Lifestyle Communities Q1 New Home Sales Fall 22.0%

Lifestyle Communities (ASX:LIC) released its Q1 FY27 trading update to report lower sales in a more measured Victorian housing market, alongside progress on debt reduction and its refund program for eligible former homeowners.

New home net sales were 39, down 22.0% from 50 in Q1 FY26, and established home sales were 37, down 11.9% from 42. The company says conversion rates were broadly stable and appointment volumes improved in September after softer activity earlier in the quarter. At 30 September 2026 it had completed 42 new home settlements and held 214 contracts on hand. Of these, 135 homes will be available for settlement in FY27: 29 customers are booked to settle before 30 June 2027 with unconditional contracts on their current homes, 58 are marketing their homes and 48 are yet to list. Net debt fell by $8.4 million to $265.3 million, from $273.7 million at 30 June 2026. Woodlea and Deanside remain above target inventory levels, although combined inventory at the two fell 9.0% in the quarter. Refund payments to verified eligible former homeowners, administered with Deloitte following the Victorian Court of Appeal decision, are expected to begin in late October 2026 and will reduce the $77.1m provision for DMF repayment.

The company says softer prior-period sales will continue to influence near-term settlement volumes. Settlement for 58 FY27 contracts depends on customers selling their existing homes, and the release does not state the total value of refunds expected.