potentially were heading into a signs of stabilization weve had residential prices rising for a couple of months now are you feeling more comfortable with gauging where market levels are at yeah we have seen quarter on quarter sales increase but we still well below what wed call long term averages youve got to remember in the last 12 months weve had the sharpest volume correction in the housing market in modern australian history because weve had interest rates rise at the fastest rate in modern australian history but we are seeing because of market fundamentals the chronic under supply of housing and as you said rents are rising we are seeing you know somewhere near the bottom is where i would call call the cycle but we are seeing encouraging signs i inquiry levels across our business are back to pre covered levels but conversion is where our customers are still dealing with affordability and dealing delivery issues in the market did you take advantage or did you leverage and put it that way and leverage those lower prices to restock or is there still sort of inventory and sell issues that youre looking at were certainly looking to restock we do sell and settle over six thousand homes a year so we have a constant need to restock we are looking at buying opportunities coming up over the next 12 to 18 months but it has been a period where demand has come off but as i said we are starting to see a recovery affordability in sydney and melbourne is a key issue because prices rose very high here and prices are high so it will take some time for that affordability to ease but in markets like perth and brisbane where affordability is very affordable markets but weve got delivery issues with construction supply chains and labor and elongated programs so were still dealing with post covid disruption to the fundamentals but we do see that easing over the rest of this calendar year and those fundamentals are about to get skewed given that we see an incredible amount of migration much more than what the government was predicting how does that skew the supply and demand outlook and does that make you more keen to allocate capital to residential yeah firstly migration is required for the country we have labour bottlenecks right across many of the industries that will help but in the long term but in the near term clearly you know support demand because demand is subdued but longer term you know we are allocating to our living sectors or residential sectors we used to be less than about 20 per cent capital allocated to residential we are looking to increase that to over about a third of our capital allocation but we are pivoting more towards more affordable models like manufactured housing estates or land lease for the over 50s thats a very affordable segment where we supplying a lot of new product and also exploring other models across our residential pipeline of course youve talked about the unusual rate environment that we currently find ourselves in and even if we do see and ill be a pause we still see markedly higher rates how has your strategy been to deal with that in terms of some of the higher investment hurdles that a lot of rates have really seen yeah cost of capital has gone up and our hurdle rates in a investors hurdle rates have gone up so weve adjusted for that but we are seeing good opportunities in the two private areas in our strategy a couple of years ago we were over allocated to town centres and to retirement living going forward were providing two or more than 50 per cent up to 70 per cent of our capital allocation being in living or residential sectors and logistics and both those sectors are offering good long term fundamentals and the returns outlook is also positive but we have seen cap rates or capitalization rates starting to move because cost to capital has moved rates across the industry does that strategy involve selling lower yielding assets we have been selling some non core retail town centres which weve done but 600 million of those over the last two years were more or less through that repositioning from here on actually we looking to allocate more capital to residential and logistic sectors both by showing very good medium to long term fundamentals and is that logistics focus the industrial focus when you take a look at external trade headwinds for example does that inform how optimistic you are about that part of the business logistics is supported by really structural issues that have been underway for some time and we anticipate well be there for for a long time to come they are obviously the digitisation of the economies and the move to ecommerce the supply chains are 2 just in case from just in or more once during and because of population growth you know every new australian that arrives on migrant needs 67 square metres of logistic space so we do see and supply is constraint on the eastern seaboard so we actually see strong fundamentals for logistics currently our rents are rising at around 20 per cent on our new leases we do see that moderating obviously thats very ise rita growth but thats showing you the demand supply imbalance in the market