Australia’s Housing Industry Association (HIA) reports that many of the company’s largest developers listed in the “Housing 100” are winding down their building starts due to waning demand. HIA officials say that government reform in the building and real estate industry could help stoke demand but that no one expects any action in the near term. Australia’s property market has been languishing for some and the HIA has been pressuring the government to take action to no effect. The largest developers tracked by the Housing 100 include Metricon Homes, Alcock/Brown-Neaves Group and Hickory Development. For more on this continue reading the following article from Property Wire.
Australia’s largest house builders are building fewer homes and there seems little appetite for improving things in 2013, it is claimed.
Figures from the latest HIA-colorbond Housing 100 report shows that new build starts fell by 7.3% to 48,130 in 2011/12, their lowest level since 1996/1997.
In 2011/12 the largest 100 builders started 35,909 houses, down 11% from 40,183, and 12,221 units and townhouses, up 4% per cent from 11,720. The largest 100 builders held a 35% share of Australia wide housing starts, up slightly from 33% in 2010/11, but below the historical average of 36%.
‘This result is consistent with the overall experience of the industry in 2011/2012 where new home building conditions weakened considerably across Australia,’ said Housing Industry Association chief economist, Harley Dale.
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‘The Housing 100 and the entire industry can deliver, and indeed Australia’s residents have the requirement for, a considerably higher level of housing starts than has been evident over the last couple of years,’ he pointed out.
‘Within an environment of subdued demand conditions, both unilateral and cooperative policy reform could generate a much healthier year for new home building in 2012/13. Sadly, evidence of the will to execute such policy action remains far slimmer than Australia requires,’ he added.
The report, which ranks the nation’s largest 100 residential builders based on the number of homes started each year, named Melbourne based Metricon Homes was Australia’s largest builder for the second year in a row in 2011/12.
It also shows that Metricon Homes started 2,821 dwellings in 2011/12, all of which were detached houses. The company operates in Victoria, New South Wales, Queensland, and South Australia.
Alcock/Brown-Neaves Group was ranked Australia’s second largest builder in 2011/12 with 2,736 starts, building in the markets of Western Australia and Victoria. Western Australia builder BGC (Australia) was ranked third with 2,692 housing starts.
Hickory Developments Pty Ltd was the nation’s largest multi unit builder for the third consecutive year with 2,163 starts. This result moved the company up the overall rankings ladder from number five in 2010/11 to number four in 2011/12.
Seventeen builders who featured in the 2011/12 Housing 100 did not make the list the previous year. In terms of the largest 20 builders, all were in the Housing 100 the previous year, but four builders moved into the top 20 in 2011/12 from outside that ranking range; Pindan Pty Ltd, Meriton Apartments, Eden Brae Homes and Summit Homes Group.
This article was republished with permission from Property Wire.