Are the good times about to become less good?
wage costs aside (as I think an overwhelming majority of these rises will be covered, even when thinking about flow on effects to other jobs and their pay) what sounds more concerning to me is the below...
SUM are very heavy Auckland based. Despite a little price increases in Auckland housing market, and developments 'feeling the strain' (I read this as slower delivery and higher cost), they still seem to think they can maintain their development margin (of about 22%) and still increase the build rate to 450 units pa? (not to mention interest rates on borrowings likely beginning to increase, alongside them borrowing more than ever before). Despite these factors, no change to profit forecast (I think)?
Sounds like they are trying to pull a rabbit out of a hat, but, then again, they do have very good track record of producing results so will be interesting to see.
Hopefully SUM are not pulling a CVT and say "there will be no impact" [of new chinese regulations] then produce a terrible result not long after... or a FBU and say one thing, then a couple weeks later come out and say another, much worse, thing.