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Australian Prefabricated Housing Industry

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Discuss About The Australian Prefabricated Housing Industry?




The housing market of Brisbane has ticked the boxes for future growth in terms of the prices, but the same would require quite a good time to come up with the actual start that is required for the particular market. According to the reports of CoreLogic, the housing industry in Brisbane has experienced a drop in the value of the price in the last month. In fact, the values went down by almost 0.3% in the first few days in July. The market has been flat for a long time. However, there is no doubt that the industry is growing at a small rate and that many builders and contractors can easily take advantage of the same and grow up their business. In an interview based with around 250 industry participants, it has been evident that the capital city has a price growth of 3.4% with the units expected to lose at a value of 0.8% in the coming year. In fact, the housing price will further move upwards and will definitely reach out a particular position where it shall be effective enough to provide strong response to the lowest interest rates. In fact, the rates have also been revised from that of the 2016 and that is of the present situation. In fact is the housing industry of other parts of Australia is taken into consideration, it can be easily pointed out that the condition of Brisbane is much better than other parts of Australia. Thus, the opportunity for the builders and constructors is high for carrying out the business activities in this regard. All these factors can easily be accessed and that the housing industry can easily consider these factors in exhibiting preferences on the housing activities in Brisbane. On the other hand, other particular regions like Melbourne or Sydney are also at a competitive situation because these two places are also found to attract good number of investors in the housing industry.

Aims and objectives:

The aim of this study is to evaluate the growth rate of the Brisbane Housing industry. This will help the major housing and construction companies like Hutchinson Builders to understand the market demand and the growth of the industry and that how much they can be benefitted from the housing industry.


The objectives of the study are:

  1. To understand the actual market situation of the Brisbane Housing industry
  2. To evaluate the factors that are responsible for the slow growth of the Brisbane Housing industry
  3. To recommend certain factors that would help the housing and construction companies like Hutchinson Builders to carry on their business more effectively.

Significance and relevance of the research:

This particular topic has been selected for the study because it is clear enough that the housing industry has been growing and that major businessmen can easily take the opportunity of the same and can carry on their business activities accordingly. The findings and the interpretation of the research would be helpful for these business activists and at the same time, it shall be a better approach towards this industry. The housing industry of Brisbane can also help to increase the GDP of the country as a whole. Thus, carrying out a study on this particular topic is rather important.

Problem statement:

Economic forecasting has suggested that there will be a stagnant or moderate falling in the price of the houses or others related to the housing industry. There is no particular indication as when the housing industry will be at a better position either this year or in coming years. Thus, there is a pessimistic view on the overall industry that has kept the major business activists in great trouble. However, in case if the housing industry provides good opportunities to these investors it shall be beneficial for them to improve their business activities. This study shall focus on the importance and implication of the increasing demand of the housing and property that shall directly affect the overall economic condition of the country


This section of the study is based on the methodology that has been used for carrying out the research. It is very important to design the research in the most appropriate way in order to get the result of the findings. Below is the detailed discussion on the methodology used for this particular study.

Research method outline:

For this particular research, the positivism research philosophy has been used to evaluate the secondary data. For the research approach, the deductive method has been used that has made it easier to understand the theories and concepts in details. In addition to this, the descriptive or the analytical research design has been used as the research design. On the other hand, in order to collect the primary data, interview had been taken from 5 managers of Hutchinson Builders has been taken in order to get the overall idea about the particular research topic.

Research philosophy:

There are three research philosophies namely, positivism, realism and interpretivism. Philosophy helps to carry out the research in a detailed and objective manner. For this particular research topic, positivism research philosophy has been selected because the topic needs to be discussed in a logical and in depth way. It is only by the means of positivism research philosophy, the topic can be investigated in a logical and critical manner. On the other hand, the two forms of research philosophy, namely, interpretivism and realism are based on the human perception and the concepts can vary from one person to the other. Thus, these two philosophies are not the suitable approaches for this particular study.

