Frasers Property Australia facing residential challenges in 2019
Just 2,300 units are planned for completion and settlement in FY19 by Frasers Property Australia, compared to over 3,000 units settled during FY18.
On the residential front in Australia, 2,200 units are planned for release in the upcoming financial year (“FY19”), compared to over 1,800 units released in FY18.
Fraser Property Australia's residential development profit growth has meanwhile slowed with the downturn in the housing market seeing the developer turn more reliant on commercial properties.
The business posted a 42.5 per cent increase in development profit before interest and tax for the year ended September, but which was smaller than last year's profit growth of 122 per cent.
Frasers Property Australia chief executive Rod Fehring told shareholders the company's recommendation of private home loan lenders to its apartment buyers has helped reduce defaults on apartment purchases.
It noted buyer preparation for funding was being set up twice as early.
Speaking at parent company Frasers Centrepoint's annual results in Singapore on Friday, Fehring said settlements of apartments remained on track with a low "default rate", mainly because of the use of private lenders to buyers to obtain funding.
