Herron Todd Aug 2011

8/6/2019 Herron Todd Aug 2011

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AUGUST2011

The Month In Review


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The month in review

Page Topic

3 Feature - Market Cotrasts - Takig thesimpicity out o the stats

4 - 15 Commercia OFFICE

16 31 R id ti

Cotets COnTEnT

S


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The month in review

I abhor averages. I like the individual case. A man may have six meals one day and none the next,

making an average o three meals per day, but that is not a good way to live. Louis D. Brandeis

now is the time to come cea. Who amogst hast read the odd headie o the property marketad shook their st at the broadsheet whie usig expetives that eve saiors woud d a ittebawdy. A this agst because a stat came out provig the rea estate word was impodig oe day,oy to d the ext day that a ew idex had us property hoders botig out ad puttig a dowpaymet o a arge bathtub ed with Beuga.

For ear o beig braded a statistphobe (a great word I just made up) I o course beieve i thevaue o statistica aaysis ad the abiity to describe markets broady i the sort o umbers thatca either make peopes hair stad upright or keep them coo as the other side o the piow. Some

o my best rieds are statisticias... 12.6% o them i act. The poit is that whie the statistica toois useu or summig up a market i a easy to digest maer, markets are a itte more ike humabeigs compex.

Then there is the man who drowned crossing a stream with an average depth o six inches. W.I.E. Gates

number cruchig sets a bechmark or expaatio. It is easy or the market observer to say thatrea estate has take a average hit based o broad saes data or the past our quarters, but uessyou ive i a matrix, what most o us wat to kow is i OUR particuar piece o dirt is amogst

the dire umbers Amost ay vauer ca te you a tae or two o owers wishig to tak up theirb h h h k h k b h b h

Market ContraststakInG the sIMPlICIty out of the stats

FEATURE


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The month in review

We ive i ecoomicay ucertai times. not oy areiterest rate movemets provig a impossibe ca,there is the costat risk o sovereig debt probemsthat ow exteded to the oce bue chip ecoomy othe USA somethig uthikabe ot a that og ago.

Our commercia sector rides high or ow o ecoomic

however, wi ikey be imited to prime properties, withvacacy rates or secodary oces i suburba ocatiosexpected to remai high.

Despite a improvemet i ivestor demad durig2010 ad eary 2011, saes trasactios, as measured bytota vaue o saes, are expected to decie. The umbero higher vaue assets oered to the market is asoaticipated to a. I ight o icreased ivestor demad

ad a reductio i stock o the market it is expected

Commercial Overview

COMMERCIAl


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The month in review

There is a sigicat cotrast betwee the dieretgrades o oce deveopmet with reasoaby strogdemad or A Grade space but weak demad or ower

quaity space. This is reected i the vacacy rates withA Grade properties havig a vacacy o aroud 0.5% adwith B Grade sittig at approximatey 18%. C Grade asorecords a doube-digit vacacy rate at approximatey16%.

Despite the apparet udersuppy o A Grade space i themarket there has bee o rea pressure to date o retarates to make ew costructio easibe. This woud

suggest the primary driver i the oca oce market isaordabiity. Curret ace rets or A Grade space ragesrom approximatey $320 to $380 per square metre grosswith icetives required to attract teats. The ecoomicrate to ecourage ew deveopmet is estimated to ie ithe order o $380 to $400 per square metre.

Give the ack o arge corporate head oces at a atioaad goba eve, ad govermet departmets i theregio it is extremey dicut to ease arge tracts o space.

Oe aomay i the market is Uiversity o WoogogsIovatio Campus with the rst commercia ocebuidig uy eased ad the recety competed secodbuidig reportedy 80% eased. It is oted that thecapita structure that eabed this project to proceedad the overa cocept o the project are uique. Thereis reasoabe demad across the board or smaer suitesuder 200 square metres.

....current ace rents or A Grade space

i t l $320 t $380

subsequety drivig demad ad supportig retagrowth. Reta growth i secodary properties however,wi ikey remai costraied, as higher vacacy ad

ower demad imits ay reta growth.

lookig orward it is expected that vacacy rates wiremai high i the ACT, with a umber o buidigs owuabe to be occupied by the Federa Govermet. Givethe imited umber o sma private busiess i the capitarequirig oce space, the take up o this ower quaitystock is expected to be imited.

