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SPECIAL REPORT
F E AT U R E
Key takeaways
• Recovering market
tipped after five-
year decline
• Insolvencies static
despite activity
plunge
• Builders sharpen
offering to meet
consumer demand
• Marketing and
construction
evolution under
way
STRUGGLE STREET: New housing activity is currently half of what it was at the industry’s cyclical peak five years ago. Photo: Gabriel Oliveira
Patient still breathing,
recovery to take time Dan Wilkie
dan.wilkie@businessnews.com.au
W
ESTERN Australia’s
residential builders
Forecasts are finally turning positive for WA residential construction, are probably feel-
ing a strong sense of déjà vu
as the industry continues to evolve its offering in a new era of as yet another set of industry
forecasts indicate activity has
increased housing diversity. bottomed out and recovery is
just around the corner.
For the last several years
of what has become a half
FEATURE
The longer this If there is a positive We feel things
low level of activity to be found in a housing are bumping along
continues, the less the bottom; it hasn’t
market downturn it is
capacity our industry gotten worse, it may
that it encourages new
will have to service any have marginally gotten
upturn when it arrives thinking and innovation better
-Dale Alcock -Michael Bartier -Julian Walter
decade-long downturn, market “But I’d say it’s too early to generally be an upward trend Commission data shows the the nadir of WA’s current hous-
analysts have told builders to make a call on a recovery.” from here.” number of construction com- ing cycle, with a 9.9 per cent
weather the storm for the next ABN Group managing direc- Even a superficial analysis panies going under was 170 in improvement to 12,995 detached
12 months until a gradual, but tor Dale Alcock had similar of the state’s housing industry 2018-19, just a shade higher than house starts flagged for 2019-20,
steady, recovery takes hold. thoughts, acknowledging that data since the market peaked in the 160 that went bust at the and a further improvement of 6.9
So it is understandable that while early indicators in 2019- 2014-15 at around 32,000 dwell- peak of the market in 2014-15. per cent in 2020-21.
industry leaders are taking a 2020 were positive, it was too ing starts (more than 23,500 Mr Walter said he believed the BIS Oxford Economics chair-
cautious view of any prediction soon to know if improvements detached homes and around lack of a spike in builders going man Robert Mellor described
of an upswing of activity in would be sustained. 8,100 apartments) demonstrates out of business was an indication WA’s building decline at a recent
WA housing, particularly after “We are seeing some early sig- why WA’s builders are more cau- of the maturity of the market’s conference in Perth as a “painful
Australia’s credit squeeze last nals of better activity through tious than optimistic. operators, as well as the struc- episode”, and while he was not
year stifled a positive turn in the months of August and Sep- The latest Housing Industry ture of the industry in WA. yet ready to call an immediate
momentum. tember,” Mr Alcock said. Association data shows there “People are very intelligent in recovery in WA, he forecast a
“We feel things are bumping “This has resulted in margin- were around 11,800 detached how they operate,” he said. stronger upswing than the HIA
along the bottom; it hasn’t gotten ally better land sales activity and housing starts in WA in 2018-19, “WA, from a housing perspec- in coming years.
worse, it may have marginally better levels of leads and sales of about 50 per cent less than the tive, is also unusual in that the “We are only looking at a
gotten better,” JWH Group man- new homes. cyclical peak of the market. major 10 builders build more modest 2 per cent decline in 2019-
aging director Julian Walter told “While the modest improve- Against that backdrop, many than half the houses. 20, the good news is a 20 per cent
Business News. ment in activity is welcome, it is would expect an uptick in insol- “On the east coast, you’re look- rise in 2020-21,” Mr Mellor said.
“Everything is actually point- too early to call recovery. vencies in WA’s construction ing at double or triple that number “The fundamentals should
ing in a good direction, interest “I do believe that we will con- sector. of builders for that market share.” start to drive that recovery.”
rates are low and the price of tinue to experience volatility in However, Australian Earlier this year, the HIA
land is good. sales levels, but that this will Securities and Investments said it expected this year to be Continued on next page
FEATURE RESIDENTIAL BUILDERS
Housing recovery a slow process “WA’s housing market is
cyclical, and while the current
From previous page downturn is the longest in recent
history, it will recover.
