{"id":40278,"date":"2022-09-21T17:50:23","date_gmt":"2022-09-21T05:50:23","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=40278"},"modified":"2022-09-21T17:50:23","modified_gmt":"2022-09-21T05:50:23","slug":"australias-biggest-builders-revealed","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/australias-biggest-builders-revealed\/","title":{"rendered":"Australia\u2019s biggest builders revealed"},"content":{"rendered":"

PHOTO: Australian builders. FILE<\/strong><\/p>\n

The nation\u2019s top 100 residential builders have just been announced, with two thirds of the top builders starting fewer homes in the past financial year than the one prior.<\/p>\n

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Metricon has been named Australia\u2019s biggest builder for the seventh year in a row.<\/p>\n<\/div>\n

The latest Housing Institute of Australia Housing 100 Report recorded the beleaguered builder as the nation\u2019s busiest in the past financial year, with a total of 5969 new home starts.<\/p>\n

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It was a slight fall from the 6052 starts they reported for the prior 12 months, when numbers were heavily buoyed by the federal government\u2019s HomeBuilder scheme that ran during the 2020-2021 financial year.<\/p>\n

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New government schemes for buyers<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n

But it\u2019s still more than 1800 ahead of second biggest builder the NSW based MJH Group, also known as NXT Building Group, which reported 4143 starts.<\/p>\n

Two thirds of the nation\u2019s top builders started fewer homes in the past financial year than the one prior, with building trades and materials shortages hitting the industry that relies on fixed-price contracts hard throughout much of 2022.<\/p>\n

With building giants including ProBuild and Condev Construction having failed earlier this year, there are question marks over the viability of many builders.<\/p>\n

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Metricon has repeatedly denied issues relating to their solvency since the passing of former chief executive and founder Mario Biasin in May.<\/p>\n

About 200 Metricon staff were let go in a restructure in August this year.<\/p>\n

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\"Metricon<\/div>\n

Metricon has been named the nation\u2019s biggest builder for the seventh year in a row.<\/strong><\/em><\/div>\n

The business\u2019 owners personally tipped in $30m to allay public fears in June.<\/p>\n

Metricon chief executive Peter Langfelder said after grappling with escalating costs, interest rate rises and speculation over the industry\u2019s stability, their success was a \u201cvery tangible proof point of our continued business strength\u201d.<\/p>\n

Mr Langfelder estimated the firm would contract an average 100 homes every week for the next year, in line with pre-pandemic volumes.<\/p>\n

\u201cIt\u2019s been tough \u2013 navigating challenging market conditions while restructuring the business,\u201d Mr Langfelder said.<\/p>\n

\u201cBut from the beginning all the directors and the Biasin family were determined Metricon would navigate through and thrive.<\/p>\n

\u201cBeing ranked HIA\u2019s top builder once again has proven our strength and important place in The Australian building industry.\u201d<\/p>\n

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\"Metricon<\/div>\n

Metricon chief executive Peter Langfelder. Picture: Kiel Egging<\/strong><\/em><\/div>\n

The figures revealed the nation\u2019s top 100 builders market share plunged 8 per cent from the year before, with HIA senior economist Tim Reardon noting this reflected a return to trend after the nation\u2019s biggest builders absorbed most of the increased demand caused by the HomeBuilder scheme in the prior financial year.<\/p>\n

\u201cTwo thirds of builders in this year\u2019s top 100 started fewer homes than they did last year, which is not surprising given the historically high volumes of the prior year,\u201d Mr Reardon said.<\/p>\n

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\"Source:<\/div>\n

Source: HIA economics<\/strong><\/em><\/div>\n

The economist predicted 2023 would pan out very similarly to 2019, when there was also a strong national economy, buyers had difficulty obtaining finance and the volume of building work was declining from a recent peak.<\/p>\n

However, Mr Reardon warned recent Reserve Bank of Australia indications that they may yet raise the nation\u2019s cash rate to 3.6 per cent to tackle inflation could lead to serious consequences, given the \u201ctreacherous lag\u201d at play with inflation data.<\/p>\n

He warned a big pipeline of building work across the nation was obscuring impacts caused by rising rates, and that with the construction industry absorbing large portions of the workforce, there could be a surge in unemployment when its pool of work was exhausted in 2024.<\/p>\n

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\"The<\/div>\n

The nation\u2019s top 100 builders market share plunged 8 per cent from the year before<\/strong><\/em><\/div>\n

Mr Reardon added that those hoping to build a new home should expect to see costs continue to rise in the coming year, but at a much slower rate than in the past year.<\/p>\n

While previously surging timber prices were now likely to remain stable, he said costs for energy-intensive materials such as cement and glass were likely to continue rising.<\/p>\n

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