Australian property market: Mirvac and Lendlease bosses say positive sentiment returning after tough year
Property giant Mirvac Group sees green shoots emerging and positive sentiment starting to return after a challenging year in Australian real estate, as Lendlease also expresses optimism for the future.
Mirvac chief executive and managing director Campbell Hanan told the company’s annual general meeting on Friday it recently sold two office assets in Sydney for about book value.
“This along with increased transactional activity is a good sign that office valuations are beginning to stabilise,” Mr Hanan said.
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By continuing you agree to our Terms and Privacy Policy.There had also been an uptick in activity across Mirvac’s residential business with the recent launches of two planned communities in western Sydney attracting strong interest, master-planned communities in Brisbane and Perth trading well and an encouraging uptick of activity in Melbourne, he said.
Mirvac will launch its $2 billion Harbourside Residences in Pyrmont in November - 263 units across 48 floors - which Mr Hanan said would be “another iconic legacy project” for the developer.
Construction costs in Sydney and Melbourne were also beginning to stabilise, he said.
Lendlease also held its annual general meeting on Friday, with the developer avoiding a “second strike” after 91.5 per cent of votes were cast in favour of its executive pay packet.
In 2023, almost 40 per cent of shares were cast against the report - a sign of deep shareholder dissatisfaction.
Lendlease chief executive Tony Lombardo told shareholders company executives were pleased with its progress after announcing in May it would sell off its UK and US businesses as part of a $4.5 billion restructuring plan under which it would refocus on Australia.
“The opportunities for us to grow Lendlease in our home market are significant, with a project pipeline that plays to our core competitive strengths, especially in urban regeneration,” Mr Lombardo said.
He reaffirmed Lendlease’s 2024/25 guidance and said its One Circular Quay 58-storey luxury tower in Sydney was 76 per cent pre-sold by value.
On Friday afternoon, Lendease shares were up 3.6 per cent to $6.88, while Mirvac shares had dipped 0.2 per cent to $2.125.
