Stockland profit up 12% with strong Willowdale Sydney residential sales

Stockland Group has reported an underlying profit full year of $555 million, a 12% increase a year ago, with its residential business the standout.

The managing director Mark Steinert, said its core businesses performed solidly with year on year profit growth in retail, residential, logistics and business parks, and retirement living.

“Our new residential projects at Calleya in Perth, Willowdale in Sydney’s south-west, and Elara in Sydney’s north west, have all seen strong customer demand.” 

Stockland’s residential business grew strongly with operating profit up 57% on the prior year. The company achieved 5,219 lot settlements for the year and started FY15 with a record 3,185 contracts on hand. 

Stockland’s head of residential, Andrew Whitson said all states were experiencing generally positive housing market conditions.

“Demand in Sydney remains very strong with relatively low supply impacting affordability in the established housing market.

"In Victoria, the market is steady with good demand balanced by higher competition.

"The outlook in Queensland is particularly strong, underpinned by positive economic indicators and a slower start to the housing market recovery,” Mr Whitson said.

Stockland agreed last Friday to sell its 19.9% stake in Australand Property Group to property group Frasers Centrepoint, booking an $80 million profit.