One of Australia’s biggest apartment and residential communities suppliers has recorded strong growth in home sales as debate rages across the nation about access to ownership.
Mirvac on Wednesday reported a five per cent rise in net operating profit to $248 million in the first half of 2025/26, from the same period last year.
The result came after residential property sales jumped 38 per cent, with more than a thousand lots exchanged, of which 835 were settled, representing a boost of 22 per cent.
Given the new, rising interest rates environment, Mirvac CEO Campbell Hanan said home seeker inquiry levels in January and February were similar to December, as the group heads toward the end of its first half.
“I can’t stress enough, there is a chronic undersupply of housing in Australia and that chronic undersupply is going to be there for a while,” Mr Hanan told analysts during a briefing.
“There is a lot of pent-up demand that is looking to find a solution to this housing problem.”
One rate hike by the central bank in February may not be enough to move the needle on slower demand, Mr Hanna noted, pointing to a recent sold-out land release for a residential community in Perth’s Bullsbrook.
Mirvac CEO of development Stuart Penklis said customer sentiment around interest rates going up was happening in September and October.
“We’ve seen continued momentum across our projects, particularly from a leads (or inquiries) perspective,” he said.
“Leads are the strongest they’ve been in four years in the December quarter and that has continued into January and February.”
Mr Penklis noted Mirvac’s portfolio was not reliant just on first home buyers, but on upgraders and right-sizers, particularly in the middle ring of its target capital cities and NSW.
Pre-sales have been heavily skewed at 69 per cent to upgraders and right-sizers, followed by 19 per cent to investors, and seven per cent to first home buyers.
It’s currently looking to build 800 apartments on the site of the old Sydney Fish Market in Blackwattle Bay, with first settlements targeted for 2030.
In Karnup, about 51km from the Perth CBD, it’s building 1500 new homes in partnership with the West Australian government.
Mr Penklis said the semi-rural area was one of the fastest-growing catchments in Australia.
“The underlying (housing) market fundamentals remain supportive, including strong population growth, continued undersupply, resilient house prices and rental growth expectations,” he said.
“We remain uniquely positioned across the full residential spectrum – growth corridors, middle and inner rings – with the capability to deliver land built-form housing and apartments.”
Mirvac performed well across all its businesses, which include property development, ownership and management in the major cities of Sydney, Melbourne and Perth, Mr Hanan said.
Its portfolio comprises residential communities, office buildings, industrial assets, retail centres and build-to-rent projects.
Mirvac will pay investors a half-year distribution of 4.7 cents per stapled security.
Its securities jumped almost 5.5 per cent to $2.04 in morning trading.