WA housing starts fall 8%

A depressed Western Australian housing market has hit residential builders, with the number of housing starts dropping by more than 1,500 in the 12 months to June 30, according to figures released by the Housing Industry Association.

HIA said WA, with the Northern Territory, had been the weakest residential building market in the nation for over two years, but conditions were expected to improve.

“After nearly four years of declining home prices, the Perth market rates as the most affordable capital city market in the country and prospective homebuyers will not be able to resist the value proposition much longer,” the report said.

New dwelling starts across Western Australia declined by an estimated 8 per cent from 19,818 in the 2017 financial year to 18,274 in the 12 months to June 2018.

The market share of the largest ten builders in WA remained steady at 43 per cent.

The HIA ranks ABN Group, with 1,780 starts in 2017-2018, as WA’s biggest home builder.

ABN’s businesses, which include Homebuyers Centre, Celebration Homes, Dale Alcock Homes South West, APG Homes, Webb & Brown-Neaves, Boutique Homes, Homebuyers Centre Victoria, Dale Alcock Home Improvement, Dale Alcock Developments, Parcel Property, Resolve Finance and PACT Construction, reported 2,184 starts for the previous year.

The HIA top 100 does not record housing starts from BGC Australia, which has not participated in the association’s survey for the past two years.

BGC reported more than 2,400 home starts for the 2016-2017 financial year through its collection of housing brands including HomeStart, Impressions, WA Housing Centre, Commodore Homes, National Homes, Now Living and Go Homes.

It is understood that BGC’s activity in 2017-2018 was at similar levels.

Ventura Home Group, which reports separately to BGC but has been described as ‘part of the BGC family’, recorded 1,190 starts for 2017-2018 to place it at number two in WA according to the HIA.

JWH Group, which trades as WA Country Builders, Oswald Homes, Rural Building Company, Plunkett Homes, In Vogue, Residential Attitudes, RWBA and Smooth Start, was listed third in WA with 960 starts.

Business News will have an in-depth report on residential builders in its next edition.