2012 is tough year for new homes in australia

It has been a tough year for new homes in Australia, according to the Housing Industry Association.

The HIA's Housing 100 Report, which ranks the nation's largest 100 residential home builders based on the number of housing starts, the number of HOUSING 100 starts fell by 7.3 per cent to 48,130 in 2011/12, the lowest level since 1996/97.

In 2011/12 the largest 100 builders started 35,909 houses (down 11 per cent from 40,183) and 12,221 units and townhouses (up 4 per cent from 11,720). The largest 100 builders held a 35 per cent share of Australia-wide housing starts, up slightly from 33 per cent in 2010/11, but below the historical average of 36 per cent.

"This result is consistent with the overall experience of the industry in 2011/12 where new home building conditions weakened considerably across Australia," said HIA Chief Economist, Harley Dale.

Melbourne-based Metricon Homes was Australia's largest builder for the second year in a row in 2011/12, starting 2,821 dwellings, all of which were detached houses. Alcock/Brown-Neaves Group was ranked Australia's second largest builder in 2011/12 with 2,736 starts, building in the markets of Western Australia and Victoria. Western Australia builder BGC (Australia) was ranked third with 2,692 housing starts.

"The HOUSING 100 and the entire industry can deliver, and indeed Australia's residents have the requirement for, a considerably higher level of housing starts than has been evident over the last couple of years," said Harley Dale.

"Within an environment of subdued demand conditions, both unilateral and cooperative policy reform could generate a much healthier year for new home building in 2012/13. Sadly, evidence of the will to execute such policy action remains far slimmer than Australia requires," Harley Dale added.