Research approach:

There are two types of research approaches, namely inductive and deductive approaches. The inductive approach deals with the already existing theories and deductive approach deals with new concepts and ideas. It has to be understood that for this particular study, the findings and interpretation is largely depended on the perspective of the people who are directly engaged in the business activities of the housing industry. It is for the same reason, 5 managers have been interviewed and their opinion has been noted. So, the deductive research approach has been undertaken in this respect.

Research design:

The three research designs are analytical or descriptive research design, explanatory and the exploratory research design. The idea of the descriptive design is to provide a detailed and analytical view if the overall study. The exploratory design helps to understand the concept at the initial stage of the research. It is for the same reason the analytical or the descriptive research design has been used for carrying out the analysis of this particular research. An in depth idea of the critical factors that are responsible for the overall growth of the housing industry in Brisbane.


Research strategy:

The findings and implications of this particular research is based on the information gained by interviewing the managers of the particular construction company. Therefore, the research strategy adopted is the interview method. It has to be understood that in order to get sufficient information from a good number of respondents, the survey method is used. However, in this particular situation, it would not be possible to carry out a survey among people who shall be readily gives their point of view on this particular topic. So, other forms of research strategies have been avoided for this particular research.

Sampling method and sampling size:

The two types of sampling techniques namely probability and non-probability sampling techniques are the common form of sampling techniques used for carrying out a research. For the purpose of interviewing the managers, the non-probability sampling technique had been selected. It was by this means, detailed information on the particular issue was gained from the particular group of people interviewed.

Data collection method:

Data has been collected by the means of both primary and secondary sources. For the secondary data, information available from the various sources available over the internet. These include the newspaper articles, journals and any other information related to the particular topic under discussion. In addition to this, previously research papers have also been taken under consideration for this particular purpose. In addition to this, the primary data that have been used for the purpose of this study has been collected by the means of taking interview from the managers of the particular industry. The overall findings of the particular research are based on the data collected from both the sources. This gives a detailed understanding on the topic and how the different factors are affecting the housing industry of Brisbane.

Data analysis:

There was no data that had been gathered from surveys, so there was no scope for analysing the data. The qualitative data that has been collected by the means of the interview technique, thematic approach has been used for the analysis. In addition to this, the secondary data that have been collected from various sources have also been evaluated by the means of thematic approach. Thus, overall thematic approach has been used for the purpose of data analysis for this particular research study.

Ethical consideration:

Ethical consideration was an important part in the overall research study. Ethical approach was taken for the collection of both secondary and primary data. At the time of collecting the secondary data, consideration was made on the plagiarism activity. It was thoroughly checked that there was no plagiarism involved in the secondary data sources. For this, each and every sources that have been used for the purpose of carrying out the research. For the primary data, it should be noted that none of the respondents were forced to participate in the particular study. Consent from each and every member was taken. It was kept under consideration that the participation of the people was only for the sole purpose of the academic work and nothing else. The questionnaire supplied to the respondents did not contain any kind of logo or symbol that would act like an advertising activity.

Interpretation of the findings: 1300

In order to understand the perspective of those who invest in the housing industry of Brisbane, interview of five managers of the Hutchinson Builders was taken. The interview was a semi-structured interview with a number of open ended questions. The questions were related to the recent prospect, the growth rate and the annual profit margin of the housing industry in Brisbane. This gave a clear idea on how the builders actually work on the market and that how well they are prepared with upraise and fall down of the market situation related to the building industry of Brisbane. The data and information collected from the particular interview can be converted into a number of themes like the growth rate and the annual profit and the same can be evaluated accordingly.

Growth rate of the building industry:

Every single individual was concerned with the slow growth of the industry but there are high chances that that the number of building approvals will increase that would automatically give scope to the increase number of buildings in the Brisbane area. It is due to the increasing number of building approvals, the number of the buildings in the Brisbane region is increasing. One of the managers pointed out about the strong pipeline network that has facilitated the building of the houses and the apartments. According to the second manager, that as we move to the new city areas the market keeps on changing and this is the reason that affecting the market of the building industry. The third manager pointed out that there has been a change in the construction finance over the past 12 months and that the market has showed great improvement in the major residential and other parts. In this respect, the fourth manager clearly stated that there would be high rate dwelling in the coming years as it has already been started in 2017. The start has been great and the improvement will be carried on since then. The most important point has been pointed out by the fifth and the last manager that the cost of buying homes has been increasing and this is the reason that many people are opting for their individual houses rather than trusting on other housing, townhouses or the boutique unit developments. From all these, it can be clearly stated that all the managers are quite aware of the increasing value of the home and that the particular industry is at its momentum to reach high. The managers are ready to invest in the housing industry keeping the increasing market demand and the better situation.