With may ACT commercia oce properties exhibitiga miima reta growth outook, ivestors have proveuwiig to ivest i properties ackig strog easecoveats. Those that have take o this additioarisk have required a sigicat discout to propertieswith a stabe cash ow outook. Whie saes activity ocommercia oce properties was miima durig 2010,the saes which did occur urther cormed the disparityi capita vaues. Two such properties icude the AusAid buidig, sod uy eased to the Commoweath

Govermet ad the recety competed, but vacat, 6natioa Circuit, Barto. Aaysis o the 6 natioa Circuitsae, reveaed a $2,944 per square metre discout tothe sae o the Aus Aid buidig which secured a rate o$6,022 per square metre.

COMMERCIAl


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The month in review

recet sae o a three storey oce buidig purchased orower occupatio idicates the stregth o the Oragemarket. The property (pictured beow) sod at auctio,

ater spirited biddig betwee two parties we above thereserve, or $2,250,000. The buidig requires sigicatcapita expediture to improve the vadaized iteraspaces.

newcaste

What has bee happeig i Commercia these past ewmoths? Ay ew statistics out to dazze ad amaze? notreay. We ike the Property Couci o Austraia statistics,ad hoesty who doest? But they dot come out everythree moths which woud make this coum easy towrite. Ay other statistics out there to take our acy? notreay.

their preset site i ad aroud Kig Street. This has theabiity to provide a arge dose adreaie or the cetre onewcaste. Tows with arge uiversity campuses i the

city ted to be vibrat ad ivey. Recety the Uiversityo newcaste made a oer o the Civic Hote Site iHuter Street ad there are tetative pas to costruct aaw schoo o site. This is the same ocatio that has beemetioed as a possibe site or the ew ega precict.

nSW Far north CoastThe commercia oce market withi the nSW Far northCoast is geeray situated withi the arger tows olismore, Baia, Byro Bay ad Yamba ad to a esserextet withi the smaer towships o Muumbimby,Casio, Kyoge, Evas Head ad Macea.

Geeray, there is a reativey imited suppy o quaityoce accommodatio currety avaiabe o the nSW

Far north Coast. However, what is avaiabe is curretyexperiecig imited demad. There is a greater suppyo oder stye, sige eve, wak-up space which tedsto be reativey sma space occupied by oder or moreestabished busiess.

Over the past our years, rets have teded to be steadyad geeray reectig movemets i CPI due to termso eases. Market reviews have aso teded to oow CPImovemets. Rets achieved or quaity commercia space

$ $

COMMER

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The month in review

Souther nSW & norther Vic

AlBURY

The oce market ca be broady deieated betwee twoocaes i the Abury/Wodoga market. They are oceswithi the Abury or Wodoga CBD ad those outside othe CBD. Most o the oces ca be oud o the rige

o the CBD ad the market or these has remaied airystabe or some time. The market or oces i other areasis ot expected to experiece ay egative movemetbut the umber o oces i this segmet is airy ow.

The oce market is a broad mix o moder buidigs,oder oce buidigs ad oder dweigs coverted tooce use. A ew Tax Oce buidig with a muti deckcar park is currety beig erected i Abury. Whe the

Tax Oce reocates, it wi eave a arge amout o oce

space vacat, ad the resutig market outcome wi beiterestig to observe.

WAGGA WAGGA

The oce market i Wagga Wagga has remaied staticor a og period o time. The oce buidig marketis very thiy traded ad has bee or a og period otime. The atest sae o a two storey oce buidig was

or $1 22 miio The reta market or oce space is aso

The reease o the Juy 2011 PCA Oce Market Reportdue i August wi provide a updated ook ito thestregtheig Meboure CBD oce market.

Vacancy Rates

The tota vacacy rate across a grades e rom 6.5% iJuy 2010 to 6.3% i Jauary 2011. Idividuay however,C Grade space experieced a icrease rom 8.0% to 9.1%reectig the reduced demad or such space, whistA ad B Grade showed a decrease o 0.3% ad 0.9%respectivey. The overa vacacy rate remais we beow

the 20 year historica average tred o 12.5%.

