AHB overtakes Metricon as Victoria’s top builder

Victoria is building more homes than any other state, but a shock shake-up at the top has redrawn the builder rankings.

Victoria has overtaken every other state for new home building, with AHB Group climbing to number one in the state as growth corridors power ahead.

The HIA Colorbond Steel Housing 100 report shows Victoria delivered more than 20,000 home starts in 2024/25, almost a third of national activity and the biggest share of any state.

AHB Group was the standout performer, climbing to fifth nationally with almost 2900 starts and overtaking Metricon as Victoria’s largest builder.
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Its medium-density arm SOHO Living has been central to that growth.

Director Pas Garofalo said the focus was on attainable homes for everyday families.

“Townhouses and compact single-storey homes are proving the sweet spot,” Mr Garofalo said.

“That’s where budgets stretch, and that’s where developers are partnering with us to bring supply forward.”

But he warned Victoria was at risk of chasing density at the expense of family homes.

AHB Group director Pas Garofalo says townhouses and smaller homes are the sweet spot as AHB overtakes Metricon in Victoria.

“Greenfield releases are slowing, and there’s an ideological tilt towards towers,” he said.
“Apartments aren’t automatically cheaper, in some cases the entry price pushes towards the million-dollar mark. The danger is overdevelopment in the wrong places.”

Mr Garafolo said the next challenge was ensuring shovel-ready land was available as demand recovered.
“If titled land isn’t coming through, buyers will rush limited stock and prices will climb,” he said.

Mr Garofalo said Victoria could not afford to neglect its growth corridors if it wanted to hit housing targets.

“A balanced pipeline needs both townhouses and detached homes,” he said.

“Victorians still want a backyard, and we can deliver that at affordable price points if approvals and servicing keep pace.”

Metricon, which remains the country’s biggest builder after a decade with 4015 starts nationally, was overtaken by AHB in Victoria for the first time.

Metricon chief executive Brad Duggan says the builder remains Victoria’s largest detached home player despite slipping to No. 2 overall.

Chief executive Brad Duggan said the competitive shake-up reflected the rapid rise of medium density dwellings.

“We remain Victoria’s largest detached home builder, that’s our core focus,” Mr Duggan said.
“But we’re certainly building capability in medium density.”

Mr Duggan said Victoria had the depth to recover strongly after five tough years.
“Investor demand is growing month on month, and land prices here are competitive compared to some smaller capitals,” he said.
“We think Victoria is set for a resurgence,” Mr Duggan said.

Families in Melbourne’s east say demand is soaring while new supply struggles to keep pace. Picture: Jason Edwards

“Knockdown-rebuilds had also become a defining feature of the state’s market and it’s pure economics, it’s cheaper to rebuild on land you already own.”

Mr Duggan said higher-density projects had added some supply to Victoria’s market but were often mismatched to the market.

“Too many three-bed, two-bath townhouses are delivered with just one car space in car-dependent locations,” Mr Duggan said.
“Families only choose them because it’s the only affordable option nearby, not because that’s what they want.”

While AHB Group and Metricon’s success has lead the state’s new builds, other parts of Melbourne are missing out.

OBrien Real Estate Rowville director Adam Sorrell says Melbourne families in the outer east are desperate to stay local, but approvals and costs are choking new builds.

O’Brien Real Estate Rowville director Adam Sorrell said families in Melbourne’s outer east were desperate to stay local but new builds were not being delivered.

“For example. about 270 building approvals went through in the City of Knox last year, and that number has fallen,” Mr Sorrell said.
“The cost of land acquisition and the jump in construction costs have made buy-and-build propositions hard to stack up.”

Mr Sorrell said the mismatch meant buyers were flooding the limited homes that did come up.

“A typical four-bedroom family home will attract 20 to 40 groups through and multiple offers,” he said.
“Demand is strong; listings are thin.”

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