National developer Cedar Woods says the growing number of quality development sites struggling to secure finance has presented buying opportunities for the group, announcing an 8 per cent uplift in pre-sales.
The ASX-listed developer says it remains on track to deliver a strong increase in earnings for the financial year, also thanks to progress of key development projects for the quarter.
Amid weakening market conditions, Cedar Woods advised of a positive-term outlook backed by $249 million in pre-sales, up 8 per cent on the $230 million for the same time last year.
As the industry faces tighter lending conditions and softening consumer sentiment, managing director Nathan Blackburne said the solid half-year results and growing pre-sales was a “testament” to the diversity of the group’s portfolio.
“And the nature of our projects, many of which are in sought-after locations with low supply,” Blackburne said.
The company, which says it's investigating potential acquisitions across Queensland, Western Australia and Victoria, has a number of new projects, including Botanica Apartments in South Australia, and Victoria’s 107 Overton Road and Gardenia Apartments at Jackson Green, which Cedar Woods expects to add to its earnings for the 2020 financial year.
“Our strategy to diversify by geography, product type, and price point is serving us well as market conditions remain challenging nationally, with the softening of sales rates in recent months,” Blackburne said.
“We are seeing an increase in quality development sites that are struggling to get development finance, presenting us with attractive buying opportunities.
“Cedar Woods has the capital available to fund growth, so we are working to benefit from this situation.”