Land and property developer AVJennings says challenges remain in some regional centres and in Adelaide.
Chief executive Peter Summers, however, was confident about short- and long-term residential property market fundamentals.
"Challenges remain in some regional centres and the Adelaide market has been somewhat subdued for a few years," he told shareholders on Friday.
"But, overall, conditions are more favourable this year than at the time of this meeting last year and I believe they will be more favourable again when we meet again next year."
Mr Summers pointed to guidance of 1,500 to 1,700 contract signings for 2015, compared to 1,415 for 2014, which he said "shows our confidence of improved outcomes".
The company is also engaging in an acquisition strategy.
"Acquisitions take time, particularly when competition is high as is currently the case in many areas around Australia," the chief executive said.
"To ensure we acquire land which is in the right locations, suits our business and meets our requirements for returns and risk profile, we need to investigate many opportunities."
AVJennings made a net profit of $27 million in 2013/14, compared with a loss of $23.3m during the previous financial year.