ABN Group tops homebuilders list

ABN Group has topped the list of Western Australian builders, recording the highest number of housing starts in the state in the 12 months to July.

The Dale Alcock-led company recorded 1,717 home starts in 2022-23, up from 1,697 the previous financial year, the latest Housing Industry Association Colorbond Steel Housing 100 survey showed.

This included 137 semi-detached homes and 236 units.

BGC Australia's BGC Housing Group slid from first place to fourth, recording a 60 per cent decline in its housing starts to 780 commencements in 2022-23.

This followed the company’s announcement that it would halt new home sales, in an effort to build through its significant volume of work.

BGC Housing Group executive general manager Michael Bartier said the numbers represented the company’s responsible approach to sales given the current challenges in the housing industry.

“Our industry is facing challenges not seen before, and it is about doing the right thing by our customers,” he said.

State wide, housing starts dropped by about 30 per cent from 21,242 in 2021-22 to 14,951 in the 12 months to July.

Blueprint Homes moved up to second spot, with 1,330 home starts compared with 1,252 last year.

HIA WA Executive Director Michael McGowan said a drop off in activity was reported by three quarters of the businesses on the list, with the lower numbers reflecting the challenging conditions facing the industry nationally. 

“In WA new dwelling starts decreased by an estimated 30 per cent from 21,242 to 14, 951 in 2022/23, however recent forecasts indicate we may have reached our trough and be starting a slow recovery phase,” he said. 

“It remains to be an incredibly difficult environment for builders and consumers, and we will continue to work with industry and all levels of government to focus on supply and affordability to meet the continuing demand for housing."

Nationally, housing approvals declined by 13.8 per cent on last year.

Metricon Homes topped the national list for the eight consecutive year, with 4,693 starts for 2022-23, a 21 per cent decrease on last year.

ABN Group moved up two spots to second place, with 3,506 starts nationally.

The report stated that the recent financial year was challenging for the housing industry.

“The market was already in retreat following the pandemic induced home building boom when the Reserve Bank began tightening monetary policy in May 2022,” it read.

“The rise in borrowing costs, on top of elevated construction costs pushed the price of new homes out of reach for many prospective buyers.

“Furthermore, price declines in established home markets created a heightened sense of caution.”

The report added that the multi-unit market was subject to the same headwinds as detached housing, though activity was not retreating from a record high.