Property developer Stockland says Australia's housing market is improving, as deposits on new homes rise to a three year high.
"There is now clear evidence that the new housing market is improving," chief executive Mark Steinert told the company's annual general meeting.
"The uplift in volumes, which we first noted in the third quarter of last year, has been sustained."
During the first quarter of the current financial year, deposits on new dwellings rose to 1,438, the highest quarterly figure for three years.
It was also a 33 per cent rise from the same period in the previous year.
The news boosted Stockland shares, gaining five cents to $4.05.
Still, Mr Steinert said profit in Stockland's residential business would be impaired in the short to medium term by low margins, despite sales success in Sydney and Perth.
"It will also take some time to see the full benefits of our new strategic priorities, particularly in industrial and medium density housing development," he said.
Stockland's largest business, commercial property, continued to deliver solid income, Mr Steinert said.
The majority of its assets are shopping centres, and annual turnover in those centres was up by six per cent at September 30.
Mr Steinert said Stockland aimed to fill its malls with non-discretionary and service retailers "which is particularly effective during periods of subdued retail spending".
Stockland also owns office and industrial sites and retirement villages, a newer addition to the group's portfolio.
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