SYDNEY, AAP – Developer Mirvac says the rollout of vaccines for coronavirus will boost economic confidence and rev up the local construction market.

Mirvac, which works in the residential and commercial property space, on Friday reported a 35 per cent fall in bottom line first-half net profit to $396 million.

The operating result was $276 million, down 22 per cent from the previous corresponding period, which was better than market expectations of $249 million.

“The pandemic continued to disrupt our operating markets during (the first half of 2020/21) and the world remains in crisis,” CEO Susan Lloyd-Hurwitz said.

But Australia had managed the pandemic “effectively”.

“The vaccine rollout is likely to boost confidence and the economy, so we expect the reactivation of cities and urban areas to strengthen,” CEO Susan Lloyd-Hurwitz said.

Mirvac, which also manages industrial and office properties, sees good value in Australia’s nascent ‘build to rent’ market targeting residential tenants.

Under this popular US and UK model, new apartment blocks are retained by developers and their financiers and leased out, often under more flexible conditions than the traditional rental market.

Mirvac’s first such investment is LIV Indigo in Sydney Olympic Park, in the inner west, which is now 48 per cent leased as of February 9.

“We are gaining valuable insights that will inform the rollout of our growing pipeline,” Ms Lloyd-Hurwitz said of the sector.

Mirvac declared an interim distribution for investors of 4.8 cents per security, down from 6.1 cents in the same period in 2019/20.

The first COVID-19 vaccinations are expected to be available by the end of March.