Financial Performance - FY25 Net Operating Profit was $58.5 million, up 60% on FY24[8] - Operating Earnings per Share were 12.48 cents, up 61% on FY24[8] - FY25 Dividends Per Share (DPS) were 7.75 cents, up 82% on FY24[8] - Book NTA per share increased by 5% from $1.31 in FY24 to $1.37 in FY25[8, 57] - Group revenue increased by 39% from $314.4 million in FY24 to $437.3 million in FY25[53] Operational Highlights - 2,768 lots were sold in FY25[10] - 2,642 lots were settled in FY25[12] - Contracts on hand value reached $612 million[13] - The company's gearing was 27.5% at 30 June 2025[8] Strategic Initiatives - A strategic review has commenced to ensure the business is optimally positioned to capitalize on favorable market dynamics[25] - The company aims to unlock short-term and long-term value through the strategic review[27] Land Bank and Future Projects - The company has a pipeline of 30,785 lots with an end value of $13.2 billion[33] - The company plans to launch new projects in FY26 and FY27, including communities and townhouse/apartment sites, with a total GDV of $3.928 billion across 5,944 lots/units[89]

Core Viewpoint - Despite a sluggish economic recovery in Victoria, Melbourne has seen house prices rise by at least AUD 10,000 in 150 suburbs since the central bank's interest rate cut in February, with some high-demand areas experiencing remarkable increases, thereby pushing the median price upward [1][4]. Group 1: Price Increases - The suburb of Canterbury has experienced the largest price increase, with the median price soaring by AUD 385,000 to AUD 3.5 million over five months [4]. - Bittern, located on the Mornington Peninsula, saw a price increase of 21.65%, rising from AUD 970,000 to AUD 1.18 million [4]. - Gembrook has officially entered the million-dollar club, with prices rising from AUD 910,000 to AUD 1.0498 million [4]. - Notable increases were also observed in the apartment and townhouse markets, such as Sunshine, where the median price rose by AUD 54,500 to AUD 458,000, and Hampton East, where the median price increased by AUD 112,500 to AUD 975,000 [4]. Group 2: Market Response and Economic Factors - There are still 32 suburbs where prices have remained unchanged, and 162 suburbs have experienced declines [6]. - AMP Capital's chief economist Shane Oliver noted that the delayed response to interest rate cuts is surprising, attributing it to Victoria's weaker economic standing, additional property taxes, and a lack of "fear of missing out" among buyers [6]. - PropTrack's senior economist Anne Flaherty emphasized that the slow response in a state with leading population growth serves as a significant warning regarding the state government's property tax policies [6]. - Flaherty anticipates a strong recovery in most suburbs, with further interest rate cuts expected to be a key driver, especially given Victoria's unemployment rate is higher than the national average [6]. Group 3: Buyer Sentiment - Buyers in Melbourne generally lack a "fear of missing out" mentality, often waiting for more signals of interest rate cuts before making purchases, even after viewing properties for six months [8]. - The acting CEO of the Real Estate Institute of Victoria, Jacob Caine, indicated that many buyers are waiting for more substantial signs of interest rate cuts, suggesting that the two cuts this year have not been sufficient to drive widespread growth across Melbourne [8].

Core Insights - The significant price difference between Melbourne and Sydney's housing markets is primarily driven by land value, with Melbourne's median house price at AUD 1.06 million compared to Sydney's AUD 1.72 million, a difference of AUD 658,000 [1][3] - Melbourne's real estate market has experienced the lowest price growth among all capital cities over the past five years, making it more affordable compared to Sydney [3][6] Housing Affordability - With a budget of AUD 1.06 million, buyers can purchase homes in 89.7% of Melbourne's areas, while in Sydney, this budget only allows for homes in 27.3% of the areas [3][6] - In popular Sydney neighborhoods like Glebe, Newtown, and Bondi, it is nearly impossible to buy a standalone house with a budget of AUD 1.06 million, often requiring compromises such as purchasing an apartment instead [6][7][8] Property Types and Locations - For AUD 1.06 million in Sydney, buyers may only afford a two-bedroom apartment or a larger one-bedroom apartment in desirable areas [8][9] - To purchase a townhouse or terrace house in Sydney, buyers need a budget of over AUD 1.5 million [9] - In areas like Blacktown, AUD 1.06 million could buy a renovated three-bedroom house, but this budget may soon only suffice for properties needing significant renovations [11][12] Comparison of Purchasing Power - With a budget of AUD 1.72 million in Melbourne, buyers can find properties almost anywhere, including good options in central areas like Richmond and Hawthorn, with two to three bedrooms available [13] - In contrast, Sydney's median house prices within 5 kilometers of the city center range from AUD 1.7 million to AUD 4.2 million, significantly higher than Melbourne's [13][14] - Melbourne's real estate market offers greater diversity and better affordability compared to Sydney [14]

Core Insights - The Australian housing market remains resilient despite mixed economic signals, with national property prices holding steady [1] - The Reserve Bank of Australia (RBA) decided to maintain the official interest rate at 3.85%, disappointing borrowers under pressure [1] - Strong buyer demand and limited housing supply contribute to the stability of property prices across most regions in Australia [1] Interest Rates and Borrowing Power - The average annual salary for full-time workers in Australia has just surpassed AUD 100,000, impacting borrowing capacity [3] - A single individual earning AUD 100,000 can borrow an additional AUD 21,000 compared to earlier this year, under current interest rates of 5.75% [3][4] - A potential rate cut to 5.50% could further increase borrowing capacity, allowing a single income of AUD 100,000 to borrow up to AUD 512,000 [6][7] Impact of Rate Cuts - If a 0.25% rate cut occurs, a single individual earning AUD 100,000 could see an increase in borrowing power by AUD 12,000, allowing for a total borrowing capacity of AUD 512,000 [6][9] - The overall increase in borrowing capacity since the beginning of the year for potential buyers is up to AUD 33,000, opening new purchasing opportunities in various regions [9] Market Dynamics - Borrowers are encouraged to negotiate with banks or switch to lower-rate lenders rather than waiting for official rate cuts [8] - Currently, 35 lending institutions offer at least one loan product with rates below 5.50%, unaffected by the RBA's decision [5]