The most elevated residential tower in Palm Beach, <a href="https://www.apartments.com.au/new-apartments/corallo-palm-beach-5-palm-beach-avenue-palm-beach-qld-4221">Corallo</a>, has officially launched this week, however only a handful of buyers will have an opportunity to buy in to the 17-storey project.

The $200 million mixed-use project includes ground floor dining and retail and is considered so valuable its developer, <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a>, will be staging its release of one-, two- and three-bedroom apartments and penthouses to the market.

[smartcode_project:default project_id=112194 project_image_fid=806]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> International, Director, David Higgins, said the development’s location just metres from the beach on the corner of Palm Beach Avenue and the Gold Coast Highway influenced the sculptural design by the acclaimed Plus Architecture studio.

“<a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a> locals understand the rare opportunity here at Corallo, particularly being the tallest building in the suburb and its proximity to the beach and local restaurants, and they’ve represented the bulk of pre-launch enquiries,” Higgins said.

“The orientation of the apartments captures views of the coastline from Surfers Paradise to Currumbin, and the diversity of floor plans and apartment types provide an exceptional level of choice.

“The first release includes just 59 one-, two and three-bedroom apartments and two half-floor penthouses, with flexible use designed to appeal to both owner-occupiers and investors."

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=799]

In addition to the ground floor amenity, residents will also have access to a private dedicated wellness level offering 734 sqm of resort-style amenities including a pool, cold plunge, wet deck, steam room, sauna, gym, day bed, fire pit, barbecue area, dining area and yoga/stretch deck.

The project is located within walking distance of Tallebudgera Creek, Burleigh Heads village, Currumbin Alley and Palm Beach Currumbin High School. The Gold Coast Airport is under 10 minutes away.

[smartcode_project:default project_id=112194 project_image_fid=814]

Higgins said Palm Beach remained a hotly contested suburb for home buyers, with prices doubling in the past five years.

“What makes Corallo so appealing to the local market is the diversity of apartment types and pricing, with one-bedroom apartments starting from $841,000 and two-bedroom apartments starting from $1.34 million,” he said.

“The ground floor retail and dining offering will further expand on Palm Beach’s village atmosphere and create a meeting place for locals, and those opportunities for connection are highly valued.”

&nbsp;

[smartcode_project:default project_id=112194 project_image_fid=807]

The on-site sales display, which includes a fully fitted kitchen, bathroom and bedroom, will be open until early works commence in Q1 2026. Each residence at Corallo will feature premium finishes including natural stone, artisanal brickwork, and warm copper accents.

Changfa Group has a two-decade history of delivering premium developments in Australia and internationally, having recently completed its collection of premium townhomes at Lyra, Hope Island, as well as apartment projects in Leichhardt, Carlingford, and Chatswood in New South Wales.

[smartcode_project_cta:default project_id=112194]

Joel Robinson

$200 million Corallo Palm Beach launches with limited apartment release

In a move that aligns with NSW's accelerated planning incentives for affordable housing, developer&nbsp;<a href="https://www.apartments.com.au/developers/the-one-collection">One Collection</a> has revised its Hills District apartment plans, and taken it to the NSW Government, to secure approval.

The developer, which is currently delivering Horizon Hurstville, is seeking to add 80 more apartments to its <a href="https://www.apartments.com.au/new-apartments/the-one-castle-hill-16-dawes-avenue-nsw-2154">Castle Hill development</a> near Castle Towers. They already have approval for 280 apartments across eight six-storey buildings.

<img alt="One Collection" data-entity-type="file" data-entity-uuid="b3c298ba-1cc5-4db7-9872-607c75f8ceca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.22%E2%80%AFAM.png?VersionId=wN9KpFIu5ENSGZLLsaZgXQHrXcwEO3Vd" />

Now on the desks of the NSW Department of Planning is 360 apartments, 48 of which will be dedicated to affordable housing.&nbsp;Affordable housing is to be “fully integrated within the building and visually indistinguishable,” according to the planning submission.

The 15,697 sqm block, an amalgamation of 16 sites, spans across Dawes Avenue, Hughes Avenue, and Camdan Crescent, sits 550m from Hills Showground Metro Station.&nbsp;

"The existing context is quickly changing from free-standing homes into residential flat buildings in line with the Hills Showground Precinct planning framework," Place Studio noted.

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="3ec24948-c185-48fa-af8b-ed25adf302bf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.04%E2%80%AFAM.png?VersionId=zNDX.IeRROX1RlDeYcS38xn8w_dqgU2t" />

They said the design was informed by the site's unique condition of having three street frontages and was developed to to respond sensitively to iots surrounding context.

"The design adopted a conventional perpendicular alignment to the primary street frontage. The massing of the development was carefully modulated to align with the evolving character of the neighbourhood. The design ensured that the scale was not excessive or out of context, but instead contributed to a cohesive urban form consistent with emerging developments in the area."

<img alt="Castle Hill" data-entity-type="file" data-entity-uuid="f83ffdaa-f960-469d-b6fe-abcece57c9ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-10-13%20at%2010.19.09%E2%80%AFAM.png?VersionId=4oKlCyfaKes7jLi1_EMoqa46w2h_YvDZ" />

The apartment mix will be 46 one-beds, 168 two-bed apartments, and 146 three-bedroom units, with 631 parking spaces proposed.

Along the street frontages, the building heights are four storeys with a 7.5 metre setback, and eight storeys with an 11.5 metre setback. It should cost about $150 million to build.

