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SLOW RECOVERY: Mirvac last week announced a write-down at its proposed Beachside Leighton – Stage 2 development, which was cut in value by $43 million. Photo: Bohdan Warchomij

Weak high-end market hits Mirvac

MORE than four years after the onset of the GFC, it seems property investors in Perth are still adjusting to the persistently weaker conditions in the Western Australian market.

Mirvac Group last week announced $55 million of write-downs in the value of its Perth apartment projects, at Leighton and Burswood.

Last week’s announcement marked the third round of write-downs Mirvac has made on its WA properties in the past two years.

It is not alone in doing so, with other listed property companies such as Port Bouvard and Diploma Group also shining a public light on write-downs that have extended across the sector, from Mandurah in the south to Scarborough in the north.

Mirvac’s largest write-down last week was at its proposed Beachside Leighton - Stage 2 development, which was cut in value by $43 million.

The development envisaged 89 apartments and was valued in Mirvac’s most recent property compendium at $267 million.

“Despite the low to mid-price point market showing early signs of recovery, the high-end market in Perth remains weak, with oversupply a concern for potential buyers,” the company said.

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Revenue

39th↓Mirvac$1,937.2m
77 listed non wa companies ranked by revenue.
Source: Morningstar

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