<p>South East Queensland developer&nbsp;<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>’s entry into the Gold Coast apartment market has progressed from pipeline to market, with its Chevron Island project Bronze on Chevron now formally available to purchase ahead of a planned 2029 completion.</p>

<p>The 119-apartment development on Mawarra Street marks the Brisbane-headquartered builder-developer’s first residential play in the Gold Coast, following its expansion south from Brisbane and the Sunshine Coast.</p>

<p><a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-surfers-paradise-qld-4217">Bronze on Chevron</a> comprises a mix of two-, three- and four-bedroom residences, with pricing starting from just over $1.5 million. The project is being delivered under Gardner Vaughan’s fully integrated model, with the group acting as both developer and builder, a structure it has consistently applied across its South East Queensland portfolio.</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367182]</p>

<p>Architecture has been designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jeremy-ferrier-landscape-design">Jeremy Ferrier</a>. The building presents as a single-tower scheme, with a focus on maximising outlook across both the Surfers Paradise skyline and the Nerang River.</p>

<p>Apartments have been planned with open-plan living zones extending to generous balconies, a response to the site’s dual-aspect positioning between river and ocean. Interiors follow a restrained coastal palette, with two colour schemes offered, and an emphasis on natural light and cross-ventilation.</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367181]</p>

<p>Resident amenity is concentrated across more than 1,250 sqm and includes a resort-style pool, gym, yoga lawn and rooftop entertaining areas. A function space with catering facilities forms part of the upper-level offering, alongside north- and south-facing outdoor areas.</p>

<p>Ground level will incorporate two retail tenancies, intended to extend the existing village character of the surrounding streets.</p>

<p>&nbsp;</p>

<p>[smartcode_project:default project_id=107520 project_image_fid=367200]</p>

<p>The project sits within walking distance of Thomas Drive’s established dining strip, while maintaining proximity to <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a> beach and broader Gold Coast amenity. The location, positioned on Chevron Island between the river and coastline, has increasingly attracted mid- to high-density development in recent years as the precinct evolves beyond its low-rise origins.</p>

<p>Gardner Vaughan’s move into the Gold Coast was first signalled in 2025, with the group identifying the region as a natural extension of its operations. Chief Executive Officer Simon Betteridge described the expansion as both “strategic and natural”, citing demand for well-designed apartments in lifestyle-driven markets.</p>

<p>Construction is expected to complete in early 2029.</p>

<p>[smartcode_project_cta:default project_id=107520]</p>


Joel Robinson

Gardner Vaughan brings Bronze on Chevron to market as Gold Coast debut

<p data-end="198" data-start="61">One of the penthouses at Lily Lane, the latest stage of Carrington Place by Ellipse Property, has set a new local apartment price record.</p>

<p data-end="350" data-start="200">The four-bedroom residence, purchased by a local downsizer, sold for $5.75 million—around 75 per cent higher than the previous record of $3.3 million.</p>

<p data-end="461" data-start="352">Over 40 per cent of the first release of apartments at&nbsp;<a href="https://www.apartments.com.au/new-apartments/lily-lane-at-carrington-place-castle-hill-32-carrington-road-castle-hill-nsw-2154">Lily Lane</a> have already been snapped up just six weeks since it launched to the market.</p>

<p data-end="461" data-start="352">&nbsp;</p>

<p>Located at 32 Carrington Road, <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a> and designed by award-winning architects <a href="https://www.apartments.com.au/architects/ptw">PTW</a>, Lily Lane is directly opposite the Hills Showground Metro station. It offers a total 213 units over two 12-storey towers - a mix of 67 one-bedroom, 100 two-bedroom and 46 three-bedroom apartments - with a ground-floor retail offering.</p>

<p>[smartcode_project:default project_id=151821 project_image_fid=368352]</p>

<p>Blake Schulze, National Director – Residential at <a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a>, says around 44 per cent of buyers are&nbsp;owner occupiers, with 35 per cent being investors and 21 per cent first homebuyers.</p>

<p>“Developments of this calibre are very rare in the Hills District, and Lily Lane’s sales success demonstrates the depth of demand for over-sized apartments that genuinely compete with freestanding homes," Schulze says.</p>

