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Perth-headquartered residential developer Cedar Woods Properties (ASX: CWP) has secured three new development sites in Victoria and Queensland for a combined $63.4 million and is progressing two further acquisitions in Western Australia, materially expanding its medium-term pipeline on the back of record presales and surging profits.
The acquisitions announced today comprise a $30.85 million site in Kealba in Melbourne's west expected to yield about 200 townhouses, a $27.25 million site in Fairfield in Brisbane's south earmarked for more than 500 apartments, and a $5.32 million parcel at South Maclean south of Brisbane for around 47 residential lots.
The deals come two months after Cedar Woods disclosed a $23.8 million acquisition at Springvale in Melbourne's south-east as part of its Q3 FY26 trading update and follow the $34.9 million Somerley site acquisition in Geelong late last year.
The two undisclosed Western Australian sites remain subject to due diligence.
Cedar Woods managing director Nathan Blackburne says the acquisitions reflect a disciplined approach to restocking the land bank at a time when competition for sites has eased.
“Cedar Woods continues to focus on acquiring well-located sites capable of delivering strong long-term returns through multiple market cycles,” says Blackburne.
“Importantly, the company retains strong balance sheet capacity to absorb these acquisitions, with the timing of settlement supporting continued capital flexibility.”
The buying spree is underpinned by strong operational momentum across the business.
Cedar Woods reported record presales of $788 million at the end of the March quarter this year, up 12 per cent on the prior corresponding period, while 442 gross sales during the quarter made it the company's second-strongest quarter on record.
First-half FY26 net profit after tax hit a record $39.6 million, up 163 per cent on the prior corresponding period, and the company has reaffirmed full-year guidance of 30 to 35 per cent NPAT growth.
Cedar Woods has also flagged continued profit growth into FY27, supported by the elevated presales book and new project launches.
The company expects that more than 80 per cent of its forecast FY27 revenue is likely to come from its $788 million in pre-sales secured at end of March.
The Kealba site broadens Cedar Woods' Victorian portfolio beyond its established presence in Melbourne's south-east and the Geelong corridor, while the Fairfield apartment project represents a significant densification play in an established Brisbane suburb where the company already operates the Williams Landing and Wooloowin projects.
However, in the March-quarter update in April, Blackburne noted that fourth-quarter enquiry and sales activity had softened as rising interest rates and lower consumer confidence weighed on buyer sentiment.
The company has confirmed that trend in today’s announcement, with Cedar Woods saying this reflects lower stock availability as well as dampened consumer confidence from rising interest rates.
But Cedar Woods remains confident in the demand side of its business, a point of view that is likely buoyed by the May federal budget’s weighting of tax incentives towards new constructions.
“Australia’s significant, structural housing undersupply persists, with the shortfall most acute in Western Australia, Queensland and South Australia, three of the four markets in which the company operates,” says Cedar Woods.
“This is expected to continue supporting the company’s sales volumes, noting it will take many years for the shortfall to be addressed.”
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