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Mirvac sees 40 per cent rise in residential land sales

Over the September quarter, developer Mirvac saw a 40 per cent lift in housing lot sales, selling over 660 lots across the country, with the majority located in newly-developed housing estates.

“During the quarter, we accelerated future stages across many MPC [master-planned communities] projects to respond to increased demand,” Mirvac reports in its quarterly update.

“Sustained strong sales, despite current economic uncertainty and the extended lockdown in Victoria, highlights the continued demand for well-located, quality product.”

Mirvac praised both HomeBuilder and the extension of the First Home Loan Deposit scheme, noting the demand will be met.

“The changes made to include off-the-plan purchases as well as adjustments to qualifying prices are welcome expansions to the original scheme,” the update said.

Mirvac has also expanded its build-to-rent plans, announcing earlier this month plans to build and manage 5000 such apartments in the next five years.

They have since signed on with the Queensland Government for a pilot program that will see them build 99 build-to-rent apartments in Brisbane.

Not surprisingly, Mirvac’s retail portfolio is the weak point in the report, with ‘comparable special sales’ down 15.6 per cent over the September quarter.

Mirvac collected only 64 per cent of rent from retail tenants, while their office portfolio saw 93 per cent rent collection, and industry at 95 per cent.

The landlord collected 64 per cent of rent from its mall tenants over the quarter.

“The COVID-19 pandemic has presented immense challenges for the retail sector in 2020 and our retail portfolio has been heavily impacted,” Mirvac CEO and MD Susan Lloyd-Hurwitz explained.

“Encouragingly, we are seeing customers returning to those centres where they feel it is safe to do so.

“The safety of our customers and communities remains our top priority, as does supporting our retailers, particular the most vulnerable within the categories hardest hit, to ensure that we are well placed to collectively recover and thrive once restrictions are fully lifted.”

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