<p>"We are seeing particular demand from downsizers who want to remain in the area but transition into spacious, high-quality apartment living."</p>

<p>On the penthouse sale, it says it shows buyers&nbsp;are prepared to pay a premium for scale, quality, and direct access to the Metro.</p>

<p>[smartcode_project:default project_id=151821 project_image_fid=368351]</p>

<p>One-bedroom apartments are sized from 50-72 sqm with prices starting at $745,000, while two-bedrooms are priced from $990,000 with sizes from 75 to 132 square metres. Three-bedroom floorplans are sized between 97 and 182 sqm,, with prices starting at $1,395,000.&nbsp;</p>

<p>The three remaining penthouses, spanning up to 262 sqm, are priced from $2.9 million.</p>

<p>Over 75 per cent of apartments include dedicated studies, multipurpose rooms or family rooms, with select layouts offering walk-in pantries and laundries. Apartments are appointed with premium Miele appliances including ovens, washing machines, dryers, gas cooktops and dishwashers, while larger residences also incorporate integrated Miele microwaves, Fisher &amp; Paykel integrated refrigerators and five-burner Miele cooktops.</p>

<p>[smartcode_project:default project_id=151821 project_image_fid=360285]</p>

<p>Lily Lane will be constructed by award-winning iCIRT-rated builder <a href="https://www.apartments.com.au/builders/decode">Decode Group</a>, with construction to commence in mid-2026 and expected to complete early 2029.</p>

<p>Carrington Place comprises more than 800 apartments and is being delivered across multiple stages, with completion expected in 2032. Integrated with neighbouring bushland, the project will feature over 20,000 sq, of outdoor recreational area, including a one-kilometre boardwalk to Fred Caterson Reserve.&nbsp;</p>

<p>The Hills Showground Metro Station is just a two-minute walk away, offering fast connectivity to Sydney’s CBD, North Sydney, Chatswood, Macquarie Park and Norwest Business Park.</p>

<p>[smartcode_project_cta:default project_id=151821]</p>


Ellipse sets Castle Hill apartment record with $5.75 million Lily Lane penthouse sale

<p data-end="223" data-start="65">Fresh off completing its Delano Crows Nest development, Lindsay Bennelong has lodged plans for its next project, this time turning its attention back to the beach.</p>

<p data-end="431" data-start="225">The developer, started 20 years ago by Clarendon Homes founder Peter Campbell, is proposing a 37-apartment scheme at <a href="https://www.apartments.com.au/new-apartments/17-25-ashburner-street-manly-nsw-2095">17-25 Ashburner Street</a>, Manly, positioned between the southern end of <a href="https://www.apartments.com.au/developments/manly-nsw-2095">Manly</a> Beach and East Manly Cove.</p>

<p data-end="431" data-start="225">Lindsay Bennelong called on local architecture firm Platform Architects to design the new building, given their success at Finn, Lindsay Bennelong's current luxury apartment project on North Steyne.<span style="font-size:12pt"><span style="font-family:Aptos, sans-serif"><span style="color:#222222"><span style="font-style:normal"><span style="font-variant-ligatures:normal"><span style="font-weight:400"><span style="white-space:normal"><span style="background-color:#ffffff"><span style="text-decoration-thickness:initial"><span style="text-decoration-style:initial"><span style="text-decoration-color:initial"><i>&nbsp;</i></span></span></span></span></span></span></span></span></span></span></span></p>

<p data-end="372" data-start="143">According to the Design Verification Statement by Bridie Gough of Platform Architects, the proposal “relates to the current context but also the desired future character of taller buildings suitable to the new planning controls.”</p>

<p data-end="722" data-start="374">The site has been identified as a Low to Mid-Rise Housing (LMR) location, given its position within 400 metres of the Manly Town Centre E1 Business Zone. The LMR controls are intended to unlock additional housing supply in well-located areas close to public transport, allowing developers to seek increased height limits to support greater density.</p>

<p data-end="884" data-start="724">“The proposal seeks to provide this increased level of housing whilst being respectful of some of the smaller scale buildings also nearby,” the statement reads.</p>

