Aveo shares suffered their biggest one-day decline in at least five years after the retirement living company said full-year earnings would more than halve in the full year to June as a weaker residential market prevented clients from selling their own homes and slowed settlements further.

The shares fell as much as 28¢, or 13.5 per cent, to $1.80 on Monday after Aveo said full-year settlements would be "in the order of 900" – down from the 1443 it made a year earlier – and underlying profit after tax, its preferred profit measure, would drop to about $50 million from $127.2 million and earnings per share to 8.6¢ from 22¢.