Investor appetite for Queenstown apartments is strengthening as supply constraints and four-season tourism continue to underpin demand across the alpine region.

In Frankton’s masterplanned Remarkables Park precinct,&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>’s 141-apartment Mountain Oak development is attracting repeat and yield-focused buyers seeking exposure to that market dynamic.

Brandon, who specifically targeted Queenstown as an investment location, said the combination of price point and limited new supply made Mountain Oak stand out.

“It is a quality product in a location that struggles to densify,” he said, referencing Queenstown’s land-locked geography and development limitations.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/658d4f_48c3ec1ae5df4a2cab7d23c07c7f51b3~mv2.jpg?VersionId=27K8oQ4ExDN8Yu70VHDa9Olq59XU36m3" />

Having spent significant time in the region, Brandon pointed to its global reputation and consistent visitation as key fundamentals.

“Queenstown is a known destination from people all over the world. The place is land locked and there are issues building there. It’s also busy all year round.”

That four-season economy, driven by skiing and snowboarding in winter and hiking, cycling and water-based tourism in summer, was also central to Sherry’s decision to invest.

“I believe the four-season tourism has major appeal as it would ensure that the property will not remain empty, unlike other areas in NZ,” she said.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Mountain Oak has been structured to respond to that sustained demand, with 365-day visitor accommodation consent underpinning a mix of one-bedroom, flexi, two-bedroom and dual-key configurations that can operate as either short-term visitor accommodation or long-term rental housing. Dual-key apartments comprise two self-contained residences on one title, allowing owners to generate dual income streams or occupy one side while leasing the other.&nbsp;

Under Safari Group’s optional visitor accommodation management model, owners receive 60 per cent of the annual income generated by their apartment, with 24/7 on-site management, guest services and listing exposure included. Independent appraisal modelling suggests gross yields of up to 15 per cent for certain two-bedroom configurations, based on estimated nightly rates and occupancy assumptions.

For Brandon, that flexibility aligned with his broader investment strategy.

“It helps to know that I can have it managed either way,” he said. “My focus is on purchasing high yield cashflow properties.”

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="c786ba7f-f974-4ce3-9833-1bcd9f2938d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_ae3c049f388f4c13bf801649d91cbb4a~mv2%20%281%29.jpg?VersionId=J25uvzGdvtFaXGzuwz28ewJ9wWzbtvur" />

He selected a one-bedroom flexi configuration, citing both yield and adaptability.

“I work remotely and can travel to most places and work. I enjoy making spaces that work for the lifestyle that I live and it seems that others also enjoy it.”

Ranging from 54 to 57 square metres, the one-bedroom flexi incorporates a separate multipurpose room suited to a home office, additional storage, or accommodation for ski gear and seasonal equipment, an increasingly relevant inclusion for buyers balancing remote work and alpine travel.

Interiors feature underfloor heating in bathrooms and a heat pump in the main living area, supporting year-round comfort. Upper-level apartments are positioned to maximise natural light, with sliding windows and balustrades in select residences enhancing outlook and ventilation. Units are available in both light and dark interior schemes.

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="8f9492e9-8ee0-4aae-856c-8996ed9d9a06" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_7d066f5200024c1aa472d01e2dc776ed~mv2.jpg?VersionId=MLR5xn6fLqPdBi7vxyRT.1zhQX3Ln0Ev" />

Sherry, a repeat Safari Group buyer, said her previous experience with the developer provided confidence to secure another apartment.

“Their developments have always finished on time, the quality has been high, and I didn't feel that my investment may be at risk,” she said. “Knowledge of the developer and our two existing Safari apartments gave us the confidence to proceed with this one.”

Safari Group has delivered more than 2,000 hotel units and residential apartments nationally and is now undertaking its fifth Queenstown development, reinforcing buyer confidence in delivery capability.

Although Sherry was not initially targeting Queenstown due to its price profile, prior visits reshaped her view of the market.

“I absolutely love this region and believe it is a major tourist attraction, which led me to the decision to invest.”

<img alt="How Mountain Oak Apartments draws holiday home buyers to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Construction commenced in June 2025, with completion anticipated by mid-2027. Apartments are priced from NZ$639,000, and the development carries Overseas Investment Office exemption approval, allowing non-residents to purchase.

For both investors, the purchase represents a balance of income generation and long-term portfolio positioning in a tightly held alpine market.

