New developer projects fell 41pc in the last quarter: REA
The number of new projects launched by property developers fell 41 per cent year-on-year in the three months to June 30, ending a financial year in which there were almost 20 per cent fewer projects.
The figures were revealed in the full-year results from REA Group. ASX-listed REA, which is owned by News Corp, is Australia’s largest real estate listings company. It owns realestate.com.au, which is visited by 2.7 million Australians every day.
The company reported revenue of $1.18 billion, up 1 per cent on the 2022 financial year, as well as a 3 per cent fall in earnings before interest, taxation, depreciation and amortisation to $651 million, and net profit after tax of $372 million. Declines in listing volumes in Australia were offset by a 46 per cent bump in REA India revenue.
Feeling “pretty positive”: REA chief executive Owen Wilson. Eamon Gallagher
Since a bumper year for new project launches from developers in the 2021 financial year, there has been just one quarter – the first three months of 2023 – where there were more new projects than the year before.
“The developer market remains challenged, impacted by rising input costs and labour shortages resulting in developers being less willing to take new projects to market,” the company said in a statement.
Owen Wilson, the chief executive of REA, said it was a complex market at the moment. Property listings for sale fell 12 per cent in FY2023, but were down 5 per cent July. “But really pleasing within that, Melbourne and Sydney were both up 9 per cent,” he told AFR Weekend.
“If you go back to last year, Melbourne and Sydney led us into the decline. And it looks like Melbourne and Sydney are going to lead us out of it. So it feels pretty positive, I’ve got to tell
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