The vacacy rate across a grades peaked at 6.5% i Juy2010 rom a ow o 4.8% i Juy 2009 ad is expectedto decie uti ate 2013 as the market absorbs theremaiig ew oce space. The Meboure CBD hasrecety see et absorptio (additioa space easedess space vacated) o 38,278 square metres. We areow reachig the ed o a heavy costructio cycead as a resut o this, there wi be very itte ew stock

beig added to the market over the ext two years.Cosequety, the overa vacacy rate is aticipated toa to aroud 4.5% by ate 2013.

This bodes we or reta growth as historicay, theMeboure CBD oce market is cosidered to be atequiibrium at aroud 6% to 7% vacacy.

COMMER

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The month in review

There has bee a moderate icrease i the premium etace rets sice Apri 2011 with rates o up to $650 persquare metre see withi the CBD oce market. Goig

orward, rets are orecast to icrease ad icetives widecie i ie with the reta growth aticipated over theext two to three years.

Investment Parameters

CBD ivestmet saes activity has remaied steady i ighto the improvig busiess coditios ad iterest rate

stace o the Reserve Bak o Austraia, but the stregtho the Austraia Doar has perhaps deterred some oshore ivestors i the short term. Aog with overseasuds, domestic superuds ad A-REITs cotiue to re-eter the market ad there have bee cotiued otabeacquisitios durig Q1/Q2 o 2011. The ow eves outure suppy withi the CBD oce market, coupedwith positive reta growth ad strog demad by whitecoar empoymet, has proved itegra to the ivestmetmarket activity ad busiess codece is startig to

t With th k ithi th CBD

The deveopmet wi aso stad out as oe o the ewsustaiabe oce buidigs withi the Meboure CBDwith a 6 Star Gree Star ad 5 Star nABERS ratig.

Brooked (BPPF) ad MTAA Superauatio Fudaised the sae o Souther Cross West, 111 BourkeStreet, Meboure i Juy 2011 or $120,000,000, whichrepresets a residua 50% stake. The sae reected aiitia yied o circa 7.10% ad a capita vaue o $5,078 persquare metre. The 20 storey mid to high A Grade ocebuidig was competed i 2009 ad oers groud oorretai teacies ad 20 eves o oce accommodatio,with a tota ettabe area o circa 47,265 square metres.

South Koreas natioa Pesio Service, with the madatebeig haded by Pramerica Rea Estate Ivestors,acquired 595 Cois Street, Meboure or $130 miioi Apri 2011. The property oers ow A Grade spacetotaig 31,777 square metres over 17 oors with AnZBakig Group as the major teat aog with variousgovermet departmets. The sae reected a iitiayied o circa 8% ad a capita vaue rate o $4,091 per

square metre. The vedor, Ivesta Property Group, haveretaied a 10% iterest i the property aog with themaagemet rights o the buidig.

Leasing Activity

Austraad Property Group have aised a sigicatease dea at the ormer ASX Headquarters, 357 CoisStreet, Meboure with the Commoweath Bak oAustraia (CBA) takig approximatey 8,500 square metres

l i t 10 t 10 t t t

COMMER

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The month in review

Whist the Carbo Tax may seem ike a barrier to etry ad

protabiity or some, it wi hopeuy urther ecouragedeveopmet with strog evirometa credetias adpush Austraia ahead o its wordwide couterparts iterms o sustaiabiity.

Regioa Vic

The commercia set is reativey static across most o theservice area with miima shits i vacacy or saes rates

Adeaide

Vacacy rates i the Adeaide CBD oce market curretysits at aroud 7%, we beow the 21 year average o12.3% ad beow the atioa average o aroud 7.6%. Othis vacacy the majority is cotributed to by secodarystock with primary stock vacacy beig very tight ataroud 4%. This is drive by the cotiued demad orpremium oce space, however with imited stocks adeary 100% o ew suppy pre-committed, there iscotiuig strog upward pressure o reta rates, whichi tur have icreased aroud 2.5% or the quarter.

vacacy rates uti ate 2012, eary 2013.

With icreased demad ad imited curret suppy o

quaity oce space i the short term there is specuatiothat owers may ook to upgrade ad reurbish theirproperties i order to capitaise o this demad adicrease their returs. Ivestors may aso start to ooktowards acquirig secodary stock or the same purpose.

