Australian property group Australand has claimed impressive sales in Melbourne and Sydney will drive sales in its residential communities despite the fall in profit and revenue announced in its end-of-year figures.
Australand reported net profits of $140.62 million (£96 million) over the course of the year, a drop of 15 per cent on the profit of $166 million it accrued in 2010.
Nevertheless, it is positive about its prospects in 2012 and claimed Perth is set for a gradual recovery over the course of the year.
"However, the south-east Queensland market remains challenging," Australand admitted.
The group is not expecting sales volume to increase in 2012 but is predicting higher earnings because of greater margins and increased average sales prices, something it claims will be helped by the number of different products it sells.
Master Builders Australia recently announced its disappointment in the Reserve Bank of Australia's decision not to cut rates, claiming it could reduce investment in the property market.
Posted by Craig Francis
