Residential sales promising

by Rachel Seymour 21/10/2009

 Residential sales were remaining strong despite recent interest rate increases and the planned reduction to the first home owner grant.

Stockland's managing director Matthew Quinn has spoken out saying contracts were at 'record levels'.

The company held their 52nd annual general meeting in Sydney yesterday and Mr Quinn was confident over the group's performance during 2009.

The success has been largely due to the number of second-time buyers entering the market, as first home buyers drop off, and the company had adapted to this different target group by modifying products and marketing.


"We've recently seen an increase in leads from second and subsequent home buyers who are now significantly outstripping first home buyers as a portion of our overall inquiries," he said.

 

The numbers were down: profit was at $184 million from the residential sector in 2008-09 which is 33 per cent lower than the previous year. However the chairman Graham Bradley was in agreement with Mr Quinn over their performance in the economic crisis.

A large number of residential sales would not be completed until next year and therefore profits would be slightly out of order.

The group is also considering a move to exit apartment development due to planning problems associated and the low demand.

Residential building markets hope to experience plenty of work for the coming year or two, due to the large number of contracts signed in the first six months of the year.

Interest rates are on the rise but while they remain low for now, the incentives to build new homes are still there for many.




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source: The Australian
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