Adeaides Frige oce markets remai oe o thetightest oce market i Austraia with cotiuig owvacacy rates, mosty due to the imited deveopmet

potetia o the ocatio ad cotributed to by thepopuarity o the ear city ocatio (wakig distace)with good accessibiity, ease o car parkig ad peasatoutook over the parkads. There have bee two otabesaes recety aog Greehi Road at Wayvie both ithe viciity o $5 miio. Character ad moder oceproperty aroud the Ket Tow area aso cotiues togeerate good iterest whe reeased to market.

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The month in review

deveopmets. Both B Grade ad D Grade vacacyrecorded doube digit vacacy rates, however it shoudbe oted that both experieced a decrease i the

vacacy rate over the precedig six moths ater B Gradebeig at record high eves as at Juy 2010 ad D Gradeat ve year highs as at the same period. As at Jauary2011 the B Grade market had the highest rate o vacacywith 13.7%. Agets have reported that oe o the majordrivig actors behid why the vacacy rate or B Gradeis so ar above that o Prime ad A Grade stock, is thatthe past 24 moths have provided teats with a godeopportuity to upgrade their teacies or comparabe(ad i some decreased retas), with adords oerigicetives i the viciity o 20% to 30% to etice teatsto make the switch. The ow o eect o this beigthat the disparity betwee the vaues o A ad B Gradebuidigs i the CBD ow is quite sigicat; particuaryor those B Grade buidigs with high vacacy rates.

As Queesads ecoomy cotiues to recover,white coar empoymet is aso expected to buid,particuary through growth i proessioa services,

miig ad egieerig as a resut o a soid pipeieo major irastructure projects. Athough, white coarempoymet has grow i the CBD, tota vacacy isorecast to hover betwee 10% ad 11% uti mid 2012as a resut o the ew suppy uder costructio adback that wi eter the market. Secodary vacacy isaticipated to icrease urther over the ext 12 mothsas back accommodatio becomes avaiabe as teatsmove ito 123 Abert Street ad 111 Eage Street.

stock, it is ikey that prime yieds may oy tightemargiay i the short term give the modest retagrowth outook.

God Coast & Tweed Coast

The Jauary Property Couci o Austraia (PCA) gures or

the God Coast were beak. The Juy gures are curretybeig compied ad wi be avaiabe shorty, howeverthey are uikey to idicate ay sigicat improvemeti the market.

Durig Jauary, the God Coast oce market comprised atota stock o 473,686 square metres, ad a tota vacacyo 113,655 square metres, or 24%. At this eve, the GodCoast had the highest vacacy o a estabished marketswithi Austraia.

....as at January 2011 the B Grade market

had the highest rate o vacancy with

13.7%....

A iitia respose to this statistic may be take that themarket is dead. Beow we briey examie i this statemetis true o the God Coast market as a whoe, or i there aregimmers o hope withi certai sub-sectors or ocatios.

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The month in review

per aum (i.e. more aki to a air market rate), we haveassessed the aaysed yied at 9.39%. The reected oorarea rate icudig car parks is $4,175 per square metre.

Two uits have aso recety bee sod withi estabishedmoder stye commercia buidigs at Robia, with thesaes reectig airy good rates.

A upper eve 122 square metre uit withi the HQ@Robia deveopmet has bee sod or $650,000,reectig aroud $5,300 per square metre icudigour basemet car parks. This is a quaity uit i a good

positio, ad was purchased vacat by a ower occupier.

A sma uit o aroud 70 square metres situated withithe Eastside buidig is currety uder cotract o sae.

The sae price reects sighty uder $4,400 per squaremetre icudig two basemet car parks. This uitpreviousy sod i the peak o the market i 2007, withthe curret sae reectig a 20% discout.

25 C tt St t

Sushie Coast

Based o our predictios we have see a rage oteacies become vacat as a resut o the cetraizigo govermet departmets ito the ew GovermetBuidig o First Aveue i Maroochydore, which has

ow bee competed. The spaces beig vacated ragerom average quaity stock to good quaity stock withwater views.

This vacated space is ow beig marketed at a rage rom$250 to $330 per square metre et per aum. This hasicreased the vacacy i the cetra Maroochydore areasubstatiay i the past two moths, ad is aticipated torise as more govermet eases ru to expiry.

We have aso oted a quaity 316 square metre teacyi Caraby Street that has recety bee vacated by aacia istitutio that wi add urther stock to thismarket.

