Gold Coast housing developer Villa World tips Gold Coast will be star sales performer

GOLD Coast developer Villa World expects strong sales growth and is tipping Queensland will be its best sales driver in the year ahead.
Villa World boss Craig Treasure said the Gold Coast market in particular is starting to fire

Villa World posted a FY2016 net profit of $33.7 million, up 32 per cent on the previous year.

It is targeting net profit growth of at least 5 per cent to $35.4 million in FY2017, the company’s annual meeting in Broadbeach was told yesterday.

Mr Treasure said Villa World enjoyed strong sales growth across the eastern seaboard, with its turnkey model in Victoria and new market in south west Sydney, where it is building 90 homes.

However, he tips Queensland and the Gold Coast will be the star performer.

“It’s really exciting that the Queensland economy which has been quite sluggish seems to have turned the corner and is feeling quite buoyant,” Mr Treasure said.

“We’re just starting to feel that, particularly on the Gold Coast.

“I think the Gold Coast is the bright spot in the Queensland economy.

“Who would have thought that four years ago? It was pretty challenging here.”

He said the Coast is being driven by a strong tourism market and low Australian dollar, with consumer confidence and low interest rates underpinning strong sales.

Villa World will begin marketing its flagship Gold Coast project, Arundel Springs, in early 2017.

The Arundel project will be masterplanned as a 395-lot community, yielding 305 residential lots and around 90 townhouses.

“That will kick off a good year for us. The Melbourne market remains strong but the thing that we’re most excited about is that Queensland feels like it’s back,” Mr Treasure said.

The affordable housing developer expects strong sales in its three markets of Queensland, Victoria and NSW.

However, he said Villa World will target the Gold Coast and the growth corridor south of Brisbane for at least the next few years.

Villa World has 5937 lots, up from 5191 last year, and a five-year project pipeline.

It has 28 projects it will market in FY17, $165.6 million in carried forward sales, and expects to improve its FY16 sales performance.

The developer in FY16 met its sales target of 1185 contracts, up from 843 a year earlier, and almost double the result from three years ago.

Chairman Mark Jewell said Villa World’s key strength remains in sticking to what it does best, “providing housing product to owner-occupiers, first-home buyers and local investors in the affordable to mid-market range”.

Shareholders voted to grant Craig Treasure performance rights worth $834,000.

Shares in Villa World rose 1¢ to $2.26.

Source: Gold Coast Bulletin 4 November 2016

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