The annual growth rate of the housing industry

Housing Markets: Factors and Determinants:

Dierci and Westerhoff (2016), in their working paper, try to understand the dynamics in the housing markets in a generalized framework. According to their findings, the market is subjected to heavy dynamics, not only based on current price-demand situations, but, also, on the future expectations formed by the agents participating in this market about the prices and availabilities. There are several factors determining the demand structure in the housing market of any country. The authors try to analyze one specific factor, namely the speculative forces from the demand side and after conducting statistical analysis, they assert on the presence of booms and busts in the pricing cycles of this market, thereby creating temporary bubbles as well as downturns in housing industries all over the world.

Their findings regarding the determinants of demand in the housing industry are augmented by the research of Abdullah et al. (2016), who, based on the study findings, determine and rank seven contributing factors in this industry, according to their level of importance, in the decision-makings of new clients for housings. With the most important factors being location and finance and the least ones being exterior conditions and family life-cycle, there are several other determinants like neighborhood, developers and others, according to the author. Australia, currently experiencing an upward trend in its housing industry has an overall favorable scenario, based on these factors influencing the demand side considerably. This is elaborated in the following section of the literature review.


Housing Market in Australia:

Burke (2016), in his article, studies the housing market structure of Australia extensively, focusing specifically on the policy framework and government rules and reforms under which the industry is currently operating. To study the market conditions of the country, it takes the common institutional framework of four sub-systems, namely, production, consumption, managing and exchange, for the housing market also, keeping in mind the limitation of this framework of excluding the humane factor completely. The study sheds light on the favorable policy frameworks, benefits and strategies undertaken by the government of the country to make the progress of the market easy. Various planning controls, building and residential tenancy regulations, along with pro-consumption taxation structures, including capital gains on rented houses, Affordability Schemes, exemptions and cuts on taxes on new purchases, contribute extensively in the boom in the housing markets of Australia in general. The Australian government also has provisions for several grants like those of Affordable Housing and First Owner Grants, which provides immense incentives to both the buyers and sellers to invest in this market. The authors try to attribute the contemporary impressive performance of the housing industry of Australia to these pro-growth housing policies designed and implemented by the Australian government.

The findings of Burke are largely, supported by the works of Gurran, Gilbert and Phibbs (2016), according to whom, for proper and robust development plans and strategic investment structures are of immense importance for maintaining stability in the housing market of any country. The paper, after explaining the benefits of appropriate policy framework for housing market over all, concentrates on the Australian scenario. It supports the finding of Burke, suggesting that the development, which the country faced as a whole and especially in several locations, was primarily due to the industrial growth in the country along with the policy structures, favoring industrial progress as well as growth of the housing markets, both of which are interrelated. However, the paper also takes into account the recent activities in the concerned market, which has led to a price hike in several economically progressive zones, Sydney being one of the topmost of them. However, the findings of the paper shows that though Brisbane falls in the economically prospective zone category, the price dynamics in this zone are different from those of other parts of the country. However, Gurran (2016), in his article, limits his works to an overall statement on Brisbane only and does not show any detailed analysis of its housing market structure.

Housing Market in Brisbane:

Iotti et al (2016), categorically focuses on the housing market situations of Sydney, Melbourne and Brisbane, giving special on the last one. The paper tries to analyze the changes that occurred in the housing market of Brisbane has undergone in the last decade, due to economic and demographic factors and their inter-dynamics. Posing as one of the pioneers in analysis of the housing market dynamics of Brisbane, the article shows evidence of significant displacement in the housing market of the place with the on-going gentrification. Brisbane, with one of the most strategic geographical location (Being in the center of the Queensland megapolis nexus), is the third largest of the cities of Australia.

