Bringing down the house: Current year revenue is set to collapse due to project completions

For many Australians, the dream of home ownership is shifting from the idea of a detached home in the suburbs to inner-city multi-unit apartments and townhouses. Such apartments and townhouses suit smaller households, offer an urban lifestyle and help owners avoid the high costs of residential land. Operators in the Multi-Unit Apartment and Townhouse Construction industry construct a range of high- and medium-density residential buildings, including suburban flats, military barracks and designer retirement communities...read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 13-18
9.1%
Forecast Growth 18-23
Profit
Employment
28,800
Businesses
19,050

Industry Threats & Opportunities

  • Multi-unit residential commencements will rise, despite an anticipated collapse in 2017-18
  • Low interest rates and population growth have supported investment in apartments and townhouses
  • Investment is forecast to gradually return as vacancy rates fall due to population pressures
  • Industry Report - Industry Key Buyers Chapter

    Despite the existence of several large-scale firms, the industry has a low concentration of ownership with the four largest firms expected to account for about 19.2% of industry revenue in 2017-18. The market share held by these firms is expected to increase over time as the focus of industry activity shifts to large-scale developments, often including equity involvement, which can only be accessed by the large players.Contrary to the traditional housing construction industry, a relatively high proportion of industry activity is undertaken by medium- to large-scale operators such as Multiplex, Probuild, Meriton Apartments, Hickory Group and Dyldam. These enterprises principally operate in the non-residential building and engineering construction sectors. Oth...purchase to read more.

    Additional Insights for the Multi-Unit Apartment and Townhouse Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Multi-Unit Apartment and Townhouse Construction Industry are

  • Development of a symbiotic relationship with another industry
  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Mortgage affordability and Number of households in the Multi-Unit Apartment and Townhouse Construction industry impact industry performance..

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    What's in this report

    What is the Multi-Unit Apartment and Townhouse Construction Industry?

    Industry firms primarily construct multi-unit apartments and townhouses, such as flats, apartments and condominiums. The industry excludes the construction of commercial or public buildings such as factories, office buildings, hostels, hotels and hospitals. The industry also performs alterations, additions, general renovations and repairs to multi-unit apartment buildings, and includes firms that organise or manage multi-unit apartment construction.

    Industry Products
  • Inner-city multistorey apartment complexes
  • Inner-city villas and townhouses
  • Suburban and rural apartment blocks or units
  • Tourist or retirement units
  • Refurbishment or conversion of existing buildings
  • Repair and maintenance of existing buildings
  • Industry Activities
  • Multi-unit apartment building construction
  • Duplex house construction
  • Flat construction
  • High-rise flat construction
  • Home unit construction
  • Project management of multi-unit apartment and townhouse construction
  • Repair or renovation of residential buildings
  • Semi-detached housing construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mortgage affordability
  • Number of households
  • Residential housing loan rates
  • Dwelling commencements
  • Net migration

  • Current Performance
  • Profit surge
  • Changing housing preferences
  • Market characteristics
  • Households and property yields
  • Chart: Revenue Growth

  • Industry Outlook
  • Short-term slump in demand
  • Lifestyle developments
  • Profit and participation
  • Table: Multi-Unit Apartment and Townhouse Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Multi-Unit Apartment and Townhouse Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Residential Property Operators
  • Defence
  • Public Administration and Safety
  • Accommodation for the Aged
  • Crisis and Care Accommodation

  • Key Selling Industries
  • Advertising Services
  • Construction
  • Hardware Wholesaling
  • Machinery and Scaffolding Rental
  • Professional Services

  • Products & Services
  • Inner-city multistorey apartment complexes
  • Suburban and rural apartment blocks or units
  • Inner-city villas and townhouses
  • Refurbishment or conversion of existing buildings
  • Repair and maintenance of existing buildings
  • Tourist or retirement units
  • Chart: Multi-Unit Apartment and Townhouse Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term demand determinants
  • Long-term underlying demand

  • Major Markets
  • Large developers and real estate investment trusts
  • Owners and small developers
  • Other markets
  • Chart: Major Market Segmentation for the Multi-Unit Apartment and Townhouse Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Multi-Unit Apartment and Townhouse Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Multi-Unit Apartment and Townhouse Construction Industry

  • Industry Globalization
    BHCA Pty Limited, Probuild Constructions (Aust) Pty Ltd, Meriton Apartments Pty Ltd, Dyldam Developments Pty Limited, Hickory Group Pty Ltd,
  • Table: BHCA Pty Limited - financial performance
  • Table: Probuild Constructions (Aust) Pty Ltd - financial performance
  • Table: Meriton Apartments Pty Ltd - financial performance
  • Table: Dyldam Developments Pty Limited - financial performance
  • Table: Hickory Group Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Multi-Unit Apartment and Townhouse Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Multi-Unit Apartment and Townhouse Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Apartment commencements (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Commencements
  • The start of a dwelling unit construction project. Commencement follows final approval by the local government authority.
  • First Home Owner Grant (Fhog)
  • A Federal Government grant payable to first-home buyers, initially introduced in 2000 to offset the influence of the GST on house prices.
  • National Rental Affordability Scheme
  • A Federal Government initiative that offers developers long-term tax offsets in the construction of new rental housing, on the condition that rent remains 20.0% below the market rate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Multi-Unit Apartment and Townhouse Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Multi-Unit Apartment and Townhouse Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Multi-Unit Apartment and Townhouse Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Multi-Unit Apartment and Townhouse Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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