Property developer Cedar Woods says it expects a boost in sales in 2012 after two consecutive rate cuts.
The developer of residential, commercial and industrial properties in Melbourne and Perth has reported a $10 million unaudited net profit for the six months to December 31.
Cedar Woods confirmed its forecast for a net profit of $34 million for the full year.
It expects pre-sales worth $85 million to underpin its earnings in the second half of the financial year.
"Recent cuts to interest rates have improved housing affordability and we expect this to improve consumer confidence and provide a boost to sales in 2012," managing director Paul Sadleir said in a statement.
The Reserve Bank of Australia cut the cash rate by 25 basis points in November and again in December, and most lenders have since cut their variable home loan rates.
Cedar Woods said recent land purchases had increased the company's net debt to about $60 million, but that was expected to fall back to previous levels by June after settlements.
