How Lifestyle Communities has reduced unsold stock sharply
Lifestyle cuts inventory sharply as sub-$500K homes drive sales
- Inventory reduced: Unsold homes down 42% since June
- Sales momentum mixed: Quarterly sales soften amid cautious buyers
- Pricing strategy: Sub-$500K homes driving buyer demand
- Balance sheet improves: Net debt falls to $296 million
In a Q3-FY26 Trading Update to the ASX last Tuesday (14 April), the Victorian land lease operator revealed new home sales momentum had fallen as broader economic uncertainty hurt consumer confidence.
Net sales from new homes were 43 for the quarter ending 31 March 2026, Lifestyle Communities stated.
“Despite the subdued consumer sentiment, the business has seen growth in net sales from new homes in the nine months ended 31 March 2026, up 68% from the prior corresponding period (153 v 91).
“Net sales from established homes were 38 for the quarter ending 31 March 2026. Established home sales demonstrated growth in the 9-months ended 31 March 2026, up 58% from the prior corresponding period (136 v 86).”
Compare this to before the ABC 7.30 investigation into Lifestyle Communities in June 2024. In 1HFY24, the group sold 124 new homes and 75 established homes, down from 215 new homes and 90 established homes in 2HFY23.
As of the end of March 2026, Lifestyle Communities had 148 unsold completed homes, a reduction from the 257 reported at 30 June 2025 and a 42.4% reduction in the number of inventory homes completed and not sold.
There are 10 unsold homes currently under construction compared to 12 under construction at 30 June 2025.
The median house value in Melbourne fell slightly to $917,616 in December 2025, while the median unit value slipped to $607,414.
Lifestyle Communities is selling a one-bedroom, one bathroom home under construction in its St Leonards community, 33km east of Geelong, for $499,000. A new two-bedroom home in Lifestyle Communities Woodlea, 29km west of the Melbourne CBD, is also available at $499,000.
There are only two homes available, both in its Bellarine waterfront community, Geelong, are for sale above $900,000.
Lifestyle Communities’ net debt balance at 31 March 2026 was $296.4 million, down from $460.5 million at 30 June 2025 and $353.0 million at 31 December 2025.
“While economic uncertainty and cautious consumer behaviour are expected to persist in the near term, we remain confident in the long-term fundamentals of the Group’s business model, Chief Executive Officer,” Henry Ruiz, said.
“While fundamental demand for downsizer housing remains robust, prospective customers are navigating a more cautious market, leading to extended decision-making cycles as they manage the sale of their existing homes.”