Vacacy i the Kawaa area has bee take up i recetmoths, predomiatey rom teats movig rom argerspace i other ocatios ad aso takig advatage oicreasig icetives. Curret icetives o ve year

i d t t t i th t d

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The month in review

costructio i nei Street, with Stage 1 comprisig o1,266 square metres o nlA beig committed by oeteat. Stage 2 o 1,188 square metres o nlA has o pre

commitmet as yet, however we ote the ack o existigsuppy o arge A Grade oce space to suit a govermetor corporate user.

There is currety a high eve o vacacy i secodarygrade oce space, with exteded ease up periods adicetives ote required to secure teats.

Cetra Queesad

ROCKHAMPTOn

The oce sector remais steady. However, there has beesome activity throughout 2010/2011 icudig urther

acquisitios o aged premises i dieret ocatioswithi the CBD or reurbishmet. Over the past ew yearsa umber o buidigs i the CBD have bee purchasedad reovated providig wecome aceits to aged DGrade space.

These reovatios withi the CBD are aso compemetedby costructio o the most sigicat proessioaoce deveopmet i Rockhampto or may years.

Th i t d i t E t

which beets rom exceet exposure to highwaytrac. The premise is i the a stages o competioad wi be opeig i eary August.

A proessioa oce buidig has recety bee acquiredo Musgrave Street or ower occupatio. This is a600 square metre, we preseted buidig with goodexposure, which sod or $1.6 miio.

BUnDABERG

The Budaberg oce market has traditioay bee

cetred i the CDB ad the rige o the CBD. I morerecet history, the market has become more diversiedad expaded aog arteria roads icudig TakavaStreet ad Baroi Street. The mai attractio is owercost ad ad avaiabiity o car parkig or sta adcustomers.

Advaces i commuicatios maiy emai ad theiteret, ow provide access to iormatio rom ayocatio egatig the eed to be cetra to the Post

Oce ad to the CBD area.

....the market has become more

diversied and expanded along arterial

roads including Takalvan Street and

Barolin Street....

Demad or ew oce space is very imited i the curretmarket athough we are aware that a coupe o arger

i ti ki t t

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The month in review

accommodatio i the city cetre pre-dates 2000.

Recet oce deveopmet has maiy take pace outside

o the city cetre withi the Wiets Road medica precict,north Mackay ad to a certai extet, the Paget IdustriaPrecict. Due to the high cost o deveopmet i the citycetre, maiy due to the uderyig ad vaue, theseemergig rige ocaities have bee abe to providereta rates acceptabe to the market ad thereore haveachieved reativey good demad. As a resut, most ew,recety deveopmet oce accommodatio is ocatedoutside o the city cetre.

As is the case with most property sectors i Mackay, thecommercia market is iueced by the stregth o thecoa idustry. The biggest ucertaity as to the ogoigexpasio ad ortues o the coa idustry is whatimpact the Carbo Tax ad Miera Resource Reta Tax(MRRT) wi have o paed projects or existig miesi the regio. Ay dowtur i the coa idustry as aresut o the taxes has the potetia to impact demad orcommercia property.

Cairs

The Cairs oce market uderwet a cosiderabe period

i 2007 th h t 2010 h

Towsvie

Towsvies oce market compared to the metropoitacities is somewhat usophisticated with the higherquaity product ocated i the Cetra Busiess District(CBD) or i commercia/strip deveopmets aog major

arteria roads.

Towsvies CBD is the mai ocatio or A Grade ocestock, with our research idicatig aroud oe third omaaged ier city oce space aig withi the A Gradecategory.

Over the ast ew moths we have see reewed iteresti oce space i the CBD rom corporate/govermetagecies with Ergo Eergy caig or 6,800 square

metres o oce space (ot CBD specic) ad the stategovermet aoucig pas to seek expressios oiterest or 10,000 square metres o CBD oce. I theseexpressios traspire to teacies, we coud witess thecostructio o possiby two ew oce towers i the City.

Over the past ve to 10 years we have see a umbero smaer oce buidigs costructed i the city beigtypicay sige to three eve buidigs with tota etettabe areas averagig aroud 2,100 square metres perb d

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The month in review

Darwi

The cotract ad diversicatio i the Darwi ocemarket is see ot pricipay by ocatio but by quaityo accommodatio.

The shortage o space i the Premium A Grade remais

acute. The nT Govermet is reeasig a teder orthe suppy o 9,000 square metres o this oce spaceaccommodatig up to 600 sta. Athough this type oproject is og overdue i Darwi, the ret woud eed tobe upwards o $450 per square metre to make the projectviabe.

