Victoria’s extraordinary new home construction boom has propelled suburban builders to the top of the nation’s most prolific list.
Despite the industry enters full lockdown this week, the Housing Industry Association’s annual Top Home Builders report released yesterday found that the nation’s largest corporations have supported the economy by starting work on thousands more homes than ever before.
But apartment builders have largely dropped the list of the most active construction groups over the past fiscal year, as the city’s high-rise pipeline falls to what is expected to be its lowest ebb.
HIA chief economist Tim Reardon said despite the good news for single-family homes, the decline in the multi-family housing sector could have “impacts for a few years.”
“There is certainly concern from Melbourne’s point of view in terms of the medium-term outlook,” Reardon said.
“We have seen a 20% drop in multi-residential units across Australia, and that would be true in Victoria. It was a very difficult year for multi-family housing builders.
Some of the largest apartment building groups in the country came out of the top 20 in the latest report, having taken second and third places in recent years.
As a result, traders headed to Perth, Adelaide and Brisbane to monitor the work.
“Between now and the end of the year, we are probably looking at the worst of this exodus from Melbourne,” Mr Reardon said.
He said separate population figures showed the biggest increase in groups leaving Melbourne were those under 45 and an increase in those under 15.
“This suggests that working families are leaving Melbourne and likely moving to find work,” Mr Reardon said.
But it’s been a “very good year” for single-family homes with a 30% increase for most of the bigger builders, and strong demand is expected after the Melbourne foreclosure ends.
HIA Victorian Executive Director Fiona Nield said the numbers from the single-family home market were an “exceptional result”.
“The industry has been able to maintain and grow despite the challenges of the past 12 months,” said Ms. Nield.
“Homebuilding is at the heart of the Victorian economy and the jobs it creates and the flow of effects are huge for Victoria.”
As a result, more Victorians than ever would move to a new home, she said.
Metricon was the busiest builder in the country, with more than 6,000 homes started compared to 4,500 the year before – much of the extra work in Victoria, the country’s busiest new home market.
Metricon chief executive Mario Biasin said the record year reflected “a fortunate position in an economic climate that has been difficult for so many.”
“Our customers have and always will be our top priority, and it is an honor that Australian buyers continue to trust us with the most important purchase of their lives, even during a global pandemic,” he said .
ABN Group was second, after adding 2,000 more housing starts from the previous year to reach 5,345 around Australia in fiscal year 2020-2021.
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