One Collection works hand-in-hand with the respected development and construction firm Masscon, which has built a reputation for leveraging its expertise in the built environment to take on developments others can't. That's what they're achieving at Horizon Hurstville, having taken over the project to deliver it.

First look: One Collection advances plans for Castle Hill apartments

At Yarra’s Edge, <a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a>’s newest tower under construction, <a href="https://www.apartments.com.au/new-apartments/trielle-at-yarra-s-edge-docklands-16-point-park-crescent-docklands-vic-3008">Trielle</a>, sets a new benchmark for elevated living. Rising 45 storeys, 12.5 metres from the Yarra River, the landmark building offers residents access to a private wellness retreat and spa, a resident-only golf simulator, and an elegant lounge, dining and bar complete with a self-playing piano, all without ever having to leave home.

Now, that sense of elevation has reached new heights with the Aerus Sub-Penthouses, a limited release of half-floor riverfront residences on the Collins St axis where the sought-after street meets the Yarra River.

Each Aerus Sub-Penthouse, located across levels 42 and 43, represents the most expansive offering within Trielle, aside from the yet-to-be-revealed crowning penthouses. Spanning between 269 and 301 sqm, these residences are designed to capture natural light and uninterrupted views of the city skyline, Yarra River, and Port Phillip Bay.

[smartcode_project:default project_id=114216 project_image_fid=3784]

Among the collection are three-bedroom sub penthouses, complemented by a media room, and expansive four-bedroom layouts. All include panoramic living areas and oversized master suites with luxury ensuites reminiscent of a five-star hotel, complemented by dedicated dressing rooms finished in timber and natural stone.

The interiors have been crafted by <a href="https://www.apartments.com.au/architects/mirvac-design">Mirvac Design</a>, the developer’s award-winning in-house architecture and design team. Every material has been chosen for quality and longevity, from sculpted stone island benches with feature soft wash LED lighting to bespoke joinery and chevron timber oak flooring.

Kitchens are fitted with a BORA induction cooktop with integrated downdraft extractor, alongside Gaggenau appliances, including a fridge, freezer, and wine fridge. The adjoining butler’s pantry incorporates the exclusive Gaggenau Minimalistic Series including oven, steam oven, microwave, coffee machine and warming drawer, all concealed behind handleless glass panels for a clean, integrated presentation. Bathrooms feature custom Apaisar freestanding baths and basins and natural stone benchtops, continuing Mirvac’s design emphasis on tactile, timeless materials.&nbsp;

<img alt="Trielle at Yarra's Edge, Docklands" data-entity-type="file" data-entity-uuid="c00be724-b0f1-47c0-afed-54f829870704" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Aerus%20sub-penthouse.png?VersionId=Uktd61kpLSqNjwJeDFs7IaZ3xgLlDQmu" />

Michael Wiener, Design Director at Mirvac, says The Aerus Sub-Penthouse embodies the apex of Mirvac’s design ethos.

“Moving through your home is like walking on air - a private sanctuary where the craftsmanship is refined, the proportions generous, and the flow so effortless, you feel completely at ease in the sky,” Wiener says.

“In Aerus, we wanted to create a sense of weightlessness - a home that feels suspended in the skyline, full of light, grounded in luxury.”

[smartcode_project:default project_id=114216 project_image_fid=3777]

The Aerus Sub-Penthouses are expected to attract a mix of local and international buyers seeking a long-term residence of scale and quality in a riverfront setting, from returning expats to established families and business owners who value privacy, craftsmanship, and convenience within walking distance of the CBD.

With an unmatched suite of amenities, Trielle is the most extensively appointed development Mirvac has created to date at Yarra’s Edge. Within the tower will be The Oasis, a 900 sqm podium rooftop wellness retreat designed in collaboration with spa expert Naomi Gregory. Located seven storeys above the Yarra River promenade, it features a 25-metre lap pool, spa and sauna, hot magnesium spa, biophilic gym, yoga and Pilates studio, cold-pail contrast treatment, and day spa treatment rooms. Further amenities include a piano lounge, bookable dining room, cinema room, golf simulator studio, games room, teppanyaki bar, dog wash bay, and two flexible work hubs, The Biblioteca library and Mills Place office space, catering to residents’ evolving lifestyle needs.

Construction of the $350 million tower is underway through Mirvac’s in-house construction arm, with completion anticipated for mid-2027.

[smartcode_project_cta:default project_id=114216]

Sky-high sanctuaries: Mirvac unveils The Aerus sub-penthouses at Trielle

<a href="https://www.apartments.com.au/developers/jwland-development">JWLand</a>’s De Burgh, the final residential release within the Northbourne Village precinct in Lyneham, is nearing completion just as the Federal Government’s Home Guarantee Scheme prepares for its most significant expansion to date.&nbsp;

From October 2025, the scheme will allow first home buyers to enter the market with just a five per cent deposit and no lenders mortgage insurance (LMI), removing some of the most common barriers to ownership.

With <a href="https://www.apartments.com.au/new-apartments/de-burgh-at-northbourne-village-40-de-burgh-street-lyneham-act-2602">De Burgh</a> on track for residents to move in by late spring 2025, the timing creates a strong opportunity for first home buyers seeking brand-new apartments in Canberra’s sought-after Inner North.&nbsp;

[smartcode_project:default project_id=139989 project_image_fid=212888]

The project delivers 350 residences across two buildings, with layouts ranging from compact studios through to one, two, and three-bedroom apartments.

JWLand has tailored the development for long-term liveability, integrating natural light, privacy and outdoor space into each home. Ground-floor residences feature private courtyards, while upper levels benefit from generous balconies.

