2 housing stocks to buy as demand increases for seaside locations

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2 housing stocks to buy as demand increases for seaside locations

 2 housing stocks to buy as demand increases for seaside locations
Image source: 89stocker,Shutterstock.com

Highlights 

  • Bournemouth, Southampton and Brighton were among the most in-demand seaside locations for buyers this year, according to Rightmove.
  • Demand for coastal locations increased during the pandemic due to changing lifestyles of people.

Bournemouth located on the south coast of England, is among one of the most in-demand seaside locations for home buyers this year, according to the latest research from UK based real estate website Rightmove.

Seaside locations received high levels of buyer interest as people had changed lifestyle priorities amid the pandemic.

Some of the other most in-demand seaside locations included Southampton and Brighton. Rightmove research considered the top coastal locations for its analysis based on the places which received the highest number of buyer interest via its website during the year.

According to Rightmove, Bournemouth had an average asking price of £317,449 this year, up by 4 per cent from the year before.

While Southampton and Brighton’s average asking prices were at £249,053, (up 4 per cent) and £461,796, (up by 5 per cent) respectively.

Let us take a look at 2 FTSE listed stocks in the housebuilding sector and their investment prospects:

  1. Cairn Homes PLC (LON: CRN)

Main market-listed firm Cairn Homes is an Ireland based housebuilding company.

The company’s revenue, for the first six months, rose by 61 per cent to EUR 130.6 million, up from EUR 80.9 million in the year before.

During the period, its gross profit jumped by 86 per cent to EUR 24.2 million, from EUR 13.0 million in the previous year.

The company upped its forecast for its cumulative operating profit (for the two-year period to 2022) to about EUR 137 million, higher by EUR 17 million from its earlier guidance.

CRN share price and volume

Image source: Refinitiv

Cairn Homes’ shares ended higher by 3.05 per cent at GBX 97.90 on 2 December.

The company had a market cap of £712.44 million, and its year-to-date return to shareholders stands at 1.77 per cent as of Thursday.

  1. Crest Nicholson Holdings PLC (LON: CRST)

Crest Nicholson Holdings is UK based residential housebuilding company and is a part of the FTSE 250 index.

The company stated in its latest trading statement that it expects its medium-term target for home completions to be over 3,000 units in FY 2024, and over 4,200 units in FY 2026.

It estimates its dividend policy (cover) to be at a multiple of 2.5 for the medium term. At the same time it targets its operating profit margins to be between 18 to 20 per cent and its return on capital employed to be between 22 to 25 per cent.

CRST share price and volume

Image source: Refinitiv

Crest Nicholson Holdings’ shares ended higher by 0.92 per cent at GBX 330.00 on 2 December, while the FTSE 250 index closed at 22,684.84, down by 1.00 per cent.

The company had a market cap of £ 840.13 million, and its year-to-date return to shareholders stands at 1.29 per cent as of Thursday.

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