Adding to Chatswood’s growing skyline, <a href="https://www.apartments.com.au/new-apartments/the-anderson-chatswood-54-56-anderson-street-chatswood-nsw-2067">The Anderson</a> is grounded in a simple principle: apartment living in a major centre does not have to come at the expense of space and outlook.

Set on Anderson Street in the heart of <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a>, the new residential tower, a collaboration between developers <a href="https://www.apartments.com.au/developers/changfa-group">Changfa Group</a> and <a href="https://www.apartments.com.au/developers/huirong-group">Huirong Group</a> with architecture and interiors by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, will introduce 122 apartments that prioritise generous proportions, considered orientation, and a strong connection to the surrounding heritage precinct.

The design originated from a Design Excellence Competition, where AJC proposed a building that combines suburban-style apartment scale with the density expected in a transport-rich centre. The development will include more than 1,800 square metres of retail and commercial space at street level, landscaped communal roof terraces, and a ground-floor pocket park framed by canopy trees. Together these elements aim to create a building that integrates with Chatswood’s evolving streetscape while maintaining a strong residential focus.

[smartcode_project:default project_id=151353 project_image_fid=353250]

A key driver behind the architecture was the desire to deliver family-sized apartments rarely seen in the Chatswood market. The Anderson includes a mix of one to four-bedroom apartments, with around 35 per cent of the residences configured as three or four-bedroom homes. At the top of the building, two double-storey penthouses span approximately 200 square metres each, reinforcing the project’s emphasis on scale and long-term liveability for both downsizers and intergenerational households.

Orientation and outlook were central to the planning of the building. The apartments are positioned to maximise views to the north and east across Chatswood’s heritage precinct, with upper levels capturing glimpses of the Pacific Ocean. South-facing apartments gain distant views toward the Sydney CBD and Harbour Bridge, while the building’s configuration intentionally reduces western exposure at lower levels to minimise overlooking toward the nearby railway corridor.

The external design references the character of the surrounding conservation area without replicating it directly. A brick podium anchors the building to the street and introduces a series of architectural portals that draw inspiration from the nearby Chatswood Presbyterian Church. Above this base, the tower shifts to a lighter, more open expression defined by horizontal lines and carefully detailed balconies that balance privacy with outward views.

[smartcode_project:default project_id=151353 project_image_fid=353254]

Toward the top of the tower, AJC introduces a distinctive lantern-like element formed by sliding screens. These screens provide both solar shading and privacy while also creating a visual marker for the building within the Chatswood skyline. The feature reinforces the architectural intent of the project, a structure that is visually refined while still responding to the practical requirements of apartment living.

Inside the residences, interior architecture by Hayball focuses on clear spatial flow and practical everyday use. Open-plan living areas connect directly to large balconies, extending the internal living spaces outward and allowing natural light to move deeper into the apartments. Kitchens are designed as central working spaces with premium appliances and carefully selected materials, positioned to serve both daily living and entertaining.

[smartcode_project:default project_id=151353 project_image_fid=353256]

Bathrooms follow a similarly restrained design language, using refined fixtures and materials to create calm, functional spaces, while wardrobe areas adopt a gallery-style layout with integrated lighting and generous storage. These elements reflect a broader design approach that prioritises clarity, functionality, and durability over decorative gestures.

Positioned just a short walk from Chatswood Interchange, residents will have direct access to rail, metro, retail, and dining. The Metro extension allows travel from Chatswood to Martin Place in approximately 11 minutes, placing the CBD within easy reach for residents while maintaining the convenience of a walkable North Shore neighbourhood.

One-bedroom apartments at The Anderson start from $1,022,000.

[smartcode_project_cta:default project_id=151353]

Joel Robinson

How AJC designed The Anderson to bring oversized apartment living to Chatswood

<a href="https://www.apartments.com.au/developers/bridgewell-development">Bridgewell Capital</a> has lodged plans for a major mixed-use apartment development in the heart of Maroubra, seeking a significant uplift in height and density controls to deliver 120 apartments and a 120-place childcare centre near Maroubra Junction.

The State Significant Development application, filed through the NSW Government’s Housing Delivery Authority pathway, covers a 3,270 sqm amalgamated site at 251-257 Maroubra Road and 133-135 Garden Street. The proposal includes a concurrent rezoning that would increase the maximum building height from 12 metres to 35.6 metres and lift the floor space ratio to 4.02:1.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the project would replace a mechanic’s workshop and several detached homes with a 10-storey residential building above four basement levels.

