Wesfarmers enters housing construction with $100m joint venture to build apartments 50% faster

Key facts

• Wesfarmers and Built Group form 50:50 joint venture Built Living.
• Initial $100 million investment from Wesfarmers for advanced manufacturing facility.
• Facility to be located at Neerabup Automation and Robotics Precinct in Western Australia.
• Target capacity: more than 2,000 apartments per year once fully operational.
• Construction of facility to begin in second half of 2026.
• Claims of 50% faster build time and 20% cost reduction, potentially slashing up to A$158,000 off prices.
• Western Australian Government provides long-term land lease and development support.
• A portion of output reserved for government-backed housing, including social and essential infrastructure.

A retail giant pivots to construction

Wesfarmers, the parent company of retail staples Kmart and Bunnings, is making its first foray into residential construction through a joint venture that promises to slash apartment build times by half and reduce costs by a fifth. The announcement, made Tuesday by Built executive chairman Marco Rossi and Wesfarmers managing director Rob Scott, marks a strategic shift for the conglomerate as Australia grapples with a severe housing shortage. The new entity, Built Living, is a 50:50 partnership with Built Group, a construction firm. Wesfarmers will inject an initial A$100 million to establish what the companies describe as Australia’s first advanced manufacturing facility focused on precast concrete for medium- and high-rise apartments. The facility will be based in Western Australia’s Neerabup Automation and Robotics Precinct, with construction due to start in the second half of 2026.

How the model aims to transform building

Built Living will employ Design for Manufacture and Assembly (DfMA) techniques already used overseas, producing modular and precast components offsite. This approach, the companies say, can cut construction time by up to 50% and reduce costs by around 20% compared to traditional methods. For a typical apartment, that could mean savings of as much as A$158,000 off the purchase price. The facility is expected to have an annual capacity of more than 2,000 apartments once fully operational. A portion of the output will be reserved for government-backed housing projects, including social and essential infrastructure, reflecting the joint venture’s alignment with public policy goals.

Government backing and industry context

The Western Australian Government is supporting the project with a long-term land lease at the Neerabup precinct and additional development assistance. The move comes as Australia faces a housing crisis, with rising costs, inconsistent regulations, and fragile supply chains hampering construction. Wesfarmers managing director Rob Scott said, “Australia urgently needs more housing,” underscoring the urgency behind the venture. Built executive chairman Marco Rossi noted that the company had spent years searching globally for solutions to the country’s housing crunch. The joint venture aims to address systemic weaknesses in the economy that have held back housing supply, including high costs and supply chain disruptions.

Wesfarmers’ track record and strategic rationale

Wesfarmers has a history of transforming retail businesses; it turned Kmart into a retail giant over the past decade by overhauling its buying structure. The move into construction represents a diversification into a sector where the company sees both a societal need and a commercial opportunity. By leveraging its financial strength and operational expertise, Wesfarmers aims to replicate its retail success in housing. The initial A$100 million commitment is a relatively modest outlay for a company with a market capitalisation of around A$70 billion, but it signals a long-term bet on industrialised construction. The joint venture’s focus on precast concrete and modular methods aligns with global trends toward offsite manufacturing to improve efficiency and quality.

What comes next: timelines and targets

Construction of the manufacturing facility is scheduled to begin in the second half of 2026, with full production expected to follow. The companies have not disclosed a specific completion date for the facility, but the target of 2,000 apartments per year suggests a significant scaling up once operational. The first projects under Built Living are likely to be in Western Australia, given the facility’s location and government support. Analysts will be watching closely to see whether the promised 50% time savings and 20% cost reductions materialise, as similar claims in other markets have sometimes fallen short. The success of the venture could have implications for housing affordability across Australia, particularly if the model is replicated in other states.

A test for industrialised housing in Australia

The Wesfarmers-Built joint venture is one of the most ambitious attempts to bring industrialised construction to Australia’s residential sector. If it delivers on its promises, it could help alleviate the housing shortage by accelerating supply and lowering costs. However, the venture faces challenges, including the need to scale up production, navigate local building codes, and win over buyers and developers accustomed to traditional methods. The involvement of a major ASX-listed company like Wesfarmers, with its deep pockets and retail discipline, adds credibility to the effort. The coming years will reveal whether this bet on precast concrete and modular assembly can reshape how Australia builds its homes.

The bottom line

• Wesfarmers enters residential construction via a 50:50 joint venture with Built Group, investing A$100 million initially.
• The venture aims to build apartments 50% faster and 20% cheaper using offsite precast concrete manufacturing.
• A new facility in Western Australia will have capacity for over 2,000 apartments per year, with construction starting in H2 2026.
• The Western Australian Government supports the project with a land lease and development assistance.
• A portion of output will go to government-backed social and essential housing.
• The model uses DfMA techniques already proven overseas, targeting cost savings of up to A$158,000 per apartment.