Longstanding Gold Coast and Canberra developer <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> is continuing to roll on with its Glitter Strip apartment pipeline, seeking to return to Mermaid Beach with a new 68-apartment development.

Morris, founded by Barry Morris in 1978 and one of the Gold Coast’s most prolific apartment developers over the past two decades, has filed plans for a 12-storey mixed-use building at <a href="https://www.apartments.com.au/new-apartments/36-seabeach-avenue-mermaid-beach-qld-4218">34-36 Seabeach Avenue</a>, on the prized eastern side of the Gold Coast Highway.

The 1,227 sqm site occupies a prominent corner position at Seabeach Avenue and the Gold Coast Highway, opposite the Mermaid Plaza retail and office precinct and around 140 metres walking distance from the future Mermaid Beach South light rail station.

<a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a> has designed the project, which will comprise 68 apartments across a mix of 48 two-bedroom and 20 three-bedroom residences.

The building will rise 12 storeys, reaching a maximum height of 36 metres, with the apartments accounting for a total of 156 bedrooms. The development application also seeks approval for short-term accommodation across the 68 apartments, while two office tenancies are proposed at ground level.

The plans show 108 car spaces across the development, with parking accommodated at ground level and within a three-level basement accessed from Seabeach Avenue.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="c2175c99-12fd-4a3c-9be1-89bbf258a90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.41%E2%80%AFPM_0.png?VersionId=iNLzWcE6gaAE76rafhEXfHve.4g4Se0p" />

Resident amenity will be concentrated on level two, where Fraser &amp; Partners has designed a recreation deck with a swimming pool, 90 sqm pool terrace, outdoor barbecue area and gym.

The broader communal offering will also incorporate landscaped spaces, with the planning documents noting the amenity has been designed to provide areas for recreation, social interaction and outdoor living.

The proposal would continue the transformation of the Gold Coast Highway corridor through Mermaid Beach ahead of the arrival of the light rail.

The site is zoned Neighbourhood Centre and sits within the Mermaid Beach/Broadbeach Light Rail Corridor neighbourhood plan. While the prescribed building height is 24 metres, the site is identified within an Urban Neighbourhood context providing for a 50 per cent height uplift to 36 metres.

Planning documents describe the stretch of the Gold Coast Highway between Broadbeach and Nobby Beach as increasingly characterised by medium and high-rise development, with the proposed Morris tower joining projects including Ventura, The Alfred, Oceans and Otto.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="911f193f-e381-4a55-be08-58be87fcf978" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%202.59.48%E2%80%AFPM.png?VersionId=oxVvLJaY.SOXEdXrIcogfyEXDfvCmmpM" />

The development would mark Morris Property Group's latest investment in Mermaid Beach, where it has already delivered two apartment projects.

Otto, at 1 Bondi Avenue on the western side of the Gold Coast Highway, comprises 70 apartments across nine storeys. The project was completed in 2019 and includes a residents' gym, recreation deck and swimming pool.

Morris also developed Oceans at 46 Ocean Street, a nine-storey, 70-apartment build-to-rent development completed in 2019. Oceans was the group's first build-to-rent project and incorporates commercial space at ground level.

The two existing Morris projects sit further north along the same Gold Coast Highway corridor as the proposed Seabeach Avenue development. Fraser &amp; Partners' planning analysis specifically identifies both Otto and Oceans among the established built-form precedents surrounding the site.

<img alt="Seabeach Avenue and the Gold Coast Highway" data-entity-type="file" data-entity-uuid="14925119-7b71-4812-8149-340317512c7c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-20%20at%203.00.15%E2%80%AFPM.png?VersionId=aEJqYuw_nTCjcin17BSD0piB1EFotTlj" />

Mermaid Beach represents only part of Morris' considerable Gold Coast footprint.

The family-owned developer has been particularly active in neighbouring Broadbeach, delivering projects including Sierra Grand, Eclipse, Synergy, Qube, Koko, Opus and Malo, while its current pipeline includes Maison and the two-tower Crest development.

Further south, Morris has also developed a string of projects in Burleigh Heads, including Element, Boardwalk and Sandbar, while Essentia expanded its footprint north into Surfers Paradise.

The Seabeach Avenue application has been lodged by PMM Broadbeach Pty Ltd and seeks a development permit for a Material Change of Use for multiple dwellings, short-term accommodation and office uses. Zone Planning Group prepared the planning application, with Fraser &amp; Partners commissioned as architect.

The project comes as the developer continues to expand its Gold Coast pipeline while retaining a significant presence in Canberra. Morris now has more than $2.5 billion of development in its national pipeline and has delivered more than 7,000 homes during its near five-decade history

Joel Robinson

First look: Morris Property Group returns to Mermaid Beach with new Seabeach Avenue apartment development

<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developers/fortis&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw3hvFB2uWTRfEyEcpTSnnK9" href="https://www.apartments.com.au/developers/fortis" target="_blank">Fortis</a>&nbsp;is continuing its stronghold on Sydn​ey’s eastern suburbs apartment market, launching&nbsp;in September&nbsp;its latest boutique&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/developments/double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw0GI5S9-wNeiLUnM-d1uYkw" href="https://www.apartments.com.au/developments/double-bay-nsw-2028" target="_blank">Double Bay</a>&nbsp;development,&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028&amp;source=gmail&amp;ust=1787272340808000&amp;usg=AOvVaw2YNouJQcFjiTTgVHbgDLA-" href="https://www.apartments.com.au/new-apartments/55-william-double-bay-55-william-street-double-bay-nsw-2028" target="_blank">55 William</a>.