“We remain focused on best
WA housing industry 2019: a snapshot positioning BGC Housing Group
for this market recovery with a
new state-of-the-art premises
and showroom opening early
DWELLING STARTS HIA Forecasts – dwelling starts 2020.”
15,130
35,000 At JWH Group, Mr Walter said
DETACHED HOUSES 30,000
11,813
the company had recently under-
25,000
gone a significant restructuring
20,000
of its brands, sharpening each
15,000
(-49.8% FROM 2014-15 PEAK) unit’s focus on specific market
10,000
VALUE OF NEW HOUSING WORK APARTMENTS 5,000 segments.
5.047bn 3,310
One of those initiatives was the
$ 0
introduction earlier this year of
2 0 / 07
2 0 /0 8
2 0 /0 9
20 10
20 11
20 2
20 13
20 4
20 15
20 6
20 17
20 8
20 /19
20 20
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/1
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11
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07
12
20
06
19
08
SOMO, a business unit dedicated
20
(-39% FROM 2014-15 PEAK) (-59% FROM 2014-15 PEAK)
to servicing the diverse housing
needs of first-time buyers.
Number of loans for construction of a dwelling Mr Walter said the recalibra-
HOUSING FINANCE
25,000
tion of JWH Group was in line
20,000 with an evolution of housing
type under way in WA, with
LOANS FOR CONSTRUCTION PROPORTION OF LOANS FOR 15,000
Sources: Housing Industry Association, Australian Bureau of Statistics
builders less reliant on the state’s
OF A DWELLING 2018 FIRST HOMEBUYERS 10,000
10,341 36%
tradition double-brick method of
5,000 construction.
0 “There is a lot more framed
(-47% FROM 2014 PEAK) (5-YEAR AVERAGE 23%) housing going on now, and a lot
07
08
09
10
11
12
3
4
15
16
17
18
11
11
20
20
20
20
20
20
20
20
20
20
20
20
of soft-top houses being built –
the second storey being framed,”
he said.
Building approvals – WA
“It’s also due to the evolution of
2,500
the smaller lots.
BUILDING APPROVALS 2,000 “If you start talking about
1,500 blocks that are only four to five
AUGUST 2019 metres wide, if you look at dou-
841
1,000
ble-brick versus a framed wall,
500
there is quite a saving on space
(-60.4% FROM APRIL 2015 PEAK) 0 for the framed.”
Mr Walter said his company
ar 0
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Se 201
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20
p
Se
had also been able to ride-out
the downturn by cutting costs,
including a reduction in the
Those fundamentals Mr Mellor construction numbers over the homebuyer’s grant to more than for the company’s 11 housing and number of display homes it pro-
referred to includes a wave of new next 12-24 months,” Mr Bartier $10,000, a move Mr Alcock said development brands. duces annually to around 10.
projects in WA’s resources sector, told Business News. would be necessary to ensure the ABN Group is also consoli- “I am guessing in the last five
with 12 projects recently under “However, to see a significant future health of the industry. dating locating its housing and years the number of display
way or likely to proceed this improvement to housing com- “This is a vital measure to bring development brands under one homes would have dropped by
year to require more than 20,000 mencements, WA needs strong forward activity in order to get roof, partnering with Fini Group about 60 per cent,” he said.
workers, according to research by employment and population our trades back to work,” he said. to create a purpose-built head- “That’s been quite a dramatic
Business News. growth and the reintroduction “The longer this low level quarters in Leederville. change in how the industry
But while more than $20 billion of foreign investors.” of activity continues, the less “If there is a positive to be found operates.
of investment has buoyed spirits Stimulating foreign invest- capacity our industry will have in a housing market downturn it “What people had to realise is
in the mining industry, there has ment interest is one of several to service any upturn when it is that it encourages new thinking display homes got out of control,
yet to be a significant flow-on stimulus measures Mr Alcock is arrives. and innovation,” Mr Bartier said. there were so many of them out
effect into housing. lobbying the state government “Trades don’t simply sit on the “We have remained focused there.
