Summerset surges on strong Q2 sales and new village momentum

About Summerset

Summerset Group Holdings Limited (ASX: SNZ) is one of New Zealand’s leading operators and developers of retirement villages, with 40 villages completed or in development nationwide. Headquartered in Wellington, Summerset provides a range of living options and care services to more than 9,500 residents, spanning villas, apartments, serviced apartments, memory care apartments and care suites and beds. The company has been expanding into the Australian market and currently has four villages in development in Victoria, at Cranbourne North, Chirnside Park, Torquay and Oakleigh South. Cranbourne North is now open and operating, Chirnside Park is due to open later in 2026, and Oakleigh South is advancing through construction. Summerset will release its half year 2026 financial results on Thursday 27 August 2026.

The Q2 2026 sales result

Summerset reported 448 total sales for the quarter ending 30 June 2026, comprising 221 new sales and 227 resales. New sales were in line with Q2 2025, while resales increased 26 per cent on the prior corresponding period, reflecting continued turnover activity across the portfolio. For the first half of 2026, total sales of 813 were up 17 per cent on the same period in 2025, with new sales up 12 per cent at 398 and resales up 23 per cent at 415.

Chief Executive Scott Scoullar said the company was pleased with both the quarter’s sales and its performance across the first six months of the year. The delivery of four new village centre buildings during the first half has shifted the product mix towards a greater weighting of care and apartment sales, which is consistent with the company’s development pipeline and its February 2026 guidance that development margins for the year would fall within the long-term guidance range of 20 to 25 per cent.

New village centres gaining momentum

Summerset’s four new village centre buildings, opened during the first half of 2026, are already demonstrating encouraging early demand. At Cambridge, 45 per cent of available serviced apartment, care and memory care stock is occupied or under contract. At Whangārei, the equivalent figure is 43 per cent, and at Waikanae it is 30 per cent. At Cranbourne North in Victoria, 21 per cent of village centre building assisted living apartments are occupied or under contract, a solid start for Summerset’s first purpose-built care offering in the Australian market.

Scoullar described the village centre buildings as central to the resident experience, providing the care, support and amenity that residents value, and said the company was pleased with the level of interest and sales momentum across the new buildings. Sales momentum at Summerset St Johns in Auckland also continued strongly through the quarter, averaging 1.6 new sales per week in Q2, making it one of the company’s strongest-performing new sales villages. Scoullar described St Johns as a significant investment for Summerset and noted continued demand for the high-quality retirement living offering in the Auckland market.

Resales performance

Resales continued to perform solidly through the quarter, with 227 resales in Q2 and 415 for the first half. By home type, villas accounted for 87 of Q2 resales and 162 for the year to date, while serviced apartments contributed 62 in Q2 and 116 year to date. Care suites and beds recorded 47 resales in Q2 and 80 year to date. Summerset expects resale margins to remain in line with 2025 levels for the full year, providing a stable earnings contribution from the existing portfolio.

Disciplined approach to economic conditions

Following the onset of the Iran conflict and the associated shift in economic conditions, Summerset took the prudent decision to reduce its New Zealand build rate for FY26. New Zealand home deliveries are now expected to be between 600 and 650 for the full year, a reduction of 50 homes from the prior forecast. The company remains on track to deliver between 100 and 150 homes in Australia for FY26, keeping group deliveries within the previously stated range of 700 to 800 homes. As at the date of the announcement, 454 homes had been delivered across the two countries in 2026.

Scoullar emphasised that Summerset retains meaningful flexibility in its build programme to respond to external factors or changes in demand, with the ability to increase or decrease the programme as conditions evolve.

Conclusion

Summerset enters the second half of 2026 with sales momentum building across both its established New Zealand portfolio and its expanding Australian operations. The early occupancy rates at the four new village centre buildings are encouraging, the resales pipeline is stable and the company’s disciplined response to the changed economic environment demonstrates a management team comfortable making difficult decisions quickly. With the half year 2026 financial results due on 27 August, the market will have a clearer picture of how the strong sales volumes are translating into earnings, and whether the development margin guidance of 20 to 25 per cent is being met as the new village centres continue to fill.