The property developer recorded a record level of pre-sales across its national portfolio.
Cedar Woods Properties has reported $560 million of pre-sales nationally during the second half of last year, while its profit took a 38 per cent hit.
The national property developer released its half-year results today, recording a net profit after tax of $14.1 million, down from $22.1 million in the previous corresponding period.
The company generated $174 million in revenue from 500 properties settled during the first half of this financial year.
Its pre-sales figures were up on the previous record of $478 million reported in its 2020-21 full-year results and compared to $380 million at the same time last year.
Of its national pre-sales, $107 million were for its Western Australian assets.
Cedar Woods managing director Nathan Blackburne said the pre-sales were driven by low levels of stock and high demand across land, apartments and townhouses.
He said he expected the high volume of pre-sales to contribute to a stronger performance in the next six months.
“We have confidence in our ability to deliver moderate growth in the financial year earnings, subject to market conditions and COVID impact, and in our ability to deliver strong growth earnings in the medium term,” Mr Blackburne told Business News.
Cedar Woods pre-sales in WA included its Subiaco Incontro development, where the townhouses have sold out and a third of the apartments have sold.
“The pre-sales have demonstrated the strong demand for this type of product in high amenity areas such as Subiaco,” Mr Blackburne said.
He said the low rental vacancy rates in WA had led to a growing interest from investors in the residential market, and with an influx of students expected in the state in coming weeks that would only grow.
WA represented 24 per cent of the company’s land pre-sales during the second half of 2021, of a total 1,342 lots sold across WA, Victoria (40 per cent), Queensland (14 per cent) and South Australia (22 per cent).
Sale prices at Cedar Woods' Bushmead estate, north-east of Perth, increased by 20 per cent over the last 12 months, in response to a high demand and low supply.
Mr Blackburne said the apartment market would continue to grow in coming months.