Stockland sees net sales decline 9% in 1Q21 due to Victorian lockdown but numbers hide an underlying story – plus construction on first of 2,400 land lease homes underway

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Australia’s largest residential developer has seen its retirement village sales fall another 9% compared to the previous period as the lockdown in Victoria continued – but says the figures elsewhere indicate an uplift in sales, according to their latest market update for the first quarter of FY20-21.

Excluding Victoria, the operator’s net 159 sales are a 15% increase on the same quarter last year – which Outgoing Managing Director and CEO, Mark Steinert, attributed to the increasing value that customers are putting on the support and wellbeing offered by retirement living.

In total, Stockland concluded 172 settlements in the first quarter, with 216 future contracts on hand at the end.

The operator also remains on track for its move into the land lease sector with construction at its first two communities at Aura (QLD) and Minta (VIC) – a total of 420 homes – now underway.

First settlements at the communities are now expected in FY22 with around 2,400 homes to be developed.

“We expect those products to improve profit and the velocity of capital over the medium term,” the update states.

No word however on how the operator’s search for a strategic partner is progressing.

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Lauren is the Editor at DCM Group and has guided its range of media including The Weekly SOURCE, The Daily RESOURCE and The Donaldson Sisters since 2016. With 13 years’ experience as a journalist, editor and commentator, Lauren is the only journalist to have attended every session of the Royal Commission into Aged Care Quality and Safety, producing 300 issues of the subscriber-only The Daily COMMISSION which offers exclusive insights and analysis of the issues surrounding the Royal Commission and the aged care sector.