The property boom isn't just benefiting home owners.
Companies at the coal face of the housing boom have recorded higher profits, allowing them to increase dividends and driving share prices higher.
The latest profit reporting season shows that companies such as Lend Lease, Mirvac, and Harvey Norman experienced strong profit growth in the last financial year, sending dividends and share prices higher, and creating more jobs and higher wages.
The strong results show the housing boom is filtering wealth into the economy, and are a reminder there's more than one way to make money in a property boom.
Harvey Norman reported a 30% increase in full-year profit of $348.6 million for the year to 30 June 2016. Sales rose 7.6% to $5.3 billion, more than double the rate of sales growth the previous year.
The company said the result was "underpinned by a resilient residential property market" and that low interest rates were contributing to "robust" housing market conditions. Harvey Norman said population growth was also "an important driver of new dwelling construction growth and refurbishments of existing homes."
The company said the outlook for housing remains positive. “The number of newly approved dwellings has been above completions for some time which suggests a continuation of solid housing activity, particularly in NSW and Victoria," a company statement said.
Harvey Norman, which usually has a reputation for miserly dividends, boosted the dividend from 11 cents to 17 cents per share.
Harvey Norman shares have risen 35% to $5.33 in the last year.
Mirvac also cashed in on the property boom, reporting a full year profit of $1.03 billion for the year to 30 June 2016, up 69% on the previous year, and at the top of the company's guidance range. The result was buoyed by strong property sales and property revaluations.
"Our record $2.9 billion in exchanged residential pre-sales and settlement of over 2,800 lots is driven by our strategic overweight exposure to the strong markets of Sydney and Melbourne," said CEO Susan Lloyd-Hurwitz.
The company fast-tracked new projects to make the most of current market conditions.
Mirvac declared a dividend of 5.2 cents per stapled security, compared with 4.7 cents previously.
Mirvac shares have gained 29% in the last 12 months, closing at an eight-year high of $2.22 on Tuesday.
JB Hi-Fi's net profit rose a better-than-expected 11.5% to $152.2 million in the 2016 financial year. Sales rose 8.3% to $3.9 billion as new stores opened and amid buoyant sales of audio-visual equipment, computers and electronics accessories. The company benefited from the demise of Dick Smith, and will expand further if it goes ahead with the acquisition of The Good Guys.
JB Hi-Fi increased the final dividend to 37 cents per share, up 6 cents on the previous final dividend, and taking the full-year payout to $1.00 per share.
JB Hi-Fi shares closed at a record high of $30.87 on Tuesday, making a 66% gain for the year.
Lend Lease reported a 13% increase in net profit of $698.2 million, helped by higher residential property sales, particularly in Sydney and Melbourne, where most of the company's developments are located. The company settled 4,790 properties during the year, including 1,200 apartments. Settlement defaults were less than 1% compared with an historical average of 3%. Another 1,500 units are expected to settle in the 2017 financial year.
The completion of towers two and three at Barangaroo helped cash flow more than double to $853 million.
The company declared a distribution of 30 cents per stapled security, taking the full-year payout to 60 cents, an 11% increase on the previous year.
Lend Lease shares have risen 6% in the last 12 months, closing at $14.09 on Tuesday.
Stockland recorded a 2016 net profit of $889 million. Debt and derivatives trading prevented the company from achieving a profit increase on the previous year, but the company sold 6,135 lots during the year, generating a profit of $230 million in that division, a 40% increase on the previous year.
Stockland declared a final dividend of 12.3 cents per share, making the full-year dividend 24.5 cents, up 0.5 cents on the previous year.
Stockland shares closed at $4.75 on Tuesday, making a gain of 25% for the year.
See also:
Auction clearances suggest low rates have reignited property boom