Divide and conquer: Rising population will drive demand for the industry's services

Trends in housing investment and land preparation for new dwelling commencements mainly drive growth in the Land Development and Subdivision industry. The industry also derives about one-quarter of its revenue from developing land for non-residential buildings and other non-building applications, such as transport infrastructure. Over the past five years, the supply of serviced land coming on the market for housing development has steadily declined, while the median lot price has continued to trend upwards.Stronger housing demand stimulated a surge in land sales through to a near-record high in 2013-14. However, housing preferences swung towards higher density apartment and townhouse developments, which constrained the industry's expansion...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 13-18
0.2%
Forecast Growth 18-23
Profit
Employment
21,600
Businesses
10,635
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • A falling volume of residential lots sold has constrained the industry's expansion
  • The swing towards apartment developments has constrained demand for residential demand
  • Weaker volumes and values of land sales are expected to constrain the industry’s prospects
  • Industry Report - Starting a New Business Chapter

    The industry has low barriers to entry for new competitors and low barriers to exit for existing businesses. Independent property owners often look to develop their own land, including arranging subdivision and zoning compliance, and may sell the property as a once-off. Similarly, building developers and housing contractors are often involved in developing parcels of land for planned construction projects with the view to making speculative gains from selling the completed property. Consequently, many businesses are involved in the industry on a short-term basis, which creates a fast-changing operating landscape...purchase to read more.

    Additional Insights for the Land Development and Subdivision Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Land Development and Subdivision Industry are

  • Easy access to further appropriate land for development
  • Highly trained workforce
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from non-residential building construction in the Land Development and Subdivision industry impact industry performance..

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    What's in this report

    What is the Land Development and Subdivision Industry?

    Companies in this industry primarily subdivide and amalgamate land into lots. They also prepare and service land for subsequent sale, including performing excavation work for installing roads and utility lines.

    Industry Products
  • Houses and housing estate developments
  • Apartments and other residential developments
  • Commercial developments
  • Industrial developments
  • Other developments
  • Industry Activities
  • Land subdivision
  • Land development
  • Land amalgamation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from house construction
  • Demand from non-residential building construction
  • Demand from multi-unit apartment and townhouse construction
  • Demand from road and bridge construction

  • Current Performance
  • Profit and enterprises
  • Interest rates
  • Density trends and diversification
  • Population concerns
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit widens
  • Population changes
  • Commercial land development
  • Table: Land Development and Subdivision Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Land Development and Subdivision Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Residential Property Operators
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators
  • Consumers

  • Key Selling Industries
  • Electricity, Gas, Water and Waste Services
  • Finance
  • Legal Services
  • Site Preparation Services

  • Products & Services
  • Houses and housing estate developments
  • Apartments and other residential developments
  • Commercial developments
  • Industrial developments
  • Other developments
  • Chart: Land Development and Subdivision Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Low-density residential property owners
  • Commercial property developers and operators
  • High-density residential property developers
  • Other markets
  • Chart: Major Market Segmentation for the Land Development and Subdivision Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Subcontracted services
  • Wages
  • Purchases
  • Professional and technical services
  • Depreciation
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Land Development and Subdivision

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Land Development and Subdivision 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 Land Development and Subdivision 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 Land Development and Subdivision Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Residential land sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brownfield
  • Land that has previously been developed for industrial or commercial use. It can be converted or redeveloped to be suitable for a different use, such as retail or housing.
  • Greenfield Land
  • Land that has not been previously utilised in structure development. Also known as undeveloped land.
  • Property Development
  • The funding activities associated with improving the quality of a piece of land or building.
  • Subdivision
  • The legal division of land that enables the original piece of land to be owned by several entities and used for different purposes.
  • Urban Infill
  • The development of higher density residential areas near transport and commercial hubs.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Paid on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Land Development and Subdivision 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 Land Development and Subdivision:
    • 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 Land Development and Subdivision 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 Land Development and Subdivision, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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