It would appear that the shadow of the June 2017 Four Corners retirement village exposé is finally behind the sector, with Stockland delivering 190 resales in the three months January to March.
This is 10% up on the same quarter last year but made even better by the fact that this year it has four big villages less in its portfolio, having sold them to Derek McMillan’s Centennial Living in December last year.
Family home prices to surge
Stockland points to a continuing bright future as the dynamics of the Australian housing market plays out following COVID. They point out that 255,000 Australians have returned home since March last year, driving demand for new housing, backed by stable, low interest rates.
See the consistency of new Stockland enquiries below.
Stockland further charts the decline in new builds in recent years and the lag that is coming in 2022 to 2025 when demand will be for 125,000 new homes a year while supply will be just 80,000 homes.
The pressure on existing family home prices will be great, generating faster sales to join a village.
The high level of demand for detached homes, represented by the light blue line in the chart above, while supply is the dark line and undersupply by units the dark bar.
Stockland land lease first month sales: 25 homes
At the same time, Stockland’s confidence in land lease communities is rewarded by achieving 25 home sales in one month in its first LLC development.
See next story.