Stockland on track for record home sales
May 18, 2010
Stockland (SGP) said this morning that it was on track to achieve record residential sales this financial year. The property developer also reaffirmed its FY10 earnings guidance of 20c per share.
Speaking at an investor update this morning, Stockland said it had achieved around 5,000 net deposits through to the end of April.
Managing director, Matthew Quinn, said margins on residential homes had increased by around 1.5% in the second half as prices increase, particularly in Victoria and Western Australia.
“With rental vacancies remaining low, we’re also seeing continued investor interest,” Mr Quinn said.
“Affordability continues to deteriorate following six interest rate rises since October 2009,” he added.
Mr Quinn said there had been a shift in buyer composition, with upgraders making up around 44% of FY10 net deposits, compared with 36% in FY09.
Stockland also said that it had a high level of lots under production, with many off-the-plan sales due to settle next year.
At the close of trade yesterday, Stockland shares were trading at $3.80 each.
Speaking at an investor update this morning, Stockland said it had achieved around 5,000 net deposits through to the end of April.
Managing director, Matthew Quinn, said margins on residential homes had increased by around 1.5% in the second half as prices increase, particularly in Victoria and Western Australia.
“With rental vacancies remaining low, we’re also seeing continued investor interest,” Mr Quinn said.
“Affordability continues to deteriorate following six interest rate rises since October 2009,” he added.
Mr Quinn said there had been a shift in buyer composition, with upgraders making up around 44% of FY10 net deposits, compared with 36% in FY09.
Stockland also said that it had a high level of lots under production, with many off-the-plan sales due to settle next year.
At the close of trade yesterday, Stockland shares were trading at $3.80 each.
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