The ASX-listed accommodation business is keeping to its target market: households that can pay no more than $400 per week in rent or $400,000 purchase price for their housing needs.
Joint CEO David Dixon told The Source that the Sydney-based business has carried out significant improvements to its recently purchased Sierra Lifestyle Village, in Wundowie 60km east of Perth, with plans to do more.
In August, Aspen Group paid $4 million for the village from the South West Aboriginal Land and Sea Council-founded Noongar Charitable Trust, which spent $8.5 million to buy it in 2020. It has 178 approved land lease sites, with 38 new houses completed and 51 additional sites already fully serviced.
“Sierra is in the Darling Ranges, an attractive lifestyle location only one hour from the Perth CBD. There is an acute shortage of accommodation in the region,” said David.
“The average price of a three-bedroom home in nearby Mundaring has increased 30% over three years to $630,000. We have already sold our first new land lease community house for $305,000 which is exceptionally good value.”
Aspen Group, which revealed at its FY23 financial results a 66% net operating margin for its land lease business, bought three other sites in the year: Lindfield Apartments, an over 55s land lease community, for $3.4 million from the Uniting Church in July; it paid $1.2 million to SA Water for land for a holiday and lifestyle park of 44 homes, 23km north of Adelaide; and 10.6ha of mixed use land in Normanville, 76km south of Adelaide, for $2.56 million.
The Source: The work of Aspen Group to provide housing for under $400,000 has to be commended
