Are Chinese Factories About to Replace Aussie Builders?
In This Week’s How's The Market | Edition 142
Are Chinese Factories About to Replace Aussie Builders?
The Prefab Revolution That Could Solve Australia's Housing Crisis
Market Update
Entire Melbourne Market
1,700 auctions last weekend
Clearance rate: 48.4% (down from 51.3% last week)
Sixth consecutive weekly decline from the August peak of 61.1%
$1.5m+ Inner-Melbourne Market (Boroondara, Stonnington, Port Phillip & Yarra)
73 auctions
Clearance rate: 53.42%
The premium market continues to outperform the broader Melbourne market
Weekly Topic: Are Chinese Factories About to Replace Aussie Builders?
Five factory-built townhouses in Craigieburn just sold out in three weeks.
They were built in China, shipped to Melbourne, and craned into place.
Here’s what you need to know:
Why this matters
Prefab could be the single biggest shift in housing supply since post-war brick veneer.
Quick context
Only 5 townhouses
Craigieburn is already a hot market
Price point: $699k–$749k
All five buyers were investors. It doesn’t prove Australians love prefab yet — but it proves developers love the numbers.
The Case for Prefab
1. 20% cheaper build costs
Lower labour + fewer delays = projects that previously didn’t stack up suddenly make sense again.
2. 8–10 week delivery (vs 10–12 months)
Huge savings on interest and holding costs.
3. 8-star energy ratings as standard
4. Fixes the builder-collapse problem
Over 500 Victorian builders go under each year due to thin margins.
5. Makes small sites viable
If timelines shrink by 75% and costs drop by 20%, developers can revive projects that were previously unprofitable.
But… the real bottleneck? Council.
Australia sits at 3–5% prefab adoption.
Sweden sits at 80%.
The difference isn’t technology - it’s approvals.
If councils create standardised prefab envelopes, builders could deliver homes almost immediately after planning sign-off.
The State Government has already trialled 10-day townhouse approvals. Prefab could be next.
The Make-or-Break Question: Quality
This whole thing lives or dies on quality.
Cheap “investment stock” with weak fixtures? → Prefab dies.
High-quality homes at 20% less? → Market explodes.
We’ll be inspecting the Craigieburn project soon and reporting back.
What The Agents Are Saying
December is the most relationship-driven month of the year
Some agents are already on holiday
The hungry ones are still on the ground - and they’re easier to meet with
February/March stock levels are lower than expected
Buyers who stay active in December get access to opportunities others miss
We secured an off-market in Ashburton last weekend:
Best street in the suburb
4-bed red brick
Accepted same day, no negotiation - vendor didn’t want to risk losing momentum
The Wow Factor!
65 Comer Street, Brighton East, Vic 3187
Brighton East’s Luxe Family Haven
Why it WOWs:
Six-bedroom luxury home on a generous landscaped block
Resort-style pool, spa & outdoor entertaining area
Home theatre, wine cellar & premium interiors throughout
Ample garage space and high-end finishes
Prime Brighton East location close to schools, parks & lifestyle amenities
Price guide : $5,000,000 – $5,500,000
Final Thoughts
Prefab construction isn't about replacing Australian builders entirely, it's about solving the housing crisis one factory-built home at a time.
The question isn't whether Chinese factories will disrupt the industry, but whether we can deliver quality homes fast enough before first home buyers give up completely.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
