Sekisui says Australian turnover grew to $554 million on strong residential sales

Japan-based developer Sekisui House said turnover for its Australian operations for the 2016 financial year grew 52 percent over the previous year to more than $554 million, helped by a robust residential property market.

It settled more than 1,300 properties settled during this period in New South Wales and Queensland. 

The strong performance was driven by active residential property markets and the company’s diversified product offering which currently includes apartments, land subdivisions, integrated land and housing packages, and completed home products. 

Sekisui House Australia’s CEO Toru Abe said the 52 percent growth in turnover was helped by “extremely favourable” conditions for property development in Australia in recent years. The developer entered the Australian market in 2009. 

The company, which has built over 2.3 million homes across the world, said 2016 FY turnover from its global operations came in at ¥2.026 trillion (equivalent to $23.5 billion as at 31/01/17), up 9 per cent on the previous year.

“Collaboration on research and technology between Australia and Japan has helped contribute to our market penetration in Australia,” said Abe.

Sekisui House, which is listed on the Tokyo Stock Exchange, said it has delivered more than 8,000 homes in Australia and its pipeline is more than $14 billion with nearly 15,000 properties to deliver over the next decade.   

In 2016, the company invested $570 million on two new sites totalling 17.5 hectares in New South Wales. The Orchards in north west Sydney’s Hills Shire district is a $1 billion masterplanned community comprising 1,300 apartments. The Roads and Maritime Services’ ‘urban activation precinct’ in Wentworth Point will be a $1.6 billion community with 2,000 apartments. 

Abe said the company is diversifying into commercial and retail sectors over the coming years.

Turnover from its international operations in China, USA, Singapore and Australia increased by more than ¥182 billion (equivalent to $2.1 billion), or 103 per cent from the 2015FY.

Sekisui House sold 90 percent of a tranche of SHAWOOD homes within the first week of release at The Hermitage, at Gledswood Hills.