Expert sounds the alarm over Chinese import as Australia desperately tries to solve housing shortage: 'There are risks'

Published: 00:15, 30 July 2026 | Updated: 00:24, 30 July 2026 An expert has warned against Australia relying solely on China to manufacture modular homes as it emerges as a popular solution to the housing shortage.  UNSW Sydney professor Riza Yosia Sunindijo has raised quality and logistical concerns after Metricon promoted the alternative to traditionally built homes. The home builder recently built two prefabricated three-bedroom homes in just 20 days in west Melbourne, after ninety per cent of the materials were manufactured in China, and then assembled on traditional slab-on-ground foundations in Australia. The Albanese government has set an ambitious plan of building 1.2million new homes by mid-2029, but was 77,500 homes behind target as of April this year. In an effort to speed up construction, the government has promoted the benefits of prefabricated and modular homes. Professor Sunindijo told Daily Mail there were downsides to having the materials manufactured overseas, saying it could negatively impact quality. 'There are risks associated with long transport distances, shipping damage, changes in exchange rates, and transportation delays,' he said.  'Ensuring the components meet the National Construction Code and Australian Standards should be done at the design and manufacturing stages because it is frequently impossible to do so once the components have arrived in Australia.'   An expert has warned against Australia relying solely on China to manufacture modular homes He also questioned the practicality of relying too heavily on one country.  'China has a large and sophisticated manufacturing sector, allowing them to produce these housing components in a timely manner and with competitive pricing,' Professor Sunindijo said.  'But it is also sensible to avoid excessive reliance on a single country and to maintain alternative sourcing strategies for critical components.'  Professor Sunindijo also raised concerns about labour conditions, material sourcing and manufacturing practices as potential issues.   'Are they treated properly and paid fairly? What are their business practices?' he said. 'Are the materials sourced responsibly? Are the components produced ethically? 'Does the manufacturing process pollute the environment?' Professor Sunindijo said depending on imported housing components could result in Australia missing out on new manufacturing jobs. UNSW Sydney professor Riza Yosia Sunindijo has raised quality and logistical concerns after Metricon promoted the alternative to traditionally built homes  'Local manufacturers could create new jobs in design, engineering, robotics, and advanced manufacturing, while providing safer and better work conditions for the workers,' he said.    Despite the concerns, Professor Sunindijo said the trend could have a positive impact on the tradie shortage.  'It could reduce the amount of traditional on-site construction work required, which can be a good thing given the labour shortage facing the Australian construction industry,' he said. Infrastructure Australia's 2025 Infrastructure Market Capacity Report, released in November, revealed a shortage of about 141,000 workers on public infrastructure projects. The report warned Australia could face a shortage of up to 300,000 construction workers by 2027. Professor Sunindijo said modular housing was a viable solution to get more homes built quicker amid a tradie shortage.  'Australia needs affordable and quality houses urgently, so given the labour shortage, rising costs, and low productivity in construction, modular housing is a way to address these issues,' he said.  If modular housing is indeed used more, he said workers would need additional training and new skills. Professor Sunindijo's comments align with the federal government's National Housing Supply and Affordability Council stance that more homes built using prefabrication methods could help the country reach its target of 1.2 million new homes by mid-2029 'They have to have the right competency to design, install, and work with modular components,' Professor Sunindijo said. 'For instance, instead of constructing a home using the usual power tools, workers would need to change the ways they work, like using a crane.' He also said that work health and safety would need to be re-considered.