Urban renewal: Industry revenue is projected to rise with demand from residential construction

The Land Development and Subdivision industry's performance primarily depends on trends in housing investment and land preparation for new dwelling commencements. However, the industry also generates approximately one-quarter of its revenue from developing land for non-residential buildings and other non-building applications, such as transport infrastructure. The supply of serviced land coming on the market for housing development has steadily declined while the median lot price has trended strongly upwards. These trends have constrained industry performance over the past five years.The industry has displayed high revenue volatility since the late 2000s...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The falling volume of residential lots sold has outweighed higher median land values
  • Shifting preferences towards high-density residences have affected industry performance
  • Subdued growth in both the volume and value of land sales will constrain the industry’s performance
  • Industry Report - Industry Products Chapter

    Land purchased for residential development dominates the Land Development and Subdivision industry. Combined, land developed and subdivided for residential purposes accounts for nearly three-quarters of industry revenue. Developments of new townhouses and apartment buildings have grown at a faster pace compared with developments of single-unit houses over the past five years as population densities have increased in urban centres. Generally, the cost of low-density residential land development is lower per square metre than the cost of developing land for high-density projects, particularly multistorey buildings with extensive excavations and foundations...purchase to read more.

    Additional Insights for the Land Development and Subdivision Industry

    IBISWorld has determined the most important Key Success Factors for the Land Development and Subdivision are:

  • Easy access to further appropriate land for development
  • Highly trained workforce
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as Demand from house construction and Demand from non-residential building construction in the Land Development and Subdivision industry impact industry performance..

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    What's in this report

    What is the Land Development and Subdivision Industry?

    Industry companies primarily subdivide and amalgamate land into lots. Companies also prepare and service land for subsequent sale, including performing excavation work for installing roads and utility lines.

    Industry Products
  • Houses and housing estate developments
  • Apartments and other residential developments
  • Commercial developments
  • Industrial developments
  • Other developments
  • Industry Activities
  • Land subdivision
  • Land development
  • Land amalgamation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from house construction
  • Demand from non-residential building construction
  • Demand from multi-unit apartment and townhouse construction
  • Population
  • Residential housing prices

  • Current Performance
  • Profit trends
  • Enterprise numbers
  • Interest rates
  • Density trends and diversification
  • Population concerns
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential land development
  • Commercial land development
  • Profit trends
  • Table: Land Development and Subdivision Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Land Development and Subdivision Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Residential Property Operators
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators
  • Consumers

  • Key Selling Industries
  • Electricity, Gas, Water and Waste Services
  • Finance
  • Legal Services
  • Site Preparation Services

  • Products & Services
  • Houses and housing estate developments
  • Apartments and other residential developments
  • Commercial developments
  • Industrial developments
  • Other developments
  • Chart: Land Development and Subdivision Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Low-density residential property developers
  • Commercial property developers and operators
  • High-density residential property developers
  • Other markets
  • Chart: Major Market Segmentation for the Land Development and Subdivision Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Land Development and Subdivision

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Land Development and Subdivision Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Land Development and Subdivision Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Land Development and Subdivision Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Land that has previously been developed for industrial or commercial use. It can be converted or redeveloped to be suitable for a different use, such as retail or housing.
  • Greenfield
  • Land that has not been previously utilised in structure development, also known as undeveloped land.
  • Property Development
  • The funding activities associated with improving the quality of a piece of land or building.
  • Subdivision
  • The legal division of land that enables the original piece of land to be owned by several entities and used for different purposes.
  • Urban Infill
  • The development of higher density residential areas near transport and commercial hubs.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hires can be paid on an hourly, daily or weekly basis.
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    Why buy this report?

    IBISWorld’s Land Development and Subdivision market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Land Development and Subdivision:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Land Development and Subdivision market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Land Development and Subdivision, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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