Undeterred by tightened lending and rising property prices, property developer Stockland has announced its plan to deliver record residential sales in Australia in the financial year ended 30 June 2010.
Speaking at an investor update in Melbourne yesterday, Stockland managing director Matthew Quinn said the developer received almost 1,900 net deposits between January and April this year, after having started the financial year with 1,215 contracts, and expects this to continue to increase.
“We’re on track to deliver record residential sales this financial year,” Mr Quinn said.
According to Mr Quinn, the company’s residential communities’ margins can be expected to increase by between 1 per cent to 1.5 per cent in the second half of this financial year. He attributed this increase to recent price increases, particularly in Victoria and Western Australia.
Mr Quinn also said that first home buyers have returned to historic levels in most states, but remain stronger in Victoria, where the first home buyers grant has been lifted to $20,000 and extended to June 2011 for new homes. There has also been continued investor interest, due to low rental vacancies.
“Affordability continues to deteriorate following six interest rate rises since October 2009,” he said.
“We remain focused on delivering innovative product at affordable price points, which assists us in maintaining and growing our market share through increased lot sales.”