Kitchens are fitted with Fisher &amp; Paykel appliances, and all apartments include ducted reverse-cycle air conditioning with smartphone app control for lighting and climate.&nbsp;

Shared resident facilities include a rooftop garden, gym, lounge and parcel lockers, alongside landscaped green space within the precinct.

[smartcode_project:default project_id=139989 project_image_fid=267376]

For buyers, the expanded Home Guarantee Scheme removes income caps and introduces unlimited places, making it more accessible than ever. With most De Burgh apartments priced under $1 million, they fall well within the updated eligibility thresholds.

The policy changes provide first home buyers with greater certainty and a smoother path to finance. Combined with the quality and location of De Burgh, the expanded scheme is expected to draw a new wave of buyers to Canberra’s Inner North.

Residents will benefit from the project’s central setting, just 600 metres from the light rail and three kilometres from Canberra’s CBD. The precinct is bordered by the <a href="https://www.apartments.com.au/developments/lyneham-act-2602">Lyneham</a> wetlands and sits within easy reach of cafes, restaurants, schools and the ANU.

With completion scheduled for late 2025, De Burgh is set to be among the first major apartment projects to meet the expanded scheme head-on, offering first-time buyers a realistic pathway to ownership in one of Canberra’s most connected neighbourhoods.

[smartcode_project_cta:default project_id=139989]

JWLand’s De Burgh aligns with expanded Homebuyer Scheme, opening doors for first home buyers in Canberra’s Inner North

A subtropical pair of residential towers are in planning for a key South Brisbane site neighbouring the iconic Expo ’88 Skyneedle, with new documents revealing a vertically layered vision designed to respond to the precinct’s evolving high-density character.

The proposal has been lodged by&nbsp;Darveniza Group, which is also is behind the 400-apartment Station Quarter precinct in Alderley.

Darveniza Group, led by Jane Darveniza, the Brisbane-based investor and Queensland rich-lister and widow of the late property magnate Bojan Darveniza, is seeking approval for a mixed-use project encompassing 204 apartments, ground-level retail, food and drink tenancies, and office space across two architecturally integrated towers at 37–39 Manning Street.

Occupying an 1,822 sqm site, the proposed towers would rise above a sculptural podium base, with a recessed landscaped centre, rooftop communal areas, and a total of 220 car parks and 256 bicycle bays. The apartment mix spans one- to five-bedroom dwellings, with a design emphasis on generous balconies, cross-ventilation, and climate-responsive materials.

<img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="42c1f501-2afd-440b-af49-67c257123ea7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20podium.png?VersionId=KFlksfWzmDRD.VIYxd_1q3VAel.nN3TH" />

“The development is conceived as two slender twin buildings that meet at a lushly landscaped central recess,” the Finegrain design report states. “The façade is highly articulated with the plan form stepping back and forth to reduce visual bulk and maximise internal occupants’ access to natural light and air”.

A hallmark of the proposal is its integration of greenery, both visually and functionally. Around 77 per cent of the site’s green plot ratio is delivered through vertical planting spines, a green podium wall, and rooftop amenity. Ground-level deep planting and landscaped communal zones aim to create a shaded, walkable interface along Manning Street.

“The stepped plan form introduces variation in balcony setbacks and enclosed apartment areas, enriching both the façade expression and the resident experience,” the design team notes. “At ground and podium levels, this stepping also enhances permeability, maximising pedestrian view lines to the neighbouring Skyneedle and reinforcing a strong sense of local identity”.

<img alt="First look: Twin towers proposed for Manning Street site beside Skyneedle" data-entity-type="file" data-entity-uuid="b3f26dfc-6b93-465c-9ffb-0a2530372a23" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Manning%20site.png?VersionId=JflvKdqDxcaHTFbb9HL5TwoiRgeQ2LqA" />

The site directly adjoins the heritage-listed Skyneedle at 35 Manning Street, an enduring legacy of World Expo ’88. The accompanying heritage impact report by Pendergast Architects contends that the proposal has been carefully conceived to protect the cultural significance and landmark visibility of the structure.

“The design provides setbacks, tower separation and podium articulation to maintain the visibility and landmark role of the adjoining Skyneedle,” the report states. “The significance of the Skyneedle lies principally in its landmark visibility and cultural symbolism, rather than in detailed fabric or architectural setting”.

The proposal sits within the Kurilpa Sustainable Growth Precinct, under Brisbane’s TLPI 02/2023, where revised planning controls support high-density, mixed-use development integrated with subtropical design and increased public realm contributions.

Finegrain’s design reflects this intent, drawing cues from the site's adjacency to Musgrave Park, the subtropical landscape of South Brisbane, and cultural landmarks such as QPAC and South Bank.

