Property developer Stockland has blamed a writedown on lifestyle housing projects for a net profit fall of almost 80 per cent.
Australian housing finance has grown during every month of 2013 so far, while interest rates have fallen to a record low.
Yet the diversified property group's net profit for the 2012/13 fell by 78.5 per cent to $104.6 million, compared with the previous year.
Chief executive Mark Steinert said Stockland's net profits would have been much stronger if it wasn't for impaired lifestyle developments in Queensland, regional NSW and Victoria, dating back a decade.
"Absolutely. If they weren't there, we would have automatically been about four times higher," he told AAP, adding the "disappointing results" were in line with a strategic review completed in May.
The company posted a $355 million writedown in the value of the company's residential book, which was previously announced in February.
Underlying profit, which excludes the writedown, was $494.8 million, a fall of 27 per cent on the previous year.
Mr Steinert said the company - which also owns retail centres, office and industrial sites and retirement villages - continued to face difficult conditions amid weak consumer confidence, but was expecting a gradual improvement in the housing market.
"In Australia business confidence remains low and consumer spending is relatively soft as households continue to de-leverage," the company said in its statement.
"We expect consumer sentiment will remain relatively subdued, however we do anticipate continued moderate economic growth."
Mr Steinert said low interest rates and state government policies to encourage new residential construction for first home buyers would help in 2013/14, and described Sydney as the strongest housing market.
"We certainly expect an improvement in our profits," he said, following a tough year of cost control.
Full-year trading results would also flow during this upcoming financial year from new shopping mall developments in western Sydney, Townsville and Shellharbour.
Stockland shares fell six cents, or 1.57 per cent, to $3.75 at 1055 AEST.