A project ike this, oce competed, woud hopeuyree up existig A Grade space or use by teats whohave bee orced to ower their expectatios due to the

ack o high quaity accommodatio. These teats arecurrety occupyig B Grade space at $300 to $350 persquare metre.

Beyod that, the situatio is a stark cotrast. C Grade adD Grade type accommodatio i Darwi is uoved admaiy uused with very high vacacy rates sti evidet.

Further aed, we ote that ew space i the Casuariaarea is attractig up to $420 per square metre.

stregtheig with higher vaues stemmig rom theoticeabe decies i avaiabe saes ad reta stockwith cocurret icreases i reta rates. This turaroud

i the market is due to the miig sector that cotiuesto grow at record eves. The vaue o the miig adpetroeum idustry i the State hit a ew record i 2010,estimated at $91.6 biio. Ivestmet i the sector hasbroke aother record, with $107 biio o miera adpetroeum projects committed to, or uder costructio,ad a urther $194 biio paed or possibe.

The miig boom has ot owed o to a sectors o thestates ecoomy. Retai sae turovers, whie sti showigmargia icreases, are achieved by sigicat reductiosi margis urther reduced by icreasig operatigcosts i utiities, rates, taxes ad wages. Furthermore,the aguishig residetia property sector is aectigcosumer codece ad may are struggig to meettheir icreasig costs o ivig.

There has bee abudat media coverage o the Statestwo-speed ecoomy with oca busiesses ot iked to

the miig sector acig icreasig dicuty i meetigrisig costs ad i acquirig credit sice the GFC. Whieoce property i the Perth CBD ad ier city ocatioshave show sigicat improvemet over the courseo the year, much o the outer suburba oce marketcotiues to aguish.

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The month in review

O course ot a o the outer suburba oce marketspossess high proportios o oder stock. The oce marketi Joodaup, or exampe, possesses high proportios o

reativey moder stock, with ow avaiabiity o propertieso the market or ret or sae. Whie beig a outerocatio, strog trasport irastructure, icudig roadsad pubic trasport, ad a deed catchmet esuresa above average suburba perormace.

The Perth oce market reects the States two-speedecoomy ad agai highights the importace o ocatio.For the everyday ivestor, there are good ivestmetproperties avaiabe. The key to seectig a good oceproperty ivestmet icudes choosig properties wheredemad outweighs suppy, ad the importat actorso the age o the buidig, its proximity to trasportirastructure, quaity o surroudig deveopmet adthe existece o a we deed catchmet.

simiar to Specer Street are achievig $200 to $220 persquare metre.

There is cosistet demad or quaity space, howeveri geera, the oce market is at. Whist there are owoce vacacies i the CBD, demad is aso ow.

I the Busseto area govermet departmets areookig to upgrade however there is o avaiabiity, dueto a ack o quaity oce space i the CBD.

It is uderstood that a ew ease or a govermet

departmet has bee recety siged i a ew buidigor $250 per square metre i a periphera ocatio.Stadard oce rets i the CBD are currety betwee$200 to $220 per square metre. There are currety veryow vacacies however, ike Bubury there is aso imiteddemad i the oce market.

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The month in review

Residential Overview

Statistica aaysis o property markets is a vita uctioi determiig where rea estate is headig. That said,umbers ted to provide broad brush strokes o thecavass ad the uace o idividua property types,sectors ad suburbs ca become ost.

Thi h i i d i b hi d

O the other had, Ceci His, whist havig ess activityo saes, have recorded record prices above 1,000,000, aswe as havig a 7 % percet icrease i media vaueover the ast 12 moths. I 2009/2010 acia year, CeciHis recorded circa 78 residetia properties sod withoy oe sae over $1,000,000, recorded at $1,015,000.Withi the ast 12 moths, there have bee 58 residetiaproperties sod with three saes over $1,000,000($1,200,000; $1,270,000 ad $,1,800,000).

RESIDEnTIAl


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The month in review

The over $1 miio market is showig sigs o soteigad high quaity property oered at reasoabe askigprices are sti beig sapped up.

Overa, there appears to be a eemet o cautio i themarket, which may be attributed to the Carbo Tax whichhas ejoyed saturatio media coverage with dierigviews o how the ecoomy as a whoe is to be aected.

