Stockland, the country’s largest residential developer, has announced a 55.1% net profit jump to $462m for the first half of 2015, thanks to Australia’s booming housing market.
The latest figure is an 8.5% rise to $290m from the prior corresponding half, ahead of market forecasts.
Stockland’s residential unit turned out to be the highest performer in all of its businesses, recording a 72.8% soar in operating profit.
“Our business has benefited from both improved market conditions, and the strategies we’ve implemented to increase speed to market as well as broadening our customer target markets,” chief executive Mark Steinert said. “Our commercial property business remains a key driver of our group’s success.”
Meanwhile, earnings per securities also went up 6.9% to 12.4c.
Elsewhere, Harley Dale, Housing Industry Association’s chief economist, noted that residential construction is the star performer of the Australian property market today.
“What the RBA (Reserve Bank of Australia) also noted is that new residential construction is running along very well and has more gas left in the tank. A further 25bp reduction in the OCR (official cash rate) should further lift the growth momentum new home building was already displaying,” he said.
“In terms of new residential construction, the key momentum is with medium/high density construction. This segment of the market looks set this year to run at a level over 130% above its 25-year average, simply because the growth in the last couple of years has been so rapid.”
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