Australia's largest home builders have turned in a remarkable performance in 2005/06, increasing both their number of starts and their market share.
In a year when 150,000 homes were commenced, the thirteenth annual HIA Housing 100 shows that total home starts crept up among the nation's largest 100 builders, while their share of the whole market increased from 38 per cent to 40 per cent.
They started 60,759 dwellings in 2005/06 made up of 49,916 houses and 10,843 flats, units and townhouses.
WA firm BGC (Australia), with 4,558 starts, was Australia's biggest builder for the fourth consecutive year. The company which in 2005/06 traded under the brands BGC Residential, J-Corp, and Ventura Homes, built 3,745 detached houses and 813 units. These starts all occurred in Western Australia where they have an estimated 17.8 per cent market share - down from 19.9 per cent last year.
Glenwood homes were the nation's largest multi-unit builder over the year with 1538 starts, up on the 674 starts achieved in 2004/05 and well ahead of Meriton Apartments in second place.
The revenue earned by the largest 100 builders is estimated to have fallen by 28 per cent, from $15.5 billion in 2004/05 to $11.2 billion in 2005/06.
HIA's Executive Director Housing and Economics Simon Tennent said that the increase in starts is a reflection of capital city markets stabilising and regional markets still falling under the weight of poor housing affordability and a lack of land.
"Just as the regional boom has played a dominant role in boosting the prospects of smaller builders last year, the reversal this year has seen the larger city builders gain momentum again," Mr Tennent said.
"The fall in revenue, however, is of concern and reflects the move towards building smaller more affordable homes and the need for larger builders to squeeze margins further to keep order books ticking over."
"For 2006/07, there are some encouraging signs for this group with city dwelling approvals stabilising, however, interest rates will be key for this market as will the pace at which pressure is relieved on the price of undeveloped land," he said.
