Next level: Strong underlying demand for new housing construction has supported revenue

Operators in the Multi-Unit Apartment and Townhouse Construction industry have benefited from a shift in home ownership trends over the past decade. Home buyers have increasingly opted to purchase inner-city, multi-unit apartments and townhouses that offer an urban lifestyle without high residential land costs. Industry operators construct a range of high- and medium-density residential buildings, including suburban flats, military barracks and designer retirement communities. The industry primarily consists of many small- to medium-scale contracting firms, although it also includes several large-scale contractors that can work on high-profile apartment developments...read more.

Industry Statistics & Market Size
Revenue
$49bn
Annual Growth 15-20
5.5%
Forecast Growth 20-25
Profit
Employment
61,450
Businesses
22,960
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong underlying demand for new housing construction has supported industry expansion
  • Low interest rates and strong population growth have driven investment in apartments and townhouses
  • The completion of major apartment developments will drive down activity over the next five years
  • Industry Report - Industry Analysis Chapter

    Construction activity in the Multi-Unit Apartment and Townhouse Construction industry has surged over the past five years, following unprecedented levels of new dwelling commencements. Strong population growth, a shift in housing preferences towards high-density living, and an inflow of foreign investment have driven demand for industry services over the period. Industry revenue has increased at an annualised 5.5% over the five years through 2019-20. However, industry revenue is expected to trend downwards by 10.3% in the current year, due to the completion of several large-scale developments. The industry’s current performance is also expected to be affected as planned projects are deferred due to increasing vacancy rates from unsold and unleased apartments. The...purchase to read more.

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

    IBISWorld has determined the most important Key Success Factors for the Multi-Unit Apartment and Townhouse Construction are:

  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand
  • Access to the necessary amount of land/type of property
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on private dwellings 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 apartment and townhouse buildings, such as flats, apartments and condominiums. The industry excludes commercial or public building construction, such as factories, office buildings, hostels, hotels and hospitals. Industry firms also perform alterations, additions, general renovations and repairs to multi-unit residential buildings. The industry includes firms that organise or manage multi-unit apartment and townhouse construction.

    Industry Products
  • Large multistorey apartment complexes
  • Townhouses and semi-detached terrace houses
  • Suburban and rural flats or units
  • Alterations and additions to existing buildings
  • Industry Activities
  • Multi-unit apartment building construction
  • Duplex house construction
  • Flat construction
  • High-rise flat construction
  • Home unit construction
  • Multi-unit apartment and townhouse construction project management
  • Multi-unit apartment and townhouse repair or renovation
  • 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
  • Capital expenditure on private dwellings
  • Number of households
  • Dwelling commencements
  • Mortgage affordability
  • Residential housing loan rates
  • Net migration

  • Current Performance
  • Profitability and competition
  • Changing housing preferences
  • Market characteristics
  • Household numbers 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
  • Large multistorey apartment complexes
  • Townhouses and semi-detached terrace houses
  • Alterations and additions to existing buildings
  • Suburban and rural flats or 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Apartment commencements (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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 for constructing new rental housing, on the condition that rent remains 20.0% below the market rate.
  • What Our Customers Say

    Why buy this report?

    The Multi-Unit Apartment and Townhouse Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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