Summersets Strong Sales Amid Challenging Market Conditions

The New Zealand property market faced challenges in early 2024 due to high interest rates, weak consumer confidence, and cost of living pressures. Despite this, Summerset Group (ASX: SUM) reported 333 sales for the quarter ending 30 June 2024, with 156 new sales and 177 resales. Total sales for the first half were the highest ever recorded by the company, driven by strong resale performance.

CEO Scott Scoullar expressed satisfaction with the results, noting a 31% increase in settlements from the first quarter and a 22% year-on-year rise. Despite market constraints, Summerset achieved 1,200 unit sales over the past year. The company anticipates an underlying profit of $87m-$90m for the half year, similar to last year, despite rising costs. Summerset is on track to deliver 675-725 homes in 2024, adjusting for market conditions.

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