The purely Victorian over 50s land lease owner/operator, which uses the Deferred Management Fee model, expects "Q4 sales rates to remain subdued".
"The operating environment remains challenging. While results for the March quarter highlight ongoing headwinds across the residential property market in Victoria, we had line of sight of this in our February market update and are progressing well with the execution of our stated strategy,” said Darren Rowland, Chief Financial Officer.
Lifestyle Communities was badly mauled by an ABC 7.30 story in July last year and Melbourne's property values have risen 8.4% since the onset of Covid, but are still -6.4% below their peak of March 2022 and fell 0.7% in December last year.
The status of the sales pipeline at Lifestyle Communities for the current financial year to 31 March 2025 shows the issues.
A total of 279 new home sale deposits are in hand, with 122 homes to be completed and available for settlement in FY25. Of these:
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53 customers have an unconditional contract on their own home and have indicated their intent to settle on their Lifestyle Communities home prior to June 2025; and
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66 customers are actively marketing their own homes for sale and settlement is subject to the timing of the customer's existing home.
Chief Executive Officer Henry Ruiz said there was an improvement in sales in Q3.
At the end of March, Lifestyle Communities had 242 unsold homes, down from 269 at 31 December last year. At the end of March, it had 59 unsold homes under construction, compared to 90 at 31 December last year.
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