Harvey Norman gets boost from housing market
A strong housing market has had flow-on effects for retailers.
Builders and real estate agents aren’t the only ones benefitting from a strong housing market. Retailer Harvey Norman has credited property growth for a 30% increase in full-year profit, News Ltd has reported.
The retailer saw its sales growth double for the 2016 financial year, and the company said the result was “underpinned by a resilient residential property market”.
In its results, the company said “robust” housing market conditions were due to record low interest rates, News Ltd reported.
“Population growth has also been an important driver of new dwelling construction growth and refurbishments of existing homes,” the company said in a statement.
“The number of newly approved dwellings has been above completions for some time which suggests a continuation of solid housing activity, particularly in NSW and Victoria.”
Harvey Norman also expressed optimism for continued strong results off the back of a robust property market.
“Housing conditions in Australia remain strong and are likely to remain favourable in the near term,” the company said.