55 William presents&nbsp;just eight north-facing&nbsp;two-bedroom, three-bedroom and full-floor&nbsp;residences to the market, priced from $4.5 million.

The upcoming launch comes just weeks after Fortis secured approval for the $80 million development, its third eastern suburbs approval in two months. Construction is already underway, with completion targeted for 2028.

[smartcode_project:default project_id=152579 project_image_fid=376250]

55 William adds to a growing concentration of Fortis projects in and around Double Bay, a market the developer has become increasingly active in over recent years.

Fortis previously completed the nine-residence Marmont on New South Head Road, while it is currently developing a mixed-use residential and retail project at 12 Cross Street. Its wider Double Bay footprint also extends into commercial and retail development.

The developer's broader Sydney residential pipeline is particularly concentrated across the eastern suburbs, with projects spanning Doub​le Bay, Ro​se Bay, Wo​ollahra, Dar​ling Point, Poi​nt Piper and Eli​zabeth Bay.

[smartcode_project:default project_id=152579 project_image_fid=376253]

At 55 William, Fortis has again turned to MHN Design Union, the architecture practice behind several of its eastern suburbs projects, while London-based 1508 London has been appointed to handle the interiors and Wyer &amp; Co the landscaping.

The six-level building will comprise a combination of two and three-bedroom apartments, including a garden residence, full-floor apartments, a sub-penthouse and penthouse. Each residence will have secure basement parking and private outdoor space.

A rooftop terrace for all residents, along with select apartments, enjoys views across Double Bay Harbour and toward the Sydney skyline.

Ceiling heights will reach up to three metres&nbsp;in select residences, while the kitchens will feature natural stone and integrated Gaggenau appliances.

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The boutique nature of the project reflects the type of stock Fortis has increasingly targeted across Sydney's eastern suburbs, where larger apartments and smaller buildings are being pitched primarily toward local owner-occupiers and downsizers.

Fortis Group General Manager Ed Eve said the developer continues to see demand from buyers wanting to remain in the eastern suburbs but move into newer, lower-maintenance housing.

“We're seeing continued demand from local owner-occupiers and downsizers looking for high-quality homes that allow them to remain in the eastern suburbs, close to the lifestyle and community they know,” Eve said.

55 William is also one of the early projects to respond directly to the NSW Government's Low and Mid-Rise Housing reforms. Fortis had previously secured approval for just two townhouses on the 599 sqm site before revising the scheme to eight apartments following the planning changes.

Situated one street back from Double Bay's water's edge, the project enjoys an enviable harbourside setting within walking distance of Double Bay Village and the ferry wharf.

[smartcode_project:default project_id=152579 project_image_fid=376252]

Fortis has increasingly made the eastern suburbs a major focus of its Sydney pipeline. Beyond Double Bay, it recently completed the 14-residence Piper in Point Piper and has projects underway or planned across Rose Bay, Woollahra and Darling Point.

The developer recently secured approval for Verano in Rose Bay, a six-level development comprising 21 two, three and four-bedroom apartments, also designed by MHNDU.

55 William&nbsp;is soon to be release to the market with VIP appointments commencing early September,&nbsp;with residences priced from $4.5 million.

[smartcode_project_cta:default project_id=152579]

Fortis continues eastern suburbs push with 55 William launch

UAE-based developer Arada has unveiled plans for a $2 billion twin-tower apartment development in Broadbeach, marking its first move into Queensland as it continues its rapid expansion across Australia.

Arada will develop 952 apartments across two towers on a prominent site opposite the Gold Coast Convention and Exhibition Centre, with the project targeted for completion ahead of the Brisbane 2032 Olympic and Paralympic Games.

The project represents Arada's largest commitment to the Australian market since arriving in the country in 2024 and significantly expands a local pipeline that has now grown to eight projects and more than 5,000 homes.

It will also be the first major Queensland project delivered by Roberts Co since the tier-one contractor was acquired by Arada Group in 2025.

Plus Studio has designed the Broadbeach development, which will comprise one, two and three-bedroom apartments across two towers connected by a landscaped podium.

A significant resident amenity offering will include lagoon and lap pools, a gym, sauna and steam room, alongside a mist room, infrared room and salt scrub facilities. Communal terraces, private dining areas, a library, residents' lounge and work-from-home spaces are also planned. Around 1,200 sqm of retail and hospitality space will occupy the ground floor.

The site puts Arada in one of the Gold Coast's most active apartment markets, directly opposite the convention centre and within walking distance of Pacific Fair, The Star Gold Coast and Broadbeach's dining and retail precinct.

It also has immediate access to the Gold Coast light rail network and sits just a few blocks from the beach.

Arada Group Chief Executive Ahmed Alkhoshaibi said Broadbeach represented an opportunity for the developer to expand beyond its initial NSW pipeline.