<p data-end="1207" data-start="886">Lindsay Bennelong Development Director Leigh Manser said the project has been carefully aligned with the intent of the LMR controls. The proposal will significantly increase housing yield on the site, replacing four houses and 10 apartments, comprising 25 bedrooms, with 37 new apartments delivering a total of 94 bedrooms, whilst remaining compliant with the LMR controls.</p>

<p data-end="1487" data-start="1209">“Sydney is in a severe undersupply, and delivering more dwellings and more bedrooms than what currently exists is exactly what the LMR policy is designed to activate,” Manser said, noting that nine of the apartments will be allocated as affordable housing for frontline workers.</p>

<p data-end="1843" data-start="1489">“We have already commenced discussions with our community housing provider to determine the rental levels that frontline workers can realistically afford in this location,” he said. “These will need to sit well below the standard affordable housing benchmark of 20 per cent below market rent, and that has been factored into our feasibility and pricing.”</p>

<p><img alt="Manly" data-entity-type="file" data-entity-uuid="ad03000f-19f9-48b4-b27d-e85ca800a1da" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%208.41.59%E2%80%AFAM.png?VersionId=a.txHwCZgbCInlQ6QXbIrI.umvW1T.r8" /></p>

<p data-end="1825" data-start="1664">The design of the building incorporates a wave-like indentation running through the façade, referencing the nearby coastline and anchoring the building within its local context.</p>

<p data-end="1825" data-start="1664">The&nbsp;Design Verification Statement says careful consideration has been given to the articulation of the building, ensuring the bulk is broken down to a more human scale through a defined four-storey podium."</p>

<p data-end="1825" data-start="1664">The scheme includes a mix of one-, two- and three-bedroom apartments, as well as a full-time building manager's office and wellness facilities including a sauna and a gym.</p>

<p data-end="2146" data-start="1962">“The design ensures a high level of amenity, with apartments offering generous private open space, many with expansive views, and all with comfortable proportions."</p>

<p data-end="2146" data-start="1962"><img alt="Bennelong" data-entity-type="file" data-entity-uuid="6a7f2812-72a1-4959-84b0-997e8cd88aed" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-30%20at%2010.15.50%E2%80%AFAM.png?VersionId=6iMxU3MkXmHVHAoNhYBjnqgka8CUZNbk" /></p>

<p><a href="https://www.apartments.com.au/developers/lindsay-bennelong-developments">Lindsay Bennelong</a>&nbsp;is currently developing Finn Manly, just four full-floor luxury apartments on North Steyne. They recently welcomed residents to its 81-unit Delano Crows Nest development, a&nbsp;carefully scaled infill project designed to bridge&nbsp;<a href="https://www.apartments.com.au/developments/crows-nest-nsw-2065">Crows Nest</a>’s lively village centre with its surrounding heritage streets.</p>

<p>Designed by&nbsp;<a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>,&nbsp;<a href="https://www.apartments.com.au/new-apartments/delano-crows-nest-27-57-falcon-street-crows-nest-nsw-2065">Delano</a>&nbsp;is arranged across three low-rise buildings, incorporating a mix of one, two, and three-bedroom apartments alongside a limited number of townhomes addressing Hayberry Lane. The architectural approach drew on the area’s Art Deco lineage, reinterpreted through contemporary detailing and framed by landscaped communal gardens.</p>

<p>The developer also has a development site in Maroubra.</p>


First look: Lindsay Bennelong's new Manly apartment development revealed

<p>Fifty-nine residences across 37 levels. No more than two per floor. With 80 per cent now sold, what remains at <a href="https://www.apartments.com.au/new-apartments/madeline-by-mosaic-broadbeach-22-mary-avenue-broadbeach-qld-4218">Madeline by Mosaic</a> is a short list.</p>

<p>Madeline was always conceived at a scale that sits outside the normal register of Gold Coast apartment living. The residences are half- and full-floor configurations, with the largest spanning more than 400 sqm, dimensions that place them closer to the penthouse end of the market regardless of where they sit in the building.</p>