Twin green towers proposed for Manning Street, South Brisbane site beside Skyneedle

Company Profit

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Commonwealth Bank's loan book has grown over the March quarter in line with their forecasts, but their arrears have grown too, in the continued fallout of the mining boom end.
There are 0.71 percent of mortgage holders who are over 90 days behind on their repayments, according to Commonwealth Bank's latest quarterly results. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/13/Arrears.jpg" alt="">
"Consumer arrears were impacted by seasonal factors in the quarter and continued to trend higher from a low base, influenced by subdued levels of income growth and cost of living challenges, most pronounced in outer metropolitan areas of Perth, Melbourne and Sydney," Commonwealth Bank advised.
The end of the mining boom still seems to be felt by the nation's biggest lender. 
Accounts in negative equity represent just over three percent of total accounts, with around 75 percent of that figure relating to Western Australia and Queensland.
Despite the rise in arrears, Commonwealth Bank's loan book continues to grow, a further 2.5% over the March quarter against the December quarter.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/13/Volums1.jpg" alt="">
It was slower growth however from the December quarter where there were 4% more home loans taken.
CBA saw their profits plunge over the March quarter 2019, with customer compensation costing them around $714 million.
Profits drop by 28 percent $1.7 billion over the quarter.
Compensation payments and the administrative costs have now hit $2.17 billion.
Chief executive Matt Comyn said the bank are quickly making amends. 
“We are committed to improving outcomes for our customers, addressing past failings and compensating customers quickly," Comyn said.
"The additional $714m in pre-tax customer remediation provisions taken in the quarter demonstrates this commitment, and builds on a range of other initiatives to achieve better customer outcomes, including removing and reducing fees for our customers.
"We continue to make progress on our strategy to become a simpler, better bank.
"While headline profitability was impacted by higher remediation provisions, our sound business fundamentals ensure we remain well-placed in a challenging environment, highlighted in this quarter by volume growth in our core businesses, a strong capital position and continued balance sheet strength.”
March quarter results across the big four banks had their holes.
Most of the focus has been the shift away from interest-only loans.
ANZ have trimmed their loan book to now have just <a href="/expert-insights/finance/anzs-home-loan-portfolio-shows-big-drop-in-interest-only-borrowers">18% interest only home loans</a>, compared to NAB, who as well as CBA saw their profits drop, have an unhealthier <a href="/news/nab-housing-lending-revenue-continues-to-drop-and-shareholders-pay-the-price">26% of their loan book</a> given to interest only loans.
Late last week ANZ were the final big four bank to <a href="/news/anz-finally-cuts-fixed-home-loan-rates">cut their rates in this cycle</a>.
 
 
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jrobinson-rf4aSBido9

CBA arrears rise but home loan book continues to grow slowly 

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Australia’s largest credit union, CUA, will continue to grow its investment in innovation to improve member experience and choice of digital channels, after today announcing a solid first-half financial result. 
CUA Group posted a consolidated Cash Profit of $35.31 million for 1H-FY18, and Net Profit after Tax (NPAT) of $28.76 million. 
CUA chief executive officer Rob Goudswaard said the result reflected that CUA was delivering on its ‘anytime, anywhere’ digital strategy through an increased investment in innovation and digital activation during the six-month period. 
While profit was down slightly on the prior first half, this was largely due to upfront costs in joining international banking collaboration, Pivotus Ventures, on 1 July 2017 and a pilot of the first initiative to come out of the Silicon Valley based innovation studios. 
“As a member-owned organisation, CUA’s profits are reinvested into our business and we are always looking for opportunities to invest that into initiatives and projects which benefit members and support them through different stages of their lives,” he said. 
Focus on innovation 
Goudswaard said the significant investment CUA had made in innovation by joining global banking innovation collaboration Pivotus Ventures has supplemented CUA’s continued involvement with the Australian fintech and start-up communities.
“The Pivotus collaboration has allowed us to tap into international banking expertise. We’ve already rolled out a pilot of the first innovation, the iM CUA instant messaging app, much faster than we would have been able to develop this kind of innovation on our own,” he said. 
While it’s early days, CUA is already seeing positive outcomes on the pilot, with close to 2,000 registered users on the iM CUA app who are benefitting from the convenience of having their own personal banking adviser. The success of the app has been reflected in positive Net Promoter Scores. 
“We’re also working closely with Australian-based fintechs, which has seen us announce new collaborations in the past few months with online mortgage lending platform LoanDolphin and an artificial intelligence pilot with Flamingo AI and CUA Health. And we are working with domestic partners to leverage new technologies, like Australia Post’s new online identity verification service, Digital iDTM, which is assisting members to quickly open an account online without the need to visit a branch,” Mr Goudswaard said. 
“In addition to what we’ve already delivered, CUA members will continue to benefit from other new innovation and digital offerings in the second half of FY18. That will include a new mobile banking app, the ability to register a PayID and make faster payments using the New Payments Platform following the rollout to CUA members this week, and the expanded rollout of iM CUA to members with both iPhones and Android devices.” 
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j.ballantyne1990-6AQqhLzZaK

