A new venture from two big Aussie groups could soon be delivering 2000 apartments per year thanks to off-site manufacturing, and with sights set on shaking-up construction on an even bigger scale.
ASX-listed Wesfarmers – the owner of Australian brands Bunnings, Kmart, and Target – has teamed up with builder and construction contractor Built Group on a 50:50 joint venture to develop a substantial off-site manufacturing construction business.
The primary aim of the company, called Built Living, will be to deliver apartments at scale at a lower price and faster timeline than with traditional construction methods.
The project kicks off in Western Australia, with a purpose-built manufacturing facility set to be established in Neerabup in Perth’s outer north, thanks to a long-term land-lease agreement and $20 million incentive provided by the WA government.
An artist's impression of the forthcoming Built Living manufacturing facility at Neerabup.
According to Built Living CEO Dale Connor, formerly CEO of Lendlease, this is just the beginning of a “national approach,” with the company hoping to set up further manufacturing facilities across the country – ideally through similar state assistance programs.
With early 2026 estimates putting Australia’s ambitious building targets more than 380,000 homes short by 2029 and the fuel crisis caused by conflicts in the middle east expected to dampen production by a further 30,000 homes, it’s become clear that current construction capacity is falling short of the nation’s needs.
This was reportedly the impetus that spurred Wesfarmers and Built into partnership.
Taking a cue from other countries
According to Built Group, the use of off-site manufacturing is a proven approach across international markets.
“Across the world’s leading apartment markets, offsite manufacturing of high-quality construction elements is delivered at scale,” said Marco Rossi, Built Group's executive chairman and CEO.
Wesfarmers managing director and CEO Rob Scott added that joint venture would make a "meaningful difference".
“Australia urgently needs more housing, and the Built Living joint venture is well positioned to address that using internationally proven construction models, delivering high quality properties," Mr Scott said.
They cited nations like Netherlands, Germany and Finland, where off-site manufacturing has been used for residential and commercial construction projects for years.
Modeling from those nations shows that it could result in a cost reduction of up to 20% with construction completed 50% faster.
Built executive chairman and CEO Marco Rossi and Wesfarmers managing director and CEO Rob Scott.
“We see it as fundamental that something has to be done differently in Australia,” Mr Connor said.
“Construction productivity just continues to unfortunately go backwards, and global events are putting even further pressure on traditional ways of building on site. This is an approach that is tried and true in other international markets, and it needs to be the way that Australia thinks of its delivery."
If Australia has been slow to take up off-site manufacturing as a consumer choice, it could be because of preconceived notions of related methods like prefab and flat-pack homes – attitudes that have recently begun to change, thanks to new, modern designs and greater availability through suppliers like Bunnings.
When it comes to the apartments that Built Living will produce, Mr Connor noted that while the methods of creating the product will change – which in this instance can be largely described as a digitally-optimised process for precast concrete forms – the homes produced by Built Living will ultimately be indistinguishable from traditionally constructed apartment blocks.
“This will be a high-quality, long-term resilient product. What changes is how we get there –faster, cheaper, safer. It doesn't mean that the end result needs to look any different than the best in the market," he said.
Former Lendlease CEO Dale Connor has been appointed to lead Built Living.
Up and running by 2028
The Neerabup facility will commence construction this year, with completion targeted for early 2028, at which point Built Living anticipates it will be able to produce 2000 apartments per year.
WA property developer Adrian Fini has taken a direct equity interest in the Neerabup facility, delivering a pipeline of work through Fini Group and Human Urban developments.
It's expected the facility will lead to around 150 construction jobs and 150 ongoing operational jobs.
Built Living has also said it will support the government through the construction of infrastructure projects such as hospitals, prisons, and defence facilities.
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