Stockland reports stable residential sales with NSW showing positive signs
Stockland has announced that prices have stabilised across their portfolio with NSW showing early signs of increases and consistency seen across other aspects of the business.
In their latest quarterly report, the listed property developer said that sales were moderately above expectations in the quarter and appeared on track to deliver over 5,000 lot settlements in FY20, including around 500 townhouse.
Net reservations increased by 9.7% reflecting an improvement in both customer sentiment and housing market conditions.
This was seen across both their retirement village projects and other communities.
In the quarterly report Stockland said, "we expect FY21 revenue to benefit from market recovery and five new communities driving an increase in settlement volumes above the midpoint of our through the cycle range, together with potential price growth and cost savings."
Stockland found that the federal election was the turning point for property interest as seen below.
Click here to enlarge.
On the commercial side, occupancy was maintained at 99.2% with 105,460 sqm leased insofar on a WALE of around 5.3 years.
Stockland made conditional agreements to purchase two logistics assets in Brisbane with end development value of approximately $140 million and consolidate a 71Ha landholding in Western Sydney with end development value of approximately $500 million.
They added that their $2.5 billion development pipeline has been progressing and developing new JV opportunities, including Melbourne Business Park and Western Sydney land.
In addition their acquisition of 50% interest of Piccadilly is to be fully funded through the disposal of 50% interest in 135 King Street/Glasshouse.