The scheme comprises 120 apartments, including 27 affordable housing units to be managed by a community housing provider for 15 years, alongside 203 basement car spaces and 92 bicycle spaces. A childcare centre occupying nearly 900 sqm of floor area would sit at ground level and be capable of accommodating 120 children and 22 staff.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="038a0639-f9e4-4303-8fcc-d43e73fa480f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20pers.png?VersionId=eGBElxmNqJW.YF3JFYgHTnPgAstdyXR3" />

According to the Design Report, the project has been conceived as a “gateway proposal” that responds to Maroubra’s evolving urban character and its proximity to the town centre.

“Designed to complement the character of Maroubra’s town centre, this gateway proposal features a building scale that matches its surroundings,” the report stated.

“It integrates residential units above a ground-level childcare centre, fulfilling the strategic objectives of the Randwick City Council Masterplan.”

The apartment mix is weighted toward larger residences aimed at families and downsizers, reflecting changing demographics in the Randwick LGA and increasing demand for medium-density housing close to transport and amenity.

BKA Architecture said the proposal seeks to reinforce Maroubra Road as a civic spine while improving the pedestrian experience around the site through landscaping and upgraded public interfaces.

“The design capitalises on the following site opportunities: reinforcement of Maroubra Road as a civic spine, enhancement of pedestrian pathways and the public interface via new landscaping, and strong market demand for two and three-bedroom apartments to support families and down-sizers,” the Design Report noted.

<img alt="First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre" data-entity-type="file" data-entity-uuid="ee509779-3c7e-4918-b03d-761c785459d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bridgewell%20site.png?VersionId=eZC4Ruyn.C7O.Qwfr1SVeP5.ds1c5.66" />

The building has been designed with setbacks and articulation intended to transition between the commercial intensity of Maroubra Junction and the surrounding lower-scale residential neighbourhoods. Communal open space is proposed on level one, while upper-level apartments would secure views towards Port Botany, Maroubra Beach and Sydney’s eastern suburbs.

The development sits around 200 metres east of the Maroubra Junction intersection of Anzac Parade and Maroubra Road, within one of Randwick’s identified strategic centres. The site is close to Pacific Square Shopping Centre, major bus routes, schools, parks and future cycling infrastructure proposed under the Maroubra Junction Masterplan.

The Maroubra proposal aligns with broader NSW Government initiatives encouraging higher-density housing near established centres and transport corridors, particularly where affordable housing is incorporated.

Bridgewell is also working on a <a href="https://www.apartments.com.au/news/qld/goldfields-sets-the-stage-as-quartet-milton-launches">new 55-unit project in Killara</a>.

First look: Bridgewell plots 120 apartments and childcare centre in Maroubra town centre

National diversified developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has launched its latest Brisbane apartment project, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet Milton</a>, marking its entry into the sought-after inner-city suburb just two kilometres from the CBD.

The circa $100 million development will rise 18 storeys and deliver 131 apartments, offering a mix of one, two-, and three-bedroom residences.

Ideally located on Manning Street, Quartet residents will be within 300 metres of Milton Station, 500 metres from the Milton Ferry Wharf, and a short walk to Milton Markets, the iconic Park Road, as well as a range of breweries and cafés.

[smartcode_project:default project_id=108736 project_image_fid=367993]

Designed by architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a>, the building features a simple, gridded façade paired with generous glazing to enhance views, maximise aspect, and capture both sunrises and sunsets from within the apartments and their generously sized balconies.

Residents will have access to a 1,000 sqm rooftop, curated to balance wellness and entertaining, in response to increasing demand for wellness-focused shared spaces.

"We've approached Quartet Milton as a complete lifestyle offering, not just apartments, but a place where the design, amenities, and location all work together in a meaningful way," says Goldfields Managing Director Lachlan Thompson.

"Buyers are looking for that sense of confidence, knowing the vision has been carefully thought through not just by us as developers, but by all our consultants appointed to bring this together, and that it will be delivered to the standard they expect."

