Metricon stays on top of biggest builders ranking

Melbourne-headquartered Metricon says strong growth in its Queensland operations helped maintain its position as the nation’s top homebuilder for the sixth consecutive year. 

Metricon started construction on 6,052 homes in 2020-21 to place it once again at the top of the Housing Industry Association- Colorbond Steel Housing 100.

Operating across Victoria, Queensland, New South Wales and South Australia, 5,820 of those starts were detached houses, while 232 were semi-detached dwellings.

Growth in the Sunshine State was particularly strong, with Metricon’s starts up 95 per cent year on year, rising from 604 in 2019-20 to 1,177 in 2020-21.

Overall, Metricon’s building activities were up 33 per cent year on year.

Metricon chief executive Mario Biasin acknowledged his company’s fortunate position in an economic climate that had been challenging for many others.

“Despite lockdowns, materials shortages and construction pauses, 6,052 Australians have still chosen Metricon to build their new home across the last year and we feel humbled by their support,” Mr Biasin said.

“The federal government’s HomeBuilder scheme, lower interest rates and increased consumer desire to live in new homes, many away from high-density areas, have facilitated a huge surge in demand for new detached homes.”

Mr Biasin said Metricon would continue to focus on increasing its market share among Australia’s builders, even with the ongoing challenges of the pandemic.

“We have learned so much along the way about managing COVID-19 lockdowns and have extensive safety procedures in place to keep working safely and efficiently,” he said.

“We agree with the state and federal governments that vaccination is the most pragmatic pathway to a life out of lockdown, consistent business operations and keeping our employees, tradies and customers safe.”

Perth-headquartered ABN Group was the second-most active builder in 2020-21, the HIA said, notching up 5,345 starts in Western Australia and Victoria.

Rounding out the top three was NSW-based MJH Group with 4,548 starts.

WA's BGC was fourth-ranked in Australia at 4,205 starts, as it moved up from 7th place in 2019-20, while Brisbane-based Hutchies came in fifth with 3,015 starts.

HIA chief economist Tim Reardon described the past 12 months of homebuilding as “remarkable”, with the number of new starts up 27 per cent year on year.

“We are seeing a record number of detached homes commence construction while at the same time, apartment construction is in the midst of a significant slump,” Mr Reardon said.

“The majority of builders increased their number of dwelling starts in 2020-21 compared to the previous year.

“Those that didn’t were more likely to be in the multi-unit market.”

Mr Reardon said it was not surprising that detached home builders dominated the list in 2020-21, given the ongoing buyer shift away from big multi-residential developments.

Apartments specialist Hutchies ranked as the 5th most active builder overall with 3,015 starts, with only three multi-residential builders ranking in the top 20.

“The loss of overseas migration last year hit the apartment market almost immediately,” Mr Reardon said.

“Overseas students, tourists and migrants often stay in multi-unit dwellings when they first arrive in the country.

“This trend was exacerbated by the shift in consumer preferences towards lower density housing.”

Mr Reardon said the top 100 builders increased their share of the Australian market from 40 per cent to 44 per cent in 2020-21, suggesting that larger builders had been able to expand their capacity to build faster than their smaller counterparts.

The top 100 builders accounted for 80 per cent of the detached homes built in Australia in 2020-21, with revenue earned from home construction rising 31.4 per cent to $31.7 billion.