First-home buyer interest in house-and-land packages rising: Stockland

First-home buyer interest in house-and-land packages has grown significantly over the past few months, Stockland CEO Matthew Quinn has told investors.

Quinn says the first-home buyer segment has been the biggest beneficiary of the November interest rate cut.

“For those looking to borrow for the first time, every dollar counts. The idea of buying your first house gets more compelling with each rate reduction,” Quinn says.

For other segments of the market though such as investors and upgraders, Quinn says while the rate cut was great news, it’s too early to determine the benefits.

“It’s not a top of mind issue for buyers. They are not saying ‘hallelujah, rates have fallen’. It’s not a game changer.”

What will have an impact on sentiment, Quinn says, is if a pattern of rate reductions develops, as many are predicting.

Both Quinn and Stockland residential CEO Mark Hunter stressed on numerous occasions during the presentation that affordability and pricing are key to attracting first-home buyers.

“An affordable product is in high demand from first-home buyers,” Quinn says.

Stockland is targeting a price range of $290,000 to $350,000 for first-home buyers.

For this price, buyers get a three-bedroom, two-bathroom, one-garage houses measuring about 143 square metres built on lot sizes of 212 square metres.

Stockland is targeting first-home buyers to make up 20% to 30% of its sales composition.

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