[smartcode_project:default project_id=108736 project_image_fid=368000]

Cera Stribley Co-Founder and Managing Principal Domenic Cerantonio said the rooftop is designed to feel like a place "you'd genuinely use every day."

"A 25-metre pool framed by city and mountain views, wellness areas, and private dining spaces for evenings with friends create a setting designed for year-round comfort and effortless Brisbane living."

[smartcode_project:default project_id=108736 project_image_fid=367999]

In addition to the 25-metre pool, the rooftop will include a sauna, cold plunge, fully equipped gym, and zen gardens, all complemented by panoramic views of the city and river.

While the building is expected to appeal predominantly to owner-occupiers, Goldfields anticipates interest from investors seeking strong rental returns, driven by the project's design, location, and the city's projected capital growth in the lead-up to the 2032 Brisbane Olympics.

[smartcode_project:default project_id=108736 project_image_fid=367991]

<a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>, widely regarded as one of Brisbane's most desirable inner-ring suburbs due to its lifestyle offering and proximity to the CBD, has experienced a shortage of new apartment supply in recent years.

Goldfields is already active in the Brisbane residential market through its Ripley Valley masterplanned community, Hayfield. The 109-hectare neighbourhood is already home to more than 300 families and features a large community park.

Plans for the precinct include a 4 km running track, future schools, and retail and commercial amenities, all within a 35-minute drive of the Brisbane CBD.

Goldfields also plans to deliver a new mixed-use tower at 88 Robertson Street in Fortitude Valley, within the James Street precinct. The project will include 16,000 sqm of boutique commercial space, a level of wellness facilities, and a rooftop restaurant and event space, akin to Goldfields House in South Yarra, its flagship mixed-use development on Chapel Street, which is crowned by the Beverly Rooftop bar, one of Melbourne’s best-known venues.

[smartcode_project_cta:default project_id=108736]

Goldfields sets the stage as Quartet Milton launches

<a href="https://www.apartments.com.au/developers/stockland">Stockland</a> and Homes NSW have taken the next major step in the transformation of Waterloo Estate, lodging a Concept State Significant Development Application and concurrent rezoning proposal for the renewal of Waterloo South.

The proposal, now on public exhibition, outlines plans for around 3,300 new homes across the 12.3-hectare precinct. A minimum 30 per cent of residential gross floor area will be delivered as social housing, approximately 20 per cent as affordable housing, and a maximum 50 per cent as market housing. The redevelopment would more than quadruple the number of homes currently on the site and more than double the existing supply of social and affordable housing.

The renewal of Waterloo South forms the first stage of the broader Waterloo Estate transformation and is set to unfold over the next 10 to 15 years. The estate currently contains 750 social housing dwellings and 120 private homes.

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="ba2da34b-171b-4ff1-b0c7-4baf0bce97f2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public.png?VersionId=S5apPKOqjPHJhk_SzCvdVPxsEBYs300o" />

The proposal, prepared by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a> and Beam Planning, spans 10 street blocks bounded by Cope, Raglan, George, Wellington, Gibson, Kellick, Pitt and McEvoy Streets, directly adjoining the Waterloo Metro Station precinct and within walking distance of Redfern and Green Square stations.

Under the masterplan, building heights would range from two to 33 storeys, delivering approximately 282,485 sqm of residential floor space alongside at least 10,000 sqm of non-residential uses and a minimum 5,000 sqm of community space. The planning framework has been specifically structured to support the mixed-tenure outcome, with the residential gross floor area capped at a maximum 50 per cent market housing allocation.&nbsp;

The Urban Design Report describes the vision as creating “a unique and vibrant mixed-tenure housing precinct that supports the needs of the community and delivers much needed housing in response to National and State Government priorities.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="6e1a6d8b-0626-4fa7-94fc-aa91c0af86dc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/waterloo%20per.png?VersionId=duyiJTFOeezTNdM22leI3SoHuqnW6ZaY" />

A major focus of the revised proposal has been increasing the social and affordable housing component. The Minns Government increased the affordable and public housing allocation from 35 per cent to 50 per cent after coming to office in 2023.

Minister for Housing and Homelessness Rose Jackson said the changes were critical to maintaining Waterloo’s social diversity.

“When we came to government, we immediately reviewed the plans for the Waterloo renewal and boosted the number of public and affordable homes from 35 to 50 per cent,” Jackson said.

