Dyldam flew the flag for multi-unit builders, starting a total of 4,306 dwellings, which ranked this builder second overall. Their increase of 701 dwellings over last year’s total was an impressive feat. Most of the apartment builders on the Housing 100 built less than in 2017/18.
The three largest detached house builders were: Metricon, ABN Group and Simonds Homes. The three largest semi-detached house builders were: Impact Group Aus Pty Ltd, Phillip Usher Constructions and ABN Group. Dyldam Developments was the number one multi-unit builder, followed by Multiplex and Meriton Apartments.
In a sign of the strong year that the industry experienced last year, the Housing 100 ‘biggest movers’ list had fourteen entrants, each increasing their housing starts by 100 homes or more. Nine of these companies increased their housing starts by 200 homes or more.
So what will 2018/19 hold for the nation’s largest builders? Conditions are unlikely to be as buoyant as they were last year and the industry is likely to have worked through the backlog of presales that accumulated during 2016 and 2017.
The Australian Prudential Regulation Authority (APRA) interventions in credit markets, along with the banks reacting to concerning revelations during Royal Commission hearings mean that households are able to borrow less than in the past. Home prices are adjusting downward to reflect buyers’ capacity to borrow. Investors are responding to the declining prices by withdrawing from the market even further (they were already stepping back after APRA directed banks to limit interest-only lending).