Mixed conditions nationally but Mirvac says apartment default rate below 2 percent

Mirvac has advised its default rate among its apartment buyers remains below 2 percent.

The group noted defaults were tracking below 2 percent which is in line with where they were at the group's first half financial results advised in February.

Its chief executive Susan Lloyd-Hurwitz said the company's strong performance had been driven largely by a "strategic overweight" position in Sydney and Melbourne.

“We believe we will continue to bene t from the densi cation of these cities in the years to come, through our urban asset creation and mixed-use capabilities."

Residential conditions continue to be mixed nationally, it noted.

"Price growth in the Sydney and Melbourne established markets increased materially, following a strong spring and summer season.

"Recent moves by regulators and lenders will likely see price growth ease, however demand is expected to remain sound. Increasing urban population growth, support from low interest rates and demand for quality dwellings in attractive locations is expected to continue.

"In Brisbane, price growth for apartments has moderated with more solid growth for housing and semi-detached dwellings, while Perth has seen signs of improved demand, particularly among rst home buyers, with support from government incentives. 

"We have seen a solid amount of sales activity, up 18 per cent on the prior corresponding period, and we remain on track to achieve a full-year return on invested capital of more than 15 percent," she said in a statement releasing the group's third-quarter update.

"We also expect to settle approximately 3,300 residential lots in FY17."

“With housing affordability becoming an increasingly concerning issue in Sydney, Mirvac launched its The Right Start initiative during the quarter to assist rst time home buyers in securing their own home.

"The Right Start gave over 50 first home buyers the opportunity to purchase at our Sydney Olympic Park development, and we will continue to look at how we can address housing affordability in Sydney.” 

The major apartment project highlights were the settlement of the group's The Moreton project at Bondi which is now 68 percent settled.

Ebsworth at Green Square, Sydney is now 74 percent settled.

Its launch of new projects and continued sales momentum at existing projects, included Olivine, Melbourne where 100 percent of released lots pre-sold; Woodlea, Melbourne: 100 percent of released lots pre-sold; Pavilions, Sydney Olympic Park, Sydney: 67 percent of released lots pre-sold; and Marrick & Codney: 69 percent of released lots pre-sold.

Mirvac Group recently announce the appointment of Stuart Penklis as head of residential.

Since joining Mirvac in 2002, Stuart has played a lead role in securing and delivering a diverse set of the Group’s large-scale residential and industrial development projects, such as Harold Park, The Moreton, Hoxton Distribution Park and Calibre in Sydney.

Stuart brings more than 20 years of experience in the property industry, including a number of senior roles in his 15 years with Mirvac, across investment and development in multiple sectors.

Most recently, he led the industrial business as group executive, industrial.

Stuart will commence his role as head of residential on 1 May 2017. 

Mirvac posted a 7 percent rise in profit for its first half ended December 31, capitalising on a record $3.1 billion of residential pre-sales, with CEO Susan Lloyd-Hurwitz going to bat for a taskforce to tackle housing affordability.