Strong pent-up demand will help build industry revenue
Melbourne, Australia (PRWEB) February 28, 2013
Home ownership is the cornerstone of the great Australian dream, as it can provide financial and emotional security for households and typically represents their largest lifetime investment.
Revenue of the House Construction industry is forecast to total $37.9 billion in 2012-13, an increase of 1.1% on the previous year as new housing investment gradually recovers under the pressure of pent-up underlying demand for accommodation, and lower mortgage interest rates. Over the five years through 2012-13, revenue is expected to decline by an annualised 2.0%, corresponding with the decline in the value of new single-unit housing construction (2.1%), and falling new housing starts (down 3.9% to 88,000 units).
The robust population growth since the late 2000s has fuelled underlying housing demand, but low household and business confidence have contained investment. According to IBISWorld industry analyst Anthony Kelly, “reconstruction of the many houses destroyed or damaged by the 2011 Queensland and Victorian floods is currently supporting demand in these markets”.
Total direct industry employment is about 85,000 people. The industry has a heavy reliance on a subcontracted labour force. The total workforce of the House Construction industry currently numbers about 300,000 to 350,000 full-time-equivalent people, including subcontractors, agency staff and professional and technical services contractors (e.g. architects and draftsmen). Australia's leading homebuilders include BGC (Australia), Alcock Brown-Neaves (ABN) Group, Metricon Group, JWH Group, Henley Arch, Devine Limited, and Sekisui House Australia. “The solid underlying demand for new housing will support renewed cyclical expansion in housing investment”, says Kelly. 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 or renovation or general repairs to houses, or organising and managing these activities as the prime contractor.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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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.