Listed developer Villa World reported a 2018-19 interim net profit of $17.6 million, which is in line with the same period in 2017-18. However, the company reported a 30% slump in sales volumes to 517 lots during 1H19, versus 742 lots in 1H18:
Demand for the Company’s core product – affordable land and housing in the growth corridors – performed as expected in the first quarter. As widely reported, Australia’s residential housing market conditions and customer sentiment have declined. Customers are experiencing a reduction in the availability of finance, delayed finance approvals, more stringent assessment criteria and reduced borrowing capacity. This led to lower sales results and enquiries in late 2018.