“Broadbeach is a world-class address that gives us the canvas to create a community of exceptional design and lifestyle quality that genuinely enriches the daily lives of the people who call it home,” Alkhoshaibi said.

“This is our first development outside New South Wales, and it reflects our growing ambition to grow in key urban markets around the country.”

Alkhoshaibi said bringing Roberts Co into the project would give Arada greater control over the development and construction process.

“Delivering this project through Roberts Co, our own tier-one construction business, means we can bring the quality, pace and accountability that our buyers expect.”

The move into Broadbeach comes as Arada accelerates its Australian expansion following its entry into the market two years ago. The developer has assembled a pipeline of eight projects comprising more than 5,000 homes, while the acquisition of Roberts Co last year gave the group its own Australian construction capability.

Globally, Arada has a development portfolio valued at $50 billion comprising more than 55,000 homes across the UAE, United Kingdom and Australia.

The Gold Coast is emerging as the next major market for the developer, with strong population growth and infrastructure spending ahead of the 2032 Games continuing to underpin significant apartment development across the coastal strip.

Arada plots $2 billion Broadbeach towers in major Queensland move

Sydney’s downsizer market is changing, with a growing cohort of buyers prioritising the right home over simply finding a smaller one.

Coronation Property Head of Sales Cam Porter says the traditional idea of downsizing does not necessarily reflect what many buyers are now looking for, particularly those moving from established family homes across Sydney.

Instead, he says they are increasingly becoming “right-sizers”, seeking lower-maintenance homes without sacrificing the space, amenity or quality they have become accustomed to.

“We are increasingly seeing buyers who are not motivated by the idea of simply moving into a smaller property,” Porter says.

“They are right-sizers. They want a home that is easier to manage and better connected, but they still expect generosity, quality and a floorplan that supports the way they live.”

It is a subtle but important distinction in a market where apartment developers are increasingly targeting established owner-occupiers.

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For many of these buyers, moving from a house to an apartment is not driven by a desire to dramatically reduce their living space. Instead, the appeal is in removing some of the maintenance associated with a larger home while retaining generous living areas, storage and enough flexibility to accommodate family and friends.

Coronation’s sales team is seeing buyers place particular importance on natural light, practical storage and additional rooms that can be used as guest bedrooms, home offices or secondary living spaces.

Kitchens and dining areas are also playing an increasingly important role, particularly for buyers who regularly entertain or have children and grandchildren visit.

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“These buyers still want their home to feel generous,” Porter says.

“They may want less maintenance, but they are not looking for less life.”

The challenge for the broader housing market is providing enough of the right stock to encourage that move.

While much of the discussion around Sydney’s housing shortage has centred on the number of homes being delivered, Porter says the diversity of those homes is equally important.

Older homeowners can remain in large family houses for longer when they cannot find an appropriate alternative in the neighbourhoods where they have built their lives.

“The decision is rarely as simple as wanting fewer bedrooms,” Porter says.

“People are weighing up their connection to a neighbourhood, the space they need for family, the quality of the home and whether it will continue to work for them over the long term.”

It also has implications beyond the downsizer market. Providing suitable apartments for smaller households can free up established houses for families who need the additional bedrooms and land, creating greater movement through the housing market.

<h2>Lillian targets the next stage of apartment buyer</h2>

It is a buyer Coronation is targeting at <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, its new collection of apartments, terraces and penthouses at Erskineville Village.

Designed by Silvester Fuller, Lillian has been shaped around larger living spaces, natural light and flexible floorplans, alongside landscaped areas, wellness amenity and communal spaces for residents.

The development will form part of Coronation’s broader Erskineville Village precinct, which will combine new homes with green space, retail, hospitality and new pedestrian connections.

[smartcode_project:default project_id=135149 project_image_fid=377688]

McPherson Park will sit at the centre of the precinct, creating a significant new green space alongside the project’s retail and hospitality offering.

For Porter, the opportunity is to give buyers another housing option without forcing them to leave the part of Sydney they already know.

“People should be able to change the type of home they live in without having to change their entire life,” he says.

“For many buyers, Lillian offers the opportunity to remain connected to the Inner West and the city, while gaining access to a more convenient, walkable and considered way of living.”

[smartcode_project:default project_id=135149 project_image_fid=377687]

Coronation will explore the changing <a href="https://lillianresidences.com.au/news/lillian-x-space-x-downsizers-event-27-august/">right-sizer market at an event on August 27</a>, bringing together experts across property, design and lifestyle.

Held in partnership with SPACE, Poliform and Downsizer.com.au, the event will include a property market outlook from economist Michael Blythe alongside discussion around the considerations facing buyers planning their next move.

Attendees will also be able to learn more about the residences and amenity planned at Lillian Erskineville.

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From downsizing to right-sizing: What Sydney buyers want from their next home

Family-owned builder and developer <a href="https://www.apartments.com.au/developers/omaya">Omaya</a> is bringing its 27-storey The Maybelle development to market, with the 229-apartment tower rising alongside Ismay Reserve near North Strathfield.

<a href="https://www.apartments.com.au/new-apartments/the-maybelle-21-parramatta-road-homebush-nsw-2140">The Maybelle</a> will comprise one, two and three-bedroom apartments, with its height providing elevated outlooks towards the Sydney skyline and Harbour Bridge, while other residences will look across neighbouring Ismay Reserve.

