Stockland drops 22% on lower sales

• The company reported 1,506 net housing sales for the September quarter, marking a 22% decline compared to the final period of the previous financial year.
• Stockland shares fell 1.7% in Oct. 19 morning trading following the release of the quarterly operational report.
• The developer attributed the slowdown to broader interest rate pressures and recent tax changes affecting buyer demand across major markets.

Residential property group Stockland (ASX:SGP) reported net sales of 1,506 homes for the September quarter, representing a 22% decrease from the 1,936 sales recorded in the final quarter of the prior financial year.

This performance contrasts with previous periods as the residential market reacts to ongoing interest rate adjustments and tax policy shifts that have altered buyer demand.

The company stated that reduced initial customer enquiries were partially offset by stronger sales conversion rates, recording 828 settlements and holding 4,502 contracts on hand at average pricing above last year's levels.

Management noted that demand moderation varied by region, with Queensland softening in line with the national market, Western Australia maintaining balanced conditions, and New South Wales facing affordability constraints while Victoria remained stable at lower activity levels.

Following the announcement, the Stockland share price was down 1.7% at $4.10.

The group operates across several property sectors, including masterplanned residential communities, land lease developments, logistics assets, and retail town centres.

Despite the quarterly dip in residential metrics, the developer maintained its full-year financial guidance and operational targets.