Well, that was something of a roller-coaster year! While on balance the end results were a lot better than we probably imagined at the start of the year, it’s fair to say that may vary depending on where you viewed it from.
Anyone who spent the year in NSW or Victoria would likely have viewed it through a different lens to those of us quarantined in Queensland where lockdowns were less disruptive. But from a market perspective, the outcomes didn’t vary that much and were more a function of the overarching economic trends than the limitations imposed by COVID and they were largely positive with continuing positive activity in the areas of site acquisitions, project commencements and stock clearances, although as the year rolled on there were some signs of slowing in some regions.
Last year we predicted that low interest rates and fluctuating economic drivers would produce limited growth and sound opportunities provided we applied appropriate caution. The reality was much brighter and we saw solid to good growth in most residential markets with Queensland in particular showing it had bottomed and was enjoying the predicted benefits of slightly improved employment and some positive net migration figures taking into an upward cycle with sound demand in housing and an improving apartment market.
Meanwhile Melbourne, and to a lesser extent Sydney were showing some signs that demand was easing back a bit however we continue to see signs of sound demand for well-conceived and located projects across the board, and there are sound deals to be found in both cities with Sydney continuing to defy gravity.
We now have the support of over 140 active investors and it has to be said that we are both proud and humbled by the support that you give us in allowing us to invest your investment funds with us. We continue to see it as a privilege and one that we will see us continuing to focus on rigorous analysis to ensure that we deliver transactions that meet the standards you have come to expect from HCP.
As always, we remain committed to maintaining a small portfolio of risk managed transactions that meet the appetite of our investors and delivering quick and well-structured solutions to our project sponsors.
Also, a big thank you to our loyal and new investors alike and our sponsors without who we wouldn’t be here. We look forward to another year of positive and profitable transactions in 2022 and with everyone Seasons Greetings and a safe and prosperous New Year.