“I firmly believe my investments in Safari developments are a combination of all these elements,” Sherry said. “The location of this project enabled me to diversify.”

As Queenstown continues to attract year-round visitation alongside constrained housing supply, Mountain Oak’s dual-key flexibility, optional on-site management structure and established developer track record are resonating with investors seeking exposure to the region’s resilient tourism economy.

Joel Robinson

Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand

The Minns Labor Government is today unveiling a game-changing new precinct at Bays West – delivering up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes - directly above the new Bays West Metro Station currently under construction.

The landmark transformation will convert underutilised government-owned port land on the Harbour into Sydney’s newest suburb, while retaining important deep-water port facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

<img alt="Bays West" data-entity-type="file" data-entity-uuid="c5f01d10-0b6b-49de-8033-d3ef2728cb6d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.12%E2%80%AFPM.png?VersionId=UA6_r._1jYROJ5tFNXMHqjNYLKYWIN.Y" />

Affordable housing will be embedded from the outset, including dedicated homes for essential workers such as nurses, teachers, paramedics, firefighters and police so they can live closer to the communities they serve.

The precinct will combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years.

Night-time entertainment and creative industries will be anchored by the revitalisation of the historic White Bay Power Station as a cultural and community destination, connected to the harbour across a new expansive public forecourt.

Planning of the area will prioritise connectivity, including active transport links to neighbouring communities such as Rozelle, Balmain and Glebe, improved pedestrian access to the waterfront, and connections to the CBD, including an active transport link across the Glebe Island Bridge.

The Government will lead a master planning process that will include an international design competition to guide development across the precinct, ensuring homes, essential infrastructure, jobs, public spaces and transport links are delivered together.

It will be led by a new delivery agency to be established over the coming weeks, which will report to Minister Kamper who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo. Once established, the publicly owned land in the precinct will be transferred to the new agency.

This is the first new suburb that has been built in inner Sydney in decades, it will see homes built alongside the Bays West Metro Station ensuring young people, families and downsizers are only minutes away from the CBD. As part of the transformation of the Bays West precinct, bulk port operations – including cement, gypsum and sugar handling – will cease on Glebe Island by no later than 2030.

<img alt="Glebe" data-entity-type="file" data-entity-uuid="46ef3c23-2ce1-4912-b8ba-5247de19d7b9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.02.15%E2%80%AFPM.png?VersionId=I5xKa7hLNlsueMsltA2dsYrRYtZCKvZz" />

The Government will work closely with industry to minimise impacts and ensure the continuity of supply. This includes a commitment of $270 million to improve road connections around the port at Port Kembla and to investigate increased rail freight capacity.

Working harbour operations across the precinct will be consolidated, mostly into White Bay, ensuring the precinct will continue to provide critical services for the harbour, including boat maintenance and marine construction and as a base for tug boats and for emergency services.

A new staging area will be established in White Bay, securing the future of the New Year’s Eve fireworks, Vivid and other major events for decades to come.

<img alt="Glebe island" data-entity-type="file" data-entity-uuid="0554b153-b225-445b-a633-75aecea7dec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.17%E2%80%AFPM.png?VersionId=P45ABy8KLuwjzVf04APWfeC4aOMA1Ngx" />

The cruise terminal will be retained in its current location, meaning tourists arriving in Sydney will be welcomed by the new precinct, with new shore-power facilities currently being installed that will reduce noise and emissions. The Sydney Heritage Fleet will also be offered new premises in White Bay.

Deep-water berths will be retained to preserve Sydney Harbour’s strategic operational capability, and the removal of the existing 1970s industrial silos, currently used as a billboard, as well as to store cement and sugar, will unlock new opportunities for public space and future housing.

“Right above a new metro station and minutes from the CBD, we’re delivering thousands of homes where people actually need them - close to work, close to services and close to transport,"&nbsp;Premier of New South Wales Chris Minns said.

“Importantly, this precinct will include affordable and essential worker housing from day one, so nurses, teachers, paramedics and police can live closer to the communities they serve.

“We understand that not everyone will welcome change, but cities don’t stand still. If Sydney is going to remain a place young people and families can afford to live in, we have to use well-located land better and plan for the future.”

Glebe Island to accomodate 8,500 new homes near new Bays Metro Station

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a> has unveiled its exclusive penthouse collection at&nbsp;<a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Amargo</a>, its new apartment development in Palm Beach.

