Stockland housing inquiries fall as buyer demand weakens
Australian residential developer Stockland has reported a sharp fall in housing inquiries as higher interest rates, construction costs and broader economic uncertainty weigh on prospective home buyers.
The ASX-listed developer recorded 10,452 inquiries for the three months to September, down from 20,183 in the December quarter and the lowest quarterly figure it has published since the September quarter of 2020.
Stockland chief executive Tarun Gupta said residential market conditions had softened across Australia, with demand declining in most markets following interest rate increases and federal tax changes.
The slowdown adds to evidence that affordability pressures are affecting the new-home market, with buyers taking longer to make purchasing decisions and sales activity weakening.
Affordability pressures weigh on housing demand
Stockland said consumers were dealing with higher living costs, elevated interest rates and stretched housing affordability.
Market conditions also vary between states. JPMorgan analyst Richard Jones said Queensland was moderating, Western Australian supply was matching demand, while New South Wales was affordability-constrained. Victoria was described as stable, although at low levels.
The decline in inquiries has been accompanied by weaker sales. Stockland recorded 1,506 net sales in the September quarter, down from 1,936 in the three months to December and more than one-third below the June-quarter peak of 2,324 sales.
Despite the softer market, Stockland maintained its August forecast for between 7,300 and 8,300 settlements this year and earnings guidance of 38¢ to 39¢ per security.
Stockland shares fell 14¢, or 3.3 per cent, to $4.09 following the announcement. The company’s shares were also reported to have declined almost 30 per cent over the preceding 12 months, compared with an 18.3 per cent fall in the S&P/ASX 200 Real Estate Index.
New-home buyers hold back
Separate Housing Industry Association figures showed new-home sales across Australia fell more than 16 per cent in the September quarter from a year earlier.
HIA chief economist Tim Reardon said fewer people had been visiting display sites in recent months, with buyers across regions, building types and price brackets holding back amid uncertainty.
He said weaker sales were expected to flow through to lower building approvals in the March quarter of 2027 and slower starts by mid-2027.
Stockland’s land-lease business has also experienced subdued activity. Net sales totalled 206 during the September quarter, unchanged from a year earlier but down from 270 in the December quarter.
The company said land-lease customers were taking longer to make buying decisions, reflecting weaker conditions in the established housing market.
Stockland has a pipeline of 10,793 operating, in-development and future land-lease homes with a total end value of $8 billion.
For property investors and participants in the development sector, the figures highlight the pressure that interest rates and affordability are placing on buyer demand and the conversion of housing inquiries into sales. The timing of any improvement remains uncertain, with Reardon indicating that an initial recovery could become visible in established-home prices later in the year, provided there are no further interest rate increases.
SOURCE ATTRIBUTION:
Based on reporting by The Australian Financial Review, published 20 October 2026. Source: www.afr.com
