Australia’s Largest Builders Grab a Bigger Share of New Home Market: HIA

The Housing 100 builders started 49,360 dwellings in 2008/09, 3,455 fewer than the year before. In 2008/09 there were 39,947 detached houses and 9,413 flats, units and townhouses started.

Western Australia based BGC (Australia) was Australia’s biggest builder for the sixth consecutive year. BGC had 3,844 starts which was an increase on the previous year (3,304). In 2008/09 the company built 3,580 detached houses, which also made it the largest detached house builder, and 264 units.

Meriton Apartments was the nation’s largest multi-unit builder with 1,791 starts, a big jump on the 707 starts that placed the company fifth on the multi-unit list in 2007/08.

HIA’s Chief Economist, Dr Harley Dale, said that the tripling of the First Home Owner Grant to $21,000 favoured larger builders and prevented a more significant fall in overall starts.

“The boost to the grant helped the Housing 100 increase their share of detached house starts to a record 44 per cent, up from 39 per cent in 2007/08. We expect the share will reach a fresh high in 2009/10,” Harley Dale said.

“The market share for the largest builders increased in 2008/09 in New South Wales, Victoria, Queensland, and Western Australia with the share in WA exceeding 70 per cent,” said Harley Dale.

“We did, nevertheless, witness a drop in Housing 100 starts in 2008/09 and the emerging recovery in 2009/10 is being constrained by bottlenecks in the approvals process,” Harley Dale said.

“Unless we can make considerable headway in reducing the myriad of supply side constraints to new home building, including cumbersome building approvals processes and a re-emerging skilled labour shortage, then our new home building levels will remain well short of the minimum 190,000 dwellings required per annum to meet underlying demand,” added Harley Dale.

 

LARGEST 20 HOME BUILDERS

1 BGC (Australia) 3,844 starts in 2008/2009
2 Alcock/Brown-Neaves Group* 2,872
3 Metricon Homes 2,237
4 Meriton Apartments 1,791
5 Simonds Group 1,635
6 Henley Properties 1,596
7 JWH Group 1,390
8 Porter Davis Homes 1,342
9 Mirvac Group 1,283
10 Hickinbotham Group of Companies 1,265
11 Hickory Developments Pty Ltd 1,114
12 GJ Gardner Homes** 1,012
13 Devine Group 923
14 Dennis Family Homes 917
15 JG King 883
16 Multiplex Limited 873
17 Burbank Homes 869
18 Hotondo Homes** 864
19 Clarendon Residential Group 858
20 Coral Homes*

* Some dwellings built under franchise
** All dwellings built under franchise
Source: HIA

FASTEST MOVING 20 HOME BUILDERS (Builders who increased their starts by 100 or more)

RANK/DEVELOPER/INCREASE IN STARTS 2008/2009 (number) (%)

4       Meriton Apartments   1,084   153%
11     Hickory Developments Pty Ltd    981   738%
16     Multiplex Limited     556   175%
1       BGC (Australia)     540    16%
5       Simonds Group      382    30%
8       Porter Davis Homes     237    21%
43     FKP Construction     222   200%
32     Carlisle Homes Pty Ltd     157    59%
17     Burbank Homes      154    22%
53     Redink Homes Pty Ltd     114    88%
46     Diploma Group Limited     112    59%
27     Orbit Homes Group     104    18%
42     Bloomer Constructions Pty Ltd    100    40%

Source: HIA

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco

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