A Message from the Managing Director - Winter 2022
13 July 2022
Cedar Woods can reflect on a solid performance in a challenging market over the past 12 months, placing the company in a good position as we start the new financial year. With interstate and international borders re-opening, housing supply shortages around the country and property investor interest surging, the company remains confident in its prospects for FY23.
The lack of supply of homes for rent around the country is making life difficult for renters, with queues at home inspections and renters forced to pay over market to secure a property. Our industry has voiced concerns about the absence of new projects to address this. This has resulted in increased investor numbers which is supporting sales across our portfolio.
Big housing price differences between Australia’s capital cities has seen eastern states-based buyers doing their homework on properties in the more affordable capitals, and the Perth vacancy rate is well below that in Sydney. Investors can purchase two investment properties in Perth for the same price as a comparable one in Sydney.
Constraints in the construction sector are disrupting the supply of new housing but builders are making good progress in delivering the stimulus generated sales from mid-2020. Cedar Woods is working closely with its builder partners around the country, and we are being told that builders will have significantly increased capacity in 2023.
We are working hard to meet the demand for new homes by designing and delivering quality options for those looking to purchase a home in a thriving and connected community. In the first half of this year, the 297-lot project, Clara Place in Fraser Rise, 25km northwest of the Melbourne CBD launched to market. Clara Place has been well-received, with stage one already 80% sold.
Future residents at Clara Place will benefit from a planned neighbouring secondary school and a recreational park, while the estates first residents will benefit from the proximity to existing schools, shopping precincts and transport options, providing the instant opportunity for community connection.
Several new projects are planned to launch in FY23, including Eglinton in WA and a new 329-lot master planned community Sage, located in Burpengary. Burpengary forms part of Brisbane’s northern growth corridor and its population is expected to more than double over the next 15 years. The estate will cater for a range of purchasers, from first time buyers through to families and downsizers. Sage is set for launch in the first half of FY23.
These new estates are planned to contribute to a strong FY23 as they continue to be buoyed by strong demand for new housing across most jurisdictions.
Cedar Woods will continue to focus on sustainable and environmental design governed by our ESG Strategy. Sustainable developments have been a hallmark of what we do and over time we have seen a steady rise in the expectations of our customers in this regard. The credentials of some of our latest Adelaide apartment projects are testament to this commitment, and there is good evidence of customers being increasingly drawn to projects that minimise environmental impacts and embrace renewable energy sources.
Initiatives such as solar powered communal areas and electric vehicle charging stations are now common across our projects.
Finally, social responsibility continues to be an area of focus for the business. Cedar Woods is very proud of its national partnership with The Smith Family – Australia’s leading children’s educational charity which is opening opportunities for disadvantaged youth and the company’s innovative Community Grants Program continues to support community groups around Australia.