CUA half-year financial performance highlights innovation focus

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CommSec has analysed all results from ASX 200 companies. Traditionally brokers or analysts focus on smaller subsets of results. And some merely focus on just whether companies have met or fallen short of “market expectations”.
So far 125 of the ASX200 have reported half-year earnings. The earnings season effectively ends on February 28.
Some of the key results:
<ul>
<li>In aggregate, revenues are up 7.0% on a year ago; expenses are up 8.2%; profits are down by 1.5%; dividends are up 9.5% and cash is up 5.3%.</li>
<li>Excluding BHP, CBA and Telstra, profits are up 3.2% on a year ago.</li>
</ul>
The following points relate to those companies that have reported half-year results (HY reporting companies).
<ul>
<li>On revenues, 81% reported increases and 19% reported declines.</li>
<li>On expenses, 78% reported increases and 22% reported declines.</li>
<li>On profits, 94% reported a profit.</li>
<li>57% reported a lift in profit and 43% a decline (long-term average 61.4%).</li>
<li>Of those reporting a profit, 57% lifted profits and 43% reported a decline.</li>
<li>Of all HY reporting companies, 86% have issued a dividend and 14% haven’t.</li>
<li>Of those reporting a dividend, 75% lifted the dividend, 8% cut and 17% left dividends unchanged.</li>
<li>Of all companies reporting half-year earnings, 57% lifted cash holdings over the year and 43% cut cash levels.</li>
<li>Cash holdings of both full-year and half-year reporting companies stood at $112 billion at December 31, up 4.4%.
</li>
</ul>
The trends
<ul>
<li>Surveys conducted of the business sector over the past six months have generally been positive. The NAB business conditions index hit record (21-year) highs in October 2017. Using rolling averages, business conditions are at decade highs.  
</li>
<li>So it makes sense that companies are making money. In fact all but seven of the 125 ASX200 companies reporting for the six months to December, reported a profit. The 94.4% of companies recording a profit matches the record high proportion in the 2017 interim reporting season a year ago. 
</li>
<li>But aggregate profits aren’t soaring. In fact aggregate profits are down 1.5% on a year ago. Stripping out heavyweight companies, a small lift in aggregate profit was achieved. 
</li>
<li>In addition, if you look at the proportion of companies able to lift profits, it was only 57% – the smallest share in five years. 
</li>
<li>So where have the funds gone? Aggregate revenues lifted 7% over the year but expenses posted a stronger 8.2% increase. Some companies have chosen to invest more into their business. Others may have lifted marketing expenses to stay competitive. Still others may have faced higher costs – certainly energy bills have continued to lift along with other commodity prices. 
</li>
<li>Cash levels are still healthy, up 5.3% on a year ago for half-year reporting companies. But in the year to June 2017 cash levels were up by 23.5%. 
</li>
<li>As a result of decisions or circumstances that have led to a lift in expenses, thus restraining profits, a smaller proportion of companies have issued dividends. 
</li>
<li>For some time this had been expected – companies had to reach a point where they needed to spend more on the business. So the 86% of companies issuing a dividend was the smallest proportion for three years.  
</li>
<li>The important point is that for those companies paying a dividend, the desire has been to lift or maintain the dividend. In fact almost 92% of the dividend payers, elected to lift or maintain dividends – the highest share in the 16 reporting seasons we have tracked. 
</li>
<li>In aggregate, dividends per share were up 9.5% on a year ago. 
</li>
</ul>
What are the implications for interest rates and investors?
<ul>
<li>Corporate Australia remains in strong shape. All but seven of the half-year reporting companies recorded a profit for the period despite stronger growth in expenses. 
</li>
<li>Corporate Australia is solidly in the black. But the bottom-line profits aren’t rising like they were in the recent past. And that is understandable. The base level of corporate profits is higher; global competition continues to lift; companies are investing more; and there was a solid lift in energy costs in the second half of 2017. 
</li>
<li>Looking ahead, the Australian economy is expected to grow at a faster pace over the coming year. A near record number of homes are being built although fewer new projects are likely to be started over the coming year, especially in Sydney and Melbourne and the Brisbane apartment market. 
</li>
<li>A growing number of infrastructure projects will support prospects of construction, industrial and transport sectors. 
</li>
<li>Resource companies and other companies with substantial operations overseas will benefit from stronger global economies. The challenge will be to restrain costs, particularly energy costs. 
</li>
<li>US sharemarkets have been volatile over February as investors weigh up high valuations and the prospects for higher interest rates. The Australian sharemarket will be affected like other sharemarkets should the volatility continue. But the Australian sharemarket is attractively valued with the lagged price-earnings at 15.79, only slightly above the long-term average. 
</li>
<li>CommSec expects the All Ordinaries to be trading in a 6,250-6,650 point range by the end of calendar year 2018 with the ASX200 around 100 points lower than the stated range.</li>
</ul>
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Craig James is chief economist at CommSec.
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cjames-5S2v74qSNK

Bottom-line profits of corporate Australia are rising like the recent past: CommSec's Craig James

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Scentre Group announced its results for the 12 months to 31 December 2017, delivering a profit of $4.2 billion, including property revaluations of $3.2 billion.
The Group’s CEO, Peter Allen, said the company are very pleased that their strategy to create extraordinary places people want to visit has enabled the Group to continue to deliver strong results.
"This focus on evolving our living centres is accelerating consumer appetite for world-class shopping and social destinations and driving strong demand for our high-quality space within each of our 39 unique markets. "Our investment in creating exceptional experiences at every touch point continues to drive income growth and long-term sustainable returns.  We remain focused on achieving a diverse and engaging product mix, connecting customers and retailers across our portfolio.”
Scentre Group commenced over $1.1 billion of developments including projects at Westfield Carousel in Perth, Westfield Plenty Valley in Melbourne, Westfield Kotara in Newcastle and Westfield Coomera on Queensland’s Gold Coast.
The Group recently announced the NZ$790 million redevelopment of Westfield Newmarket, which will create a world class retail and lifestyle destination unparalleled in the New Zealand market.
The redevelopment will feature the first David Jones in Auckland, a new Farmers department store and Countdown supermarket, which will both bring their newest format stores to the project. A new Event Cinemas complex will offer both V-Max and Gold Class, and a rooftop lifestyle, dining and entertainment precinct will encompass some of the country’s finest food and beverage operators in an outdoor space that will complement and enhance the local scene.
The completed project will become the flagship for the Group’s New Zealand portfolio, as well as one of the country’s best retail centres, with more than 230 new specialty stores that will include premium fashion, food, technology, lifestyle and entertainment. The centre will have a gross lettable area of 88,150 square metres and is due for completion in the fourth quarter of 2019.
During the year Scentre Group proactively curated the retail product mix across the portfolio, leasing 1,258 stores including 289 retail brands that are new to the portfolio and partnering with an additional 592 existing retailers to grow their businesses through the opening of an additional 943 stores. 
Scentre Group completed lease deals across all categories including 31 major stores with average tenure of 15 years, and 2,466 specialty lease deals covering an aggregate of more than 345,000 square metres of space.
Comparable net operating income increased 2.75% for the 12 months, driven primarily by contracted annual rent escalations.
Since the establishment of Scentre Group, the Group has grown the value of its portfolio by more than 30% to $36.2 billion. Scentre Group has a strong financial position with total assets of $37.5 billion, gearing of 32.1% and liquidity of $2.7 billion as at 31 December 2017. 
 
