This article is from the Australian Property Journal archive
HOME builder AVJennings reported strong lead indicators in the March quarter, and product mix drove settlement values higher despite a dip in volumes.
AVJennings recorded 68 lots settled at a value of $36.3 million in the quarter, a 28% decline in over the prior corresponding period (pcp). However, the value of settlements grew by 10% due to the product mix.
“A settlement mix strongly skewed to a higher proportion of built-form housing, relative to land, drove a 54% increase in the average settlement value,” it said, with built-form settlements at Arcadian Hills, Cobbity and Rosella Rise, Warnervale in NSW, Eyre at Penfield in South Australia, and Waterline Place in Williamstown, Victoria the strongest contributors.
“I am pleased to see another quarter of positive results, underscoring our resilience and determination in navigating through persistent challenging market conditions,” said AVJennings’ CEO and managing director Phil Kearns said.
Contract signings for the quarter increased by 31% to 134 lots on the prior corresponding period, and year-to-date are up 59%. The quarter’s signings totalled $65 million, a 117% increase on the pcp, and year-to-date value of contract signings jumped 72% to $192 million.
Increases in sales were observed across all product types, with notable contributions from housing sales at Eyre, Arcadian Hills and Cadence in Ripley, Queensland, and apartment sales at Waterline Place.
AVJennings also reported customer enquiries up 15% in the quarter, and a 22% year-to-date uplift.
Completion and commissioning of the Pro9 Australian manufacturing facility is on track for the June quarter, with first walls to be produced in June 2024.
“The establishment of the Australian facility is anticipated to expedite the delivery of AVJ’s built-form housing and result in significant improvements in the quality and energy efficiency of homes with Pro9 walls across the country,” it said.
Its club funding facility increased by $30 million, to $330 million.
