OutlookThe fundamental drivers of demand for residential...

Outlook

The fundamental drivers of demand for residential propertyremain positive with low interest rate and inflationaryexpectations combined with population growth and shortagesof detached dwellings, townhouses and low-rise apartments inSydney, Melbourne and Auckland.Activity in key residential markets has been very high in recentyears, placing significant pressure on development andconstruction processes. The Company believes that, as somemarkets soften, it will benefit as activity eventually returns tolevels that are more sustainable over the longer term.The Company continues to be confident about the future asits continuing focus on delivering traditional housing solutionsin prime markets as affordably as possible exposes it to thedeepest and most stable residential markets.In FY2019, the Company expects to benefit from continuedstrength in the Sydney market and settlements from theLyndarum North and Waterline projects in Victoria inparticular.The Company expects positive revenue and earningsmomentum given current levels of production, strong pre-salesvolumes and continued progress of key projects.