How Are These Real Estate Stocks Faring Today on the ASX?

With the global increase in construction costs, the construction industry has been in a challenging situation since the beginning of this year. After several prominent builders collapsed earlier this year, including Tasmanian Constructions, Probuild and Condev, a new company, Pivotal Homes, has joined the list. The development is seen as a heavy blow to the already weakened housing sector.

It should be noted that home builder Pivotal Homes went into liquidation on Thursday (May 26). The company cites rising costs as the driving force behind this decision. According to sources, Cronin Miller Litigation’s Derek Cronin, who represents the company, stated that increased trading costs, delays, the COVID-19 pandemic and recent weather events have impacted the industry.

It’s no secret that construction costs are rising in Australia. National construction costs increased by 7.3% in calendar year 2021, according to a report by CoreLogic. This rate of increase is the highest annual increase in construction costs since 2005.

In January this year, many housing projects were left in limbo after Tasmanian Constructions announced its decision to cease operations.

When it comes to property companies and the Australian stock market, investors always keep an eye on property stocks listed on the ASX. Today, the S&P/ASX 200 Real Estate Index was up 0.18% to 3,297.5 points as of 12:31pm AEST.

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With that in mind, let’s take a look at four real-world stocks listed on the ASX that have been in the news lately. The four stocks include Goodman Group (ASX:GMG), DEXUS Property Group (ASX:DXS) and Lendlease Group (ASX:LLC).

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Goodman group (ASX:GMG)

Shares in ASX-listed industrial real estate group Goodman Group were trading on the ASX at 12:31pm AEST at AU$19,680 per share. Goodman Group shares are up 3.34% over the past year while the stock is down 26.48% year-to-date (YTD).

The Goodman Group has a market capitalization of A$36.76 billion. The Goodman Group recently forecast operating EPS growth of 23% for FY22. Total assets under management rose to A$68.7 billion at the end of March, despite negative currency impact, and are expected to exceed A$70 billion by June 2022.

DEXUS Property Group (ASX:DXS)

Shares in DEXUS Property Group were trading up 0.047% at AU$10.505 per share on the ASX at 12:50pm AEST.

The ASX-listed Australian Real Estate Investment Trust has a market capitalization of A$11.29 billion.

Shares in DEXUS Property Group are up 3.19% over the last 12 months while the stock is down 7.04% year-to-date (YTD).

In the March quarter of 2022, the company traded A$2.1 billion in property across the group.

The Group recently signed an agreement with Collimate Capital Limited to acquire Collimate’s real estate and domestic infrastructure equity businesses.

Lendlease Group (ASX:LLC)

Lendlease Group shares were trading up 0.373% on the ASX at 13:02 AEST today at AU$10,760 per share.

Lendlease Group’s share price is down 12.52% over the last year while the stock is down 1.10% year-to-date (YTD).

The company has a market capitalization of A$7.38 billion. Headquartered in Sydney, Lendlease is a globally integrated real estate and investment group dedicated to shaping cities and creating strong and connected communities.

Continue reading: Why Have Novonix (ASX:NVX) Shares Gained Over 67% in One Year?

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