BGC Housing Group general to implement, in close collabo- sideline waiting for better times, on continually improving our “In a rising market that’s fine,
manager Michael Bartier said it ration with the Master Builders they go and get a FIFO job for customer offering through you can make money when
was important to note that hous- Association. the short, or in many cases, the innovation of new product and you sell your display home. But
ing construction traditionally Mr Alcock described WA’s 7 per long term.” process and delivering greater when the market started turn-
lagged improvements to wider cent tax on foreign investors as The only positive in a down value in every home we build ing and stagnating, for the cost
economic conditions, as it took “ just wrong”, saying it was contra- market, Mr Bartier said, was that via more efficient designs and of building a display home you’d
time for population and wages dictory to the state government’s it gave builders time to take stock improved specification. actually end up making a loss on
growth to translate to housing Asian engagement strategy. and refine their offering. “We have also been working the sale.
demand. He also said he was continuing For BGC Housing Group, that collaboratively with industry “And some of the builders out
“I believe there are some posi- to work with MBA to heap pres- refinement includes a new head- partners to deliver some excit- there were carrying 80 display
tive signs and drivers in motion sure on Treasurer Ben Wyatt to quarters in Osborne Park, which ing built-form projects that have homes. We’d be doing maybe 10 a
that will start to slowly improve consider increasing WA’s first will provide a cutting-edge base delivered strong results. year. It’s down dramatically.”
RESIDENTIAL BUILDERSFEATURE
ABN heads field in tough market
Top 5 builders 2018-19
Builder Dwelling starts
ABN Group 1,703
BGC Housing Group 1,624
Ventura Home Group 897
JWH Group 733
Redink Homes 654
Top 5 builders 2014-15
Builder Dwelling starts
BGC Residential 4,834
ABN Group 3,709
JWH Group 1,516
Pindan 1,459
Summit Homes Group 1,126
FLUX: The top bracket of BNiQ’s residential builders list has changed considerably since 2015. Photo: Attila Csaszar
than 1,200 starts in Victoria, that do not participate in the largely thanks to an exclusive JWH Group managing director
Dan Wilkie
dan.wilkie@businessnews.com.au placing the company as Aus- HIA survey. arrangement with Perth’s big- Julian Walter said despite the
tralia’s third most active overall, BGC declined to provide data gest apartment developer, Finbar halving of construction starts,
WESTERN Australia’s record while BGC Housing Group’s sec- for the past two Housing 100 Group. the structure of WA’s build-
housing downturn has shaken up ond-place ranking in WA marks surveys, but statistics provided Hanssen began building 500 ing industry had been largely
the hierarchy of the state’s big- the first time since 2003 that to Business News indicated it dwellings in 2015-16, the first year resilient.
gest builders, with ABN Group it has not held the title of the remained WA’s most productive. it provided data to BNiQ, falling “I’ve been doing this for 40-odd
now topping the list and two state’s biggest builder. Other major changes since the by just 14.6 per cent to 427 this years now, but the big thing that
new entrants making their way However, if Ventura Home 2015 list include Summit Homes year. everyone has to realise is we
into the market’s top five since Group’s figures are added to Group falling out of the top five, At the same time, overall mul- went to a pretty unprecedented
industry activity peaked midway the BGC Housing Group total with its dwelling starts falling ti-unit construction activity high of 32,000 starts” Mr Walter
through the decade. to reflect both companies’ own- by 49 per cent to 567 in 2018-19, plunged from 7,390 in 2015-16 to told Business News.