 
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Scentre Group posts $4.2 billion profit over 2017

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Industrial property firm Goodman Group said it was sticking to its full-year forecast of a 7.5 percent growth in operating earnings over the previous financial year.
The group said in an ASX announcement for the quarter ended March 31 that its “strong performance” was due to benefit from the urbanisation of cities around the world and the concentration of consumers in these locations.
It forecast FY2017 full year operating earnings per security of 43.1 cents, up 7.5 percent on FY2016.
Goodman said it expects demand for prime industrial space to stay strong across key locations.
Earlier this year, the group pre-leased an additional one million square feet of logistics space to Amazon at its Goodman Commerce Center Eastvale, California.
“The business is positioned to take advantage of the structural and cyclical influences in the market, particularly in locations positively impacted by the expected increase in urbanisation and rising consumerism,” said the ASX release. 
Goodman’s total assets under management (AUM) were at $34.6 billion with valuation growth offset by asset sales ($2.1 billion for the nine months to 31 March 2017 excluding urban renewal).
The group leased 2.5 million sqm for the year to date, equating to $296 million of annual rental property income.
During the quarter, the group sold $200 million of assets but noted that the pace of sales is expected to moderate. It has completed $2.1 billion of asset sales in the nine months of the financial year to March 31, which will be used to fund its development pipeline.
“We’re continuing to realise the benefits of our strategy which has consistently been to invest and develop in quality locations, close to the consumer,” said chief executive Greg Goodman.
“We believe demand for quality industrial properties will be strongest in these locations and scarcity of land will see higher values, supporting sustainable long-term growth.”
Its development pipeline is across 75 projects with a forecast yield on cost of 7.7 percent and pre-commitments on completions of 86 percent.
The group’s credit rating was upgraded by both S&amp;P and Moody’s, aided by its lower gearing targets.
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jonathanchancellor-7SQnKwU6yx