<p>That scale is the organising principle of everything else: how the floorplans are laid out, how the materials read, how the connection between inside and outside works.</p>

<p>[smartcode_project:default project_id=150135 project_image_fid=355941]</p>

<p>The interiors were developed in collaboration with <a href="https://www.apartments.com.au/architects/fraser-partners-0">Fraser &amp; Partners</a>, the architecture practice&nbsp;<a href="https://www.apartments.com.au/developers/mosaic-property-group">Mosaic</a> brought in as design partner for the first time on this project. The palette runs to natural stone, textured timbers, and soft metallics, materials chosen as much for their tactile quality as their appearance.</p>

<p>Light cleverly shifts across surfaces through the day, and the design is explicit about wanting that to be noticed. Full-height glazing runs across the primary living areas, and where the building faces east toward the ocean, those walls of glass are doing real work: framing a view corridor that the site's position directly opposite Broadbeach State School's playing fields keeps permanently open.</p>

<p>That outlook is the site's most consequential asset. In a suburb where new towers continue to rise, a protected view line is genuinely rare, and the Mary Avenue address secures it. Residents at Madeline will look out over open parkland rather than the rear of another building, a distinction that becomes more meaningful with each new development approved nearby.</p>

<p>[smartcode_project:default project_id=150135 project_image_fid=355939]</p>

<p>The private outdoor spaces are sized to match the residences themselves. Terraces on the upper levels frame uninterrupted ocean panoramas, and the planning ensures that living areas extend into those outdoor zones rather than treating them as separate attachments. The flow between the two is part of the design intent, not an afterthought.</p>

<p>Inside, the finish specification reflects the same approach. Rich stone benchtops, warm timber joinery, bespoke hardware, each element specified to hold up over time rather than read as a moment in a particular trend cycle.</p>

<p>[smartcode_project:default project_id=150135 project_image_fid=3409]</p>

<p>Beyond the residences, the amenity offering extends that register. A lap pool and sun deck anchor the outdoor space, alongside a magnesium pool, cold plunge, steam room, and sauna.</p>

<p>A commercial-grade gymnasium, residents' lounge, library, and boardroom round out a programme that functions more like a private members club than a standard building amenity floor.</p>

<p>Construction has commenced under Mosaic's in-house building arm, with completion scheduled for late 2028.</p>

<p>[smartcode_project_cta:default project_id=150135]</p>


Madeline by Mosaic delivers penthouse-level living across every apartment

<p>Developer Fortezza Group is the latest to take its new apartment development, <a href="https://www.apartments.com.au/new-apartments/the-belvedere-5-7-church-street-nelson-bay-nsw-2315">The Belvedere in Nelson Bay</a>, to the NSW Government.</p>

<p>Fortezza, predominantly a South East Queensland developer, is the latest to apply for State Significant Development&nbsp; status through the NSW Government's Housing Delivery Authority, a pathway becoming favoured by developers to speed up the approval process.</p>

<p>They are planning 57 two- and three-bedroom apartments across 5-7 Church Street and 42 Donald Street, near d'Albora Nelson Bay Marina. The diverse apartment mix has sizes from just over 80 sqm to the largest three-bedroom penthouses that reach nearly 200 sqm.</p>

<p><img alt="Fortezza" data-entity-type="file" data-entity-uuid="090360e1-66d7-43ad-b686-aba81f173bf2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-29%20at%2010.22.40%E2%80%AFAM.png?VersionId=DMqF96eBZolqSAAAcugX0l66ueWng66m" /></p>

<p>Fortezza calls the project a "piece of Istria in Nelson Bay,"&nbsp;referring to the largest peninsula in the Adriatic Sea, shared by Croatia (90%), Slovenia, and Italy, which is known for its Roman history, Venetian-style coastal towns and inland hilltop villages.</p>

<p>They say the The Belvedere is strategically positioned at the apex of Nelson Bay, offering unrivalled views of the ocean, the bay and captivating topography of the area.</p>

<p>"Our commitment to maintaining the integrity of every view and sight line has been relentless," Fortezza Group says.</p>

