Why Australia's Construction Crisis Is Creating Better Deals for Everyone

After years building tech in financial services, I've learnt that the best opportunities emerge when traditional systems stop working for all.

Australia's commercial property financing is deeply flawed. Developers can't get timely approvals. Banks are retreating from complex deals. Brokers are losing clients to delays. Lenders are missing good opportunities because their systems can't assess risk properly.

Brokers and aggregators who understand how to leverage digital platforms are creating better outcomes for everyone. Faster approvals. Better terms. More transparent processes. Win-win deals that actually get done.

Understanding the Real Problem

Let's start with the facts. ASIC data shows 2,975 construction companies entered external administration in 2023-24. That represents 27% of all insolvencies nationally and a 39% increase from the previous year.

The situation has continued to worsen. Master Builders Australia reports 3,010 construction insolvencies over the year to July 2024, with construction now comprising 26.3% of economy-wide insolvencies.

Traditional banks are struggling with this environment. Mixed-use TOD projects need multiple departmental sign-offs. Each component requires separate valuations. The approval process can take 4-6 months, and that's if everything goes smoothly.

For developers, this delay kills deals. Carrying costs mount up. Contractors move to other projects. Market conditions change.

For brokers, it means losing clients to frustration. For lenders, it means missing good opportunities because the process is too slow.

Nobody wins in this scenario.

The Workforce Challenge Makes It Worse

The construction crisis isn't just about companies failing. It's about not having enough skilled workers to deliver projects even when financing is available.

Master Builders Australia's Workforce Blueprint reveals the industry needs a 127% workforce increase to meet national infrastructure demand. Apprenticeship starts are declining whilst demand is surging.

Infrastructure Australia's Market Capacity Report confirms unprecedented labour shortages across infrastructure and construction sectors.

For brokers, this matters because it affects lender risk assessment. Even with solid financing, projects face delivery risk due to workforce constraints. Digital platforms that connect borrowers with global lenders help because international financiers often have access to global contractor networks and delivery partners.

Where the Real Opportunity Sits

The NSW Transport Oriented Development programme is substantial. New TOD controls apply around 37 station locations, with masterplans and rezonings that could deliver nearly 60,000 homes and over 126,000 commercial and retail jobs.

The economics are solid. Properties in TOD catchments show rental premiums from 21.4% to 46.9% above comparable locations.

But here's the challenge: these mixed-use developments combining retail, commercial, and residential components are exactly what traditional banks struggle with.

That creates an opportunity for brokers who can connect developers with lenders who understand these deals. Not because it's easy money, but because there's genuine value in solving a real problem.

The Federal Government's commitment to deliver 1.2 million homes by 2029 under the National Housing Accord creates sustained demand. But Master Builders forecasts only 1.03 million new homes will be delivered, highlighting the gap between policy ambition and delivery capacity.

This supply-demand imbalance supports strong fundamentals for well-financed, properly structured developments.

How Digital Platforms Can Help

From building Cashwerkz and now Lendhaus, I've seen firsthand how digital platforms can streamline complex transactions.

The key isn't fancy technology for its own sake. It's about removing friction from the process.

Digital platforms can connect developers and brokers with multiple lenders simultaneously. They standardise documentation and due diligence. They create transparency so everyone knows where a deal stands.

For borrowers, this means faster decisions and more competitive terms. For lenders, it means better risk assessment and access to quality deals they might have missed. For brokers, it means you can actually get deals done instead of managing endless back-and-forth.

We're seeing financing decisions that used to take months now happening in weeks. That's not hype - that's just removing unnecessary complexity from the system.

Why Global Lenders Are Interested

Australia's property fundamentals remain strong. Population growth continues. Infrastructure investment is substantial. Government housing policies create sustained demand.

International lenders understand this, but they need local expertise to navigate Australian markets. They need brokers who understand local conditions, regulations, and risks.

Digital platforms make these connections possible. They provide the transparency and standardisation that global lenders require whilst giving brokers access to capital sources beyond traditional banks.

When Australian banks tighten lending criteria, global capital often sees opportunity. That's good for borrowers who get more competitive terms, and good for brokers who can actually deliver solutions.

Why Speed Matters

Traditional banking often means limited visibility into the approval process. Applications go in, and everyone waits.

Digital platforms provide transparency throughout. Borrowers know where their applications stand. Brokers can manage client expectations. Lenders can track their pipeline.

The speed difference is significant. Where traditional processes might take 4-6 months, digital platforms can deliver decisions in 3-6 weeks.

On a $50 million TOD project, that time difference can represent hundreds of thousands in carrying cost savings. That's real money that improves project returns and makes deals more viable.

Better yet, everyone involved has certainty. Developers can lock in contractors. Brokers can close deals. Lenders can deploy capital efficiently.

What This Means for Brokers and Aggregators

The brokers who understand how to work with digital platforms are building sustainable advantages.

Access to more lenders means more competitive terms for clients. Faster execution means more deals getting done. Transparent processes mean better client relationships.

This creates a positive cycle. When you can deliver better outcomes, clients come back. When you have access to diverse funding sources, you can handle more complex deals. When you understand how digital platforms work, you become more valuable to both borrowers and lenders.

