Residential market turned corner

Stuart Condie
(Australian Associated Press)


Mirvac is confident the bottom of the Sydney and Melbourne property markets has passed, with residential sales volumes set to lift in the near future.

The ASX-listed property giant on Tuesday said inquiries about its residential developments had increased over the first quarter, indicating a rise in sales was around the corner.

“As we foreshadowed at our FY19 results, we have passed the bottom of the residential cycle,” chief executive Susan Lloyd-Hurwitz said.

“There are now clear signs of improvement in the Sydney and Melbourne established housing markets with lifts in loan approvals consistent with the upturn in auction market activity, prices and turnover.”

Mirvac settled 613 residential lots over the three months to September 30 and had secured 86 per cent of its full-year residential earnings.

It was on track to hit 2,500 settlements for FY20.

With attention on developers and standards after a series of apartment complexes – including the Opal and Mascot towers in Sydney – developed costly defects, Ms Lloyd-Hurwitz said Mirvac was focused on ensuring product of the highest quality,.

“Having set the standard in quality for almost 50 years, we are committed to going above and beyond regulatory requirements and paying attention to every detail in order to continue to deliver vibrant new communities that leave a lasting legacy for future generations,” Ms Lloyd-Hurwitz said, echoing comments the previous day by rival Stockland.


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