<p>"Through extensive modelling and analysis, we ensure that each apartment enjoys the natural beauty of Nelson Bay, regardless of future developments. Each design element is carefully curated to harmonise with our European heritage, drawing profound inspiration from the Roman architectural marvels in Istria. The arches, the cascades of greenery and the stonework that define our project pay homage to the structures that once exemplified Roman grandeur."</p>

<p>Residents will have access to a pool, communal green spaces, an office and a coffee shop.</p>


First look: Fortezza Group takes The Belvedere, Nelson Bay apartment development, to NSW Government

Profit

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<div><span>Given that APRA's crackdown on investor lending has skimmed so many high loan-to-value ratio (LVR) investors out of the property market, it was always going to take a super-human 1Q 2016 investor update from Genworth Mortgage Insurance (GMA) to keep its share price buoyant.</span></div>
<div> </div>
<div><span>In the event, GMA reported statutory net profit after tax (NPAT) of $67.3 million and underlying NPAT of $61.8 million for the quarter ended 31 March 2016.</span></div>
<div><span> </span></div>
<div><span>Overall this was a solid set of results given that Gross Written Premium was down by a thumping 33.4 per cent from 1Q 2015, having declined dramatically from $127.7 million to $85 million.</span></div>
<div> </div>
<div>This statistic is a fabulous measure of the impact of the regulatory intervention - the riskier loans have largely been crimped out of the property market.</div>
<div><strong><span style="text-decoration: underline;"><br>Delinquencies</span></strong></div>
<div> </div>
<div>Genworth's portfolio delinquency rate was marginally higher at 0.40 per cent, up from 0.36 per cent in 1Q 2015.</div>
<div> </div>
<div>Overall mortgage delinquencies remain remarkably low, and can realistically only move in one direction from here, particularly given that numerous resources towns in regional Queensland have effectively become ghost towns.</div>
<div> </div>
<div>Unfortunately many investors were sucked in to buying in mining towns and regions lured by superficially "stronger" yields, but unfortunately in many cases there is now nobody to rent the houses to, and as equity turns negative foreclosure rates will inevitably rise.</div>
<div> </div>
<div>The lesson here is that "yield" and "income" are not the same thing, and that as an abstract spot calculation yield is largely useless as an indicator of future returns. This applies to all asset classes.</div>
<div> </div>
<div>Even in some of the larger conurbations there are likely to be some severe challenges ahead, with unemployment in Townsville having risen to a <a href="https://petewargent.blogspot.com.au/2016/04/townsville-unemployment-at-13-year-high" target="_blank">13 year high</a> last month.</div>
<div> </div>
<div>Despite these bleak statistics, overall delinquency developments have shaped up quite favourably since 2009, with mortgage delinquencies by book year having cascaded lower over time. </div>
<div> </div>
<div>The 2008 book year saw heightened mortgage stress among self-employed borrowers as a result of the financial crisis (0.98 per cent), while flooding in Queensland saw elevated delinquency rates in the 2011 book year.</div>
<p><a href="/images/2016/05/02/GMA.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/05/02/GMA.jpg" alt=""></p>
<p> </p>
<div>At the state level delinquency rates are incredibly low in New South Wales (0.29 per cent).</div>
<div> </div>
<div>Delinquency rates are notably higher in Queensland (0.55 per cent), in part due to mining town foreclosures, and largely related to the literal wash-up from the severe 2011 flooding in the state.</div>
<div> </div>
<div>The largest year-on-year rise in delinquency rates of 16 basis points was seen in resources rich Western Australia, where portfolio delinquencies have increased to 0.53 per cent.</div>
<div> </div>
<div>Nevertheless, Genworth sees the mortgage market remaining strong in aggregate, reporting in its investor update:</div>
<div> </div>
<div><em>"The outlook for the Australian residential mortgage market remains strong, supported by sound fundamentals including low unemployment, record-low interest rates and a continued focus by regulators on lending standards."</em></div>
<div> </div>
<div>And notably Genworth expects further constraints on high LVR lending in 2016 and beyond:</div>
<div>
<br><em>"The high LVR market continues to be constrained in 2016 and Genworth continues to expect GWP to decline by approximately 20 per cent due to these market conditions."</em>
</div>
<div><em> </em></div>
<div>Share market analysts were fairly unmoved on the news, the share price steady at around $2.39.</div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>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" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
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pwargent-M4siyDbqQY

