House of cards: 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. The Multi-Unit Apartment and Townhouse Construction industry constructs a range of high- and medium-density residential buildings, including suburban flats, military barracks and designer retirement communities. The industry comprises many small- to medium-scale contracting firms, although it also has several large-scale contractors that are capable of working on high-profile apartment developments, including the Barangaroo development in Sydney, and the Australia 108 tower in Melbourne...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 13-18
5.5%
Forecast Growth 18-23
Profit
Employment
26,400
Businesses
14,750

Industry Threats & Opportunities

  • Multi-unit residential commencements will rise, despite an anticipated collapse during 2017-18
  • Low interest rates and population growth have supported investment in apartments and townhouses
  • Investment will gradually return as vacancy rates fall due to population pressures
  • 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, to verify their competency and allow them to obtain insurance for construction projects. New entrants without industry association accreditation will find it increasingly difficult to obtain warranty insurance and compete for contracts.Existing firms have the advantage of having a pool of skilled subcontractors and arrangements with material suppliers, financial institutions and real estate agents. Lab...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 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
  • Foreign firms
  • Lifestyle developments
  • Profit margins
  • 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
  • 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
  • Profit
  • Wages
  • Subcontractor and professional costs
  • Purchases
  • Other
  • 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
    Probuild Constructions (Aust) Pty Ltd, BHCA Pty Limited, Meriton Apartments Pty Ltd, Dyldam Developments Pty Ltd, Hickory Group Pty Ltd,
  • Table: Probuild Constructions (Aust) Pty Ltd - financial performance
  • Table: BHCA Pty Limited - financial performance
  • Table: Meriton Apartments Pty Ltd - financial performance
  • Table: Dyldam Developments Pty Ltd - 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
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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