Ann: 1HFY23 Results Presentation, page-5

CWP remains a tough case.
Of course, they should benefit from the recovery of the housing market in Australia and their low valuation.

But there are also other elements to consider :
- most of the recovery of the housing market so far is due to Sydney (while CWP is still not there),
- a large part of CWP portfolio is still located in WA, while Perth remains a unique market*, compared to other capital cities,
- like other developers, CWP is facing a tough market for new developments, as the cost increase (for labor, material and land) force them to increase prices, which limits the demand for their new developments.

* Interesting to remind how Corelogic was describing the Perth market in 2022 looking at past 30 years figures
"Perth housing values have increased by 303% over the past 30 years (4.8% per annum), which is the lowest long-term rate of growth across the capital cities analysed. Weak housing market conditions across the most recent decade have been a significant drag on the long-term growth rate, with housing values only 14% higher, compared with a 104% surge in values between 2002 and 2012 and a 73% gain between 1992 and 2002.
Perth house values have seen a higher rate of growth than unit values, rising 325% (approximately $448,830) over the past 30 years, while unit values are up 194% ($271,390)".

Interesting to note how Perth has performed during the last 2 decades vs the other capital cities (just looking at houses, excluding units) :
- 2002-2012** : + 105 % for Perth houses prices vs + 61 % for combined capital cities,
- 2012-2022** : + 18 % for Perth houses vs + 82 % for combined capital cities.

** source : Corelogic.