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 - Industry Investment Chapter
The principal services provided by the industry are project management and trade skills, neither of which have a high capital component. However, project management and design services increasingly use computers, and apartment construction projects often require complex, large-scale lifting and pumping machinery. Direct employment costs account for just 8.7% of revenue in 2014-15, while indirect labour costs (involving payment to subcontractors and consultants) absorb an estimated 41.6% of annual revenue.
The industry currently allocates $10.88 to labour inputs for every $1.00 spent on capital equipment... purchase to read more