The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 THE UNMISSABLE EVENT FOR PROPERTY PROFESSIONALS IN THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 UNMISSABLE FOR PROPERTY PROFESSIONALS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
RetailStaff WriterThu 23 Feb 17

PEET Predict No Improvements For Perth Housing Market In 2017

iStock_57875522_SMALL_620x380

WA-based residential developer and fund manager PEET released their half year results in which they said there would be no improvement in the Perth housing market in 2017.

In their half year results PEET reported a seven per cent rise in interim profits of $19.8 million with pre-tax earnings up nine per cent to $44 million.

In their report, PEET's outlook for 2017 said "conditions across Victoria, New South Wales/ACT and South Australia are expected to remain supportive, while Western Australia and Northern Territory are not expected to improve during the 2017 calendar year".

The report said company sales were generally in line with expectations, with the strong east coast markets offsetting the continuing weak Western Australian and Northern Territory markets. It also said Perth's noticeably weak market brought down PEET's lot sales by 10%, to 1,488 lots compared with the corresponding period last year.

The number and value of sales contracts held by Peet increased slightly over the six month period to a record 2450 contracts with a gross value of $556.4 million, compared with 2,426 contracts worth $545.7 million as of June 30 2016.

According to The Australian Financial Review, Satterley Property Group CEO and BRW rich lister Nigel Satterley commented last year on how Perth's market was extremely tough with activity down 20 per cent.

"Everything has come off. Offices are 30 per cent vacant. Retail vacancy is at 28 per cent and there are 11,500 rental properties on the market," Mr Satterley told the AFR.

He said new lot sales across Perth were down from more than 9000 a year to about 5500 because population growth had fallen from 58,000 at the peak of the mining boom to just 12,000 a year.

Like Satterley Property Group, Peet has expanded beyond its WA-base and has a big portfolio of projects in Victoria, as well as a growing presence in Queensland.

As part of its interim results, Peet reported that its funds management business increased its contribution to earnings with development projects generating 299 lot settlements with a gross value of $108.6 million compared with 181 lots settled for $70.8 million in 1H16.

Peet also announced the sale of an undeveloped englobo parcel in Rockbank, west of Melbourne, Victoria for $30.5 million. The sale is subject to planning-related conditions, with settlement expected to occur in 2018.

Shareholders will receive a fully franked interim dividend of 1.75 cents per share.

ResidentialAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
Exclusive

Sydney’s Fear of Heights Holding Back Housing

Vanessa Croll
6 Min
North Melbourne Craigieburn HB Land EDM
Exclusive

Tribunal Finding Cruels 1000-Home Melbourne Plan

Clare Burnett
5 Min
Roseville Hycorp EDM
Exclusive

Ku-ring-gai TOD Backflip Slashes 1500 Homes from Under-Way Developments

Clare Burnett
7 Min
Exclusive

Housing Fix Sprint Begins with New Top Planner Pushing 13 Regional Plans

Phil Bartsch
8 Min
View All >
Sponsored

Carpet Zones Bring Clarity to Open Layouts

Partner Content
Indroo Verso 53 Coonan Street DA hero
Development

Tower Pitched as Brisbane’s Inner-West Regains Steam

Phil Bartsch
Labrador Midrise Whiting Street DA hero
Residential

Labrador Scheme Joins Gold Coast Midrise Surge

Phil Bartsch
The latest proposal is for 17 apartments across an eight storey building at Labrador...
LATEST
Interiors

Carpet Zones Bring Clarity to Open Layouts

Partner Content
4 Min
Indroo Verso 53 Coonan Street DA hero
Development

Tower Pitched as Brisbane’s Inner-West Regains Steam

Phil Bartsch
3 Min
Labrador Midrise Whiting Street DA hero
Residential

Labrador Scheme Joins Gold Coast Midrise Surge

Phil Bartsch
2 Min
MONARK co-founders Michael Kark (CEO) and Adam Slade-Jacobson (CIO)
Exclusive

Finding the Sweet Spot: How Monark Built its $2bn Property Empire

Leon Della Bosca
6 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/peet-predict-no-improvements-perth-housing-market-2017