AVJennings boss Peter Summers says the residential developer "swung too hard to land sales" and will aim to build more townhouses and apartments as it looks to take advantage of the improving housing market.

Profits at the 87-year-old developer fell almost 50 per cent in the 2018 financial year as it weathered the softer market conditions that saw settlements across its national portfolio of residential projects slump by a quarter to less than 1000 lots.