Developer Stockland announced it is on track to achieve record residential sales in FY 2010, with approximately 5,000 net deposits achieved by the end of April.

Stockland managing director Matthew Quinn said residential communities sales momentum had remained strong, with net deposits of almost 1,900 between January and April 2010.

"We're on track to deliver record residential sales this financial year. Our Residential Communities margins are expected to increase by between 1% to 1.5% in the second half due to recent price increases, particularly in Victoria and Western Australia," said Quinn.

Stockland started the financial year with 1,215 contracts on hand on 30 June 2009 and expects to end the year with an even greater number on hand, as it enters FY11. The company currently has a high level of lots under production, with many off-the-plan sales due to settle next year.

Quinn expressed that the market will continue to attract investors. "With rental vacancies remaining low, we're also seeing continued investor interest."

Quinn said although affordability continued to deteriorate following six interest rate rises since October 2009, Stockland remains focused on delivering innovative product at affordable price points.

He also announced the expansion of its market share in Victoria and Western Australia, with the acquisition of five new residential land parcels, totalling 4,750 lots valued at around $250 million.

Stockland has also reiterated its FY10 earnings per share guidance of 29 cents.