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Mirvac cautious on Queensland property

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AAP

2012-11-15

Property owner and developer Mirvac says it sees some areas of strength in the NSW housing market but a recovery in Queensland is still some time away.

Mirvac, a major investor in residential and commercial real estate, currently is developing several large estates in many capital cities.

Chairman James MacKenzie told Mirvac's annual general meeting on Thursday the Australian residential property market was stronger than many international markets and was expected to remain stable in the short term.

"Specifically, we see pockets of strength in NSW combined with continued weakness in southeast Queensland and the outer suburbs of Melbourne," Mr MacKenzie told the meeting.

Chief executive Susan Lloyd-Hurwitz, speaking just 10 days after her appointment in the top job, also said Queensland's market was languishing.

"Queensland continues to be our weakest market with expectations of a sustained recovery still some time away," she told the meeting.

Mr MacKenzie said Mirvac took a conservative approach to Queensland developments, and took a rigorous approach to testing the carrying values of its current assets given weak market conditions.

Shareholders were also told Mirvac was on track to meet its full-year earnings guidance of 10.7 to 10.8 cents per stapled security.