“This was a crucial step to ensure Waterloo remains a welcoming place for people from all walks of life to call home now and into the future.”&nbsp;

Minister for Planning and Public Spaces Paul Scully said the project would reshape the precinct for generations.

“This concept DA brings thousands of new public, affordable and market homes on the doorstep of the Waterloo Metro station another step closer to reality,” Scully said.

“Importantly, alongside the new homes the plan also proposes new open space where residents and the broader community can gather, relax and play.”&nbsp;

<img alt="First look: Stockland and Homes NSW unveil plans for 3,300-home Waterloo South renewal" data-entity-type="file" data-entity-uuid="867520cb-6e07-4204-885e-53793ac88066" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Waterloo%20public%20a.png?VersionId=lgSI85Q23xBLYLC9NcWKuWZY2HfP4zQ3" />

Stockland Managing Director and CEO Tarun Gupta said the project had been shaped around long-term liveability and community infrastructure.

“As delivery partner, Stockland is proud to be working with the NSW Government on the renewal of Waterloo South – a significant project with community at its heart,” Gupta said.&nbsp;

The planning documents place strong emphasis on “Designing with Country,” recognising the site’s location on Gadigal land. The masterplan incorporates new east-west pedestrian links, activated streetscapes, rooftop communal spaces, retail frontages, and landscaped public areas intended to improve permeability and community connection throughout the estate.&nbsp;

The proposal also seeks to establish a more flexible planning framework for future detailed SSDAs, including updated provisions for educational uses, creative industries, rooftop communal areas, and active frontages. A minimum seven per cent of residential floor space will be delivered as affordable housing managed in perpetuity by community housing provider City West Housing.&nbsp;

The Social Impact Assessment prepared by Urbis describes the renewal as one of Australia’s most significant public housing transformations, identifying substantial long-term positive impacts associated with housing supply, accessibility, public domain improvements, and community infrastructure.&nbsp;

Stockland and Homes NSW have already commenced the first stage of resident relocations, with some tenants moved into newly completed homes at Waterloo Metro Quarter and the Boronia development nearby.

First look: Stockland, NSW Gov, unveils plans for 3,300-home Waterloo South renewal

<a href="https://www.apartments.com.au/new-apartments/smith-by-valli-collingwood-224-228-smith-street-collingwood-vic-3066">Smith Collingwood</a> is a new boutique apartment development bringing a refined, design-led approach to one of Melbourne’s most established inner-city neighbourhoods.

Designed by <a href="https://www.apartments.com.au/architects/pandolfini-architects">Pandolfini Architects</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/lisa-buxton-interiors">Lisa Buxton</a>, Smith by Valli sits on iconic Smith Street and comprises just 22 residences tailored toward owner-occupiers seeking a more considered style of apartment living.

[smartcode_project:default project_id=140747 project_image_fid=367540]

The design of Smith focuses on a north-facing orientation across all residences, a relatively uncommon feature in dense inner-Melbourne settings. Each apartment has been planned to maximise natural light and outlook, alongside a material palette defined by warm tones, custom joinery, and a full suite of Gaggenau appliances.

The development comprises a mix of one, two, and three-bedroom apartments, with pricing currently ranging from just under $1 million to around $4.85 million for the premium penthouse-level residences, reflecting growing demand for luxury owner-occupier product in Melbourne’s inner urban market.

Residents will also have access to a private rooftop garden designed as an elevated retreat above the city, &nbsp;featuring curated landscaping, veggie boxes, intimate seating areas and spaces for relaxed gatherings. Sustainability has also been integrated into the project through a 7-star energy rating and two secure bicycle facilities for every residence.

[smartcode_project:default project_id=140747 project_image_fid=367529]

Smith by Valli sits in the heart of one of Melbourne’s most established retail and hospitality strips, within walking distance of venues such as Falco Bakery, Carnation Canteen and Alimentari, alongside parks and everyday services. With a Walk Score of 99, the location reinforces the project’s positioning toward buyers prioritising walkability and access over car dependency.

With only a limited number of residences, Smith reflects growing demand for smaller, highly curated apartment developments that prioritise design quality, liveability, and connection to neighbourhood character.

[smartcode_project_cta:default project_id=140747]

Smith by Valli delivers design-led apartments to Melbourne’s inner north

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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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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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> 
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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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