(Alliance News) - Cairn Homes PLC on Tuesday said it sold more new homes in the first half of 2022 than a year before, boosted by a booming mortgage market, with Ireland's growing population providing a positive outlook for the Dublin-based property developer.
In the half-year that ended June 30, the firm sold 547 new homes for a total core revenue of EUR240 million, up 83% from 403 closed sales for EUR131 million a year ago. Build cost increases are offset by stronger pricing and improving its product mix, Cairn Homes said.
The firm intends to declare a 2.9 euro cents per share interim dividend, increased from 2.66 euro cents a year ago.
Cairn Homes noted that the population of the Republic of Ireland has risen by 7.6% between the 2016 and the 2022 censuses, up by 362,000 to 5.1 million people. "This is more than 100,000 higher than the most recent estimate in April 2021," Cairn explained.
It added: "This highlights the urgent need for a significant increase in the supply of new homes required across all tenures. Additionally, Ireland’s employment levels are at record levels and economic consensus forecasts economic growth in both 2022 and 2023."
"Our sales are supported by a growing mortgage market with over 29,000 first time buyer mortgages approved in the year to May 2022," Cairn Homes said looking forward. That is an 8.6% increase to a year ago and 30% higher than two years ago.
The property developer will release its half-year results on September 8.
Cairn Homes shares were 0.8% higher at 86.30 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Cairn Homes (CRN)