Sunland’s Sabah Abedian: Residential rollercoaster ‘new normal’

Sunland boss Sahba Abedian is expecting market volatility to become the new normal for the residential market.

Sunland managing director Sahba Abedian. Picture: Annette Dew

Sunland Group boss Sahba Abedian is expecting market volatility to become the new normal for the residential market even as green shoots begin to appear.

While buyer sentiment and auction clearance rates have ­lifted, the developer remains cautious about how this will flow to through to sales.

The Sunland managing director says the market has become more conservative after banks tightened credit in the wake of the royal commission and international purchasers are still restricted by the prudential regulators.

“Market conditions have fundamentally changed over the course of the past 12 to 24 months. It’s been volatile and the reality is residential development companies are adjusting to that,” said Mr Abedian.

“The market has been impacted by national changes but we are also affected by geopolitical and global factors.

“Over the course of the next year or so, it will be much of the same. This is the new paradigm.

“We’re seeing there is a far more considered approach from potential purchasers to entering the marketplace.

“It highlights the speculators that once occupied the marketplace have retreated and we now have a genuine owner-occupier and investment market.

“So those that are actually looking to acquire are pre-qualified and that is lending itself to a sustainable market.”

His cautious observations on the market come as the southeast Queensland-based developer ­begins construction on the Gold Coast’s $1.3bn mini-village development called The Lanes.

Located on 42ha, the project will deliver four boutique residential towers totalling 310 apartments integrated with a range of amenities and a retail precinct.

Last month, Sunland revealed a 49 per cent decline in net profit to $18m and a 14 per cent fall in revenue to $283m as the property market came to grips with the downturn. No guidance was ­offered at the time.

Mr Abedian said the company was well placed to take advantage of the market conditions.

“Our approach has always been quite contrary. We’re counter-cyclic — when the market is quite subdued we look at opportunities to acquire,” he said.

Guidance is likely at the ­annual meeting on November, 7.

The release of The Lanes ­development at Mermaid Waters and a nearby luxury apartment tower at 272 Hedges Avenue, Mermaid Beach, will be the key projects Sunland will focus on for the next 12 months.

A housing complex in the southwest Sydney suburb of Mount Annan finally received the approvals needed from council after a two-year process that ended up before the courts earlier this year.

Sunland plans to deliver 139 three-bedroom terrace homes on the 5.5ha block to be known as the Montaine ­Residences.

The terraces are anticipated to launch in early 2020 and will complement the release of 15 four-bedroom family homes called the Sunland Collection within The Hills Estate at Maraylya, northwest of Sydney, scheduled to launch at the same time.