ASX Stocks Under Review in the Face of Rising Home Prices

Macroeconomic factors play a major role across the retail and real estate sectors as Australia is witnessing high housing costs driven by increasing inflation and a comparatively strong job market because of above expectation full time employment. The following ASX stocks are dependent on housing demand, employment strength and broader consumer sentiment.

Goodman Group (ASX: GMG)

in Q1 FY26, showed continued progress in large-scale logistics and data centre developments across global markets supported by strong tenant demand.

The company reported $12.4 billion of development work in progress with data centres accounting for 68% and expects this to rise to more than $17.5 billion by June 2026 as new hyperscale projects begin.

Portfolio strength is clear as occupancy stands at 96.1% along with 4.2% like-for-like net property income growth.
GMG benefits from low interest rates, strong employment and controlled inflation which help reduce financing costs and maintain tenant affordability.

Housing market strength is also a positive factor as population growth and increased residential development improve urban density which makes GMG’s assets more valuable.

Stockland Corporation Limited (ASX: SGP)

delivered stable performance in 1Q26 across its residential, land lease communities, logistics and retail property assets.

Distribution guidance was reaffirmed at 25.2 cents per security which is consistent with FY25 and sits within the updated payout ratio of 60% to 80%.

Low interest rates will be helpful for Stockland because they reduce mortgage costs, stimulate demand for residential lots and improve valuation multiples for income-producing assets.

Stronger employment and wage growth will help affordability and retail spending across Stockland’s shopping centre portfolio.
Stockland expects to do well as monetary policy is expected to ease in early 2026 and is maintaining FY26 FFO guidance of 36 to 37 cents per security.

James Hardie Industries plc (ASX: JHX)

reported Q2 FY26 net sales of US$1.29 billion which was up 34% year-on-year and group net sales for the first half increased 12% to US$2.19 billion.

Adjusted EBITDA on an underlying basis was US$329.5 million for Q2 and US$555 million for the first half while adjusted net income of US$154 million in Q2 shows the strength of its cash-generating operations.

Management upgraded FY26 guidance and now expects adjusted EBITDA of US$1.20–1.25 billion while free cash flow is expected to be at least US$200 million.

A period of stable or lower interest rates, easing mortgage stress and softer inflation for pulp, cement, freight and energy would likely support demand and margins while weaker labour markets could delay projects.

Harvey Norman Holdings Limited (ASX: HVN)

delivered FY25 total system sales revenue of $9.35 billion supported by $6.43 billion of aggregated Australian franchisee sales and $2.92 billion of company operated sales across offshore markets.

Consolidated revenue increased to $4.47 billion while EBITDA rose 25.3% to $1.13 billion and profit before tax excluding lease and revaluation impacts increased 9.3% to $590.36 million.

Current housing market conditions influence Harvey Norman’s performance because higher dwelling approvals, rising home prices and a strong renovation trend usually result in increased demand for furniture, bedding and household electronics.

Employment strength and wage growth support consumer confidence and spending in technology and home improvement categories while weakening labour market conditions could delay discretionary purchases and slow sales momentum.

(Source: Company Reports)