Message from the Managing Director - Spring 2021
25 October 2021
Cedar Woods’ diversified and quality portfolio drove the Company’s improved financial performance during the 2021 Financial Year. The variety of product types in our portfolio has been instrumental in appealing to a range of buyer profiles as we have products that cater to almost every geography, price point and stage of life.
Cedar Woods seeks to assist buyers seeking a well-located home close to local amenity. Over the year, our built form projects experienced strong price growth and sell out success. Several stages at Fletchers Slip in South Australia and Incontro in Western Australia rapidly sold out prompting the launch of new releases and products.
As the strong demand for land and townhouses continued, conditions improved for apartments with the launch of Monarch apartments at Glenside in South Australia where 40% of the apartments were sold within four weeks and 70% are now sold just 12 weeks since its launch to market.
At financial year end, Cedar Woods reported record presales of $478million. These strong presales underpin earnings growth over the next financial year, with approximately two thirds of the presales expected to settle in FY22.
Over the last year, we continued to build our pipeline of development projects with the acquisition of a 40.7 hectare site in South Maclean, south west of Brisbane and a strategic 21.7 hectare site in Melbourne’s north, immediately adjacent to our existing Mason Quarter project in Wollert.
Looking forward in FY22, Cedar Woods is making the most of favourable market conditions and is accelerating the release of new project stages to capture the demand from new home buyers. We are continuing to present a steady stream of quality product to the market, especially from projects like Glenside and Fletcher’s Slip in South Australia, Bushmead in Western Australia and Mason Quarter in Victoria.
Low interest rates, paired with pent up demand and limited new housing supply are key fundamentals supporting the new housing sector. We anticipate that as lockdowns end and migration into Australia restarts, demand for housing will continue to be favourable.