Pre-sales plunge
Mirvac released a stinker of an update to the ASX today, reporting a statutory loss of $805 million for the 2024 financial year as the value of office assets fell.
Pre-sales collapsed in FY2024, and it seems assured that housing supply won't respond significantly until interest rates fall to lower levels.
Source: ASX (MGR)
Developers have cushioned the blow from dreadful market conditions for new apartments by looking at more profitable and less risky projects outside of the standard residential space, but the stock price still plunged 10 per cent on the poor FY2025 guidance.
With subbies going insolvent at record levels, profit margins in the new apartment space have been squeezed to unmanageable levels.
Listings remain muted
Elsewhere, CoreLogic reported its monthly market update, which showed total stock listings running lower than a year ago.
Source: CoreLogic
The pace of rental price inflation appears to have peaked in April, which will be pleasing news for the inflation targeting progress of the central bank.
Indeed, CoreLogic noted that the monthly increase for rents was the lowest in 4 years.
Highlights from CoreLogic's report are below:
Much of the growth of late seems to be in the lowest price points, and for units.
You can find the full update from CoreLogic here.
