<p>The idea of a low-maintenance forever home located close to the city were the two driving factors behind a recent purchaser’s journey at Murcia, the under-construction East Brisbane apartment development by Sarazin.</p>

<p>Last year, Lois and her husband purchased a two-bedroom plus multi-purpose room (MPR) apartment in the new building, which is being constructed by Hutchinson Builders and is on track for completion in late-2027.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=341638]</p>

<p>The couple’s number one priority was to remain within easy commuting distance of the city for work. Murcia is positioned alongside the new Cross River Rail, with Woolloongabba Station just 300 metres from the front door.</p>

<p>They are currently living in their Annerley unit, which they have owned for several years, after recently moving out of their inner-city apartment, located on the very same street as Murcia.</p>

<p>“We had watched the development for a long time, and when construction activity began, that’s when we felt confident to buy,” Lois said.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=356540]</p>

<p>The timing also made sense. By moving back into their Annerley unit, they are able to save money ahead of settlement, while looking forward to returning closer to the city once Murcia is complete.</p>

<p>“We see Murcia as a forever home, as opposed to an investment, or something we need to appreciate massively in value and move on from in a few years,” Lois said.</p>

<p>“We secured an apartment large enough to grow a family, so we’re expecting to call Murcia home for a very long time.”</p>

<p>The couple plan to grow their family, but without the added maintenance demands of owning a standalone house further from the city. Working with Sarazin and architect HAL, they were able to slightly tweak the floorplan, converting the two-bedroom plus MPR layout into a functional three-bedroom apartment.</p>

<p>An added bonus was the recently revised communal space plans, which now incorporate a dedicated working-from-home area, complete with work pods, and shared desks.</p>

<p>“It means the third bedroom doesn’t have to become a part-time office and part-time bedroom,” Lois said, adding that residents have the benefit of working from home without actually being inside their apartment.</p>

<p>The rooftop wellness amenity was another standout compared to living in an established complex or a house. A signature feature of Sarazin developments, the rooftop will include a full gym, hot and cold plunge pools, a steam room and sauna, and a hotel-style pool with cabanas.</p>

<p>[smartcode_project:default project_id=135094 project_image_fid=214682]</p>

<p>Buyer journeys can vary significantly, from purchasing in the established market to buying new, or choosing between houses and apartments. Lois said they knew immediately that buying off the plan was right for them.</p>

<p>“We wanted something new, with less maintenance, and we weren’t quite ready to make the full financial leap straight away. The timing and deposit structure gave us the flexibility we needed.”</p>

<p>Designed by HAL Architects and inspired by the Spanish city of Murcia, the development takes a Mediterranean-influenced approach to architecture and landscaping, with a strong emphasis on shared spaces.</p>

<p>“The design feels considered, the amenities support how we actually live, and the location keeps us connected to the city without feeling right in the middle of it.”</p>

<p>Murcia is Sarazin’s second development in the area, following the completion of Silk One just up the road in 2022. They have several more projects coming to market in Woolloongabba ahead of the 2032 Brisbane Summer Olympics.</p>

<p>[smartcode_project_cta:default project_id=135094]</p>


Joel Robinson

Close to the city, built for the future: Inside a growing family’s move to Murcia in East Brisbane

<p data-end="202" data-start="55">While most developers are aiming high across the Gold Coast, John Kearney’s <a href="https://www.apartments.com.au/developers/immerse-projects">Immerse Projects</a>&nbsp;has scaled back its plans for its Kirra Beach project.</p>

<p data-end="332" data-start="204">As first reported by Apartments.com.au in April 2025, Immerse <a href="https://www.apartments.com.au/news/qld/first-look-immerse-projects-plan-new-apartments-at-kirra-beach">lodged plans for 105 apartments</a> on its 2,026 sqm Haig Street site.</p>

<p data-end="484" data-start="334">The developer has now revised the proposal, reducing the 14-storey building to nine storeys and cutting the total number of apartments from 105 to 65.</p>

