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HIA Report shows housing starts fell

At a morning function in Melbourne yesterday the HIA released the latest HIA Housing 100 Report stating the number of HOUSING 100 starts fell by 7.3% to 48,130 in 2011/12, their lowest level since 1996/97. Source: Timberbiz

“This result is consistent with the overall experience of the industry in 2011/12 where new home building conditions weakened considerably across Australia,” said HIA Chief Economist, Harley Dale.

In 2011/12 the largest 100 builders started 35,909 houses (down 11% from 40,183) and 12,221 units and townhouses (up 4% from 11,720).

The largest 100 builders held a 35% share of Australia-wide housing starts, up slightly from 33% in 2010/11, but below the historical average of 36%.

“The HOUSING 100 and the entire industry can deliver, and indeed Australia’s residents have the requirement for, a considerably higher level of housing starts than has been evident over the last couple of years.

“Within an environment of subdued demand conditions, both unilateral and cooperative policy reform could generate a much healthier year for new home building in 2012/13. Sadly, evidence of the will to execute such policy action remains far slimmer than Australia requires,” Dale said.

The Report also noted that Melbourne-based Metricon Homes was Australia’s largest builder for the second year in a row in 2011/12.

The report, which ranks the nation’s largest 100 residential builders based on the number of homes started each year, found that Metricon Homes started 2821 dwellings in 2011/12, all of which were detached houses. The company operates in Victoria, New South Wales, Queensland, and South Australia.

Alcock/Brown-Neaves Group was ranked Australia’s second largest builder in 2011/12 with 2736 starts, building in the markets of Western Australia and Victoria.

Western Australia builder BGC was ranked third with 2692 housing starts.

Hickory Developments Pty Ltd was the nation’s largest multi-unit builder for the third consecutive year with 2163 starts.