This article is from the Australian Property Journal archive
RESIDENTIAL property developer Cedar Woods has had a strong start to FY25, chalking up presales of more than $560 million at the end of the Q1.
The figure is 12% higher than the previous corresponding period’s $500 million. There were 330 gross sales, up 4% on Q1 FY24.
Whilst Q1 sales volumes remained at good levels, they were lower than 407 sales in the Q4 FY24, 364 sales in Q3 FY24, and 359 sales in Q2 FY24.
The company said market conditions continue to support the residential property sector with buoyant conditions in Western Australia , Queensland and South Australia, while Victoria remains somewhat weaker.
In Qld, its Flourish in South Maclean development is proving to be popular with first home buyers and has recorded strong sales rates and price growth.
In Victoria, the company commenced construction on its fourth strata office project at Williams Landing ahead of schedule. The project, known as Hudson Hub, is 66% presold and forecast to complete in H2 FY26, further proving up the ongoing strength and depth of demand for affordable, well-located offices at Williams Landing.
Its WA projects have continued to sell well with prices stabilising at higher levels and resulting in higher margins. Eglinton Village and Millars Landing have more than 1,100 lots and 1,300 lots remaining respectively.
During the quarter, contracted acquisition payments at Mason Quarter, Victoria and Subiaco Depot, Perth, a joint venture with Tokyo Gas Real Estate (TGRE), were made totalling $45.8 million.
Cedar Woods said the national undersupply of housing is expected to continue to positively support enquiry, sales volumes and pricing.
“A combination of high population growth, low housing supply, stable employment outlook, moderating inflation and stabilising interest rates have resulted in strong growth in dwelling values across Perth +24.1%, Brisbane +14.5% and Adelaide + 14.8% in the 12 months to September 2024. Melbourne was the only major capital to record negative change in dwelling values of -1.4% for the period, now making it relatively affordable compared with other capitals.
“State, local and federal government policies have shifted towards support for residential development in a concerted effort to address the national housing crisis. Examples of this support include government infrastructure contributions, policy support for increased building height, fast track approval policies and stamp duty exemptions.
“Many of the company’s projects offer affordable product and are expected to benefit from these expansionary policies and the potential interest rate cuts that are anticipated to occur in 2025,”
The company has reaffirmed its target of 10% growth in net profit after tax (NPAT) for FY25.