A comparison of BNiQ resi- ership by BGC Australia, the almost exactly in line with over- 3,310 this year, according to HIA “That’s dropped back to 12,000
dential builders lists from 2015 biggest builder of WA houses all industry numbers. data. now, but our long-term average
and 2019 shows the deep impact technically remains the empire Pindan has felt the brunt Redink Homes has emerged has always been down about 18,000.
of WA’s housing woes, with ABN that Len Buckeridge built. of WA’s slow multi-residential as one of the stronger-perform- “If you put it in context, the
Group’s top ranking 1,703 dwell- The BNiQ residential builders market, with its starts falling 65 ing detached housing builders market went way over the top
ing starts in 2018-19 more than list is calculated using statistics per cent since 2015. throughout the downturn, with and we’ve swung below the
2,000 fewer than its second rank- derived from the Housing Indus- Long-running building outfit its building starts falling only by curve now, but we haven’t swung
ing 3,709 starts in 2014-15. try Association-Colorbond Steel Hanssen, however, has fared 36 per cent from the peak of the below by as far as we went over
ABN Group’s 1,703 WA starts Housing 100, as well as addi- much better in the apartments market, lifting the company to the top.”
were complemented by more tional research on companies space as activity has declined, fifth overall. See list next page.
FEATURE RESIDENTIAL BUILDERS
SEARCHENGINE WA’s LARGEST RESIDENTIAL BUILDERS
...your key to WA business RANKED BY NO. OF STARTS 2018/19
Change No. of No. of No. of No. of National
from Year Starts Starts Starts Starts Ranking
previous established No. of Starts (2017/ (2016/ (2015/ (2014/ (if appli-
Rank year Company name Senior executive and title in WA (2018/2019) 2018) 2017) 2016) 2015) Trading As (Company Names) cable)
Celebration Homes, Dale Alcock Homes, Dale Alcock
Mr Dale Alcock
1 ABN Group Managing Director 1978 1,703 1,780 2,184 2,572 3,709 Home Improvement, Dale Alcock Homes South West, 3
Developments by Dale Alcock, Homebuyers Centre…
WA Housing Centre, HomeStart, NOW Living, GO
Mr Daniel Cooper
2 BGC Australia Chief Executive 1974 1,624 2,051 2,436 4,049 4,834 Homes, Perceptions, TERRACE, Developments by 12
Impressions, Commodore Homes, Impressions…
Mr Mark Di Massi Ventura Homes, Aussie Living Homes, Smart Homes
3 — Ventura Home Group Director 1994 897 1,190 1,197 - - for Living, Express Two Storey Living, Ventura iD, 23
Multi-Living Developments.
WA Country Builders, Oswald Homes, Rural Building
Mr Julian Walter,
4 — JWH Group Managing Director 2003 733 1,008 1,012 1,099 1,516 Company, Plunkett Homes, In Vogue, Residential 30
Attitudes, RWBA, Smooth Start, JWH Tenders…
Redink Homes Pty Ltd. Redink Midwest Pty Ltd,
Mr Scott Park
5 — Redink Homes Managing Director 2006 654 724 696 889 1,023 Redink South West Pty Ltd, 101 Residential Pty Ltd, 31
B1 Homes.
