- 01New-home sales fell 22% to 39; established sales eased 12% to 37.
- 02Debt fell $8.4m to $265.3m.
- 03214 contracts; downsizers are taking longer to decide.
Lifestyle Communities (ASX: LIC) has reported softer first-quarter home sales as prospective downsizers take longer to make decisions amid subdued conditions in the Victorian housing market.
The residential land lease operator recorded 39 net new-home sales in the September quarter, down 22% from 50 a year earlier, while established-home sales fell 11.9% to 37.
Despite the slowdown, customer conversion rates remained broadly stable and appointment numbers improved in September after a weaker start to the financial year.
The group reduced net debt by $8.4 million to $265.3m during the quarter as it continued to manage inventory and pursue operational improvements.
Slower Decision Making
New-home sales had rebounded during the previous financial year, but the latest moderation reflects customers taking more time to sell their existing properties before committing to a move.
Lifestyle completed 42 new-home settlements during the quarter and held 214 contracts at 30 September, providing a pipeline stretching across the current and subsequent financial years.
Of those contracts, 135 homes are scheduled to become available for settlement in the 2027 financial year, while the remaining 79 relate to 2028 or later.
Within the nearer-term pipeline, 29 customers have unconditional contracts on their existing homes and are booked to settle before 30 June 2027, while 58 are marketing their properties.
Another 48 customers have paid deposits but have not yet listed their homes, leaving near-term settlement volumes exposed to the timing of sales in the established housing market.
Inventory And Marketing
The group continues to adjust development activity and pricing to market conditions, targeting average new-home selling prices at approximately 80% of the median detached-house price in each catchment.
Its Spring Brand Campaign launched in late September, with an all-community open day planned for October to generate more customer appointments and support sales conversions.
Inventory remains within targeted ranges across most communities, although combined inventory at Woodlea and Deanside declined 9% during the quarter, supporting the broader effort to release working capital and reduce borrowings.
“While conditions remain subdued, we continued to strengthen the business, reducing net debt and advancing our strategic priorities,” chief executive officer Henry Ruiz said.
We are encouraged by the early response to our Spring Campaign, and remain confident that the growing need for affordable, connected downsizer communities positions us well to create long-term value for homeowners and shareholders.”
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.