Designed by <a href="https://www.apartments.com.au/architects/squillace-architects">Squillace Architects</a>, the tower combines its parkside setting with proximity to the established retail, dining and transport amenity around North Strathfield.

[smartcode_project:default project_id=134873 project_image_fid=376196]

Residences will feature open-plan living spaces and a choice of two interior schemes, while communal amenity is spread across two elevated levels of the building.

Level 8 will be home to the Garden Pavilion, a full-floor resident space incorporating communal entertaining and breakout areas, seating and recreation spaces. Further up the tower, a landscaped Sky Terrace on Level 14 will provide another communal area with panoramic views towards the Harbour Bridge and Sydney skyline.

At ground level, the development sits directly alongside Ismay Reserve, where lawns, walking paths, children's play areas, picnic spaces and recreational facilities extend the green space available immediately around the project.

[smartcode_project:default project_id=134873 project_image_fid=376194]

The Maybelle is also within walking distance of North Strathfield and the Bakehouse Quarter, which provides a mix of cafés, restaurants, shops and everyday services.

Existing rail and bus services provide connections across Sydney, while the future North Strathfield Metro and access to the M4 will add to the transport options available around the precinct. Walking and cycling routes also extend via Powells Creek towards Sydney Olympic Park and its sporting, entertainment and parkland precincts.

Families are also well positioned for access to a broad selection of established schools and education options across Strathfield and the surrounding Inner West.

[smartcode_project:default project_id=134873 project_image_fid=376181]

Omaya has operated in Sydney for more than 35 years, managing projects from acquisition and design through to construction and delivery. The family-owned company is both developer and builder of The Maybelle.

Apartments start from $560,000, with the development protected by 10-year Latent Defects Insurance.

Construction is well underway, with completion expected by the end of 2026 and move-in anticipated from Q1 2027.

[smartcode_project_cta:default project_id=134873]

The Maybelle brings 27-storey parkside tower to market near North Strathfield

Financial Results

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Market conditions impacted Sunland's sales volume during the last year, with 304 sales completed to the value of $170 million compared to 2017 where 524 sales were achieved to the value $376 million.
Sunland Group also announced its after tax profit was down, to $31.3 million for the full year ended 30 June 2018, lower than their profits last year at $35.3 million.
They made $32 million in new site acquisitions in Brisbane and a medium-density, residential development in Victoria scheduled to settle in late 2018. 
The group launched four new residential projects during the 2018 financial year including Magnoli Apartments, 272 Hedges Avenue, Arbour Residences on the Gold Coast, and The Hills Residences in Brisbane.
The group also released new land stages within its master planned community at The Heights in Pimpama on the northern Gold Coast.
As at 30 June 2018, Sunland had 14 active projects along Australia’s east coast.
It represents a $3.6 billion portfolio comprising 4,977 residential homes, urban land lots, multi-storey apartments, and 27,000 sqm of retail.
Sunland boss Sahba Abedian said the group achieved revenue from property sales of $290 million during the period, generated from 425 settlements.
Delivery continues at 18 Macpherson Street in Warriewood and The Gardens in Chirnside Park, which are both sold out ahead of its 2019 financial year scheduled completion.
Contracted presales for projects total 381 as of 30 June 2018, with a combined value of $314 million.
The portfolio achieved an average return of 24%.
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j.ballantyne1990-6AQqhLzZaK

Sunland Group sales activity shrinks 

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Villa World has delivered a fifth year of double digit growth.
Villa World recorded a net profit after tax of $43.6 million (34.4 cps), up 15% on last year's result of $37.8 million.
Villa World chairman Mark Jewell said the S&amp;P/ASX 300 company’s year-on-year growth demonstrated that its financial strategy and commitment to delivering its core affordable house-and-land and land-only product was on track.
“The board has now turned its attention to the next phase,” he said.
It has welcomed a new board member, former Nike Inc Vice President, Lisa MacCallum, who takes up the independent non-executive director role.
“The addition of Lisa MacCallum to the Board will help us achieve this,” Jewell said.
During 13 years with Nike, she led major business turnarounds in the company’s US retail sales and growth initiatives.
With a background in accounting and consulting with KPMG in Australian and the US, MacCallum co-founded a Tokyo-based multimedia and broadcasting company.
She is a board member of British Telecom (BT) PLC.
Jewell said MacCallum’s global corporate experience and perspective would enhance the Villa World Board and help drive the company as it begins implementing a newly-endorsed purpose and beliefs focused on people, customers and community.
At its annual results announcement, Villa World reported a 39% increase in sales, up from 1,207 lots in FY17 to 1,678 lots.
Revenue increased to $441.6 million in FY18, up from $386.8 million last year.
The Villa World Board declared a full year dividend of 18.5 cents per share fully franked, representing a yield of 8.6%1.
Looking ahead, the company is targeting a statutory profit after tax of approximately $40 million in FY19.
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Villa World announces fifth consecutive year of double-digit growth

