Fletcher Building is optimistic about the housing market

by | Nov 27, 2023

Fletcher Building LogoFletcher Building is optimistic about exceeding sales targets due to positive signs in the housing market.

During the notes for the company’s annual meeting in October, Chief Executive Officer Ross Taylor mentioned that the sales of houses were going well, averaging around 20 to 25 per week so far this financial year. He also stated that house prices had stabilised and were now starting to trend up slightly, Stuff reported.

“If this momentum in sales continues, there could be upside to our prior 700-800 unit sales target for the financial year,” Mr Taylor said.

Fletcher Building’s prospects in the housing market are looking up this year. In the previous financial year, the company sold 617 units, which was lower than the 670 units sold the year before. The decrease was attributed to a rapid increase in interest rates, which led to a decreasing demand and an average drop in house prices of about 15 per cent.

The latest report from the Real Estate Institute in September indicated a rise in positive sentiment in the property market during spring. The report showed stable prices, an increase in sales counts, and a decrease in the number of days it took properties to sell.

The figures showed sales across New Zealand were 5.1 per cent higher in September compared to the same time last year, taking total sales to 5439.

REINZ Chief Executive Officer Jen Baird said that confidence in the property market was strengthening, with signs of an upward trend continuing to grow.

Fletcher Building’s Mr Taylor said the lift in the housing market would be positive for other areas of the company.

“This market trend is a positive for our New Zealand materials and distributions businesses, as increased activity across the residential end market will ultimately flow into the volumes across these businesses,” he said.

Mr Taylor said profits from the company’s residential and development division would be more heavily weighted towards the second half of the financial year due to the settlement schedule.