Property Development

Challenging market conditions no barrier for developer

Written by The ReReport
As seen in the Source link, written by on 2019-02-23 08:19:13

Craig Treasure, Villa World, CEO/Managing Director.

Buyers seeking entry to the property market want affordable housing and proximity to amenities, according to residential house and land developer Villa World.

In the current market conditions, Villa World managing director and CEO Craig Treasure said the company had invigorated their sales strategy to highlight their value product offering in the sector.

Queensland flagship projects including The Meadows (Strathpine), Killara (Logan) and Arundel Springs (Gold Coast) have sold well.

Profits and development management fees from joint ventures have provided an ongoing income stream for the company, contributing 59 land settlements at the Covella and Rochedale joint ventures, both in Queensland.

Villa World recently announced a $17.6 million after-tax half-year profit, compared with $17.3 million for the same period last year.

“The current challenging market conditions are part of the cyclical nature of the property industry. However, Villa World has a long history of successfully navigating through market cycles and has a forward strategy focused on helping people reach home and long-term value creation,” Mr Treasure said.

The company provided a market-by-market update for the half-year, noting that while sales were down, property settlements were generally consistent with the previous period.

Mr Treasure said Brisbane was the company’s “greatest geographic coverage”.

“More than 65 per cent of our portfolio is Brisbane,” he said.

“When you look at affordability, Brisbane is the only east coast capital that is affordable – house and land packages are available for $400,000 to $570,000.

“Brisbane truly has the affordability edge.”

Mr Treasure said while interstate migration was strengthening, more economic activity in Brisbane was needed.

“We are optimistic that following the federal election this might happen and finance situations might improve for customers,” he said. “The two big issues for Brisbane customers in the lead up to the election is – how can I borrow and how hard is it to borrow money from the banks.”