The alternative is watching deals fall apart due to slow traditional processes whilst your clients find brokers who can actually get things done.

The Practical Path Forward

From what I've seen building financial technology platforms, adoption happens faster than people expect once the value becomes clear.

Right now, many commercial mortgage brokers are still working primarily with traditional banks. That's fine for simple deals, but increasingly inadequate for complex transactions.

The brokers who are exploring digital platforms now are learning how to deliver better outcomes. They're building relationships with diverse funding sources. They're developing expertise that will be valuable for years to come.

This isn't about abandoning traditional relationships. It's about adding tools that let you serve clients better and access opportunities you couldn't reach before.

Creating Win-Win Outcomes

The best part about digital platforms is they create better outcomes for everyone involved.

Borrowers get faster decisions and more competitive terms. Lenders get access to quality deals with proper due diligence. Brokers can actually deliver solutions instead of managing delays.

From my experience building Cashwerkz, which listed on the ASX in 2017, I learnt that the best technology simply removes friction from transactions. It doesn't replace human expertise - it amplifies it.

The brokers who understand this are using digital platforms to enhance their client relationships, not replace them. They're discovering that technology lets them focus on what they do best: understanding client needs and structuring deals that work.

Looking Forward

Australia's commercial property sector is going through a significant transition. Traditional financing structures are struggling with complexity whilst demand for quality developments remains strong.

This creates genuine opportunities for brokers and aggregators who can bridge that gap. Not through hype or promises, but through practical solutions that deliver better outcomes.

Digital platforms are part of that solution. They provide the speed, transparency, and access to diverse funding sources that complex deals require.

The brokers who learn how to work effectively with these platforms will be better positioned to serve clients, access opportunities, and build sustainable businesses.

It's not about revolution or disruption. It's about having the right tools to do your job well and create value for everyone involved.

References

Construction Industry Insolvency Data:

Australian Securities and Investments Commission (2024). Annual ASIC insolvency data reveals increase in companies failing. Retrieved from https://www.asic.gov.au/about-asic/news-centre/news-items/annual-asic-insolvency-data-reveals-increase-in-companies-failing/

Official annual statistics confirming 2,975 construction companies entered external administration in 2023-24, representing 27% of all insolvencies and a 39% annual increase. Published July 24, 2024.

Master Builders Australia (2024). Australian Industry Forecasts - September 2024. Retrieved from https://masterbuilders.com.au/wp-content/uploads/2024/09/AUST_Forecast_September2024_web.pdf

Industry forecast showing 3,010 construction insolvencies over the year to July 2024, a 30% increase from the previous year. Construction comprises 26.3% of economy-wide insolvencies. Published September 2024.

Real Estate.com.au (2025). ASIC records 3,000 construction sector insolvencies in 2024. Retrieved from https://www.realestate.com.au/news/asic-records-3000-construction-sector-insolvencies-in-2024-red-flags-that-signal-your-builder-could-be-next/

News coverage of ASIC data showing over 3,200 construction sector insolvencies in 2024, compared to 2,546 in 2023 and 1,793 in 2022. Published January 1, 2025.

Workforce and Labour Shortages:

Master Builders Australia (2024). Workforce Blueprint Report. Retrieved from https://masterbuilders.com.au/wp-content/uploads/2024/09/Workforce-Blueprint_Final-1.pdf

Industry report detailing skills shortages, decline in apprenticeship starts, and need for workforce increase of 127% to meet national infrastructure demand. Published September 2024.

Infrastructure Australia (2024). 2024 Infrastructure Market Capacity Report. Retrieved from https://www.infrastructureaustralia.gov.au/reports/2024-infrastructure-market-capacity-report

National market capacity assessment highlighting unprecedented labour shortages in infrastructure and construction, with forecasts and strategies for workforce expansion. Published December 22, 2024.

Housing Policy and Build Targets:

Master Builders Australia (2024). 2024-25 Federal Budget Analysis. Retrieved from https://masterbuilders.com.au/wp-content/uploads/2024/05/2024-25-Federal-Budget-Analysis_FINAL.pdf

Analysis of Federal Government commitments to housing supply, confirming $3bn New Homes Bonus and 1.2 million homes target by 2029 under the National Housing Accord. Published May 2024.

NSW Transport Oriented Development Programme:

NSW Department of Planning and Environment (2024). Transport Oriented Development Program. Retrieved from https://www.planning.nsw.gov.au/policy-and-legislation/housing/transport-oriented-development-program/transport-oriented-development

Official government policy documentation confirming TOD controls around 37 station locations with maps and masterplan details. Updated 2024.

Inside Local Government (2024). NSW Govt reveals TOD masterplans. Retrieved from https://insidelocalgovernment.com.au/nsw-govt-reveals-tod-masterplans/

News report detailing capacity for 60,000 homes and 126,000 retail/commercial jobs in rezoned TOD areas. Published 2024.

Property Market Data:

Property Update (2024). Sydney Metro suburbs: High premiums but growth remains on the slow track. Retrieved from https://propertyupdate.com.au/sydney-metro-suburbs-high-premiums-but-growth-remains-on-the-slow-track/

Analysis of rental premiums in TOD catchments ranging from 21.4% to 46.9% above comparable locations, with house rents reaching premiums over 80% in top locations. Published 2024.