There are just four penthouses as part of the collection, however only three remain for sale, with a Palm Beach local already snapping up one of the apartments prior to its launch.

&nbsp;

“We are thrilled to unveil the debut penthouses within the Flourish story,” said Christie Leet, founder of Sherpa Group.

“The penthouses epitomise unparalleled luxury and contemporary elegance, offering an exclusive experience in modern living.”

[smartcode_project:default project_id=146527 project_image_fid=362273]

Located at 6-12 Sixth Avenue, the penthouses will crown Amargo, which will rise 18 levels and offer a diverse product mix of one, two, and three-bedroom apartments, attracting a wide demographic of buyers.&nbsp;

“Creating a multigenerational community is core for us at Sherpa," Leet added.

"Amargo embodies this ethos, welcoming first-home buyers, families and right-sizers alike – ensuring everyone has the opportunity to thrive.”

&nbsp;

[smartcode_project:default project_id=146527 project_image_fid=362271]

The penthouses, which range in price from just over $3 million to $4.6 million, each have three bedrooms, three bathrooms, and extensive balconies. Select penthouses will have&nbsp;dedicated media rooms. They have four-metre-high ceilings, Gaggenau appliances, and natural stone materials.

Flourish is crowned by an&nbsp;800 sqm rooftop retreat with a&nbsp;pool, pool deck cabanas and day beds, private outdoor barbecues and pizza oven, an internal private dining space, as well as a gym, yoga zones, steam rooms, and hot and cold magnesium pools.

&nbsp;

&nbsp;

[smartcode_project:default project_id=146527 project_image_fid=306037]

“We’re really excited about what we’re delivering here- Flourish is more than just apartments; it’s about creating a place where people feel truly at home,” Leet said.

Construction is already well underway on Amargo, with residents expected to move in by Q2 2027. The project is around 85 per cent sold.

[smartcode_project_cta:default project_id=146527]

A first look inside Flourish penthouse collection at Palm Beach

Builder-developer Urban Property Group (UPG) is continuing to expand into new markets. UPG is heading to the Hills District, where it is planning a 40-storey mixed use building near Castle Hill Metro Station.

They've gone down the favoured developer route of a State Significant Development Application, which should see developments approved within the space of nine months.

The tower will comprise 371 apartments, 42 of which will be affordable housing, above a ground-floor retail precinct at 16-20 Old Castle Hill Road, on the corner of Garthowen Crescent and within walking distance of Castle Hill Metro Station, an area identified for higher density under both local and state strategic planning frameworks.

Designed by <a href="https://www.apartments.com.au/architects/studiosc">Studio SC</a>, the tower would rise from a brick podium base, accommodating one retail tenancy and communal open space, before transitioning to a slender glazed residential form above. Six basement levels are proposed beneath the building to house parking and services.

<img alt="First Look: Urban Property unveils 40-storey mixed-use tower in Castle Hill with 371 homes and affordable housing component" data-entity-type="file" data-entity-uuid="08dc82f9-b826-4e18-8c60-4c90f7472317" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20%28b%29%20-%20Ground%20level%20render.jpg?VersionId=EOv1ly45k_Bc1F73C0hdwXSG4FVSTETt" />

“Castle Hill is undergoing a significant transformation, evolving from a traditionally low-rise suburban centre into a true metropolitan destination anchored by the Sydney Metro Northwest," the Architectural Design Report prepared by Studio SC noted.

The majority of apartments (194) will be two-bedrooms. 90 one-bedroom apartments are planned, 83 three-beds, and four four-bedroom apartments.

Studio SC’s design adopts a podium-and-tower composition, with warm-toned masonry at the lower levels intended to anchor the building within its streetscape context.

"At the podium, the architecture is anchored through solid brickwork in warm, earthy tones, reflecting the local sandstone formations and the natural colour palette of the surrounding hills," Studio SC added.

Above, the tower transitions to a lighter glass expression, articulated with fins and tonal variation to reduce visual bulk and respond to changing light conditions.

