Property investment: Japanese investors have 18-month window to buy Australian home builders

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 52 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 90%

Business News News

Business Business Latest News,Business Business Headlines

There’s a transformation taking place in Australia’s home-building sector as Japan’s largest property companies expand. But there’s a time limit on it.

– will only last 18 months before asking prices exceed what potential buyers are willing to pay, M&A lawyer Ian Williams said.

A transformation is taking place in Australia’s highly fragmented, low-margin and poorly capitalised home-building sector as Japan’s largest property companies expand both here and in the US to offset the effects of a faster-than-expected decline in their domestic population.

In Australia, the concentration of materials supply in the hands of a few players, such as BlueScope, Austral Bricks, CSR and Fletcher Building, gives builders – even the very large ones – less leverage than they might otherwise have in the procurement chain.“Japanese housing companies have come to realise that local management is essential to the success of business,” Mr Williams said.

The main reason is their access to capital and ability to build homes speculatively, even before having a contracted buyer and deposit on hand.“We’re unique in having homes sold then built. The only barrier to building and then selling is having access to large capital reserves,” Housing Industry Association chief economist Tim Reardon said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines