Mirvac chief executive Susan Lloyd Hurwitz has called the housing market bottom at the company’s annual general meeting in Brisbane on Tuesday.
Lloyd-Hurwitz said the group expects the increase in residential enquiries to translate into sales in “due course”.
“We are now seeing clear signs of a housing market recovery, including an uptick in auction market activity, prices and turnover in the established market,” Lloyd-Hurwitz said.
Mirvac has already secured 86 per cent of its 2020 fiscal year earnings, leaving it well-positioned to take advantage of the housing market upswing.
“[We have] used the cycle to our advantage by capitalising on opportunities to restock our portfolio at the right time and in the right location,” Lloyd-Hurtwitz said.
Mirvac flagged plans to transform a 171-hectare former quarry into a 1700-lot housing estate in Melbourne’s east in June. The developer will partner with Boral, which currently owns a quarry and brickworks plant on the Wantirna South site 25-kilometres from Melbourne’s CBD.
Other projects in the works include a 350-lot estate in Milperra in Western Sydney along with a partnership with the Western Sydney University to redevelop its campus into a sustainable community.
The continued strength of the ASX-listed group’s $15 billion office and industrial business buffered its residential losses, growing it into the country’s second largest office manager.
“We saw a 26 per cent increase in operating EBIT during the 12 months, a 12 per cent increasing in net operating income and development earnings of $125 million,” Lloyd-Hurwitz said.
Mirvac currently has a $3.1 billion active office pipeline, including 80 Ann Street in Brisbane, the $1 billion Locomotive Workshops in South Eveleigh and the Olderfleet tower in Melbourne.
The developer is favoured to win the over-station Waterloo Quarter development project, on which it is bidding with joint venture partner John Holland.
Lloyd-Hurwitz said that Mirvac is also focused on further developing its build-to-rent pipeline over the next year.
The group’s first build-to-rent asset in Sydney Olympic Park will is due to complete in September next year, while it confirmed plans for a second built-to-rent project at the Queen Victoria Market in Melbourne.
Other institutional interest in the build-to-rent sector includes QSuper, which acquired a multifamily development in Washington DC, and Macquarie and Greystar’s plan to roll-out build-to-rent in the Asia Pacific region.
Last month, NAB pledged $2 billion in funding to support housing outside of the mainstream market including the provision of crisis accommodation, sustainable housing projects and build-to-rent.