The city, over the years has enjoyed both industrial as well as population growth at impressive rates. With immense economic growth and future prospects, as argued by the authors, the city has been promoted to the club of “New World City” of the country. However, with the economic progress of the area, the housing affordability of the area has been consistently decreasing. The observations put forward by the authors get substantial support from the working paper of Hulse et al (2016), in collaboration with Australian Housing and Urban Research Institute. The authors argue that with more and more economic growth of the country as a whole and several regions specifically, the cost of dwelling in those regions have gone up considerably, thereby creating a problem of affordability of housing in cities like Sydney, Melbourne and Brisbane specifically. According to the data provided in the paper, the population growth of these three cities has been substantially high in the last decade, with that in Brisbane being the highest (20.5% in city area and 21.5% in the suburbs). The main reason for this substantially high population rate in Brisbane is expected to be the economic boom and future income and employment prospects in the city, which, as argued by Liu et al (2016), has attracted workers from across the globe to migrate to this region. The author shows a detailed pattern of change in the growth rates of different types of housings, starting form multigenerational occupied ones to rented ones, thereby drawing a positive relation between the population growth and the growth in the number of housings in the country.

Kulish, Richards and Gillitzer (2016), supports the claims of Liu (2016), providing empirical data evidences, which clearly shows the striking growth rate in the number of dwellings from 1990s to the current period. Brisbane, in the findings of their paper, is seen to be maintaining a consistent growth rate in number of houses. However, the authors take into account an interesting observation in this aspect. Brisbane, though seen to start with a much high number of dwellings than other Australian cities like Melbourne, Sydney and Perth, over time the growth rate of housing numbers in Brisbane, though seen to be stable, falls below that of the other three. This implies that though Brisbane has shown considerable development in the housing market,it lagged behind other Australian cities, especially those known to be economic or business zones.

Iotti et al (2016) associates this fall in the growth rate of dwellings in Brisbane with the increase in the overall housing prices thereby implying a fall in the housing affordability in this city, especially for lower and middle-income class.

Housing Affordibitlty in Brisbane:

Mostafa, Chileshe and Zuo (2016) in their article, supports the theory of lack of housing affordability as the primary reason of fall in the growth rate of the housing market in Brisbane, as put forward by Iotti (2016). According to their article, the problem of housing affordability is not only confined to Brisbane, it is much more severe and in the contemporary Australina housing market, it is the most crucial issue that both the buyers and the sellers are facing. The authors link the presence of the housing affordability problem with a cumulative dynamics of demand and supply factors. The rent on houses in most of the capital cities in the country was observed to grow at an average rate of 1.5% to 2% with the time span of last quarter of 2016 and second quarter of 2016. The average housing prices has also increased by 69% from 2003 till the current period, whereas, the maen nominal rent has been observed to increase massively, by almost 75.8% since 2003. However, during the same time span, the average earnings of people in Australia was seen to grow by only 57%, which is much less than the growth rate of the dwelling prices in the country.

The main reason behind this significant increase in the housing price, as put forward by Lee and Reed (2016), is mainly the economic boom that the country is experiencing in the recent times, much of which is consolidated in the few highly prosperous economic zones like Sydney, Melbourne and Brisbane. Due to the economic growth and the expectations of more prosperity in future, these regions have attracted large number of people, both from other parts of the country as well as from other countries. With the help of robust data evidences and statistical implications, Khoo et al (2016), shows that immigration in Australia, has enormously increased from 2001-02 to 2016-11, with a massive upward fluctuation within the time span of two years (2008-2016). The permanent migrants to this country primarily consist of workers, overseas students and migrants on humanitarian grounds, the workers forming the biggest share. However, during this period, people were seen to migrate more to Sydney and Melbourne than to other cities, as these two areas became the center of attraction for investors and entrepreneurs as well as for job seekers. Brisbane, being a comparatively new entrant in the economic prosperity zone, was still to experience economic growth to the extent as experienced by these two.  As a result, it experienced lesser population growth due to immigration. The numbers, however, were not at all unimpressive and showed a potential to increase with time.

