House Construction in Australia Industry Market Research Report Now Updated by IBISWorld

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After facing difficult conditions in the wake of the global financial crisis, the industry is showing signs of recovery. For this reason, industry research firm IBISWorld has updated its report on the House Construction industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Pent-up demand and lower mortgage interest rates are expected to aid industry growth.

Home ownership is a cornerstone of the Australian dream. It can provide financial and emotional security for households and typically represents their largest lifetime investment. IBISWorld industry analyst Anthony Kelly states “the House Construction industry's revenue is forecast to total $42.8 billion in 2013-14, an increase of 5.2% on the previous year, as new housing investment rebounds in response to pent-up underlying demand for accommodation and lower mortgage interest rates.” The House Construction industry is projected to record flat revenue growth over the five years through 2013-14 (0.0% annualised), matching the trends in the value of work done on new single-unit housing and the number of housing commencements. According to Kelly, “robust population growth has fuelled underlying housing demand since the late 2000s, but unfavourable housing affordability, and low consumer and business confidence, have contained investment in the aftermath of the global financial crisis.” Reconstruction of the homes destroyed or damaged by the 2011 Queensland and Victorian floods provided some stimulus for contractors operating in these markets.

Direct industry employment is about 87,500 people, although the industry heavily relies on a subcontracted labour force including agency staff and professional and technical services contractors (e.g. architects and draftsmen). The industry includes 42,750 enterprises, up from 42,181 in 2011-12. Despite strong underlying demand for new housing, unfavourable housing affordability and high household debt levels are projected to contain the growth of investment into new housing construction.

The House Construction industry has a low level of market share concentration. The industry’s major players – ABN Consolidated Holdings, BGC, Metricon Group, and Simonds Homes – operate across multiple locations and typically have a presence across several states and many regional markets. The industry is characterised by its fragmented structure, comprising many small-scale firms, which operate in narrow regional markets. Less than 2.0% of businesses employ more than 20 people (stable over the long term), while almost 60.0% of contracting firms are non-employing enterprises comprising sole proprietors and partners. Over half the industry enterprises generate annual revenue below $200,000, while only 8.8% of businesses generated more than $2.0 million. For more information, visit IBISWorld’s House Construction report in Australia industry page.

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IBISWorld industry Report Key Topics

This industry consists of establishments mainly engaged in the construction of houses (except semi-detached houses) or in carrying out alterations, additions, renovation or general repairs to houses. It also includes operators that organise and manage these activities as the prime contractor.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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