The sparse demand for new homes had given a few business projects to Australia’s top home builders, the latest HIA-COLORBOND steel Housing 100 Report says.
The report, which ranks the nation’s largest 100 residential builders based on the number of homes started each year, revealed that starts fell by 13% from 59,509 in 2009/10 to 51,903 in 2010/11.
There is not a lack of projects as the largest 100 builders started 40,183 houses (down 21 % from 50,521) and 11,720 units and townhouses (up 30 % from 8,988) in 2010/11.
The share of the market held by the largest 20 builders was steady in New South Wales when compared to 2009/10, eased slightly in Victoria, and fell substantially in Western Australia.
The market share held by the largest 20 builders in Queensland increased moderately. The market share held by the largest 15 builders in South Australia fell significantly.
“The unwinding of stimulus measures, heightened interest rate uncertainty, stalled progress in attacking supply-side obstacles, and weak consumer and business confidence amidst negative domestic and global economic news all conspired to derail new home building conditions last financial year,” says HIA Chief Economist, Dr Harley Dale. “This environment is clearly reflected in the Housing 100 results.”
“Evidence of accelerated weakness in new housing conditions in 2011/12 reinforces the justification for interest rate cuts and short term fiscal stimulus to boost Australia’s new housing supply,” Harley Dale said.
The Housing 100 Report shows that Metricon Homes came in as Australia’s largest residential builder for the first time in 2010/11 with 3,060 starts, all of which were detached houses.
Alcock/Brown-Neaves Group was ranked Australia’s second largest builder with 2,668 starts. BGC (Australia) was ranked third with 2,435 housing starts for 2010/11.
Hickory Developments Pty Ltd was the nation’s largest multi-unit builder for the second consecutive year with 2,003 starts, up substantially on the level of 1,274 starts for the previous year. This result improved the company’s overall ranking from number ten to number five.
The Housing 100 builders held a 33% share of Australia-wide housing starts in 2010/11, down from 36 % in 2009/10 and 38 % in 2008/09.
“It is also vital to reignite the policy reform process to improve land release, ease persistently tight credit conditions, and reduce the excessive and inequitable taxation burden borne by Australia’s new home building sector,” adds Mr. Dale.