Stockland · ASX:SGP
Stockland — Corporate Update (2011)
13 slides from Stockland's corporate update, 2011
Slide 1: Queensland Market Update
Queensland Market Update Kingsley Andrew, General Manager – Residential, Queensland www.stockland.com
Slide 2: Key issues
Key issues • Queensland market fundamentals: underpinned by resources • Market conditions: showing signs of improvement • Stockland communities: well placed for growth -1-
Slide 3: Strong outlook led by investment growth and increased employment
Strong outlook led by investment growth and increased employment Qld GSP vs. National GDP1 6% • Strong Gross State Product forecast with 5% more than $40bn of resource projects to 4% commence in FY12 and FY131 3% 2% • Employment growth underpinned by diverse 1% resource sectors including coal, Coal
Slide 4: Diversity of new resource projects to underpin recovery
Diversity of new resource projects to underpin recovery • New projects increase geographical footprint of resources in Queensland • Committed resource investment to generate 45,000 direct full time jobs1 Townsville Mackay • South East Queensland to be beneficiary of white and blue collar employment
Slide 5: Population growth returning to historical levels
Population growth returning to historical levels Queensland population growth and forecast (annual)1 140,000 Forecast growth 120,000 Natural increase Net international migration 100,000 Net interstate migration Steady growth 80,000 60,000 40,000 20,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 6: Key issues
Key issues • Queensland market fundamentals: underpinned by resources • Market conditions: showing signs of improvement • Stockland communities: well placed for growth -5-
Slide 7: Time to buy and consumer sentiment recovering
Time to buy and consumer sentiment recovering Owner occupied housing finance vs. Time to buy sentiment1 120% “Time to buy a dwelling” sentiment (advanced 3 months) • Strong correlation between housing finance 100% and time to buy sentiment: Housing Finance Year on Year change (%) 80% (values – ex-re
Slide 8: Established market remains soft and oversupplied
Established market remains soft and oversupplied Brisbane established houses on market1 35,000 • Levels of established houses on market 30,000 have remained above average for more 25,000 than12 months 20,000 15,000 • Prices have been in decline in most 10,000 Queensland markets throughout the past 1
Slide 9: Key issues
Key issues • Queensland market fundamentals: underpinned by resources • Market conditions: showing signs of improvement • Stockland communities: well placed for growth -8-
Slide 10: First Home Buyers leading the market
First Home Buyers leading the market Leads by segment1 40% • Strong demand from First Home Buyers 35% who are unconstrained by established 30% 25% market 20% 15% • Deposits have bounced off mid year lows: 10% 5% Recovery driven by targeted customer and 0% First Home Buyer Investor Upgrader product
Slide 11: Affordable lots are widely accepted and selling strongly
Affordable lots are widely accepted and selling strongly Reduction in Queensland lot sizes1 • Demand strongest for product under Portfolio (15%) FY10 FY12 $200,000 (<450 sqm) and we continue to 60% adjust product mix to meet this demand: 50% (9%) 40% Lots over 571sqm fallen by 15% in two 30% yea
Slide 12: Stockland delivering most affordable product on the market
Stockland delivering most affordable product on the market Brisbane North corridor - comparable 3 bed product Median Stockland Entry Closest Major House Price Price Competitor • Stockland home and land packages well $380,000 $296,000 $323,000 below the comparable median price Average household incom
Slide 13: Recap of key points
Recap of key points • Sound fundamentals backed by a diverse resource economy • Residential market showing signs of improvement • Stockland communities are located in corridors to benefit from the resource sector • Innovative and affordable product is outperforming the market and driving market shar