Metricon named country’s top builder despite financial headwinds

Metricon started construction on 5969 homes across the country in the past year, making it Australia’s biggest home builder for the seventh year in a row. Picture: David Caird

Home builder Metricon is still the nation’s most prolific in the residential space despite struggling against financial headwinds earlier in the year.

The Melbourne-based business only recorded a slight decline in the number of commencements over the past year, starting construction on 5969 homes across the country, according to the Housing Industry Association – Colorbond Steel Housing 100 report released on Wednesday.

It is the seventh year in a row Metricon has been named the country’s top builder.

After rumours of financial trouble surfaced in March, Metricon was rocked in May by the unexpected death of founder and chief executive Mario Biasin. While the private company never disclosed its books, Commonwealth Bank stepped in with a $30m rescue package to stop the business from collapsing following a meeting between the Victorian government and Metricon’s top executives.

Metricon chief executive Peter Langfelder, who has been in charge since Mr Baisin’s passing, said he was proud of Metricon’s ability to navigate through and thrive in the midst of arguably the most challenging market conditions the industry has ever experienced.

“We have previously said that our company has a proven history of success and remains strong and viable, with the full support of our key stakeholders – this remains the case today,” Mr Langfelder said.

The top 100 home builders across the country built 15 per cent fewer homes over the 2021/22 financial year (74,973 properties) compared to the year prior (88,215). The market share of the cohort also fell back to 44 per cent.

HIA chief economist Tim Reardon said the result was a reflection of the negative impacts of rising material prices caused by record levels of demand, supply chain constraints and labour shortages, which have only just started to show improvements.

“The supply of building materials has improved significantly in recent months,” Mr Reardon said.

“Shipping costs are declining and the rise in building material costs on the ground is slowing. In some cases, prices have fallen. The cost of building will continue to increase in 2022/23, but at a slower rate than last year.”

Second-ranked NXT Building Group – which includes brands Mojo Homes, McDonald Jones Homes and MJH Multi – moved up one spot after starting on 4143 properties, while Hutchinson Builders came in at third place with 3829 starts, primarily in the apartments sector.

Mr Reardon said the return of apartment construction was welcome, particularly as migration to Australia starts to ramp up when rental markets are tight.

“A notable feature of the market in 2021/22 was the return of apartment builders. The loss of overseas migration saw the apartment market shrink rapidly at the start of the pandemic, but a return to work and study is seeing the apartment market recovering,” he said.