One of the country's largest residential developers, Stockland, has not seen signs of slowdown or a rise in settlement risk that its competitor, apartment-focused property developer Mirvac, reported Tuesday.
Mirvac's disclosure that it was keeping a close eye on settlement delays running above the company's long-term average, about 1 per cent of sales, echoed concerns about the viability of Australia's apartment market.
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Stockland's residential business by contrast is concentrated in greenfield home and land sales and medium density developments in Sydney, Melbourne and south-east Queensland, localities traditionally favoured by first-time buyers and owner-occupiers.
Rising settlement risk in Australia's apartment sector is a potential threat to the housing industry and could have major economic consequences if larger numbers of foreign and local buyers struggle to finalise purchases on time.
![Rising settlement risk in the apartment sector is a potential threat to the nation's housing industry.](/web/20161027142012im_/http://www.smh.com.au/content/dam/images/1/1/6/u/t/2/image.related.articleLeadwide.620x349.gsas95.png/1477457658753.jpg)
Stockland chief executive Mark Steinert confirmed the group is on track to achieve target growth in funds from operations (FFO) per security of 5 to 7 percent.
The Perth housing market was showing signs of stabilising and first home buyers were returning to the Queensland market, he told shareholders at the group's first 2017 quarter update.
Stockland residential chief executive Andrew Whitson said  it remained on "track to achieve more than 6000 residential settlements for the full year and see constructive signs for an elongated property cycle".
The developer said deposits on residential lots during the three months of this financial year were up to 2301, about 744 more than in the previous period.
![A Stockland housing development in Craigieburn, in Melbourne's north.](/web/20161027142012im_/http://www.smh.com.au/content/dam/images/g/r/4/d/e/8/image.related.articleLeadwide.620x349.gsas95.png/1477457658753.jpg)
Around two-thirds of Stockland's residential profit will fall into the second half, the group said.
While the residential division kicked off the year strongly, the retail side of the business was the biggest contributor to earnings despite a slight slowdown in sales growth to 2.4 percent.
![Perth has shown signs of stabilisation.](/web/20161027142012im_/http://www.smh.com.au/content/dam/images/h/v/m/j/4/image.related.articleLeadwide.620x349.gsas95.png/1477457658753.jpg)
Sales data from about one-third of its portfolio was excluded from the figures because of redevelopment of key centres, including Wetherill Park in western Sydney and Green Hills in lower Hunter Valley.
"We expect retail sales growth to continue at moderate levels, and we remain confident of achieving 3-4 per cent comparable retail FFO growth in FY17, in line with our guidance," Stockland's commercial property head John Schroder said.
Leasing momentum was good in the group's logistics and business parks, he said.
Leases have been signed on 62,400 square metres of floor space and heads of agreements on another 92,500 sq m. WALES – the weighted average lease expiry of properties – were steady at 4.5 years.
Stockland achieved 255 net reservations in its retirement living division in the first three months of the year mainly form its Cardinal Freeman in Ashfield in Sydney's inner west and the Willowdale Retirement Village in south west Sydney.Â
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