Stockland’s masterplanned communities have lost almost three-quarters of their buyer enquiries in a year, with the developer also reporting a 29% fall in net sales as housing demand softens nationally. By the first quarter of 2027, enquiries had fallen to 10,452, marking a sharp quarter-on-quarter decline of nearly 50% from 20,183 in the fourth quarter of 2026.
The company’s managing director, Tarun Gupta, attributed the decline to rising interest rates and federal tax changes. Enquiries for masterplanned communities peaked at 36,551 in the first quarter of the 2026 financial year but plummeted to 10,452 in the same period this year. Net sales fell to 1,506, down from 2,117 in the comparable quarter of 2026, reflecting the broader market slowdown.
A National Slowdown
The housing market slowdown is not limited to Stockland’s developments. Queensland’s demand has moderated, while New South Wales faces affordability challenges. Western Australia presents a more balanced market. Stockland’s Aura development of 20,000 homes on the Sunshine Coast continues despite the national trend, highlighting regional variations in market conditions.
Despite the decline in enquiries, Stockland reported stronger conversion rates and record settlements across its residential platforms, with nearly 10,000 homes and lots sold nationally. The company also secured planning approvals for several projects, including the Jetstar headquarters redevelopment in Collingwood and the Waterloo urban renewal site in Sydney.
Diversification Efforts
Stockland’s land lease communities experienced a 47.2% drop in enquiries year-on-year, falling from 9,146 in the first quarter of 2026 to 4,823 in the latest quarter. However, portfolio occupancy remained at 100% across its established 4,025 sites, partly due to higher conversion rates. Net sales in land lease communities also fell quarter-on-quarter, returning to the same level as the first quarter of 2026, when 206 sales were recorded. Stockland attributed the decline to longer customer decision-making processes and softer market conditions.
Retiring chairman Tom Pockett highlighted the company’s portfolio diversification over the past five years, which has helped offset weaknesses in the residential sector. While the office sector remains weak, with 84.2% occupancy and leasing spreads of 1.6%, Stockland has identified data centers as a growth area, securing 450MW of power across its pipeline.
Resilient Retail and Logistics
Stockland’s retail sector demonstrated resilience, with a 5.5% increase in moving annual turnover to $5.2 billion. Leasing spreads reached 7.9%, reflecting strong tenant demand. The company also reported robust performance in logistics leasing, with 121,199 sq m in executed leases during the latest quarter, up from 66,244 sq m in the same period last year. Leasing spreads on new leases and renewals reached 17.6%, while occupancy remained stable at 96.9%.