The market shoud sti remai steady, however, i aiterest rate rise were to take pace i the short term, thismay be eough to spook the market ito sowig.

Woogog

I the Iawarra the media price or a sectors i theWSD (Woogog Statistica District) rose aroud 4% i

h i h b D b 2010 d J 2011

Caberra

Accordig to the Austraia Bureau o Statistics (ABS), theestimated popuatio o the ACT is a itte over 361,000peope. Reative to other major capita cities, Caberra isquite sma ad aog with stabe empoymet, courtesyo the pubic service, it provides a market that has ot etthe same eve o dowtur.

Across the atio we are witessig a market correctiowhere media dweig vaues have dropped -2.3% overthe year to May 2011. Caberras market correctio is ithe orm o a atteig market over the ast 12 mothswhere overa media dweig prices have ae by-0.1% to May 2011. This comprises o:

Medianhouseprice$560,000,growth0.9%

Medianunitprice$410,000,decreaseof-3.8%

Symptoms o our atteig market icude ogermarketig periods to se a property ad sight oversuppyversus sighty ower demad. Accordig to RP Data,tota advertised istigs or Jue 2011 were 1727, whichiustrates a 30% icrease i suppy compared to the sametime ast year. lower demad eves are beig iuecedby the perceptio o goba ecoomic ucertaity, owcosumer setimet ad iterest rate ucertaity.

l i h j i l i i

RESIDEnTIAl


18/56

18

The month in review

newcaste

The market has bee pumpig here is ote somethigheard by Vauers o ispectios approximatey six mothsater the market has ae away ad we are woderigwhere our ext vauatio is goig to come rom. There isote a ag betwee statistics ad activity o the groud.

The most recet brake o activity i newcaste was the

ast iterest rate rise i ate 2010. Amost overight weexperieced a hat to proceedigs. What coud amosthave bee described as a seers market tured amostistaty ito a buyers market. The media, operatig ostatistics, didt pick up o this uti about three mothsito 2011.

I actua act as recety as this week a artice i our ocapaper highighted that average house prices jumped 40%i the year to March. Our statistics idicated that whist

the prices may have rise margiay, more teigy, saesumbers e o the edge o the earth. I the six mothsto March saes umbers haved or lake Macquarie, PortStephes, newcaste, Maitad ad Cessock. For bothhouses ad vacat ad. This is oe exampe o statisticsbeig out o step with actua reaity. I our opiio saesumbers provide a accurate guide to the stregth o themarket.

h ld l h b d ib d

nSW Cetra Coast

Ote is the case whe ispectig a property thatsomeoe asks hows the market goig.

A seemigy iocuous questio, just ask ayoe whoreads the ewspaper, media reeases or bogs. But askayoe to iterpret what they have read or heard ad theaswer soo begs more questios.

The maistream data ad commetary we see or hearo rea estate prices is geeray the resut o sigicatresearch. Uortuatey, there simpy ist eough roomto give a detaied resut, so we are ed a very codesedstatistic. The sad thig about this is that the pubic is otemisiormed.

As vauers, we are more tha a itte wary o the 10%

i i h di h W k

RESIDEnT

IAl


19/56

19

The month in review

Umia Beach is a iterestig area i so ar that there hasbee itte to o chage i vaues or a typica 3 bedroomhouse with a sige garage. We attribute this to the areas

popuarity, its size, price poit ad eve o turover. Themaer i which the market behaves is ikey to see thisarea, ad its eighbours Woy Woy ad Ettaog Beachmaitai equiibrium. That said though, the marketor medium desity deveopmet sites i the area hassuered with the rest o the market ad it is oy recety,that we have see the odd deveopmet site beig sod- at vaues beow that beig achieved severa years ago.

We see the most vuerabe sectors o the market beigi the higher priced areas, such as Terriga, Avoca Beach,

Toowoo Bay, Bue Bay. These are areas cose to the oceaad hece reguary saw $1m pus saes goig back aew years. More recet saes o properties i these areassaw price reductios, i some cases exceedig the 10%bechmark.

have had some sight as. The moder high-rise uitmarket has sowed to a worryig tricke give the oversuppy i this sector.