Goodman Group sticks to operating earnings growth outlook

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Australian credit union CUA has announced a half-year Group Net Profit after Tax (NPAT) of $31.11 million, up 10.9 percent on its previous first-half result.
The result was underpinned by continued member growth, an increase in net interest income and a positive result for subsidiary CUA Health.
CUA Chief Executive Officer Rob Goudswaard said the result reflected the benefits of CUA operating a diversified business in challenging market conditions.
He said the CUA Group result had been boosted by the performance of CUA Health, which contributed NPAT of $3.37 million for 1H.
This helped to offset a slightly weaker result for the banking business (ADI), which was impacted by aggressive market competition over the period and continued pressure on margins.
CUA issued $1.17 billion in new loans for the six months to 31 December 2016. While owner occupier and investor home loans accounted for around $1.06 billion of the new lending, CUA ’s personal loan performance was a standout with $106.4 million of personal loans issued over the period – a 30 per cent increase on personal loans issued over the corresponding period in FY16.
In particular, CUA ’s personal loan sales through the website and web-assisted channels were up 55 per cent on a year ago.
Mr Goudswaard said this came off the back of CUA significantly enhancing its digital marketing and sales capability, producing a 182 per cent year-on-year increase in digital leads.
Mr Goudswaard said net interest income of $118.6 million w as up 4.3 per cent on the same time a year earlier, reflecting higher interest revenue from strong lending in previous periods.
CUA had held its net interest margin steady against the same period last year, in what was a competitive and challenging external environment.
Capital adequacy, return on assets (ROA) and return on equity (ROE) declined slightly against the previous corresponding period.
However, 1H saw an improvement in CUA ’s cost to income ratio to 68.2 per cent (downfrom69.5 per cent in 1H-FY16).
This reflected CUA’s focus on balancing the slowdown in lending activity with prudent cost management, ensuring CUA can continue investing in future member improvements.
CUA ’s banking business (or ADI) posted a first-half NPAT of $29.69 million, down 3.8 per cent on the previous corresponding period.
The ADI result was impacted by lower volumes of new lending for the period in challenging market conditions, which included aggressive price-led competition across the market in the first few months of 1H.
However, CUA expects to see a return to stronger lending and asset growth in the second half.
CUA has continued to invest in the growth of its wholly-owned private health insurance subsidiary, with CUA one of the few organisations in Australia to offer integrated financial, health and insurance solutions.
The highlight for the fund during the period was the launch of a new suite of hospital and extras cover in November, which provides greater choice and flexibility for members based on their individual needs and budgets.
CUA Health posted a first-half NPAT of $3.37 million. CUA Health premium revenue for the six months was $72.1 million, while the insurer returned $61.9 million in benefits to policy holders.
Over the past year, policy holders received around 88 cents in the dollar in benefits, higher than the industry average of 86 cents.
Credicorp Insurance posted a half-year NPA T of $0.577 million, an increase of 20 per cent compared to the FY16 first-half result.
This subsidiary now provides general insurance to more than 13,500 members.
Credicorp’s growth during the period is a result of the maturing of its new product suite and continued effective cost management.
Mr Goudswaard said CUA had seen an increase in new lending and sales in recent months, which should contribute to a positive second-half financial performance.
However he noted that CUA expected pressure on margins to continue for the remainder of FY17, given the current low interest rate environment and strong competition in both the home loans market and in attracting member deposits.
Financial performance in 2H would depend on careful management of margins and costs, as well as any interest rate movements throughout the period.
He said CUA had a number of priorities for 2017, including exploring further opportunities to collaborate with other mutuals and leverage their collective strength, following the formation of a new joint venture company, Mutual Marketplace, with People’s Choice Credit Union.
Mutual Marketplace will commence operations in April to provide procurement and accounts payable services to both organisations.
Mr Goudswaard said there would be a continued focus on CUA building its brand awareness in the marketplace, off the back of the high visibility gained through its three-year partnership with Queensland Cricket, including the Brisbane Heat BBL and WBBL teams.
CUA will also look to deepen member relationships and attract more new members, particularly through CUA’s competitive position as an early adopter status on digital wallets and payments technologies (ApplePay, AndroidPay and New Payments Platform).
“Today’s half-year result is a positive outcome for members, who are already seeing the benefits of our continuing investment in digital channels and member-facing improvements,” he said.
“CUA has rolled out Android Pay and ApplePay to our members, and we are one of only two financial institutions in Australia offering ApplePay for Master cardholders.
We’ve introduced the ability for people to open an Everyday transaction account and become a CUA member online in just minutes, making it easier than ever before to switch to CUA.
“We’re currently redesigning our mobile banking app, ahead of a launch later this year.
And we are committed to being one of the first financial institutions in Australia to deliver members the benefit of real-time payments using the New Payments Platform when it launches towards the end of 2017.
“We’re working on ways to make sure all our members are on the digital journey with CUA and are realising the benefits of CUA ’s move towards being available anywhere, anytime.
The number of members using mobile banking has increased by 22 per cent compared to a year ago, with more than 105,000 members logging in each month.
Across both mobile and online banking, we have over 175,000 active users.”
Mr Goudswaard said that as a member-owned organisation, CUA is also committed to giving back to its communities through social initiatives.
“We have significantly scaled up our volunteering activities, with our team devoting around 200 days to volunteering in the community during the past six months, significantly more than a year earlier.
“We awarded a total of $10,000 to community groups in Toowoomba in December, presented more than $70,000 to local schools in October-November, and we will shortly launch a reinvigorated new local community grants program through CUA branches.”
On the regulatory front, Mr Goudswaard said CUA will continue working with government and industry stakeholders to secure a competitive financial services landscape to benefit consumers.
“CUA is working with other mutuals and the Business Council of Cooperatives and Mutuals to further advance the case for government and regulators to consider additional capital raising options for mutuals.
Currently, mutuals like CUA are constrained in our ability to raise capital, particularly Tier 1 capital.
In the absence of this capital framework, we will also continue consulting with regulators and our members around a change to our Constitution that would enable CUA to raise capital in the future, so CUA can take advantage of any emerging opportunities.”
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CUA impacted by lower volumes of new lending 

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Property developer Sunland Group reported a 45 percent jump in profit to $5 million for the half-year ended December 31 compared to the corresponding period of the previous year, driven by a robust increase in settlements.
As a result, the group has reaffirmed its full-year earnings outlook of $35 million net profit after tax.
The group expects to soon complete Abian, its $240 million luxury tower in the Brisbane CBD, with settlements expected in late FY 17, it said. 
Sunland said it generated revenue of $95.4 million from 204 settlements during the period, up from $79.9 million from 120 settlements in the comparable period.
The company’s managing director, Sahba Abedian, said the result was a result of an increase in settlements as well as a strong results from the group's retail holdings.
“Sales volume more than doubled during the first half, with 281 sales completed to the value of $200 million,” said Abedian in the ASX release. The figures from the first half of the previous financial year was 134 sales with a value of $106 million.
It plans to launch six more projects in the second half of the year.
The group’s national portfolio comprises 5,800 residential housing, urban development and multi-storey products with a total value of about $3.8 million.
It launched three projects during the reporting period, two on the Gold Coast and one in Sydney’s Northern Beaches.
Sunland’s profit numbers were helped by settlements from the housing and land projects of The Heights and The Terraces in Queensland, The Gardens and Carré Residences in Victoria, and Dahlia Residences in NSW. 
The developer has declared an interim dividend of 4 cents per share fully franked to be paid March 23.
Its development pipeline will be bolstered by new site acquisitions worth $47 million in Sydney, Gold Coast and Brisbane, which is expected to add 425 allotments for a value of about $389 million.
Abedian said Sunland would focus on multi-storey projects in markets such as southeast Queensland, Sydney and Melbourne.
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Developer Sunland profit jumps 45 percent on strong settlements

