Sydney lot prices rising 40-50% annually: MJH Group
A top executive of one of Australia’s biggest home builders has warned of a growing land affordability crisis in Sydney.
Chief executive of MJH Group Andrew Helmers said while the cost of construction was rising at between 6-9% per annum, lot prices were rising at annual rates of 40-50%.
"We don't have a housing affordability crisis, we have a land affordability crisis,” Helmers told Fairfax Media.
"All the major tier one developers are continuing to lift their prices with each new land release. The slowdown in prices in Sydney has not been felt in the land market."
He said MJH completed 2716 housing starts in the 2017 financial year up from 2199 in fiscal 2016 making it the fastest-growing builder in the country.
The company builds homes in NSW, Queensland, the ACT and Tasmania under a number of brands including McDonald Jones, MOJO Homes, Wilson Homes and Hayman Homes.
He noted building product manufacturers were operating at 100% capacity.
The Newcastle-based company recently reported a big boost in revenue it accounts filed with the corporate regulator for the year to June.
They show that MJH Group – previously called McDonald Jones Homes – saw revenue up 48% to $621 million from home building and land sales.
Its after-tax profits were up 55% to around $16 million.
The company sold a 40% stake to Japan's Asahi Kasei Homes in August.
