Industry Analysis & Industry Trends
The Australian dream of home ownership is increasingly focused on multi-unit apartments and townhouses, which offer inner-city lifestyles, suit smaller households and avoid the high costs of residential land. Industry operators construct buildings that range from suburban flats to military barracks, to designer retirement communities.
Industry revenue is projected to total $18.0 billion in 2014-15, up by just 1.3% on the previous year, but representing growth by an annualised 8.1% over the past five years. This accelerated pace of expansion has been underpinned by the long-term shift of housing investment away from single-unit housing and towards the multi-unit apartment market. The value of new multi-unit housing construction is projected to increase by an annualised 8.4%... purchase to read more
Industry Report - Starting a New Business Chapter
The principal barrier to entry for new competitors in the industry is the requirement for contractors to be registered and licensed to practice. States and territories require builders to register with recognised industry associations (such as the Housing Industry Association or Master Builders Australia) in order to verify their competency and allow them to obtain insurance for construction projects. New entrants not holding industry association accreditation will find it increasingly difficult to obtain warranty insurance and hence compete for contracts in this market.
Existing firms have the distinct advantage of already having a pool of skilled subcontractors, arrangements with material suppliers and arrangements with financial institutions and real estate agents... purchase to read more