Despite Financial Headwinds, Metricon Named Top Builder in the Country

Metricon began building 5,969 homes across the country last year, making it Australia’s largest homebuilder for the seventh consecutive year.Photo: David Caird

Homebuilder Metricon is still the nation’s most prolific company in the housing sector, despite suffering financial headwinds earlier this year.

The Housing Industry Association – Colorbond Steel Housing 100 report released Wednesday said the Melbourne-based business posted only a slight decline in starts over the past year, with 5,969 housing starts nationwide. was done.

Metricon has been named the top builder in the country for the seventh consecutive year.

After rumors of a financial crisis surfaced in March, Metricon was rocked by the unexpected death of founder and CEO Mario Biacin in May. The private company never disclosed its books, but the Commonwealth Bank said he had received a $30 million bailout to prevent the business from collapsing after meetings with the Victorian government and his top Metricon executives. taught.

Metricon CEO Peter Langfelder has demonstrated Metricon’s ability to thrive in the midst of the most difficult market conditions the industry has seen since Basin’s passing. I’m proud of you.

“We have previously said that our company has a track record of success and will continue to be strong and viable with the full support of our key stakeholders,” Langfelder said. will not change,” he said.

The nation’s top 100 homebuilders built 15% fewer homes in fiscal year 2021/22 (74,973 properties) compared to the previous year (88,215 properties). His cohort market share also dropped to 44%.

HIA chief economist Tim Reardon said the results reflected the negative impact of rising material prices caused by record levels of demand, supply chain constraints and labor shortages. But we are just starting to see improvements.

“Building material supplies have improved significantly in recent months,” Reardon said.

“Transportation costs are falling and the rise in building material costs on site has slowed. In some cases, prices have fallen. It’s a great pace.”

Second-placed NXT Building Group, which includes brands Mojo Homes, McDonald Jones Homes and MJH Multi, moved up one place after launching 4,143 properties. Hutchinson Builders, on the other hand, put him in third place, mostly in the apartment sector, with his 3,829 starts.

Mr Reardon said the resurgence of apartment construction is welcome, especially as immigration to Australia has started to surge at a time when the rental market is tight.

“A notable feature of the market in 2021/22 has been the resurgence of apartment builders. The loss of migrants abroad caused the apartment market to contract rapidly at the start of the pandemic, but the return to work and study continued. With the return, the apartment market is recovering,” he said.

Despite Financial Headwinds, Metricon Named Top Builder in the Country

Source link Despite Financial Headwinds, Metricon Named Top Builder in the Country

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