The much-awaited HIA-Colorbond steel Housing 100 Report threw up some interesting surprises in 2020-21. The report ranks Australia’s largest 100 residential builders based on the number of homes started each year. The builders who make it to the list must begin work on a minimum number of sites in the year – a number that was increased in 2020-21 to 125, the highest ever in the 28 years the report has been released.
Detached houses vs multi-unit dwellings
In 2020-21, the largest 100 residential builders increased the number of detached homes commence construction by 49.1%, while the number of units fell by 20.7% compared to the previous year’s report.
According to the CEO of Metricon Homes which clinched the top spot on the list for the sixth year in a row, the massive surge in demand for new detached homes is attributable to “increased consumer desire to live in new homes, many away from high-density areas.” The lower interest rates and HomeBuilder grants have also contributed to the construction boom in the country.
Overall, the top 100 builders increased the number of new dwelling constructions in 2020-21 by 27%, which is an extra 18,758 homes.
Leading home builders in 2020-21
Metricon Homes retained its top spot once again, emerging as the largest builder for 2020-21. It recorded 6,052 starts in the period, constructing houses across New South Wales, Queensland, South Australia and Victoria.
In Queensland, Metricon Homes started work on 1,177 sites compared to just 604 starts in the previous year, recording a phenomenal 95% year-on-year growth in the region.
The second most active builder on the list was ABN Group, with 5,345 starts. Ranked fourth in the past report, ABN Group overthrew Hutchies – the second-largest builder in 2019-20. In the latest report, Hutchies features in fifth place with 3,015 starts. However, it ranks the highest among the three apartment builders who made it to the top 20 builders list.
The third position was clinched by MJH Group with 4,548 starts, moving two places up from the previous year’s report.
The top 100 builders recorded strong performance in the period, increasing the revenue by 31.4%, which is equal to $31.7 billion. The total number of new home constructions increased by 27%, but there was a significant disparity in the market, with detached house starts rising by 49.1%. The demand for units fell by 20.7% in the period. However, the overall demand for building activity remained high, spurred by low interest rates and HomeBuilder grants during the period. While the report for the year 2021-22 is awaited, the recent rate hikes are expected to slow down the home building activity across the country. But it’s still possible to get competitive deals by shopping around and comparing offers from multiple lenders. If you are planning to build a house and are looking for home loan products, you could speak to a mortgage broker or contact a HashChing expert to understand your options.
List of top 20 residential builders in Australia in 2020-21
- Metricon Homes
- ABN Group
- MJH Group
- BGC Housing Group
- Simonds Group
- AHB Group
- GJ Gardner Homes (and franchise)
- Henley Properties
- Silvestro Building Group (SBG) Pty Ltd
- Hickinbotham Group of Companies
- Redink Homes Pty Ltd / 101 Residential Pty Ltd / B1 Homes Pty Ltd
- Porter Davis Homes
- Carlisle Homes Pty Ltd
- Burbank Group
- Mirvac Group
- Clarendon Residential Group
- Creation Homes Group
- Meriton Apartments
- Coral Homes