Tamawood has said its profit for the first 11 months of this financial year was up by as much as 25% as homes sales increased in south-east Queensland, its prime market.
In a note to the Australian Securities Exchange Tamawood said, “Favourable conditions with council and finance approvals have led to an increase in net profit before tax for the 11-months ended May 2016 of approximately 20-25% compared to the same prior corresponding period.”
Tamawood executive chairman Robert Lynch told The Australian Financial Review that whilst sales remained at very high levels there was a four-month period where they “built up and kept going up every month.”
Tamawood only builds detached homes which have been holding steady in the Queensland housing market whereas approvals of new apartments and units had been performing strongly.
Mr Lynch told the AFR that he expected a slowdown in the south-eastern Queensland market but not until the medium term – 18-months to two years.
He said that there was still an unmet demand for housing in the western Sydney market but buyers were resisting against land prices that were were costing more than $450,000 for 400 sq m.
The Victorian market was as strong as ever he told the AFR.