Forsyth Barr broker Lyn Howe said Summerset's third-quarter sales were in line with expectations and the company remained on track to deliver 450 new units in full-year 2017.
While third-quarter unit resales of 97 were down 22.4% on a year ago, that reflected more the timing of available stock rather than any deterioration in demand, she said.
''Resales and vacancy levels are key metrics to watch, with a slowing housing market overhanging the sector,'' Mrs Howe said.
She said if Summerset remained on target to deliver 450 new units, in line with its guidance, that would be a ''significant lift'' on the 409 built the previous year.
However, there continued to be a risk of new sales ''slippage'' going into full-year 2018 from the late delivery of stock in the second half of the current year, with village development profit margins expected to pull back in second-half trading because of increased construction costs.
''There remains significant long-term growth potential from demographic trends and Summerset has the development expertise to capitalise on these themes,'' she said.
She also noted execution risk for projects was increasing as Summerset tackled ''large and intensive'' developments in Auckland, which was late in the development cycle.
