to a trough in 2025.”

The decline in home building is forecast to last for 13 quarters — longer than the typical two-year fall according to the HIA.

Following a peak of 141,150 detached home starts, the total will fall to 128,790 this year and then slip 5.2% in 2022. Higher interest rates will dampen demand with commencements cut to 108,890 in 2024 before bottoming out at 99,350 in 2025.

Attached home starts will rise 1.2% in the financial year 2023, and 3.9% in 2024 to reach 80,700 from last year’s 74,350.

The market should expect 4.3% of further growth in 2025 and 4% in 2026 bringing the total to 87,560.

Rolls-Royce has revealed a new series of bespoke Cullinan motor cars inspired by the world of yachting, with four individually commissioned vehicles reflecting the materials, movement and design codes of life at sea.

Presented at Goodwood in the UK, the Cullinan Yachting collection comprises four one-off vehicles themed around the cardinal directions, North, South, East and West, each expressed through distinct exterior finishes and interior detailing.

The commissions lean heavily into maritime influence, a space Rolls-Royce says is closely aligned with its global client base.

Each vehicle features marine-grade teak, hand-painted fascia artwork inspired by the wake of a tender cutting through water, and intricate marquetry compass motifs made from more than 40 individual pieces of wood veneer.

Hand-painted elements have become an increasingly sought-after feature among Rolls-Royce clients, with the brand employing dedicated artisans to develop bespoke interior compositions.

For the Cullinan Yachting series, the painted wake effect required months of experimentation to achieve a natural sense of movement.

Inside, the vehicles are finished in Arctic White and Navy Blue leather, with hand-stitched detailing designed to echo the structure of nautical ropework. A signature Rolls-Royce Starlight

Headliner has also been reimagined, with fibre-optic constellations arranged to reflect Mediterranean wind patterns.

Each car’s exterior colour has been developed to align with its directional theme, ranging from lighter blue tones evoking northern waters to deeper hues referencing warmer southern seas and storm-lit horizons.

Rolls-Royce said the collection reflects a longstanding relationship between the marque and the world of yachting, dating back to its co-founder Charles Rolls, whose family owned a steam yacht and travelled extensively through the Mediterranean.

The release underscores the growing demand for highly personalised vehicles among ultra-high-net-worth buyers, with Rolls-Royce increasingly positioning its cars as part of a broader luxury lifestyle that extends beyond the road.

HOME BUILDING TO DECLINE 20%

Labour and materials shortages are set to pinch home supply.

Four one-off Cullinan commissions draw on the design language of yachting, blending marine craftsmanship with Rolls-Royce’s signature bespoke detailing.