<img alt="First Look: Urban Property unveils 40-storey mixed-use tower in Castle Hill with 371 homes and affordable housing component" data-entity-type="file" data-entity-uuid="f13cb2ee-ebfc-4204-9aba-e2dbd9e5d4bd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20%28a%29%20-%20Pool%20view.jpg?VersionId=Dnpusa.b5d6Nkx2clPlzWosDdh_1QW2V" />

Urban Property Group is one of Sydney's most active developers. They have projects currently under construction in Little Bay, Penrith, and Macquarie Park, with future projects earmarked for Wollongong.

Castle Hill has been one of the most popular suburbs for development across Sydney in the last five years, as developers scramble for land around the newly extended Sydney Metro.&nbsp;

Kassis Homes kicked it all off with Grand Reve, along with Deicorp who has delivered over 1,000 apartments in the area and continues to develop. The likes of Dubai-backed developer Arada will take to market their project in the coming months, while Masscon has just launched Avenue on Cadman Crescent.

First Look: Urban Property Group unveils 40-storey mixed-use tower in Castle Hill

One of the Gold Coast’s ‘bridesmaid suburbs’ is experiencing a wave of local suitors, with the latest sales figures from <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> revealing over two thirds of buyers will be relocating from within a 5km average radius of the 16-hectare masterplan.&nbsp;

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the figures underlined a powerful shift for Biggera Waters that would reshape it into a thriving force behind the region’s growth corridor.&nbsp;

“We’ve seen a huge wave of interest from residents of Arundel, Paradise Point and Runaway Bay who recognise the urban transformation that is well underway here and want to be part of it,” Long said.&nbsp;

“Interestingly, 25 per cent of our Gold Coast buyers are also coming from the city’s southern hotspots, including Burleigh and Palm Beach.&nbsp;

“<a href="https://www.apartments.com.au/developments/biggera-waters-qld-4216">Biggera Waters</a>, and Harbour Shores in particular, has all the advantages of waterfront living with the benefits of resort-style amenity, for greater value than the southern beachfront suburbs.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=290031]

Long said half of the purchasers at Harbour Shores were under the age of 55.&nbsp;

“When locals choose to stay local, it creates a genuine community, turning the most sustainable master planned community in the Gold Coast’s history into a diverse and vibrant ‘village of villages’.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=336743]

<a href="https://www.apartments.com.au/project-marketer/colliers">Colliers</a> Gold Coast Sales Director David Higgins said the hyper-local market demand was unique to Harbour Shores when compared to other projects in the region.&nbsp;

“We are seeing as much as 60 per cent of new apartment sales on other projects go to interstate or international buyers, but Harbour Shores is bucking this trend and attracting a larger proportion of the local market,” Higgins said.&nbsp;

“Only 13 per cent of Harbour Shores’ existing purchasers are interstate. There has been a resounding endorsement from local buyers and that validates the project’s vision and investment in design, lifestyle and liveability.”&nbsp;

[smartcode_project:default project_id=113271 project_image_fid=4579]

Harbour Shores is 16ha visionary masterplan dedicated to wellness and an active, healthy lifestyle. Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, Harbour Shores embeds extensive green connections and more than 2.5km in pedestrian networks – including a 1.2km boardwalk along the water’s edge.

Harbour Shores was recently recognised by the BETTER FUTURE World Design Awards 2026 as a silver winner in the category of environmental sustainability. Boasting a 6 Star Green Star Communities V1.1 rating, Harbour Shores will deliver more than 2,000 homes over the next ten years.&nbsp;

The first stage will deliver three residential collections including luxury three and four-bedroom waterfront villas at The Residences, as well as apartments in The Waterline and Palm House, surrounded by resort-style amenities.&nbsp;

[smartcode_project_cta:default project_id=113271]

Biggera Waters no longer a 'bridesmaid suburb' as Gold Coast locals jump to Harbour Shores

Profit

<html><body>
<div>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.</div>
<div> </div>
<div>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.</div>
<div> </div>
<div>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.</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> Delinquencies</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>
<a href="/images/2016/05/02/GMA.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/05/02/GMA.jpg" alt="">
 
