The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSING TONIGHT FINAL CHANCE TO GET RECOGNISED FOR YOUR WORK
NOMINATIONS CLOSING TONIGHT | URBAN LEADER AWARDS
NOMINATE NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
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
2
print
Print
ResidentialTed TabetWed 13 May 20

Enquiries Back to Pre-Covid Levels: Stockland

f67885e4-ba44-49f4-9078-469e1f1b60df

The impact of Covid-19 on the economy since early March has presented challenges across most areas of Stockland's portfolio, chief executive Mark Steinert says.

The country's largest residential developer saw sales contract across April, selling just 137 land lots, but said it was now in recovery mode with new enquiry levels over May recovering to be in line with pre-Covid-19 levels.

Prior to the virus outbreak, sales on its housing estates were strong and its retail centres performed well but saw a dramatic drop-off from late-March through April.

Stockland said despite economic tremors settlements were completing within similar timeframes to pre-Covid-19 levels with a reasonably low default rate over April of 4 per cent, only slightly above its long term average after having risen in March.

The developer has remained bullish due to its focus on affordable housing estates, where it sells almost 80 per cent of its land packages to owner-occupiers with first home buyers, who have remained active, represent around half of those sales.

It is also confident of an earnings pick up as more sales on higher-margin homes—such as those at Elara in northwestern Sydney's Marsden Park and Willowdale in Sydney's south-west, settle.

Steinert warned of an emerging undersupply brought forward by reduced activity across the sector and noted that the current low interest rate environment, positive credit conditions and government stimulus, particularly the job keeper subsidy, would prop up the broader market recovery.

“Despite early signs of improvement, it is still too early to identify clear trends and we remain cautious about the shape and speed of recovery of the market,” Steinert said.

“We believe the new environment will create opportunities where the strength of the Stockland brand can be leveraged for the benefit of all our stakeholders.”

The $6.5 billion company, with operations spanning residential, retail, office and logistics properties, said the outlook still remains uncertain and funds from operations and distribution guidance remain withdrawn until further notice.

The performance of the company's retirement living arm was boosted by 225 net reservations over the quarter, Stockland's strongest result for established sales in more than two years.

In line with other landlords, the tough retail environment has posed new challenges for Stockland.

Its retail figures have felt the greatest impact from the pandemic due to reduced foot traffic, down 40 per cent on pre-Covid-19 levels in mid-April, and non-essential services store closures, despite its retail centres remaining open.

In contrast, Stockland saw heavy foot traffic at its supermarkets, delivering comparable growth of 24.4 per cent for the month of March.

“Similar to the residential market, it is still too early to identify clear trends and we remain cautious about the shape and speed of recovery of the market,” Steinert said.

Last month, Stockland increased its available liquidity from $850 million while also securing $250 million of additional short term bank facilities to increase its available liquidity to approximately $1.6 billion.

RetailResidentialAustraliaSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
A Gold Rush-era bank is beginning a new chapter in its long history, as the cornerstone for a 41-storey tower on Collins…
LATEST
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
4 Min
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
3 Min
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
4 Min
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/sales-settlements-stockland