Modular home builder Modscape taps robotics to slash construction times

At modular construction company Modscape + Modbotics, a team of 150 people work alongside three robots named Freddie, Janis and Jimi.

Together, they manufacture homes in a factory in a fraction of the time it takes to build a conventional house.

Last year alone, the 20-yearold company produced more than 750 dwellings.

Chief Executive Officer Jan Gyrn said modular housing had developed greatly over the years.

While speed of construction was a key benefit, there were plenty of other reasons to choose modular.

“When we’re manufacturing the components using robotics within a factory environment, we’re then ultimately assembling to make modules, which are then being assembled to make a house,” Gyrn said.

He said modular housing had a much lower carbon footprint – 97 per cent of materials were recycled in 2025, and there was about 75 per cent less waste going to landfill.

From an operational perspective there were about 40 per cent less people on site during construction, and time on site was measured in days as opposed to months. 

Gyrn said the housing options on offer were varied.

“There’s a range of offerings a client can go to – an off-the-shelf house to a bespoke project, and then even to an apartment building,’’ he said.

Gyrn said the Commonwealth Bank was “leading the charge” in financing modular housing. CommBank was the first major bank to offer homebuyers finance during the offsite construction phase of their new home.

Traditionally, banks have only provided finance once a home is fixed to the land and connected to essential services.

This meant customers could have to fund up to 90 per cent of construction costs upfront themselves.

“In Australia for a long time, none of the tier-one banks had a lending product that worked very well for products being manufactured offsite,’’ Gyrn said.

Home Front data indicates that 55 per cent of Australians are open to buying a prefabricated or modular home due to faster construction times and lower cost, however a 50 per cent “trust gap” remains concerning build quality and long-term durability.

Commonwealth Bank Home Lending Executive Christopher Piaud said companies such as Modscape showed that modern manufacturing methods could alleviate these concerns. 

“There can still be a perception that choosing prefab means compromising on the kind of home you want, but prefab homes can be beautifully designed,’’ he said.

“Customers still have flexibility around the design and layout, so they can create a home that reflects their style, suits the way they live and feels like their own.” Piaud said modern methods of construction could give customers more choice on their housing journey.

“Whether it’s getting into the property market, finding more space for a growing family or downsizing to a home that better suits their needs, it offers another way to create a home,’’ he said.

“And with the potential for faster build times, it could help make that next move happen sooner.”

Modular housing also came with less potential for disruption, he said.

“Building a home is a big undertaking, so anything that can make the process feel simpler is valuable for customers.

“With much of a prefab home built offsite, there can be less time spent waiting for work to happen and fewer of the disruptions that can come with a traditional build, such as weather delays.”

Couple frames a cheaper path to home 

Alana and Matthew O’Callaghan’s first home is finally taking shape before their eyes, with the frame up and the internal walls going in.

Alana, 30, said it was “exciting, but scary at the same time” to know that they would soon be homeowners, with their four-bedroom, two-bathroom home in Wilton, south-west of Sydney, likely to be their family home longer-term.

The couple – Alana works in retail and Matthew is a plumber – originally were not considering building at all.

“We never really went down the path of building,” Alana said.

“We really wanted an established home, but it just worked out cheaper for us to build compared to buying an established home.”

Alana said the process of picking out their house design was equal parts fun and stressful, but the build is coming together well.

The best part about building as opposed to buying an established home was being able to customise it, she said.

“For us we wanted two living spaces but when we were looking a lot of places that were in our budget were only one living space or one bathroom,” she said. 

“I definitely think it’s exciting and it’s fun to choose your own layout and pick your own colours and design it from the floor up. It’s been cool.” Alana was not aware at the start of the process about construction loans and how they enabled people building their home to stagger payments and therefore accrue less interest in the early stages of the loan.

Alana said using a construction loan had been comforting for them.

“We still budget for the whole amount of the loan, but I definitely think it’s less confronting when it’s in portions,” she said.

Alana and Matthew’s house is now three months along and expected to be completed next year. Alana said they couldn’t wait to move in.

“We’re really excited,’’ she said. “I’m a little bit nervous, but it’s mostly excitement. Mum’s very excited to have us out of the house.”

Build momentum: NSW construction loans on rise

New South Wales has experienced a surge in the take-up of construction loans, with the number of new loans written by the Commonwealth Bank increasing 28 per cent year on year for the 12 months to the end of June.

The number of owner-occupier loans outpaced investor loans also (32 per cent versus 25 per cent), while metropolitan areas increased 30 per cent compared to 25 per cent in regional and rural areas. 

Commonwealth Bank Executive Manager Specialty Lending Kali Jurkschat said at a time when Australia needed more homes, it was encouraging to see the desire to build was still there. “Our lending data shows customers are continuing to build new homes across different parts of NSW – not just in one pocket of the market,’’ she said.

Construction loans are loans tailor-made for people who are building a house, and have specific differences compared to a traditional home loan.

With a construction loan, the entire amount needed to buy land and build a dwelling is covered under the agreement with the bank, but the money is only released as needed.

This means the homeowner only pays interest on the amount drawn, rather than the full  amount of the loan, until the loan is fully drawn

“This can provide some valuable budget flexibility for customers particularly if they are paying rent or looking for ways to manage the costs associated with moving into their new home,” Jurkschat said.

There are typically five stages to the process, with the bank releasing funds when the slab is poured, the frame is erected, at the “lock-up” stage when windows, doors, external walls and roofing are completed, at the “fit-out” stage – where internal fixtures and fittings are installed – and at completion.

This article is part of The Home Front series supported by Commonwealth Bank and was first published by The Daily Telegraph.