A special briefing for Australia's leading residential chief executives

Residential Developers Executive Brief - February 08

Welcome to the first residential developers’ e-brief for 2008. This issue provides details of the latest HIA-Commonwealth Bank Affordability Report and a wrap on the leading economic indicators that have come through since the close of 2007.

INDUSTRY LEADERS - Class of 2007

For those who may have missed last year’s e-briefs, our Industry Leader segment for this issue features a selection of industry representatives we interviewed last year. Throughout 2008, the e-brief will again feature a dialogue with industry leaders. The segment provides our many industry leaders an opportunity to speak directly to industry about industry issues.

Rob Lynch - March 2007

Just before Christmas 2006 Robert attracted considerable media attention by a statement he made summarising his first 100 days in the role as Investa's Group Executive, following his move from a 16-year stint with the Mirvac Group.

:: CLICK HERE FOR HIA'S FULL INTERVIEW WITH ROB LYNCH (PDF)

Dale Alcock - April 2007

The overheated economy of WA and its effect on the property market, values, affordability and skills shortages is well documented. We need to ask the question though, why did we get into such a state?

:: CLICK HERE FOR DALE'S REVIEW OF DOING BUSINESS IN THE WEST (PDF)

Warwick Hemsley - May 2007

Major national property group Peet Limited, headquartered in Perth, is especially well placed to offer broad and informed views on the industry because of the sheer scale of its operations, product diversity and geographic spread around Australia.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

Rod Fehring - June 2007

One of the top five construction companies in the world, Lend Lease turns over $12 billion a year globally, employs more than 9000 people and, in the residential sector alone, works on 100,000 lots with a turnover of $3 billion a year. But as Rod Fehring points out: ‘Being big does not necessarily mean being better - but it certainly means being more visible.' Inevitably, high profile companies come under withering examination when it comes to workplace safety.

:: CLICK HERE FOR FULL DR DOSSETOR ADDRESS (PDF)

Brendan Crotty - July 2007

Australand emerged from the ultimate collapse of Hooker in the late 1980s but the company has put all that well behind it. It is now listed on the ASX and boasts a market capitalization of around $1.9 billion. Brendan Crotty has just retired from the position of managing director after 30 years with the evolving organisation; the last 17 in the top job.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

Bill McDonald - August 2007

In a relatively short time McDonald Jones Homes has emerged as an important regional player in the NSW housing market. Back in 1998 McDonald Jones completed 150 new homes. In 2006-07 it completed over 420 homes – not bad going for a regional builder in Australia’s toughest market.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

Louis Milkovits - September 2007

Louis Milkovits, managing director of AVJennings, is unequivocal in attributing what he calls the ‘huge housing affordability problem in Australia’ directly to the policies of state and local governments. His views on the matter carry the force of a company name long synonymous with the large-scale provision of housing in this country and considerable personal experience.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

Bert Dennis - October 2007

Bert Dennis is a property developer, not an economist, but sometimes he feels he could be giving government at all levels some instruction in basic economics or, as he would probably put it, plain common sense.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

Greg Paramor - November 2007

Greg Paramor, managing director of the Mirvac Group, has been involved in property development and funds management virtually all his working life − and that experience soon shows up in conversation with him.

:: CLICK HERE FOR FULL INTERVIEW (PDF)

HIA-Commonwealth Bank Affordability Index

Housing affordability conditions in the December quarter were the lowest on record since the HIA/Commonwealth Bank Housing Affordability Index series commenced in 1984.

The Index uses house price data to measure the ratio of average household disposable income to the qualifying income required to meet payments on a typical dwelling.

Housing Indicators close 2007

Indicators for new home building in both the owner and rental markets closed the year in a weak condition. Notwithstanding some impressive figures in September (dwelling commencements up 1.3 per cent) and November (building approvals up 14.6 per cent) the year ended on a more sombre note.

:: READ MORE -HIA Media – Flat End to 2007 for New Home Lending (PDF)

Housing Investment is Critical

Investment in the supply of affordable housing offers a range of economic and social benefits for Australia and the Australian economy. Rather than raising interest rates, HIA has called on a boost in housing supply to reduce inflationary pressures on existing housing stock.

HIA has also called for a review of the structure and composition of the Consumer Price Index as higher rents and house prices feed directly into inflation readings.

Rudd Government’s First CoAG

The first Council of Australian Governments (CoAG) meeting under the new Federal Government confirmed many of the ALP's election commitments and identified a forward agenda for the implementation of housing initiatives.

NSW Planning Reform

Practical planning reform can remove the inherent uncertainties of our planning system and help to remove its unnecessary costs. To this end, HIA has welcomed the NSW Government’s planning reform agenda.

HIA’s submission considers leading practice from around the country and compares the proposed reforms to current practiced initiatives. Opportunities to fine-tune the reform proposals have been identified.

HIA – Austral Bricks Trade Availability Report – December 2007

All thirteen residential construction trades remain in short supply according to the latest HIA-Austral Bricks Trades Report. Trade skills declined in seven of the ten regions surveyed. Shortages were most severe in Adelaide, regional Queensland, Brisbane and Perth.

Tradebuild

HIA has launched an on-line business directory that allows consumers to access member services. The directory is also linked to HIA’s eQuote service that allows consumers to send details of work required to an on-line noticeboard. The directory is open to all HIA members.

You can subscribe to HIA’s Economics Group to obtain our regular reports on housing performance and forecasts. Contact Kirsten Lewis at k.lewis@hia.com.au or on (02) 6245-1393.

You may also wish to consult our website: http://economics.hia.com.au to access the HIA Economic Group’s Event Calendar.