The industry relies heavily on subcontractors, agency staff, and professional and technical services consultants.
Melbourne, Australia (PRWEB) December 20, 2014
Home ownership is a cornerstone of the great Australian dream. It can provide financial and emotional security for households and typically represents their largest lifetime investment. Revenue for operators in the House Construction industry in Australia is expected to increase to $41.0 billion in 2014-15. This represents an increase of 3.7% on the previous year, as new housing investment strengthens in response to pent-up underlying demand for accommodation and continued low mortgage interest rates. Over the five years through 2014-15, industry revenue is expected to decline at an annualised 1.2%. According to IBISWorld industry analyst Anthony Kelly, “this reflects the minor contraction in the value of work done on new single-unit housing and the number of single-unit housing commencements.” The performance was also constrained by the declining investment into home improvements.
Despite Australia's strong population growth fuelling underlying housing demand since the late 2000s, investment into new single-unit housing construction has been contained by investor uncertainty in the aftermath of the global financial crisis, high land prices and the swing towards higher density living. “Some contractors have derived stimulus from the reconstruction of homes destroyed or damaged by the 2011 Queensland floods,” says Kelly. Direct industry employment is forecast to rise to 70,000 people in 2014-15, although this represents just a small share of the total workforce. The House Construction industry relies heavily on subcontractors, agency staff, and professional and technical services consultants (e.g. architects and draftspeople). The industry is estimated to total 42,100 enterprises, up from a low at 40,091 in 2012-13, as demand conditions have strengthened in the housing market. The industry displays a low level of market share concentration and is highly fragmented, comprising many small-scale contractors servicing narrow geographic markets. Major players include ABN Consolidated Holdings Pty Ltd, BGC (Australia) Pty Ltd, Simonds Homes Holdings Pty Ltd and Metricon Group Pty Ltd.
Growth over the next five years will contribute to increased employment and profitability. Housing affordability is expected to gradually deteriorate over the next five years, but increased investment into new housing will be driven by the pent-up demand resulting from population pressures and generally buoyant economic conditions.
For more information, visit IBISWorld’s House Construction industry in Australia report page.
This industry consists of companies that mainly construct houses (except semi-detached houses) or carry out alterations, additions, renovations or general repairs to houses. It also includes operators that organise and manage these activities as the prime contractor.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
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
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.