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Stockland's residential sector has seen its operating profit rise to $182 million, up 82.8 percent, in the first half of 2018.
Their operating profit margin was up to 21 percent, compared with the 14 percent for the first half of 2017.
Stockland managing director and CEO Mark Steinert said the company has built a strong residential business over the last four years.
"We have made considerable progress reshaping the business, placing a greater focus on the deep Melbourne and Sydney markets with particular emphasis on transport and infrastructure corridors," Steinert said.
"As a result, our Residential business delivered another half of exceptionally strong returns and settlements, with operating profit growing over 80 per cent to $182 million in 1H18.
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“We settled a record 3,210 lots, up 12.5 per cent on the corresponding period, and achieved a net operating profit margin of 20.9 per cent. FY18 profit will be skewed to the first half of the financial year due to a large proportion of higher-margin Sydney settlements.” 
Stockland expects operating profit margins of around 17 per cent in FY18 and for the next two to three years, subject to market conditions. 
“We have intentionally increased our weighting to Sydney and Melbourne housing, where the markets continue to be driven by structural undersupply. Around half our residential customers are first home buyers and over 75 per cent are owner-occupiers, which places us in a preferred position in the current residential lending and policy environment. 
“More than 95 per cent of our residential business earnings over FY18 - FY20 will be generated by our masterplanned communities, and we continue to progress our disciplined re-entry into the apartment market,” Steinert concluded. 
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Stockland residential sees operating profit soar 83 percent

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Stockland’s Commercial Property portfolio continued to deliver solid profit, and revaluations produced a net uplift of $124 million for the half year, including gains from several recently redeveloped assets.
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Stockland managing director and CEO Mark Steinert cited positive growth from retail leases as a contributor to the uplift.
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“We delivered comparable FFO growth of 2.7 per cent and maintained high occupancy across our retail town centres in 1H18.
"We achieved positive growth in rents for both new leases, at +1.4 per cent, and renewals at +2.3 per cent. Following a flat start to the half, retail sales growth for the second quarter of 1H18 improved to 2 per cent.
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“Our Retail strategy is focused on increasing services, lifestyle, health, dining and entertainment options to address customer demand and increase the resilience of our centres. We continue to see growth in lifestyle and entertainment tenancies, with comparable moving annual turnover (MAT) growth of 10 per cent in retail services and 2.8 per cent in casual dining and food catering over the half, reflecting the success of our remixing strategy. 
“Following the sale of the Corrimal shopping centre, we continue to take a considered approach to non-core asset disposals and remain focused on introducing third party capital across our assets. 
This quarter we will place Stockland Highlands on the market and as announced in August 2017 we are aiming to divest $300 million of retail town centres over the next 12 to 18 months, of which approximately $70 million has been completed to date,” Steinert said. 
Stockland’s Logistics and Business Parks portfolio once again delivered strong results and a 99 per cent occupancy rate, with the Group on track to continue growing the business. 
“The value of our Logistics and Business Parks business has risen around $600 million over the past four years, from $1.5 billion to $2.1 billion, and now represents 14 per cent of our total Group asset value," Steinart said.
"We achieved strong comparable FFO growth of 4.6 per cent for the half with positive leasing results and near-full occupancy. 
“We have $176 million worth of projects under construction and an additional development pipeline of over $590 million, targeting 7 per cent FFO yields and centred on the eastern seaboard capital cities.” 
Comparable FFO for the period was down 2.8 per cent across Stockland’s office portfolio, largely due to higher vacancies in Perth and ACT, however these assets are progressively being leased. Sydney assets, which represent the majority of the portfolio, performed well this period. 
“We continue to assess development opportunities for our Sydney office assets, a number of which have higher and better use options, and will consider divestment opportunities for optimised assets.” 
RETIREMENT LIVING 
The Retirement Living business continues to be supported by the fundamentals of an ageing population. 
However, sales at both existing villages and new developments over the half have been affected by the increased media attention on the sector, which has influenced customer confidence. 
Sales over the period were also affected by lower volumes of new development stock due to project timing. During the half we completed 28 development units, compared to 80 in the prior period, resulting in lower development volumes available for reservation.
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“The population of over 65s is growing at almost twice the rate of the rest of Australia and we expect market demand in this sector to continue to rise as the population ages," Steinert noted.
"Our repositioning strategy and development pipeline reflects the changing preferences of retirees, and our new contract choices and product offerings will continue to broaden our customer reach. 
“At our new developments we continue to see growth in the average price per retirement living unit, at 4.5 per cent for the period, which reflects the quality of our villages. Resident satisfaction levels consistently rate above 84 per cent, and in response to customer preferences we have an increased focus on health and wellbeing, and our services and facilities.” 
 
