"Australia urgently needs more housing." – Rob Scott, Wesfarmers managing director
A New Model for Australian Housing
Wesfarmers, the parent company of retail giants Kmart and Bunnings, is pivoting to property development. The firm has entered a 50:50 joint venture with Built Group to launch a new entity called Built Living.
The venture aims to tackle Australia’s housing crisis by delivering large-scale apartment projects using advanced manufacturing techniques. The company claims this method will deliver 50% faster construction and 20% cost savings compared to traditional building methods.
The $100 Million Factory
- Investment Play: Wesfarmers is committing an initial $100 million to develop what it describes as Australia’s first advanced manufacturing facility for precast concrete construction. This facility will specifically target medium and high-rise apartments.
- Location: The plant will be built in Western Australia's Neerabup Automation and Robotics Precinct, supported by a long-term land lease and backing from the state government.
- Production Capacity: Once fully operational, the facility is expected to produce the components for over 2,000 apartments per year. Construction of the factory itself is slated to begin in the second half of 2026.
- Social Impact: A portion of the output will be reserved for government-backed housing projects, including social and essential infrastructure.
The "DfMA" Methodology
The core of the innovation is Design for Manufacture and Assembly (DfMA) .
This model aims to cut build costs by about 20% and reduce construction time by up to 50% compared to traditional methods.
Marco Rossi, the executive chairman of Built, noted that the company spent years searching globally for efficient construction solutions. "Built Living brings this best practice to Australia," he stated.
What the Savings Look Like
According to BMT Quantity Surveyors’ 2026 figures, average build costs per square metre for units range from $3,370 to $5,765.
- Average Unit Size: 137 sqm
- Estimated Current Cost Range: $461,000 to $789,000 per unit.
- Potential Savings: A 20% reduction could translate to savings of up to $158,000 per apartment.
Looking Ahead
The joint venture is still subject to binding documentation, approvals, and the finalization of funding arrangements. Wesfarmers has indicated that the deal is not expected to materially impact earnings in the current financial year.