Searle, Darchen and Huston (2016), in their working paper, argued in favor of the future prosperity of the housing market in Brisbane. The authors strongly asserted that the market, in spite of its current downturn, is expected to turn around and embark on the path of sustainable growth in near future, provided appropriate policies and smart business strategies are implemented by the concerned authorities. They supported their assertion with an elaborate study of one of Brisbane’s Transit Oriented Zones of Development, the Yeerongpilly region, showing that in comparison to two other Transit Oriented Develpoment Zones, Footscray (Melbourne) and Wolly Creek (Sydney), the housing market of this region shows more potential of expansion in coming years.

Tomlinson (2016), also agrees with Searle (2016), regarding the future prospects of the housing market of Brisbane. He emphasizes more on the pricing strategies and risk management construct of the region’s housing finance system. According to Tomlinson, Brisbane’s housing industry is expected to flourish with the changes that have been and are expected to be implemented in the financing sector of the industry. Various reforms have already been undertaken by the local government, regarding price-controlling mechanisms ad easy provisions of residential loans to those who want to invest in new as well as rented dwellings. The supply side is also expected to be benefitted by the security and risk mitigating reforms that has been implemented in the Brisbane’s housing market, thereby facilitating easy movements on both sides, which together are expected to bring the market to an equilibrium position. Mason and Grimbeek (2016), elaborately talks about the appreciable housing strategies that has been undertaken by the government of Brisbane, including the Housing First strategy, which targets to provide affordable housings to eradicate homelessness in the city. The policy specifically benefits the poor and the aged population of the city, who are the worst sufferers of the city’s residential displacement. Apart from that, strategies are also undertaken, as suggested by the article, to benefit tenancy procedures and bring in cost-effectiveness in the housing market.



With an expected rise in the prospects of the housing markets in Brisbane, venturing in the market in future seems profitable for the building companies as the market seems promising in terms of growth and returns from residential investments. Perolini (2016), provides a feasible and promising solution for the future builders who are eager to venture in this market. He recommends a shift in the nature of housings from big and high priced ones to small, compact and cost–effective ones. This on one had will benefit the consumers, as housing will become more affordable for them and on the other hand will increase the profitability of the sellers, by giving them scopes to build more cost-effective housings in the city. Those of Liu et al (2016), who also suggests compact living to make housing affordable in Brisbane, complement his ideas. They also recommend a bigger emphasis on residential as well as commercial constructions in the suburbs of the city. The suburbs being the recent zones of interest for remote housing, construction ventures in these regions seems promising as they will help in attracting more residents towards these areas.

After the completion of the research project, it is expected that the study will help in enlightening about the prospects of investing in the Brisbane housing industry. It will help in giving a clear idea in the form of statistical data as well as personal responses of the managers, about the recent growth trend in the housing market, the causes behind the downturn in the industry and steps to overcome the same. The research will also give an insight into the dwelling preferences of the people living in Brisbane. The housing industry of Brisbane is expected to experience a growth in profitability considering the improvement in the economic condition of the people living in Brisbane and the high prices of the housing properties. However, the research project will help in giving a better insight into the condition of the housing industry.

Housing market inherently is subjected to more price swings and volatility than most other markets. Therefore, before venturing in any housing market, the price structures and future price expectations of the products needed to be thoroughly studied and analyzed by the interested building enterprise (Garriga, Manuelli and Peralta-Alva 2016). Rowley et al (2016), also suggests proper designing of the pricing strategies of the companies, with incorporation of price dynamism and flexi-price and installment schemes, which can prove to be beneficial to make the company’s product more desirable to the clients, thereby increasing the clientele for the company.



Abdullah, L., Nor, S.I.B.M., Jumadi, S.N. and Arshad, S.H., 2016. First-time home buyers: Factors influencing decision making. In International Conference on Innovation and Technology for Sustainable Built Environment(pp. 249-254).

Burke, T., 2016. The Australian residential housing market: institutions and actors. Australia’s unintended cities, pp.35-49.              

Dieci, R. and Westerhoff, F., 2016. A simple model of a speculative housing market. Journal of Evolutionary Economics, 22(2), pp.303-329.

Garriga, C., Manuelli, R.E. and Peralta-Alva, A., 2016. A model of price swings in the housing market.

