Stockland predicts higher new ILU volumes in 2014

Stockland is the largest residential builder in Australia and it predicts this week a lower profit in 2013 to 2012. However it also predicts its Retirement Living Group will sell more ILUs – about 300 new homes in 2013 compared to 268 in FY 2012. As such it is bucking the national retirement village trend. They state housing is “still very poor” with “negligible impact from recent interest rate reductions”. They say national housing approvals are 20% below the long term average, with house pricing under downward pressure in Melbourne and SE QLD, there are signs of improvement in Perth and SW/NW Sydney, but flat elsewhere in NSW. Their research shows consumer attitude is shifting from “what can I afford” to “what debt am I willing to take on”.