<p data-end="718" data-start="486">The new scheme will also feature a broader mix of apartments. It will comprise 23 two-bedroom units, 17 three-bedroom units, and 25 four-bedroom apartments, the latter a configuration that was not included in the original proposal.</p>

<p><img alt="Lot 11 C2859, 7 Haig Street, COOLANGATTA QLD 4225" data-entity-type="file" data-entity-uuid="972e3bbf-c3e6-4308-b098-5821e571f829" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Haig%20Street%20perspective%201.png?VersionId=3jkyNU0n7TW08DpkoEsY62bXWTb3UHxY" /></p>

<p>The building will rise to a compliant height of 29 metres, aligning with the Building Height Overlay.&nbsp;</p>

<p>The built form incorporates three basement levels accommodating 197 resident car parks and 13 visitor spaces, alongside storage and servicing areas. Level two is dedicated in part to communal amenity, including a lap pool along the western boundary, pool deck, spa and cold plunge pools, gym, work-from-home and meeting spaces, and landscaped areas designed to enhance privacy and outlook.</p>

<p>The typical floorplate will have eight apartments per level.</p>

<p><img alt="Lot 11 C2859, 7 Haig Street, COOLANGATTA QLD 4225" data-entity-type="file" data-entity-uuid="002d2594-9cf4-4ee4-bb2a-9a0546ac1cc5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Haig%20Street%20site.png?VersionId=Qk.Cm0K9RziXrWu0Q4u2eOjEM3CwNhhC" /></p>

<p>The subject site is currently occupied by two 1970s-era walk-up buildings, Giraween and Caribbean, comprising 14 apartments.</p>

<p>Immerse Projects, led by building veteran John Kearney, who also heads construction firm Greyburn, has become increasingly active in the Kirra and broader southern Gold Coast market. The group recently completed Rhyhthm Kirra Hill on Garrick Street. They have another site locally, on McLean Street, which has approved plans for 58 apartments.</p>


First Look: Immerse favours four-bed apartments in Kirra Beach switch

<p data-end="237" data-start="86">The development wave is continuing in the affluent suburb of Woollahra following last year’s planning reforms introduced by the Minns Labor Government.</p>

<p data-end="840" data-start="239">In early 2025, the NSW Government implemented significant changes to its Low and Mid-Rise Housing Policy, altering planning controls to allow greater density for new apartment projects within an 800-metre walking distance of stations and town centres in the Woollahra Local Government Area, overriding existing local controls. Buildings are now permitted to rise up to six storeys within 400 metres of a station or centre, or eight storeys where affordable housing is incorporated, and up to four storeys within the 401 to 800 metre radius, which can increase to six storeys with affordable housing.</p>

<p data-end="1055" data-start="842">Since then, a significant number of development applications have been lodged, and numerous sites have transacted, some at record highs, with the increased density provisions now working in favour of developers.</p>

<p data-end="1217" data-start="1057">Lower North Shore developer Abadeen are behind the latest project. They are planning a six-storey residential building at 101–115 Edgecliff Road, on the border of Woollahra and Bondi Junction.</p>

<p><img alt="First Look: Lindos Group plans six-storey adaptive reuse apartment project in Woollahra’s Fletcher Precinct" data-entity-type="file" data-entity-uuid="17a75a04-3ecd-4b0f-af9f-54514690721b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Edgecliff%20DA%20front.png?VersionId=r0MiKualBGqKrjVj6hJZHsEiwl9QzF0D" /></p>

<p data-end="1402" data-start="1219">The proposal would replace a trio of interwar flat buildings on the amalgamated 1,514 sqm site, which has three street frontages to Edgecliff Road, Adelaide Street and Australia Lane.</p>

<p data-end="1645" data-start="1404">Importantly, as noted in the documents, the project represents a 200 per cent increase in bedroom density, from 32 bedrooms to 66, rather than a significant increase in the number of apartments, which will rise only slightly from 28 to 29.</p>

