Varied residential market and raising financing a challenge for developers: Becton chairman
The residential property market remains challenging, but is also varied with different factors impacting on the performance of different markets, says Bill Conn chairman of developer Becton.
“The residential market has not performed in a uniform way.
“Markets across different geographic regions and price brackets as well as housing stock have each been driven by their own particular fundamentals,” said Conn in his address to the Becton AGM in Sydney today.
Conn also said that accessing funding remained challenging due to constrained capital and credit markets.
“This has particularly affected development funding and funding of the retirement living sector.”
Becton’s two biggest projects are Newleaf in Bonnyrigg and Divercity in Waterloo and Conn said they were both tracking well in terms of sales.
The developer managed to refinance $77.5 million of debt with ANZ and the Oman Investment Fund with Conn thanking its financiers for “working with us to develop a way forward that sees the group stabilise and look to rebuild”.
Becton reported a statutory loss of $17.9 million for the 2012 financial year.
The Mark at Sydney's Central Park
Now, all signs point south for this market. A year ago vacancies were near zero but today they’re approaching 5%. Price growth has stopped and, according to Australian Property Monitors’ price graph, has started to dip below the red line.
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