Sunland chief slams Nimbyism

SUNLAND managing director Sahba Abedian has lashed out at Nimbys in Mermaid Beach – stating they do not have a right to hold back progress and must consider the future.

Mr Abedian was speaking after Sunland released its fullyear results, which showed a net profit of $31.3 million – above guidance of between $27 million and $30 million.

Sunland has started selling units off-the-plan for a 44-storey project in Mermaid Beach at 272 Hedges Ave.

However, the development, along with others, including a 22-storey tower on Peerless Ave by Mosaic Property Group, have attracted criticism from local residents who say they will affect the community’s village charm.

Mr Abedian said residents had an opportunity to comment during consultation for the City Plan in 2015.

He said it was no good deciding to comment “after the event”.

“They do not have a right to feel a sense of entitlement to preserve the status quo and not consider the needs of the future,” he said, adding that population growth and opportunities for people to live in areas such as Mermaid Beach must be taken into account.

“To me, this is an ill-considered approach, and one where ultimately the end consumer pays, because the cost of delays, the cost of interest, the cost of time, all will be passed on to the consumer.”

Mr Abedian said people need to take a considered approach to development. “If residents feel strongly they should comment at the time when town plans are being put in place. Not after the event.

“So there needs to be certainty in every sector to enable the right outcomes to emerge. But I feel that this notion of not in my backyard (nimby) – it is not a sound approach to city development.”

Sunland’s full-year result, while being above guidance, was 11 per cent lower than the previous period.

Revenue fell 26 per cent to $298.7 million, while the value and volume of property sales was 55 per cent and 42 per cent lower at $170 million and $304 million respectively.

Mr Abedian said challenging market conditions had impacted sales. He said the market, across the eastern seaboard of Australia, was going through a period of consolidation and contraction after nine years of growth.

However, he said, southeast Queensland, including the Gold Coast, contained significant opportunities due to demand led by owner-occupiers, and baby-boomers. “We still feel in the medium and long term that southeast Queensland will outperform the southern markets.

“When you start to look at one of our projects, Hedges Ave, the owner-occupier market is still very strong. Out of the 96 apartments, we have contracted, or will contract, in excess of 50 apartments. To me, that speaks significantly in terms of demand for true owner occupier residential apartments.”

Mr Abedian said the same was true of the Brisbane apartment market.

“Brisbane is very similar to the Gold Coast. If you look at the investment segment, I would say it is challenging, but if you look at the owner-occupier segment, it is actually doing very well. Resales in our Abian development, which sold out, are still very strong.”

Mr Abedian said Queensland projects, including The Lakes Residences at Mermaid Waters, have made a significant contribution to the fullyear result.

“That will continue to do so in the year ahead as our medium-rise apartment development, Marina Concourse at Royal Pines in Benowa, approaches completion,” he said.

Sunland’s portfolio remains weighted towards the Gold Coast market. The Gold Coast has, either in the pipeline or under construction, 2565 properties out of a total of 4977. Brisbane has 801.

Mr Abedian said Sunland’s capital management strategy has enhanced earnings per share.

Shares closed yesterday up 3.5¢, or 1.98 per cent, at $1.80.