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Residential property group McGrath Ltd, hit by recent high-profile exits, reported a 72 percent fall in its pro-forma net profit after taxes (NPAT) for the half-year ended December 31, 2016 from the previous year, with both sales and overall property listings down.
Its shares hit a 60 cents record low in morning trading. 
The company had issued a profit warning in January with McGrath Estate Agents telling shareholders that the second half results would be materially weaker than the first half given “fewer agents and the continued low listing landscape”.
It gave out a similar message in its outlook, saying, "Challenging market conditions expected to continue, as seen through lower listing volumes." Stock listings fell 20 percent in the six months to December, amid a tightened listings landscape across the major capital cities.
Chief executive Cameron Judson said in the ASX release that the company had “commenced a strategic review with a renewed focus on improving productivity and performance of each of our existing segments and McGrath is exploring new revenue opportunities.” 
As at 31 December 2016 the network comprised 28 Company owned offices and 68 Franchise offices with 648 agents operating within those offices.
The spread of offices is across the Eastern seaboard with a high concentration in New South Wales.
The Company entered the Victorian market in the prior year, a stated objective and strategic move to bolster the national market share.
The total number of offices in Victoria currently stands at 8, and the contribution was $0.5bn in sales value for the 6 months to 31 December 2016.
Total agents has increased marginally over the period to 648.
Agents in the Franchise offices increased 7 percent to 405 however agents in the company owned offices decreased 8% to 243. 
Although statutory NPAT rose $0.4 million to $2.7 million, the company said pro-forma NPAT was down 72 percent to $2.4 million. The earnings included an impairment charge of $2.2 million. 
Pro forma revenue down 11 percent to $67 million while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 37 percent to $9.3 million. 
Company-owned sales fell to $3.5 billion from 2,544 deals during the period from $3.9 billion and 2,866 sales in 1H FY16. Meanwhile, franchise services reported 4,222 sales during the period with a value of $3.8 billion. 
It opened three offices during the six months, all in New South Wales; Forestville, Wahroonga and Blacktown, and has plans to open offices in Yarraville (Victoria) and San Souci, Berowra and Toukley, all in NSW. 
<img src="https://www.urban.com.au/images/2017/02/23/McGrathRev.png" alt="">
<img src="https://www.urban.com.au/images/2017/02/23/McGrathEBITDA.png" alt="">
The company declared a fully franked dividend of 1 cent per share to be paid out on March 28.
 
<img src="https://www.urban.com.au/images/2017/02/23/McGrathMktShare.png" alt="">
The stock price has dropped to a third from its IPO price of $2.10 in 2015. It last traded at 64 cents per share.
The company is trying to halt the exodus of agents with its ‘McGrath Future’, a programme that offers incentives to high performing agents. 
Property Observer reported earlier that veteran agents who recently quit the McGrath Estate Agency are set to launch as The Agency.
The latest departure is Philip Waller.
McGrath told its shareholders that its market share had risen amid the tightened listings landscape.
It calculates its market share nationally is now 3.6 percent.
<a href="https://www.propertyobserver.com.au/images/2017/02/23/Screen%20Shot%202017-02-23%20at%2011.32.55%20am.jpg" target="_blank">Click to enlarge</a> 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/23/Screen%20Shot%202017-02-23%20at%2011.32.55%20am.jpg" alt="">
The McGrath Estate Agency's Oxygen Home Loans department settled $443 million in mortgages during the period for the half year ending 31 December 2016 .
The number of rental properties under management at McGrath's company-owned offices has increased to 7,498 as of 31 December 2016.
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Despite expansion, McGrath listings down by 20 percent as exits take a toll

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The Reject Shop's net profit slipped 4.4 percent to $17.5 million in the first half of 2017 as weak consumer sentiment reduced same-store sales.
Total sales rose 2 percent to $432.9 million but same-store sales fell 0.5 percent.
There had been a modest 0.3 percent gain in same-store sales in the September quarter, compared with 6.1 percent in the year ago period.
It was offset by a 1.2 percent fall in the December quarter against 3.2 percent a year earlier.
Chief executive Ross Sudano said the discount variety retailer was particularly challenged in Western Australia.
Sudano noted that continued underemployment and declining housing prices contributed to negative same-store sales.
Its sales on the Eastern Seaboard were flat.
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Perth's declining housing market hurts The Reject Shop 

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Stockland Property Group said its interim net profit edged up 0.7 percent to $702 million for the half-year ended December 31 over the same period the previous year, underpinned by strong home price growth, mainly in the eastern seaboard. 
Revenue climbed 9.8 percent to $1.169 billion.
Funds from operations attributable to security holders rose 7.8 percent to $369 million and the developer said it was tightening its outlook to the higher end of its previous forecast of 5 percent -7 percent.
Stockland said it was paying an unfranked interim distribution of 12.6c, payable on February 28 to shareholders of record on December 30.
“We’re pleased to deliver another strong first half result, which has been driven by our ability to create thriving, vibrant communities. We’re implementing our strategy to reshape our portfolio, growing our asset returns and customer base, improve operational efficiency and maintain a strong balance sheet, which has enabled us to increase our distribution to investors,” managing director and CEO, Mark Steinert, said in a press release.
Although its residential operating profit margin fell to 14.1 percent, the developer’s residential business managed 2,853 settlements during the period and entered 2017 with a record 5,807 contracts on hand.
It said the outlook for the full-year operating profit margin for residential was 15-16 percent as it expected strong price growth on the eastern seaboard. The developer said this was due to its focus to create “liveable, desirable communities,” growing market share and continued favourable market conditions.
Its commercial property business grew 3.7 percent in comparable FFO, while the retirement living component increased its operating profit by 43.8 percent to $26 million, which reflected a 1H17 skew, largely due to improved margins and occupancy and the timing of superlot and asset sales.
Stockland also maintained its strong balance sheet and A-/Stable credit rating with gearing at 23.9 percent, which was well within its target range of 20 - 30 percent, said chief financial officer Tiernan O’Rourke. 
Steinert was upbeat on economic conditions continuing to be favourable and expected interest rates to remain relatively low. 
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