<p data-end="1998" data-start="1647">The scheme proposes four one-bedroom units, 13 two-bedroom units, and 12 three-bedroom apartments. The submitted planning documents note that, based on market research and background analysis, one of the primary target markets will be downsizers seeking to remain in the local area while moving out of larger freestanding homes they no longer require.</p>

<p data-end="2222" data-start="2000">“This allows for new housing supply opportunities beyond just the subject site,” the Design Report by architecture firm Squillace states. The current unit mix comprises 24 one-bedroom apartments and four two-bedroom units.</p>

<p data-end="2384" data-start="2224">The top level of the new development will feature a rooftop deck with a pool, barbecue facilities, integrated seating, and a communal vegetable and herb garden.</p>

<p data-end="2726" data-start="2386">“Providing these facilities is beneficial in encouraging increased interaction between occupants, which in turn fosters a greater sense of community,” Squillace’s report notes. The firm adds that the vegetable and herb garden, in particular, offers social value, with volunteering opportunities creating further interaction among residents.</p>

<p><img alt="First Look: Lindos Group plans six-storey adaptive reuse apartment project in Woollahra’s Fletcher Precinct" data-entity-type="file" data-entity-uuid="9619b7bb-291d-417a-a006-f36d14a97cb1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Edgecliff%20DA%20perspective.png?VersionId=PYeMKcgOnEV7XVztARQ_YVDlvHcuyZaW" /></p>

<p data-end="2865" data-start="2728">Squillace describes the intent as delivering additional housing supply while maintaining the heritage character of the Fletcher Precinct.</p>

<p data-end="3072" data-start="2867">“Our objective is to design a high-quality benchmark building that enables considered additions and the adaptive reuse of the existing three brick residential flat buildings,” the architecture firm states.</p>

<p data-end="3555" data-start="3074">The site is located within a heritage conservation area, with all three existing buildings identified as contributory items in the Woollahra Development Control Plan. Rather than pursuing wholesale demolition, the proposal retains the primary brick façades and tiled pitched roof forms along Edgecliff Road and Adelaide Street. New upper-level additions are set back from the existing parapets and articulated with horizontal and vertical shadow lines to provide visual separation.</p>

<p data-end="3787" data-start="3557">“The proposed design seeks to retain the primary brick façades and roof forms to the street, demonstrating how existing building fabric can be preserved while increasing housing density within conservation areas,” the report adds.</p>

<p data-end="3787" data-start="3557">Prior to Christmas, around <a href="https://www.apartments.com.au/news/nsw/rose-bay-apartment-market-fires-up-with-200m-in-new-developments-filed">$200m of new projects</a> were filed in Rose Bay alone, within the Woollahra LGA.</p>

<p data-end="3787" data-start="3557">The suburb of Woollahra is subject to the most change in the Woollahra LGA, with the&nbsp;Minns Labor Government to deliver&nbsp;Sydney’s first new heavy rail station in more than a decade, enabling up to 10,000 new homes by rezoning land around&nbsp;<a href="https://www.apartments.com.au/developments/woollahra-nsw-2025" target="">Woollahra</a>&nbsp;and&nbsp;<a href="https://www.apartments.com.au/developments/edgecliff-nsw-2027" target="">Edgecliff</a>&nbsp;stations.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/next-stop-woollahra-train-station-delivering-up-to-10-000-new-homes-in-the-heart-of-sydney">Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney</a></em></p>


First Look: Woollahra development wave continues as Abadeen plots six-storey apartment block

<p><a href="https://www.apartments.com.au/new-apartments/crest-broadbeach-13-armrick-avenue-broadbeach-qld-4218">Crest Broadbeach</a> continues to record strong sales momentum more than a year after the launch of second tower, reinforcing buyer confidence in the <a href="https://www.apartments.com.au/developers/morris-property-group">Morris Property Group</a> development as construction progresses on site.</p>

