Sydney's once-red hot property market will probably be flat this year, while Perth's will keep falling, Stockland chief Mark Steinert told CNBC.
But there's no prospect of a real estate crash, Steinert said, as the Australian property development company reported a 51 percent jump in first-half net profit to A$696 million ($492.5 million).
The company added A$433 million to the value of its newly refurbished commercial buildings - mostly shopping centres - which helped boost net profit for the six months to December 31. Without the refurbishment mark-up, interim net profit rose 8.1 percent.
Residential property sales drove a 19 percent revenue rise to A$1.6 billion.
"The strong performance of our shopping center portfolio is a good pointer for the Australian economy in general," Steinert said.
He said Australia's residential property sector, meanwhile, was underpinned by reasonable employment growth, "solid" consumers, an undersupply of housing and low interest rates.