The operator had sold 225 village units in the third quarter of 2020 – its strongest results in two years, up 9.2% on the prior corresponding period – but saw sales slip to just 25 – a monthly drop of 66% – in April, according to its quarterly market update.
When you consider that is 50 homes not sold – at an average margin of $92,000 per unit according to their latest financial report – that is around $4.5 million in lost DMF income.
The operator blames the impact of social distancing measures and visitor protocols in villages and the increasing reluctance of customers to visit during lockdown.
Enquiry rates are also softening and cancellation rates have increased since late March.
The pain is not over yet either.
Stockland forecasts that its full-year numbers will likely be impacted with the 207 homes settled during the quarter expected to take longer to be finalised as customers take more time to sell the family home.
Restrictions are now easing – but will the buyers all come back?
Time will tell.