<p>The two-tower project on Armrick Avenue is now around 70 per cent sold. Around 90 per cent of the apartments in the first tower have been snapped up, with more than 40 per cent of sales achieved in the second tower since its mid-2025 release. With both towers now under construction and completion targeted for late 2027, Crest continues to attract buyer interest well after its initial launch.</p>

<p>The project’s sales success reflects Morris Property Group’s long-standing commitment to premium locations, delivery certainty, and apartments designed for long-term owner-occupiers.</p>

<p>[smartcode_project:default project_id=112024 project_image_fid=343113]</p>

<p>Crest occupies a rare position on Armrick Avenue, a leafy Broadbeach address that has seen minimal apartment development despite the suburb’s wider growth. The site overlooks expansive green space, including Broadbeach Park and the neighbouring bowls club grounds, offering leafy outlooks and immediate access to open space just moments from the beach.</p>

<p>That scarcity has been a key driver of urgency, particularly among buyers seeking a full-time coastal residence in an area where new supply opportunities are increasingly limited.</p>

<p>Delivery certainty has also played a central role. Morris Property Group is delivering Crest using its in-house construction team, with both towers being built concurrently, providing buyers with clear construction visibility at a time when confidence in project timelines has become a decisive factor.</p>

<p>The developer’s long-standing presence in Broadbeach has further reinforced buyer confidence. Crest is Morris Property Group’s ninth apartment development in the suburb since 2006, following recently completed projects such as Malo Broadbeach and with Maison Broadbeach currently under construction nearby.</p>

<p>[smartcode_project:default project_id=112024 project_image_fid=5430]</p>

<p>Pricing has also been carefully positioned relative to comparable beachfront and near-beach product. With two and three-bedroom apartments starting from $1.199 million, Crest has attracted both local downsizers and interstate purchasers seeking value without compromising location or build quality.</p>

<p>According to Apartments.com.au enquiry data, interest has remained broad-based, with Queensland buyers forming the core market and New South Wales accounting for around 20 to 30 per cent of enquiries since early 2024.</p>

<p>Apartments have been designed with owner-occupiers in mind, prioritising generous floor plans, practical storage, and low ongoing costs. Hybrid timber flooring, Bosch appliances, ducted air conditioning with condensers positioned away from balconies, and low body corporate levies, averaging around $90 per week for two-bedroom apartments, have resonated with buyers planning to live in the building long term.</p>

<p>[smartcode_project:default project_id=112024 project_image_fid=286005]</p>

<p>Resident amenity has been curated to support everyday use rather than short-term spectacle, with a gym, pool, barbecue facilities and landscaped outdoor spaces integrated into the development.</p>

<p>As broader market conditions continue to reward projects that combine location discipline with delivery certainty, Crest’s sales performance highlights where buyer demand is consolidating in Broadbeach, towards established streets, proven developers, and apartments designed for permanence rather than turnover.</p>

<p>[smartcode_project_cta:default project_id=112024]</p>


Sustained sales momentum underpins demand at Morris Property Group’s Crest Broadbeach

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<p data-end="243" data-start="0">South East Queensland developer SIERA has lodged a development application for a 27-storey residential tower on Chevron Island, marking its third project in the Surfers Paradise area and second within the island precinct.</p>

<p data-end="782" data-start="245">Designed by Gold Coast-based BDA Architecture, the proposal comprises 130 apartments across a slender tower positioned opposite Chevron Island Park. The 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-19-anembo-street-surfers-paradise-qld-4217">17-21 Anembo Street</a> sits at the western entry to the island and offers protected view corridors towards the Nerang River and hinterland.</p>

<p data-end="782" data-start="245">According to SIERA Founder Brent Thompson, the design intent has been to create what he describes as “a Queenslander in the sky,” with a narrow floorplate to minimise overshadowing, maximise cross-ventilation and respond to the subtropical microclimate.</p>

