The reason is that MGR is more desirable is it has more leverage...

The reason is that MGR is more desirable is it has more leverage to the recovery in the housing cycle, specifically residential.

Yes housing has been strong, but development has been really tough for the last few years. The reason is cost inflation and labour. With the break up of the CMFEU and the reduction in input costs we will start to see the development cycle turn. Currently there is huge demand for housing but it's cost prohibitive to build. Couple that with a few rate cuts and Mirvac will start earning strong returns again through 2026 and 2027 as the development book grows.

If you want to own a property developer, the time to own them is now for a few reasons:

1. Most of the competiion has gone bust
2. New house prices will come down - which leads to stronger order book
3. As new developments are priced, costs come down with inflation (Higher profit margins)
4. Rate cuts will fuel demand
5. MGR has low gearing which enables it to capitalise on growth opportunities where others can't (Lendlease for example).
6. Mirvac has the best track record in resi development in the country.

Given the forward P/E is about 15, If the market starts pricing in 15% earnings growth again MGR could easily trade towards 20 - 25 again. That upgrade cycle could see this trade well above $3 fair value. I think MGR is an easy double at current levels plus a 5% div.

Yes please.