Metricon tops HIA-Colorbond list of largest home builders
Australia’s largest home builders have increased their dominance of the housing market amid record levels of construction.
According to the annual HIA-Colorbond steel Housing 100 report, the country’s top 100 builders accounted for 80 per cent of new detached homes in the 12 months to June, up from 68 per cent in the previous year.
The report ranks Australia’s largest 100 residential builders based on the number of homes commenced each year.
Metricon was ranked as the largest home builder for the sixth consecutive year, reporting a 34 per cent increase in starts to 6052.
Dale Alcock’s ABN Group became the country’s second largest home builder after reporting a 65 per cent increase in housing starts to 5345, while another Perth-based company, BGC Housing Group, jumped from seventh to fourth position with 4205 starts, up 80 per cent from the 2332 starts in 2019-20.
MJH Group was up from fifth to third, while Queensland-focused Hutchinson Builders slipped from second to fifth, and was the only builder in the top 20 to report a decline in housing starts.
HIA chief economist Tim Reardon said Hutchinson was the largest of only three apartment builders in the top 20, which had suffered from the loss of overseas migration and the flow-on effect on the apartment market in Australia.
According to the report, the number of new units developed by the top 100 builders fell by 20.7 per cent in 2020-21.
“The past year has been a remarkable year for home building,” Mr Reardon said.
“We are seeing a record number of detached homes commence construction while at the same time, apartment construction is in the midst of a significant slump.
“The majority of builders increased their number of dwelling starts in 2020-21 compared to the previous year. Those that didn’t were more likely to be in the multi-unit market.”
“The loss of overseas migration last year hit the apartment market almost immediately. Overseas students, tourists and migrants often stay in multi-unit dwellings when they first arrive in the country. This trend was exacerbated by the shift in consumer preferences towards lower density housing.”
The country’s top 100 home builders increased their volume of new housing starts by 27 per cent, or 18,758 homes, in the year to June, while their revenue was up 31.4 per cent to $31.7bn.
Metricon chief executive Mario Biasin said the housing industry had been forced to overcome lockdowns and materials shortages throughout the pandemic to meet soaring demand from customers.
“The federal government’s HomeBuilder scheme, lower interest rates, and increased consumer desire to live in new homes – many away from high density areas – have facilitated a huge surge in demand for new detached homes,” he said.
“We have learnt so much along the way about managing Covid-19 lockdowns and have extensive safety procedures in place to keep working safely and efficiently.
“We agree with the states and federal governments that vaccination is the most pragmatic pathway to a life out of lockdown, consistent business operations and keeping our employees, trades and customers safe.”