Mr Gino Bastow Content Living The Home Builders, Dreamstart
6 — Content Living Managing Director 1992 572 657 739 804 1,102 Homes, Ben Trager Homes, Momu. 34
Summit Homes, Summit Projects, Summit Home
7 Summit Homes Group Mr David Simpson
Managing Director 1978 567 622 746 961 1,126 Improvements, New Generation Homes, Easy Start 35
Homes, Strata Living, Summit Granny Flats…
Mr Scott Davison Pindan Constructions, Pindan Contracting, Pindan
8 Pindan Director 1977 500 810 1,074 1,004 1,459 Projects, Pindan Asset Management, Pindan Homes
Mr Gerry Hanssen
9 Hanssen Managing Director 1994 427 296 370 500 N/A Hanssen 47
HALPD Pty Ltd, Affordable Living Homes, Broadway
Ms Alicia Gangemi
10 Delstrat Group General Manager 1992 324 432 558 806 N/A Homes, Ideal Homes, Delstrat, Seacrest Homes, 55
Materon Investments WA, WA Building Company…
Mr Vince Mulholland
11 Jaxon Chief Executive 1958 208 417 399 258 395 Jaxon Pty Ltd 69
Mr Vasko Spaseski
12 Inspired Homes Managing Director 2006 151 139 94 84 114 Inspired Homes 83
Mr Dan White
13 — Danmar Homes Founding Managing 1992 127 177 239 238 281 Danmar Homes, Danmar Developments. 92
Director
Gemmill Homes, Goodlife by Gemmill Homes,
Mr Domenic Morolla
14 Gemmill Homes General Manager 2004 118 252 318 443 591 Gemmill Two Storey, Big Value Homes, Gemmill 96
Developments
Mr Ross North Ashmy, Ross North Homes, Developwest Complete
15 Ross North Group Managing Director 1976 118 119 153 289 304 Homes 96
16
GET THE FULL LIST ONLINE businessnews.com.au/List/residential_builders
42
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: claire.byl@businessnews.com.au
WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
RESIDENTIAL BUILDERSFEATURE
SEARCHENGINE WA’s LARGEST CONVENTION CENTRES
...your key to WA business RANKED BY SEATING CAPACITY OF LARGEST THEATRE, THEN BY LARGEST BANQUET CAPACITY
Year Capacity of Largest Largest Largest Largest
established largest indoor Banquet Cocktail Classroom Boardroom
Rank Company name Senior executive and title in WA theatre Capacity Capacity Capacity Capacity Major Technical Facilities
World class technical facilities that covers the needs for
Mr Michael Scott
1 RAC Arena General Manager 2012 13,000 1,700 2,500 all types of events including conferences, workshops,
sporting and concert events, private banquets and more.
Mr David Etherton Multipurpose facilities - all events customised, seating
2 HBF Stadium Chief Executive, VenuesWest 1986 4,500 1,500 2,000 1,460 60 capacities and classroom capacities available on request.
Perth Convention and World accredited Wi-Fi zone: wireless internet location.
Ms Karen Teong
3 Director of Sales & Events 2004 2,500 3,630 5,000 3,545 64 Acoustic design to shield external noise in line with
Exhibition Centre international benchmark standards.
Mr Andrew Cairns
4 Crown Towers Perth* Executive General Manager 2016 2,300 1,510 3,000 100 State of the art audio visual technology.
Ms Charlene Wade
5 HBF Arena Partnerships Manager 1994 2,000 1,200 2,200 800 Projector screen, AV equipment.
Technical - PA, microphones, data projector, screens,
Mr Brendon Ellmer
6 Perth Concert Hall General Manager 1973 1,729 800 5,150 48 monitors, control booth, CC TV, full staging, catwalks,
special effect lighting, wireless internet, backstage…
World-class, state-of-the-art technology featuring
Mr Mike McKenna
7 Optus Stadium Chief Executive Officer 2017 1,500 1,200 2,000 1,000 100 wireless touchscreen tablets for lighting, audio,
projector displays and blinds in each room…
Ms Helen Stewart Technical - PA, microphones, data projector, screens,
8 His Majesty's Theatre Manager 1904 1,263 240 300 30 monitors, control booth, CC TV, full staging, catwalks,
special effect lighting, wireless internet…
Ms Chantelle O'Sullivan
9 Ascot Racecourse Marketing & Membership 1917 1,000 800 4,000 320 20 State-of-the-art audio internal audio visual capabilities.
