DEVELOPER Cedar Woods has defied the slowing market trend, increasing pre-sales to $230 million during the third quarter, up 35% on last year.
Pre-sales beyond FY18 totalled $230 million, up from $170 million recorded at the same time last year. In addition, the $58 million pre-sale of the Target Headquarters is also due to settle in FY19.
The company said buoyant market conditions continue to support demand in Victoria with strong pre-sales continuing across all product lines.
At the same time, improving market conditions in Western Australia have led to increased sales at several Perth projects. Although price growth has been limited due to a high number of competing estates in some of the growth corridors.
Despite the strong pre-sales, Cedar Woods was unable to provide an FY18 earnings guidance due to the difficulty in forecasting the precise timing of settlements.
The company said a wide range of outcomes is possible, including a result higher or lower than in FY17.
“If any significant settlements do not fall into FY18, they will impact FY18 earnings but will bolster the company’s first quarter of FY19. Further guidance will be provided at a later date, pending the timing of settlements in Victoria.” The company said.
Australian Property Journal