Genworth mortgage insurance update: Pete Wargent

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<p>The Commonwealth Bank of Australia has posted a full-year cash profit of $9.233 billion, down some 4.8 percent.</p>
<p>The last time the bank posted a weaker profit was in 2009.</p>
<p>The result includes $400 million in regulatory costs. The decline was mostly driven by a $700 million penalty paid to AUSTRAC after it breached anti-money laundering laws.</p>
<p>CEO Matt Comyn said the results concluded what had been "a difficult 12 months" for the bank.</p>
<p>"I wanted to start by thanking all of our people right throughout the business who have worked incredibly hard in challenging circumstances to deliver a result of $9.2 billion, which at a headline level is down 4.8 percent, although there has been a number of one-off items that have impacted the result, including a couple of large penalties that we have resolved," said Comyn.</p>
<p>"If you strip some of those out, actually the result looks more from an underlying perspective up 3.7 percent."</p>
<p>Comyn said he recognised the impact the bank's mistakes were having on customers.</p>
<div data-module="video" data-class="video-js video-js--network" data-param-page-name="finance:finance:home:default" data-video="5778774177001" data-category-name="MSNVideo_Cat" data-category-value="ausydney" data-sticky-enabled="false" data-sticky-target-selector=".layout__utility" data-show-description="data-show-description">
<div data-reactroot="">
<div>
<div>
<div id="player_vl6eu" lang="en-au" data-param-page-name="finance:finance:home:default" data-param-video-name-prefix="finance|" data-param-ad-unit="finance/web" data-video-id="5778774177001" data-player="H190EXsjW" data-account="664969388001" data-embed="default">"We just have to recognise we have not done a good enough job for our customers. We got some things wrong. We have made mistakes," said Comyn.</div>
</div>
</div>
</div>
</div>
<p>"We absolutely need to make sure we do not make them again. And a big part of my job of course is making sure we are a simpler and better bank for our customers, working closely with any customers who have not had a good experience, but most importantly making sure that those sorts of issues do not recur.</p>
<p>"Ultimately it is going to be something that our customers need to decide, and I am very comfortable, and feel very accountable, for ensuring that we deliver great experience and outcomes for our customers over the long term."</p>
<p>The Commonwealth Bank board declared a full year, fully franked dividend of $4.31.</p>
<p>It noted switching from interest-only mortgages was stressing some borrowers.</p>
<p>The number of home loan borrowers late on repayments spiked, but Comyn said customers have been able to get payments back on track by paring back their spending elsewhere.</p>
<p>CBA advised a 10 basis point increase in the number of customers more than 90 days late on their home loan repayments - from 0.60 per cent to 0.70 per cent of borrowers. </p>
<div>
<p>Comyn said he did not expect the arrears levels would deteriorate further and that "over time, the customers adjust to the new payments".</p>
<p data-gtm-vis-first-on-screen-7770372_137="391847" data-gtm-vis-total-visible-time-7770372_137="4000" data-gtm-vis-has-fired-7770372_137="1">Analysts asked Mr Comyn about the rising arrears during the results briefing, with Macquarie's Victor German observing the number is a "historical leading indicator for deteriorating credit quality". </p>
<p>CBA is the largest mortgage lender in Australia, with 1.5 million home loan accounts with a total balance of $374 billion.</p>
<p>Of these, 64 per cent of borrowers are owner occupiers. </p>
<p>Some 30 per cent of CBA mortgage customers are on interest-only loans, down from 39 per cent a year ago. </p>
</div>
<div>Around 27 per cent of CBA's interest only borrowers are expected to switch to principal and interest loans in FY2019 with the bank writing to interest only borrowers 12 months before their loans reset to warn them of the changes.</div>
<div> </div>
<div>The AFR noted the briefing was advised 79 per cent of customers coming to the end of an interst only period have an opportunity to extend the interest-only terms for a further year. </div>
<div>
<p>CBA said the uptick in mortgage arrears reflects "pockets of stress" in the economy, mostly in Western Australia, where the bank saw "continued softness in outer metro and regional" areas rather than mining towns, and in the Northern Territory, where its small book was hit by rising unemployment as resource projects were completed.</p>
</div>
<p> </p>
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j.ballantyne1990-6AQqhLzZaK