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Retail leases and redeveloped assets drive Stockland half year results

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Dexus has upgraded its guidance for distribution per security growth for FY18 having announced a strong result for the first six months of FY18.
Dexus CEO Darren Steinberg says suggested the office leasing activity was a big contributor.
“Our core office markets across the country are all showing positive leasing activity and the latest record employment numbers support our view of continued positive momentum over the next few years.
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“We have seen more evidence of strong take up in Sydney and Melbourne and have converted significant levels of enquiry to leasing commitments at 240 St Georges Terrace in Perth. 
“Our focus on enhancing returns through the activation of office development projects in Melbourne, Brisbane and Perth enables us to leverage our leasing and development expertise and is an efficient use of capital at this point in the cycle.
Click here to enlarge.
<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/2018/2/14/dexus2.jpg" alt="">
 
“Our funds continue to deliver strong performance and we completed the first equity raise for the new Healthcare Wholesale Property Fund, generating interest in the sector from global and domestic investors, and adding three new clients onto our platform. 
“We advanced opportunities that will contribute to future trading profits and are confident of securing our FY18 target. 
“From an employee perspective, we achieved an engagement score of 87% in our latest Willis Towers Watson employee engagement survey, which is eight percentage points higher than the Australian National Norm and two percentage points above the Global Property and Asset Management Norm.” 
 
 
 
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Financial Highlights
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Net profit after tax of $997.1 million, up 39.3% on the previous corresponding period 
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Funds from Operations1 (FFO) of $321.8 million, up 8.7% on the previous corresponding period 
</li>
<li>
Underlying FFO per security (FFO excluding trading profits) of 30.2 cents, up 1.7% on the previous corresponding period
</li>
<li>
Distribution per security of 23.7 cents, up 9.2% on the previous corresponding period 
</li>
<li>
Reduced the Group Management Expense Ratio to 33 basis points 
</li>
<li>
Completed Dexus’s largest ever debt raising of $653 million, achieving Dexus’s longest average 
duration for a debt issue of 13.5 years and extending Dexus’s total debt duration to 7.0 years 
</li>
<li>
Gearing (look-through) 2 of 26.5% 
</li>
</ul>
</div>
</div>
</div>
 
</div>
</div>
</div>
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Dexus upgrades guidance growth for FY18 after strong first six months

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Financial services company Yellow Brick Road boss Mark Bouris says “very, very big demand” exists for interest-only loans since the new limits were placed on the banks.
And Bouris wants to step in and fill the gap in the market left by the banks.
The financial services company doesn’t have the ability to provide interest-only loans, instead sending inquiries off to other non-bank lenders while clipping the ticket on the way.
“We don’t have the funding lines to do those particular interest-only loans. We are looking to create the capacity, we’re more than looking,” Mr Bouris told The Australian.
"There are unregulated institutions from around the world and locally that are talking to various people about funding these asset classes that the regular banks don’t want or are unable to lend to."
Interest-only loans accounted for 30 per cent of all new mortgages last quarter, down from 36 per cent in the March quarter, according to figures released by APRA earlier this week.
The company swung to a $1 million after tax profit for the financial year ended June 30 from a $9.5 million loss in the previous year, with executive chairman Mark Bouris saying the smaller lender was well placed to cope with a property market slowdown than bigger rivals.
The strong result was achieved through cost cuts and an increase in loan volumes. 
“The work we’ve done in recent years to expand distribution, increase efficiency and diversify revenue has paid off and allowed us to deliver our maiden profit, even in the face of a tough lending environment,” Bouris said.
He added that despite the volatility of the sector, both loan volumes and revenue had grown. 
Full-year revenue was up 1.6 percent to $218.6 million.
“With these fundamentals in place, we are extremely well-positioned to win in this market,” he said. 
Commenting on the outlook, Bouris said he saw “opportunities for non-bank lenders in the current, tighter credit conditions, and we are considering ways to increase margins in this environment”. 
The group is working on a learning and development platform, which Bouris said was “unlike anything else in the industry”. 
It will boost business skills, technical knowledge and – ultimately - professional standards in the sector, he added.
The 16.7 percent loan growth YBR achieved could be lower due to a slowing residential market but Bouris said the residential market's move to a "healthy, sustainable" level of growth would be good for the whole lending industry.
Only recently, he had said in a column that there was no need to get spooked out by the recent talk about Australia’s housing market bubble set to burst, especially after CoreLogic data pointed to prices dropping, but rather it maybe that the market is taking a breather.
"We're young and new so we will continue to grow – maybe not at the same pace but at a similar sort of pace as we've grown before, so we're not too worried about that," he told The Australian Financial Review after the results announcement.
"I'd be worried if I had a $500 billion book – I'd be starting to get concerned about that – but I don't have that at this stage."
The lender’s underlying loan book picked up to $44.1 billion from $37.8 billion a year earlier, with  wealth management revenue growing 6.9 per cent to $10.4 million.
Bouris said cost cuts had helped profitability. YBR said expense costs narrowed to $18.9 million from $25.7 million the previous year.
The company did not declare a dividend.
Earlier this month, Yellow Brick Road appointed former Macquarie banker Frank Ganis to its board. Mr Ganis, who recently left Macquarie after 28 years, was a pivotal player in building the mortgage securitisation sector in Australia in the 1990s.
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jonathanchancellor-7SQnKwU6yx