Gurran, N., Gilbert, C. and Phibbs, P., 2016, February. Planning and the housing market: measuring regulatory difference and implications for explaining supply and affordability trends. In 7th Australasian Housing Researchers’ Conference.

Hsieh, W., Norman, D. and Orsmond, D., 2016. Supplyside Issues in the Housing Sector. RBA Bulletin, September, pp.11-19.

Hulse, K., Pawson, H., Reynolds, M. and Herath, S.K., 2016. Disadvantaged places in urban Australia: analysing socio-economic diversity and housing market performance.

Iotti, A., Steele, W., Sipe, N. and Dodson, J., 2016, December. Housing Displacement in Australian Cities: A Brisbane Case-Study. In Proceedings of the State of Australian Cities Conference (pp. 9-11).

Kamaruddeen, A.M., Yusof, N. and Said, I., 2016. Dimensions of firm innovativeness in housing industry. Emerging issues in the natural and applied sciences, 2(1), pp.118-133.

Khoo, S.E., McDonald, P., Temple, J. and Edgar, B., 2016. Scoping Study of Migration and Housing Needs. Report for National Housing Supply Council Unit, Department of the Treasury, 31.

Kulish, M., Richards, A. and Gillitzer, C., 2016. Urban structure and housing prices: Some evidence from Australian cities. Economic Record, 88(282), pp.303-322.

Lee, C.L. and Reed, R., 2016. Volatility decomposition of Australian housing prices. Journal of Housing Research, 23(1), pp.21-43.

Liu, E., Easthope, H., Burnley, I. and Judd, B., 2016, February. Multigenerational households in Australian cities: Evidence from Sydney and Brisbane at the turn of the twenty-first century. In 7th Australasian Housing Researchers’ Conference (pp. 6-8).

Mason, C. and Grimbeek, P., 2016. A Housing First approach to homelessness in Brisbane: sustaining tenancies and the cost effectiveness of support services. Brisbane (AU): Micah Projects Inc.


Morris, A., 2016. Public housing in Australia: A case of advanced urban marginality?. The Economic and Labour Relations Review, 24(1), pp.80-96.

Mostafa, S., Chileshe, N. and Zuo, J., 2016. Enhancing Australian Housing Affordabillity: Off-site Manufacturing Supply Chain Strategies (Doctoral dissertation, Akademika forlag).

Perolini, P., 2016. Smaller Living: The need to offer better housing options in Australian cities.

Rowley, S., Costello, G., Higgins, D. and Phibbs, P., 2016. The financing of residential development in Australia. Australian Housing and Urban Research Institute Final Report Series, 219, pp.1-75.

Rusch, R. and Best, R., 2016. Sustainability: Its adaptation and relevance in remote area housing. Construction Economics and Building, 14(1), pp.88-104.

Searle, G., Darchen, S. and Huston, S., 2016. Delivering successful TOD projects in the context of inner-city suburbs: case studies from Brisbane, Melbourne and Sydney. In PIA 2016: Planning Institute of Australia National Congress 2016.

Slaughter, R.A., 2016. How ‘Development’Promotes Redundant Visions: The Case of the Queen's Wharf Casino Project, Brisbane. Journal of Futures Studies, 21(1), pp.77-84.

Steinhardt, D.A., Manley, K. and Miller, W., 2016. Profiling the nature and context of the Australian prefabricated housing industry.

Tomlinson, B.M.R., 2016. ‘Managing risk’in the delivery of housing finance: Australia’s mortgage lenders. HOUSING FINANCE, p.41.

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I would recommend it to my friends, easy to contact. always on time and offering good prices


User Id: 412828 - 31 May 2020


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The work was phenomenally done, and it was even praised. I highly recommend this site, the service and help, altogether, I would not have passed any classes if it weren\'t for you guys and gals


User Id: 260056 - 31 May 2020


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The assignment was very well written, and the teacher was very pleased and praised the work.


User Id: 260056 - 31 May 2020


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For once, what I asked for was delivered without any hassle and going back and forth. Whichever writer did the assignment, thank you so much for revamping my assignment based on the feedback that was provided.


User Id: 423899 - 31 May 2020


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