CBA profit dips for first time in decade as mortgage arrears spike

<html><body>
<p><span>Lendlease delivered profit after tax for the half year ended 31 December 2015 of $353.8 million, versus the prior corresponding period profit after tax of $315.6 million, up 12 percent.</span></p>
<p><span>“Significant momentum has driven first half of 2016, with increasing cash generation and a positive growth outlook,” CEO and managing director, Steve McCann said.</span></p>
<p><span>The highlights were signalled as:</span></p>
<p><span>Estimated development pipeline end value of $46.6 billion, up 15 percent</span></p>
<p><span>Residential pre sales revenue of $5.4 billion, up 49 percent</span></p>
<p><span>Residential settlements of 2,128 up 45 percent</span></p>
<p><span>Construction backlog revenue of $18.6 billion, up 19 percent, with a further $6.1 billion of </span><span style="line-height: 1.3em;">construction new work secured, up 30 percent</span></p>
<p><span>Funds under management of $22.0 billion, up 26 percent, including $1.2 billion of third party capital</span></p>
<p><span>“We remain on a strong growth trajectory, with greater visibility to earnings and cash over the coming years,” he said.</span></p>
<p><span>“Our development pipeline has grown to $46.6 billion, with approximately 75 percent represented by urbanisation related projects. During the half we had strong sales momentum at residential projects at Victoria Harbour in Melbourne and Elephant &amp; Castle in London and we secured planning approvals for a new urban regeneration project in Chicago,” he said.</span></p>
<p><span>Residential pre sales reached a record $5.4 billion, up 49 percent and residential settlements rose 45 percent to 2,1285 .</span></p>
<p><span>“In the last six months we have settled over 650 apartments, with non-settlement at less than 1 percent versus our historic average of less than 3 percent.</span></p>
<p><span>"We maintain a disciplined approach to delivery risk and pre sales.”</span></p>
<p><span>Lendlease today announced the appointment of David Craig to its board.</span></p>
<p><span>Mr Craig is the Chief Financial Officer (CFO) of Commonwealth Bank of Australia, and has also served as a Non Executive Director of The Australian Gas Light Company Limited (AGL) and Colonial Mutual Life Assurance Limited.</span></p>
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jchancellor-FAypfDUnLy

Victoria Harbour sales momentum assists Lendlease profit

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<p><span>Industry super fund-owned bank ME has reported an underlying net profit after tax of $60 million for FY2015, a rise of 27% on the previous reporting period.</span></p>
<p><span>The increase was driven by growth in home loan settlements, up 22 per cent to $4.6 billion, as well as disciplined management of net interest margin.</span></p>
<p><span>ME chief Jamie McPhee, said it was a strong performance.</span></p>
<p><span>ME’s cost-to-income ratio continued to fall, reducing 260 basis points to 68.5%.</span></p>
<p><span>McPhee said cost-to-income had been on a downward trajectory since June 2009 when the ratio was 84.5%.</span></p>
<p><span>Customer numbers grew 8% to 338,000 with customer deposits increased 7 per cent to $8.8 billion.</span></p>
<p><span>Total on and off balance sheet assets grew 7 per cent to $23.3 billion, with total loans on the balance sheet growing 19% year-on-year to $17.8 billion.</span></p>
<p><span>The broker sales channel surpassed $2.2 billion, up from $1.2 billion last year, an increase of 83%.</span></p>
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ME Bank profit up 27%