Yellow Brick Road eyes offering interest only loans

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Shopping mall owner Scentre Group said it was working on a development pipeline of $900 million on projects in Perth, Melbourne and the Gold Coast, which includes the greenfield development at Westfield Coomera (above).
The others are Westfield Carousel in Perth and Westfield Plenty Valley in Melbourne.
The Westfield Shopping Centre owner expects returns in excess of 15%, it said during the half-yearly results announcement.
“Our announcement of the $470 million (SCG share: $235 million) development at Westfield Coomera (above), our first greenfield development in more than 12 years, reflects our commitment to growing the business, improving the quality of our portfolio and meeting customer and retailer needs,” said chief executive Peter Allen in an earnings release.
The new 59,000 square metre regional centre will comprise Coles and Woolworths supermarkets, an Event Cinemas complex including Gold Class, Kmart and Target discount department stores, and 140 specialty stores including an alfresco leisure and dining precinct.
The group also completed the $355 million development at Westfield Chermside, which includes a new fashion galleria over two levels establishing Chermside.
Adjacent to the galleria is the new entertainment, dining and leisure precinct, with 25 new restaurants and cafes and a laneway with a village atmosphere. 
The redevelopment is expected to add more than $300 million in retail sales and is forecast to exceed expected returns, creating significant long-term value for shareholders. 
Among current developments, Westfield Whitford City is on track to open in September.
Scentre reported funds from operations (FFO) grew to $638 million for the six months to June 30 and said it was on track for a full-year growth of nearly 4.25%.
The FFO figure represents 12.01 cents per security, up 3.5% and distribution of 10.86 cents per security, up 2%. 
Excluding the impact of transactions, FFO growth would have been nearly 5%, Scentre said.
Net operating income increased 2.6% for the six months, driven by contractual rent increases. The group, which owns Westfield Shopping Centres, maintained its forecast range of 2.75% - 3.0% growth for the full year.
Interestingly, fast-food franchisee SumoSalad was locked in a rental dispute with landlord Westfield recently, and was close to negotiating lower rents through its tactic of insolvency laws.
The Scentre Centre group owns and operates 39 Westfield shopping centres, including 16 of the top 25 performing centres in Australia with assets under management of $47.4 billion, it said.
For the six months, profit was $1.4 billion, which included $929 million of revaluation gains driven by growth in operating income across the portfolio and the completion of the Westfield Chermside redevelopment.
Comparable specialty sales in the portfolio grew 2% for the twelve months and 1.5% for the six months to 30 June 2017, with average specialty sales increasing to $11,250 per square metre. Strong sales growth was seen in the food retail, food dining, technology &amp; appliances and retail services categories.
“The portfolio’s high specialty sales productivity ensures strong demand from retailers wanting to generate growth in sales and customer engagement,” Allen said.
The portfolio remains more than 99.5% leased.
The group announced that it will extend its current practice to grow distributions at a lower rate than earnings growth until it reaches a payout ratio at 85% of FFO. The distribution is targeted to grow at 2% per annum until the target payout ratio of 85% is achieved. Once this target is achieved the distribution is expected to grow in line with FFO growth. 
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Scentre Group lines up $900 million Westfield centres in Gold Coast, Perth and Melbourne 

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<div>Lend Lease actually reported its FY2017 results, which confirmed a solid+9 percent lift in post-tax profit to $758.6 million. </div>
<div> </div>
<div>The market wasn't greatly moved, of course, since the group inadvertently dumped a stack of market sensitive information out to to the public at the beginning of the month, including the unaudited EBITDA (oops).</div>
<div> </div>
<div>As accounting stuff-ups go, it was a rather impressive one (disclosure: I made similar goofs in my listed company career) though in the end relatively little harm was done, save a little embarrassment.</div>
<div> </div>
<div>Defaults under 1pc</div>
<div> </div>
<div>Reading through the investor presentation it was interesting to note a +20 per cent uplift in residential unit completions in the 2017 financial year.</div>
<div> </div>
<div>Approximately 90 per cent of apartment completions have already settled, with a default rate of under 1 per cent.</div>
<div> </div>
<div>This follows on from similarly low default rates reported by other developers during earnings season.</div>
<div> </div>
<div>This is very important, for there had been fears of a wave of Chinese investor defaults following on from local lenders pulling up the ladder.</div>
<div> </div>
<div>To date, this does not appear to have transpired.  </div>
<div> </div>
<div>In other news, S&amp;P reported a drop in loan delinquencies from 1.21 per cent in May to just 1.15 per cent in June. </div>
<div> </div>
<div>Declines were recorded "across the board" for 30,60 and 90 day mortgage arrears, with a corresponding fall in outstanding loan balances, with Queensland showing the biggest drop in arrears. </div>
<div> </div>
<div>This broadly mirrors what you'd expect to see given extremely low mortgage rates for homeowners, and a national unemployment rate that has been trending down for several years now.</div>
<div> </div>
<div>No stress?</div>
<div> </div>
<div>Countless media articles have claimed that mortgage stress is rising - often referred to as a "perfect storm" no less! - perhaps based upon household cash flow surveys.</div>
<div> </div>
<div>But in reality so many households have been repaying ahead of schedule into offset accounts that it wouldn't be a surprise if some net monthly cashflows showed an outflow. </div>
<div> </div>
<div>With the aggregate value of the housing stock exploding to $7.1 trillion against mortgage debt of around $1.6 trillion, it also wouldn't be a surprise to me if some of the benefiting households have taken a breather on their earnings either. </div>
<div> </div>
<div>In any event, with the possible exception of Western Australia mortgage arrears remain low to date, which is about the only indicator that matters, when all's said and done. </div>
<div> </div>
<div>
PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.
His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank">Four Green Houses and a Red Hotel</a>.
</div>
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pwargent-M4siyDbqQY

