For some months we have reported concern that Stage 6 sales have been slower than originally planned and while consistent with the general market conditions prevailing since bank lending tightened some six months ago, along with the pre-election uncertainties over that time, it nevertheless signalled some potential financial planning issues.

Nothing has changed over recent months, except that it is clear real estate market pricing across this region is about 6-8% off compared to a year ago but better than the reported 12-15% across metropolitan Melbourne. Monthly sales volumes have also been affected through this period.

It is against this backdrop of uncertainty both in pricing and monthly movement of sales that we, the Executive Committee, reviewed a risk-profile recommendation to prudently defer the timing around entering into a major building contract for the new Clubhouse, until a clearer picture emerges around Stage 6 outcomes. The primary purpose of this allows the Club to make a more judicious decision based on greater financial certainty and not market forecasting, providing all contractual parties with a greater sense of commercial surety.

A contract with the preferred builder will be entered into at the appropriate time but the recommendation now approved by the Executive Committee plans for the commencement of the building at the end of January 2020 when construction activities resume after the summer break, with every attempt to complete by year’s end 2020.

No changes will be made to the golf course reconstruction program, with the expectation that the Stage 1 layout will be ready for play by December this year and the completed 18 hole course open from September 2020.

LGC Executive Committee

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