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<p><span>REA Group has reported a full-year underlying net profit after tax of $185.4 million, up 24% on a year ago, with revenues up 20% to $523 million.</span></p>
<p><span>Ad sales were slightly below consensus forecasts of $528 million, as were net profits, which analysts had forecast at $192 million, according to Bloomberg.</span></p>
<p><span>The shares, which got to a year high of $51.28 in February, are trading at around $41.20.</span></p>
<p><span>REA Group chief executive Tracey Fellows told investors and analysts on a conference call the business had "achieved 20% revenue growth despite listing volumes in the Australian market being down 4%" for the year ended June 30. </span></p>
<p><span>"Listing volumes recovered in June and this recovery has continued into July; giving us some indication of improving market conditions for the first half," Ms Fellows said.</span></p>
<p><span>“We’ve accomplished this by providing our customers more choice and better value and by giving the 3.4 million people who use our sites monthly an exceptional experience.</span></p>
<p><span>“Our strategy to take our expertise both internationally and to new markets gathered pace this year.</span></p>
<p><span>"We have expanded into the world’s largest property market, the US with Move; as well as one of the fastest growing regions through our iProperty investment in Asia.</span></p>
<p><span>“And we launched our utility connections service that is helping movers compare and connect services to their property, such as gas, electricity and subscription TV."</span></p>
<p><span>Australian revenue</span>s increased by 21% to $472.8 million this year.</p>
<p>Its agent customers increased by 5% to 9,922 for the year ended 30 June 2015.</p>
<p>Average monthly visits to realestate.com.au main and mobile sites grew 26% with the average number of monthly page views on realestate.com.au at around 991 million, that REA claims is some six times higher than the number two site, Domain.</p>
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REA Group sees emerging higher property listing revenues - and utility connections 

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<p><span>House renovators hoping for a quick profit run the risk of underestimating the cost of the flip.</span></p>
<p><span>But Cherie Barber, a professional renovator who runs a company providing renovation courses, remains optimistic about buying for renovation and sale.</span></p>
<p><span>Barber says it is always possible to renovate for a profit.</span></p>
<p><span>"You cannot talk about a single Australian market," she recently told <em>The Australian Financial Review</em>.</span></p>
<p><span>"There are more than 4000 suburbs and as many markets."</span></p>
<p><span>She says renovating to sell or hold depends on individual markets, which means analysis of the costs and benefits of the property, street and suburb.</span></p>
<p><span>Research suggest about 6 per cent of residential properties sold in Australia sold again in less than two years.</span></p>
<p><span>Across the country, CoreLogic RP Data noted homes that resold recently at a loss had an average length of ownership of 6.0 years.</span></p>
<p><span>Across resales of homes throughout the March 2015 quarter, those homes that were held for only a short period of time proved to be much more susceptible to loss.</span></p>
<p><span>Although home values increased over the past 12 months, 13.0% of owners who purchased and resold in the same year recorded a gross loss.</span></p>
<p><span>Any flip investment needs to estimate value the time involved and also the risks on the costs of acquisition, holding, renovating and selling.</span></p>
<p><span>Cherie Barber says she can complete a 10-day complete makeover of a house that would take other renovators between six and 12 months at double the cost.</span></p>
<p><span>She suggests not to pay the invoices in full until you are 100% happy with the works being completed.</span></p>
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The renovation flip is still doable: Cherie Barber

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<p><span>The Frank Costa family will retain 10.5% of Australia's biggest horticulture company, which is expected to list on the ASX with an $840 market value in August.</span></p>
<p><span>The <em>Australian Financial Review</em> report the IPO is priced at $2.20 to $2.70 a share, which is 14.9 to 17.6 times Costa's forecast net profit for the 2016 financial year.</span></p>
<p><span>The pricing has implied a dividend yield of between 3.4% and 4.1% for the same period.</span></p>
<p><span>The <em>AFR's Street Talk</em> column suggests based on the mid-range price of $2.45, the Costa family will make $158 million from selling down their stake in the 127-year-old company</span></p>
<p><span>Costa has been pitching the company to investors as an industrial technology company rather than purely an agriculture company following its move into protected cropping, which accounts for about 75% of its earnings now.</span></p>
<p><span>Costa owns five blueberry farms in Morocco in a joint venture with three minor shareholders and has also partnered with US berry company Driscoll's to build a farm in China.</span></p>
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