<p data-end="1120" data-start="784">The podium has been articulated with layered materials and cascading landscaping to provide a transition between the park frontage and the residential tower above. A full-floor communal amenity level on level four will capture elevated park and river views, providing residents with wellness and recreation facilities in a private setting.</p>

<p data-end="1120" data-start="784"><img alt="Siera" data-entity-type="file" data-entity-uuid="7d1008c8-e1b5-4923-a568-29f356068e3f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-02-16%20at%204.06.44%E2%80%AFPM.png?VersionId=p_0qI12aHgz3M8aHFbUoduXBOKDhcrqV" /></p>

<p data-end="1448" data-start="1122">Thompson said the project continues the developer’s focus on Chevron Island, a precinct he believes has been “significantly underrated” but is now gaining broader recognition.</p>

<p data-end="1448" data-start="1122">“The demand we’ve seen at Tapestry, nearing sell-out and completing later in 2026, confirms this is where Gold Coast residents want to live,” he said.</p>

<p data-end="1957" data-start="1450">“It offers something rare: quiet neighbourhood character with wide, tree-lined streets, genuine local amenity, cafes, quality restaurants, medical services, daily necessities, and excellent connectivity to the light rail, beaches, river and HOTA, without feeling touristy or transient. As one of only two true island residential communities on the Gold Coast with limited development opportunity, this will become one of the coast’s most coveted addresses for those seeking a genuine residential lifestyle.”</p>

<p data-end="2313" data-start="1959">Chevron Island has undergone steady evolution in recent years, benefiting from its proximity to HOTA and improved connectivity to Surfers Paradise and the light rail network. Thompson described the location as presenting “a unique window of opportunity”, noting that while buyer activity is strong, “pricing hasn’t yet caught up to comparable locations.”</p>

<p data-end="2492" data-start="2315">“For buyers who understand the precinct’s trajectory, particularly its proximity to HOTA and the cultural activation happening there, this represents compelling value,” he said.</p>

<p data-end="2769" data-start="2494">Apartment configurations will comprise two- and three-bedroom layouts targeted primarily at local owner-occupiers. Thompson said the homes are designed for “practical living,” with natural light, cross-ventilation and generous outdoor spaces central to the planning approach.</p>

<p data-end="3067" data-start="2771">“We’re not chasing volume,” Thompson added. “We’re focused on delivering projects in the right locations for genuine owner-occupiers. Chevron Island offers an incredible combination of lifestyle, connectivity and value that we believe is significantly underappreciated in the broader Gold Coast market.”</p>

<p data-end="3495" data-start="3069">The Anembo Street proposal follows SIERA’s 113-apartment Tapestry development on Chevron Island, currently under construction and due for completion in 2026. The developer recently completed Pipis in Bilinga and is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a 54-apartment project in Northcliffe, Surfers Paradise, in the second quarter of 2026, with 40 per cent of apartments reportedly secured ahead of its formal launch.</p>

<p data-end="4002" data-start="3497">SIERA operates as a vertically integrated builder-developer, managing acquisition, design, sales and construction in-house.</p>

<p data-end="4002" data-start="3497">“We’re builders at heart who develop exclusively for ourselves,” Thompson said. “We don’t build for others; we refine what we do for our residents and owners. That focus allows us to control and oversee every detail, every communication, every interaction with stakeholders from neighbours to owners to council. We’re relentless in pursuing thoughtful design for practical living.”</p>

<p data-end="4288" data-is-last-node="" data-is-only-node="" data-start="4004">Pricing for the Anembo Street project has not yet been released and remains subject to development approval. The application is currently under assessment by Gold Coast City Council. If approved, construction is anticipated to commence in late 2026, with completion targeted for 2028.</p>
</article>


First look: SIERA doubles down on Chevron Island with new tower plans 

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>
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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">
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<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>
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</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

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<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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