Sunland builds on affordability issue

Written on the 15 September 2010

THE CEO of listed developer Sunland has conceded the Gold Coast is facing a property affordability endemic that could potentially worsen to that faced by the market in Sydney.

“Australia is treading into a dangerous area, there is a crisis brought about by the affordability issue and it has been very evident in Sydney over the last six years,” says Sahba Abedian.

“There is an endemic undersupply not seen since the Second World War. The issue cannot be abated because the cost of land and building these projects is what it is.”

The comments come as Sunland revised its end-of-year profit by adding a further $3 million to its forecast, totalling between $17 million and $18 million.

The revised guidance (from $15 million) follows a review of settlements on its house and land projects within Australia. Early settlements are expected from between now and June 30. The forecast profit follows a net loss of $145 million in ‘09 as the financial crisis battered sales.

The developer of landmark structures Q1 and Palazzo Versace has scaled back the magnitude of its projects to concentrate on residential communities with product priced from between $300,000 and $750,000 in South East Queensland and Victoria.

A report from the Master Builders Queensland shows that new houses price $350,000 plus is not affordable for the average Gold Coast household income, while properties above $600,000 were deemed critically unaffordable.

Over the 12 months, Sunland will launch 10 new projects at Sanctuary Cove, Royal Pines Resort, The Glades, Cassia, Peregian Springs, Pacific Pines, One Marine Parade, Labrador and Amytis in NSW.

Sunland will expand its presence within the master-planned Pacific Pines residential estate with plans to build a $34 million townhouse project for 85 dwellings; residential projects at Sanctuary Cove; The Glades at Robina and the former Devine French Quarter tower Carrington in Brisbane for a landmark structure.

“Sunland has always operated in residential land and house projects, but the towers such as Circle on Cavill and Q1 have stolen the limelight,” says Abedian.


Latest News

MEGAPORT TARGETS GLOBAL EXPANSION WITH $27.8M CAPITAL RAISING

MEGAPORT Limited (ASX: MP1) will complete a $27.8 million capital raising to assist in expanding the group's plat...

SCA PROPERTY GROUP BUYS THIRD GOLD COAST SHOPPING CENTRE FOR $46 MILLION

SCA Property Group has acquired the Worongary Town Centre for $46.3 million, bringing the total number of Gold Coa...

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

ACCODEX AIMS TO RAISE $5 MILLION CAPITAL, AWARD FOR CEO A CHERRY ON TOP

ACCOUNTANT Chris Hooper has never been one to shy away from voicing his opinion when it comes to the state of his ...

Related News

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

SHARE PRICE PLUNGE FOR RETIREMENT VILLAGE OPERATOR AHEAD OF FOUR CORNERS INVESTIGATION

A RETIREMENT village operator which has been accused of charging excessive fees through complex contracts has respond...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter