KPG, SPG, WIN: Property stocks in news amid slowdown in housing sector

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KPG, SPG, WIN: Property stocks in news amid slowdown in housing sector

 KPG, SPG, WIN: Property stocks in news amid slowdown in housing sector
Image source: © Convisum | Megapixl.com

Highlights

  • NZ house prices are on a falling streak amid increased interest rates and tighter lending.
  • Stride Property held its ASM on Wednesday.
  • Winton Land settled the acquisition of the Wynyard site.

Property prices in NZ have continued to drop amid strained housing affordability, rising interest rates and tighter lending conditions.

CoreLogic’s latest house price index has shown that prices have fallen 0.8% in June nationally. NZ house prices fell 2.3% for the 3 months ended June 2022, registering the biggest drop since February 2009.

The Property Market Consultant’s head of research, Nick Goodall, stated that the demand might remain stressed in coming months due to affordability constraints and rate hikes. A fall in house prices may support affordability improvements, but higher mortgage costs and stricter lending policies may weigh on affordability.

Let’s look at how these 3 NZX property stocks are doing this month.

Source: © Dechev | Megapixl.com

 

Kiwi Property Group (NZX:KPG)

Engaged in mixed-use property, Kiwi Property delivered a strong operating performance in FY22. It posted increases in all key metrics like profits, rent, sales, etc. despite the Omicron and lockdown impact.

The Group remains well placed to navigate any disruption related to the COVID-19 pandemic. It plans to focus on improving and diversifying existing properties as well as ensure the optimal funding of its development pipeline.

KPG ended the day flat to close at $0.985.

 

Stride Property Group (NZX:SPG)

Real estate investment manager Stride Property released its annual meeting results on 6 July. Stride continued to focus on growing and developing its assets under management.

The Group’s profit increased by $7.9 million to $54.2 million in FY22, and its total AUM grew to $3.6 billion as of 31 March 2022. Stride gained from growth in its products with fees growing 20% p.a. on average.

SPG also remains committed to its funds’ management strategy and plans to take a prudent approach to the capital management position.

Stride ended the day 0.6% in the red to close at $1.65.

 

Winton Land (NZX:WIN)

Residential land developer Winton announced that the purchase of the Wynyard quarter site has been settled. The Group informed that the plan would involve residential apartment development and Northbrook retirement village.

CEO of Winton Land, Chris Meehan, stated that the acquisition is an incredible development opportunity for WIN and aligns with its approach to buy and develop high-quality sites.

WIN ended the day flat to close at $2.8.

 

Bottom Line

Slowdown in housing market is majorly because of interest rate hikes. A fall in mortgage rates may help in moderating a buyer’s attitude and the fall in house prices.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise) 

 

 

 

 

Property prices in NZ have continued to drop amid strained housing affordability, rising interest rates and tighter lending conditions.

CoreLogic’s latest house price index has shown that prices have fallen 0.8% in June nationally. NZ house prices fell 2.3% for the 3 months ended June 2022, registering the biggest drop since February 2009.

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