Talk of the town: A record number of apartment completions has driven revenue growth

The Multi-Unit Apartment and Townhouse Construction industry has grown significantly over the past five years. Low interest rates have driven significant demand for apartments and townhouses, while strong population growth and a housing supply shortfall have resulted in an all-time high for residential building consents during the period. These factors are anticipated to lead to a record number of apartment completions in the current year, with industry revenue expected to rise by 5.9% over 2018-19. Industry revenue is forecast to rise at an annualised 18.3% over the five years through 2018-19, to $1.8 billion.Growth in apartment construction has been most significant in Auckland and Wellington due to strong population growth and migration over the past five years...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
18.3%
Forecast Growth 19-24
Profit
Employment
5,804
Businesses
3,347
Market Share of Companies

Industry Threats & Opportunities

  • Record numbers of apartment completions have driven strong industry revenue growth
  • Industry operators have sought to capitalise on surging residential property prices
  • A rising population and an increase in household numbers are expected to support industry growth
  • Industry Report - Starting a New Business Chapter

    The Multi-Unit Apartment and Townhouse Construction industry exhibits moderate barriers to entry, which largely relate to initial capital outlays and licensing requirements. Licensed Building Practitioners (LBP) must undertake construction work that affects a building's integrity. LBPs are assessed to ensure they are competent in a range of construction services that are carried out in residential building construction.Access to the industry can be gained once tradespeople meet licensing requirements. However, newly licensed owner-operators are likely to have difficulties due to a lack of proven experience and referrals. Est...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:

  • Having good working relationships with subcontracting building trade specialists
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Dwelling commencements and Residential housing loan rates 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 in New Zealand Industry?

    Industry operators primarily construct apartments, duplex housing, semi-detached housing, flats and other attached housing. This includes making alterations, additions and renovations to these buildings, and organising or managing the construction of these residential building types.

    Industry Products
  • Apartments
  • Townhouses, flats and units
  • Tourist and retirement village units
  • Renovations
  • Other construction
  • Industry Activities
  • Apartment construction
  • Semi-detached housing construction
  • Duplex housing construction
  • Flat construction
  • Alterations or renovations of attached housing
  • Managing or organising the attached housing
  • Table of Contents

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

  • Current Performance
  • Apartment boom
  • Strong property market
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction activity
  • Demand factors
  • 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
  • Crisis and Care Accommodation in New Zealand
  • Consumers in New Zealand
  • Aged Care Residential Services in New Zealand

  • Key Selling Industries
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Hardware Wholesaling in New Zealand

  • Products & Services
  • Apartments
  • Townhouses, flats and units
  • Tourist and retirement village units
  • Renovations
  • Other construction
  • Chart: Multi-Unit Apartment and Townhouse Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Multiple property owners
  • First home buyers
  • Movers
  • 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
    Fletcher Building Limited,
  • Table: Fletcher Building Limited - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Consents
  • Consents that are granted by councils to ensure Building Code compliance before building construction can begin.
  • Kiwisaver Homestart Grant
  • A scheme providing financial support to KiwiSaver contributors for the purchase of a first home.
  • Urban Sprawl
  • Population expansion to the outer areas of a city towards low-density housing and developments.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Multi-Unit Apartment and Townhouse Construction in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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