Lend Lease report low apartment default rate

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Mortgage Choice said its full-year profit for the year ended June 30 rose in double digits for the second consecutive year, helped by a strong settlements in its core broking business.
The mortgage brokers’s loan book grew 3.6 percent on the previous financial year to $53.4 billion, while its core broking business recorded settlements of $12.3 billion, its highest yet.
The company also declared a fully franked final dividend of 9 cents per share.
Full-year revenue grew a modest 1.1 percent over the previous year to $199 million.
Cash net profit after taxes was $22.6 million, up 10.2% on on the previous financial year.
<a href="https://www.propertyobserver.com.au/images/2017/08/25/MortgageChoice1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/25/MortgageChoice1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/08/25/MortgageChoice2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/25/MortgageChoice2.png" alt="">
Mortgage Choice has forecast a strong year of business, with CEO Flavell saying the company will focus on growing its network and training of recruits.
“FY17 was a year that saw increased complexity across all areas of retail financial services," said Flavell. He said the volume and velocity of policy and lending products "drove more consumers to Mortgage Choice than ever before”. 
He added that the broker would "continue to accelerate our local area marketing activities to deepen the relationships we have with our customers. Throughout FY17, we implemented a series of grass‐roots brand awareness."
"You may well have noticed a new Mortgage Choice retail store in your local area, seen more Mortgage Choice branded cars on the road, or heard more Mortgage Choice  advertising on the radio. Heading into FY18, the momentum created will be carried forward.” 
In FY2017, its self-branded financing solution, Mortgage Choice Asset Finance. It said the product had seen more than 1,600 loans across the country.
It added 46 new greenfield franchises added to the network.
The broker recently announced that Bennelong Funds Management and Mirvac Funds Management director, Vicki Allen, was replacing retiring chairman Peter Ritchie.
<div class="cq-article-content-paras section">
Questions are being asked about what plans CBA has for its minority stake in ASX-listed Mortgage Choice.
</div>
<div class="cq-article-content-media section">Sources told the Australian Financial Review that while CBA wanted a foothold in mortgage broking it was unlikely to target an acquisition of Mortgage Choice. </div>
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Mortgage Choice says full year cash profit up 10.2 percent on strong settlements

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Real estate agent McGrath’s profit fell sharply for the year ended June 30 and the company announced a share buyback to support its sliding share price.
The full-year underlying earnings in the year ended June 30 falling 5 per cent to $15.6 million and underlying earnings were slightly below market forecasts of $16 million though net profits were slightly higher than a forecast $4.5 million.
Shares were at 77 cents during morning trading on the ASX today. McGrath’s shares have tumbled more than half since their ASX float at $2.10 per share. There was a 54 cents low earlier this year.
The share buyback is expected to be in effect on or after September 8, McGrath said though the number of shares to be bought back will depend on the stock’s price and other market factors. The buyback could go on for 12 months, it said.
It has more than 139 million shares on issue.
Net profit after tax fell 42 per cent to $4.9 million from $8.4 million in the previous financial year, hit by low listings and sales.
Revenue rose a modest 7 percent to $129.4 million.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/McGrathRevenue.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/McGrathRevenue.png" alt="">
Chief executive Cameron Judson described market conditions as challenging during the results presentation.
“Notwithstanding the challenging market environment, particularly as a result of the low volume of listings and sales throughout the financial year, and the loss of a number of high performing sales agents in the Company Owned segment in December 2016 and January 2017, the strength of our business model saw us deliver $15.6 million EBITDA,” said Judson.
<div>
"Disappointingly, listing in our company-owned offices were down 11 per cent," Mr Judson told an investor briefing.
</div>
<div>Earnings fell 42 per cent to $15.5 million from McGrath's 28 company owned sales offices which account for two-thirds of its earnings.</div>
<div> </div>
<div>Its revenue and earnings increased across McGrath's franchise business, property management and mortgage broking businesses.</div>
<a href="https://www.propertyobserver.com.au/images/2017/08/24/McGrathResults.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/McGrathResults.png" alt="">
McGrath added 15 offices to its network during the reporting period -- three company-owned in NSW, and 12 franchise offices in NSW and Victoria. 
It has 102 offices, of which 28 are company owned.
The company had earlier dismissed talk that it was facing an exodus by its franchisees, following exits by senior executives.
McGrath said its market share by sales value was constant at 3.4% nationally.
<a href="https://www.propertyobserver.com.au/images/2017/08/24/McGrathMarketShare.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/08/24/McGrathMarketShare.png" alt="">
Judson said McGrath was exploring new revenue opportunities in adjacent property services. 
“Our aim is to continue to grow the relative contributions of each of our annuity businesses in Property Management, Franchise and Oxygen and de-risk the volatility of our earnings in Company Owned Sales,” he said.
The investor appetite for McGrath shares will be tested shortly when around 46 per cent of its shares come out of escrow, with a significant number held by Mr McGrath, who remains the biggest shareholder of the company with his name, with a 27 per cent stake, though he has indicated he won't ever be a seller.
The company declared a final dividend of 1 cents.
 
 
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