Finbar Group Limited (ASX:FRI) shares were unchanged on 18 September 2026, closing flat at A$0.70 with no percentage movement for the day. The steady share price came even as the company delivered a positive operational update confirming construction had commenced at its Romeo apartment development in Applecross, Perth.

What Was Announced by Finbar on 18 September 2026

Finbar confirmed that construction had commenced at its Romeo development, one of Perth's most sought-after riverside precincts, located metres from the Swan River and close to Canning Bridge Station. Despite the positive milestone, the stock's flat performance suggests the market may have already priced in much of this news ahead of the formal announcement.

Company Overview

Finbar Group is described as one of Western Australia's largest and most trusted apartment developers, with more than 30 years of experience delivering 80 landmark developments and over 7,600 apartments worth a combined $4.6 billion. Romeo comprises 152 residential apartments across one-, two- and three-bedroom configurations, together with three ground-floor commercial lots and resort-style resident amenities. Since its public market launch in March 2026, the project has achieved 103 sales, including all three ground-floor commercial lots, representing 66% of the 155-lot development sold and $121.1 million in pre-sales to date. The development carries an estimated end value of approximately $192 million, with completion targeted for the first half of FY2029.

Notably, the company highlighted continued sales momentum even amid broader market headwinds following negative gearing and Capital Gains Tax reforms announced in the May 2026 Federal Budget. Over the seven weeks from 1 August to the announcement date, Romeo recorded 18 additional lot sales worth $26.3 million, with investors accounting for approximately 50% of those purchasers. Across the wider group, including both off-the-plan and completed stock, Finbar achieved 37 sales during the same period for a combined value of $44.3 million. The company's total pre-sales value across all current projects now stands at $536 million, representing approximately 67% of available product sold.

Romeo represents the third and final stage of Finbar's Applecross Precinct, following the successful delivery of the Sabina and Aurora developments, and forms part of the company's five-year development pipeline valued at approximately A$1.95 billion across more than 1,900 units. CEO Ronald Chan said the start of construction marks an important milestone reflecting the strong buyer response since launch, and that the sales momentum since 1 August provides a positive indication of underlying Demand notwithstanding broader market uncertainty.

Bull Case

With 66% of Romeo already sold and $121.1 million in pre-sales secured well ahead of construction completion, Finbar has locked in significant Revenue certainty before the bulk of construction costs are incurred.

Continued sales momentum since 1 August, including 18 lots sold for $26.3 million, demonstrates that buyer demand has held up even after negative gearing and CGT reforms in the May 2026 Federal Budget, which could have been expected to dampen investor appetite.

A five-year pipeline valued at A$1.95 billion across more than 1,900 units provides Finbar with substantial revenue visibility well beyond the Romeo project alone.

As the third and final stage of the already successful Applecross Precinct, following Sabina and Aurora, Romeo benefits from proven local demand and established amenity, reducing execution and market-acceptance risk relative to a stand-alone project in an unproven location.

Bear Case

Shares were unchanged on the day of the announcement, suggesting the market may have already priced in much of the good news, or that broader property sector sentiment is offsetting company-specific positives.

With investors representing about 50% of recent purchasers, Romeo's sales pipeline carries meaningful exposure to investor sentiment, which the company itself acknowledges has faced headwinds from the May 2026 negative gearing and CGT reforms.

Project completion is not anticipated until H1 FY2029, leaving multiple years of construction, cost and Market Risk between now and full revenue realisation.

Finbar's Business remains heavily concentrated in the Perth apartment market, leaving it more exposed to local property cycle and population growth trends than developers with broader geographic diversification.

Key Takeaways

Finbar's flat share price on 18 September 2026 belies genuinely positive operational news, with construction now underway at a Romeo development that is already 66% sold. The stock's muted reaction highlights how much good news was already anticipated by the market, but the strong pre-sales position and large development pipeline keep Finbar worth watching for investors focused on WA residential property.