<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>"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."</div>
<div> </div>
<div>And notably Genworth expects further constraints on high LVR lending in 2016 and beyond:</div>
<div>
 "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."
</div>
<div> </div>
<div>Share market analysts were fairly unmoved on the news, the share price steady at around $2.39.</div>
<div> </div>
<div>
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>. 
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>.
</div>
</body></html>

pwargent-M4siyDbqQY

Genworth mortgage insurance update: Pete Wargent

<html><body>
The Commonwealth Bank of Australia has posted a full-year cash profit of $9.233 billion, down some 4.8 percent.
The last time the bank posted a weaker profit was in 2009.
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.
CEO Matt Comyn said the results concluded what had been "a difficult 12 months" for the bank.
"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.
"If you strip some of those out, actually the result looks more from an underlying perspective up 3.7 percent."
Comyn said he recognised the impact the bank's mistakes were having on customers.
<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>
"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.
"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."
The Commonwealth Bank board declared a full year, fully franked dividend of $4.31.
It noted switching from interest-only mortgages was stressing some borrowers.
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.
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. 
<div>
Comyn said he did not expect the arrears levels would deteriorate further and that "over time, the customers adjust to the new payments".
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". 
CBA is the largest mortgage lender in Australia, with 1.5 million home loan accounts with a total balance of $374 billion.
Of these, 64 per cent of borrowers are owner occupiers. 
Some 30 per cent of CBA mortgage customers are on interest-only loans, down from 39 per cent a year ago. 
</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>
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.
</div>
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

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

<html><body>
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.
“Significant momentum has driven first half of 2016, with increasing cash generation and a positive growth outlook,” CEO and managing director, Steve McCann said.
The highlights were signalled as:
Estimated development pipeline end value of $46.6 billion, up 15 percent
Residential pre sales revenue of $5.4 billion, up 49 percent
Residential settlements of 2,128 up 45 percent
Construction backlog revenue of $18.6 billion, up 19 percent, with a further $6.1 billion of construction new work secured, up 30 percent
Funds under management of $22.0 billion, up 26 percent, including $1.2 billion of third party capital
“We remain on a strong growth trajectory, with greater visibility to earnings and cash over the coming years,” he said.
“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.
Residential pre sales reached a record $5.4 billion, up 49 percent and residential settlements rose 45 percent to 2,1285 .
“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.
"We maintain a disciplined approach to delivery risk and pre sales.”
Lendlease today announced the appointment of David Craig to its board.
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.
</body></html>

jchancellor-FAypfDUnLy

Victoria Harbour sales momentum assists Lendlease profit

<html><body>
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.
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.
ME chief Jamie McPhee, said it was a strong performance.
ME’s cost-to-income ratio continued to fall, reducing 260 basis points to 68.5%.
McPhee said cost-to-income had been on a downward trajectory since June 2009 when the ratio was 84.5%.
Customer numbers grew 8% to 338,000 with customer deposits increased 7 per cent to $8.8 billion.
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.
The broker sales channel surpassed $2.2 billion, up from $1.2 billion last year, an increase of 83%.
</body></html>

ME Bank profit up 27%

<html><body>
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.
Ad sales were slightly below consensus forecasts of $528 million, as were net profits, which analysts had forecast at $192 million, according to Bloomberg.
The shares, which got to a year high of $51.28 in February, are trading at around $41.20.
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. 
"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.
“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.
“Our strategy to take our expertise both internationally and to new markets gathered pace this year.
"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.
“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."
Australian revenues increased by 21% to $472.8 million this year.
Its agent customers increased by 5% to 9,922 for the year ended 30 June 2015.
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.
</body></html>

REA Group sees emerging higher property listing revenues - and utility connections 

<html><body>
House renovators hoping for a quick profit run the risk of underestimating the cost of the flip.
But Cherie Barber, a professional renovator who runs a company providing renovation courses, remains optimistic about buying for renovation and sale.
Barber says it is always possible to renovate for a profit.
"You cannot talk about a single Australian market," she recently told The Australian Financial Review.
"There are more than 4000 suburbs and as many markets."
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.
Research suggest about 6 per cent of residential properties sold in Australia sold again in less than two years.
Across the country, CoreLogic RP Data noted homes that resold recently at a loss had an average length of ownership of 6.0 years.
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.
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.
Any flip investment needs to estimate value the time involved and also the risks on the costs of acquisition, holding, renovating and selling.
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.
She suggests not to pay the invoices in full until you are 100% happy with the works being completed.
</body></html>

The renovation flip is still doable: Cherie Barber

<html><body>
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.
The Australian Financial Review 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.
The pricing has implied a dividend yield of between 3.4% and 4.1% for the same period.
The AFR's Street Talk 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
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.
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.
</body></html>

Profit

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Profit

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News