Manager
Esplanade Hotel AV Partners is the Hotel’s in-house technical partner
Mr Brad Hatfield
10 General Manager 1896 1,000 650 1,000 440 80 specialising in table pin spot lighting, laptop network
Fremantle - by Rydges connection and audio visual including…
Qualified in-house technical staff, fibre optic link,
Mr Ribhu Chatterjee
11 Hyatt Regency Perth General Manager 1988 1,000 650 950 600 64 internet access, ISDN lines, audio/visual equipment,
Cat 6 cabling, ceiling mounted projectors…
Gloucester Park Harness Mr Michael Radley 3 Phase Power, microphones, staging, lectern, projector
12 Chief Executive Officer 1929 1,000 560 2,000 400 20 and screen, etc.
Racing
AV equipment, LCD projector, microphone, PA system
Mr Peter Brampton
13 The Westin Perth General Manager 2018 840 520 840 540 16 portable, rear screen projection, TV production service
provider
Beaumonde On 3 x projectors with 150-inch motorised screen, speakers
Mr Matt Horne
14 General Manager 2016 800 400 800 110 through out entire ballroom, extensive lighting
the Point throughout ballroom, wireless microphone…
Complimentary wireless broadband, FOC car parking,
Mr Tony Soosainathan
15 Joondalup Resort Hotel Operations Manager 1996 750 450 900 450 20 240 volt/10amp and 3 phase power, built in PA system
and access to all audio visual equipment.
16 *Function room capacity figures for Crown Towers Perth are also specific to Crown Promenade and Crown Metropol, which have joint access to these facilities.
GET THE FULL LIST ONLINE businessnews.com.au/List/convention_centres
52
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: claire.byl@businessnews.com.au
WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
SPECIAL REPORT
There are 99 results from our index of 100,416 articles, 10,046 companies and 37,819 people
Highbury Homes WA Inspired Homes
No. of Starts (2015/2016): 94 No. of Starts (2014/2015): 164 No. of Starts Inspired Homes is a WA, family owned company that has grown from humble
(2013/2014): 145 Trading As (Company Names): Highbury Homes (WA) PL, Met- beginnings and has evolved into a strong, stable and reliable force in the residen-
rostrata Development, Mygen Homes, Higbury Home Renovations National Ranking tial construction industry. The Company specialises in the design, management and
(if applicable): 91 Total Houses ... construction of not ...
Meliador WA Cachet Homes
No. of Starts (2014/2015): 96 No. of Starts (2013/2014): 59 Trading As (Company Trading As (Company Names): Cachet Homes Is the operator based in WA?: Yes ...
Names): Ross Squire Homes National Ranking (if applicable): 95 Total Houses built
latest financial year: 96 Is the operator based in WA?: Yes ...
Erban Development
Erban Development is a custom home builder and development company based in
Content Living Perth, Western Australia. Total staff in WA: NFP No. of Starts (2015/2016): NFP No.
Content Living is one of the most well respected new home builders in Western of Starts (2014/2015): NFP No. of Starts (2013/2014): NFP Total Houses built latest
Australia, with decades of experience and having built over 20,000 quality homes. financial ye ...
Content Living is an Internationally Recognised ISO9001 Quality Management Certified
Company. We ...
Romano Homes
Romano Homes is a Perth building company that specialises in the design and con-
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Megara is an established property development and construction group in Western
Australia.No. of Starts (2014/2015): 95 No. of Starts (2013/2014): 102 Trading As
Danmar Homes
(Company Names): Megara Constructions National Ranking (if applicable): 92 Total
Danmar Homes is a family owned company that was established in 1993 and have been
Houses built ...
building quality homes in Western Australia for over 19 years. Initially, we catered for
clients with difficult inner city development blocks that, due to their inherent comp ...
McGrath Homes
McGrath Homes have been designing, customising and building high quality yet
Gold Style Homes
affordable modular homes across Western Australia (WA) since 1967. Total staff
Perth’s Multi Award Winning Boutique Builder with accolades from both Master Build-
in WA: 25 No. of Starts (2014/2015): 84 No. of Starts (2013/2014): 164 Trading As
ers Association and Housing Industry Association. Specialist in Individually designed
(Company Names): M ...
homes, Unit Developments, House and Land Packages, Land Subdivision and Joint
Ventu ...
Blueprint Homes
From small beginnings in 2005, Blueprint Homes now employs over 110 personnel
and 160 regular trade subcontractors. The Company is an entirely Western Australian
owned and operated business, founded on values of honesty and integrity, customer
service, tea ... businessnews.com.au
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