Western Australia's largest home builders have endured a slump in housing starts in 2007-08 but experience a marginal improvement in market share, an HIA report released today has found.
In a year when 22,371 homes commenced construction in Western Australia (down 9.6 per cent on 2006-07), the annual HIA Housing 100 report shows that total home starts fell among the state's 20 largest builders.
Their market share did rise from 59.2 per cent to 60.6 per cent.
The state's top 20 builders started 13,548 dwellings in 2007-08, a decline of 5 per cent on the previous year.
BGC (Australia) was once again the state's largest builder over the year with 3,304 starts, little changed on the previous year. The company started 2,585 houses and 719 multi-units in 2007-08.
The Alcock/Brown-Neaves Group was the second largest builder, as was the case in 2006-07, with 2,967 starts. JWH Group was in third place with 1,416 starts.
HIA executive director in WA, John Dastlik, said that aggressive interest rate hikes had combined with imbedded structural supply constraints to make 2007-08 a very challenging business environment for WA's largest home building companies.
"The supply constraints to new home building are extremely high in the form of exorbitant land costs, statutory charges, and excessive planning delays,"
Mr Dastlik said.
"Once a short and substantial hit to mortgage rates was placed on top of these existing supply side problems it became increasingly difficult for large volume builders to do what they do best - deliver quality, affordable housing in a timely and efficient manner.
"This is a ridiculous situation to have emerged given that WA is falling 10,000 dwellings a year short of what is required to meet underlying Demand."