Port Macquarie recorded 16 vacat ad saes i the rstquarter o 2011, a sigicat a rom its reguar 40 oddsaes per quarter. The soo to ope earby SovereigHis coud ead to a decie i this market. Aordabeproperty ad the upper ed housig market has hedsteady, whist mid rage property ad the moder high-rise has ae.

I summary, aordabiity combied with eve odebt is payig a arge roe i the umber o markettrasactios occurrig. Accordigy, the ower edsectors are experiecig a high eve o saes activity orbeig more maageabe to a wider rage o purchasers.Specuative ad purchasers are out, ad costructio oew homes is weak as this woud ted to oad borrowerswith a above average eve o debt. The mid eve pricerage or Forster ad Port Macquarie appears subdueddue to borrower cautio, as does the upper ed Taree

ad Kempsey markets. The upper ed Forster ad PortMacquarie markets are ote domiated by ewcomersto the area, such as cashed up retirees rom Sydey addebt eves i this sector are ess o a issue. Whist itappears media prices are hodig to most sectors, thedecie i the voume o saes may be proceedig someas i vaue i the ear uture.

RESIDEnTIAl


20/56


21/56

21

The month in review

ad a tota voume o $18,301,666. That is a decie oapproximatey 10% i both the umber o saes ad thevoume however the media price remaied the same.

Whist the u data is sti orthcomig, the iormatioavaiabe or the Jauary to Jue 2011 period idicatesthere were approximatey 47 vacat ad saes witha media price o $123,000 ad a tota voume o$6,556,700. This is approximatey a third o the turoverad voume o the Juy to December 2010 period.notwithstadig the May ad Jue saes sti to sette, itis uikey that the tota umber o saes ad voume wireach simiar periods durig 2010. Overa the mediaprice o vacat ad has remaied steady.

I the Jauary to Jue period o 2010 there wereapproximatey 432 sige residetia saes with a mediaprice o $292,000 ad a tota voume o $130,739,148.I the Juy to December period o 2010 there wereapproximatey 446 sige residetia saes with a mediao $305,000 ad a tota voume o $142,526,057. That isa icrease o approximatey 3% o the tota umber o

saes, 10% o the voume ad 4% o the media price.A idicatios idicate a icreased demad or sigeresidetia properties i the secod ha o 2010.

The curret data we have or the Jauary to Jue 2011period idicates approximatey 362 sige residetiasaes with a media price o $290,000 ad a tota voumeo $107,108,050. This is a decie o approximatey 19%i the tota umber o saes, 25% o the voume ad 5%o the media price. A chace exists that, with May ad

h d b

ad, uits beow $300,000 ad houses i the $200,000to $250,000 price bracket. losers were prestige uitsad houses ad the $400,000 to $500,000 cub. The

bridesmaid to the wiers voume circe was houses ithe $250,000 to $300,000 price bracket, with the mided beig beow $200,000, $300,000 to $350,000 ad$350,000 to $400,000 a showig simiar voumes.

So did these voume wiers have a uair hadicap?We yes. Vacat ad i Grith experieced heavydiscoutig pre-Christmas (10% to 15%) which wet aog way to geeratig saes activity ad a hadu ouits saes demostrated as i vaues coser to 10%, sothese opportue prices certaiy heped these segmetsput o a squirt.

....the decline is possibly based on a

national rather than local ocus, however

the near fooding o the town earlier this

year may play a part in the decline....

So who gets the bue ribbo? The $200,000 to $250,000market. This market has experieced the greatestvoumes with the east discoutig. Its avoured or itsaordabiity ad i you purchased with pety o vaueaddig opportuities i north or East Grith ocaitiesyou have got your hads o this years top perormer.

RESIDEnTIAl


22/56

22

The month in review

raiway ies or o busy mai roads, are geeray takigoger to se ad their capita vaues have decied.

Surprisigy the capita vaues ad sae voumes havehed up i the outer orther ad wester suburbs oMeboure. Traditioay these areas have experieceddowturs i both capita vaues ad voumes o saesdurig periods o dicut ecoomic times. What hasoccurred i these areas, i reatio to ad vaues, isstabiisatio ater experiecig a heated market i 2010.

Craigiebur, which is oe o the astest growig orthersuburbs o Meboure, has maitaied its capita vauesi 2011. Accordig to RP Data the media house pricehas rise 0.8% i 2011 ater a 12.2% icrease i 2010. Asimiar perormig suburb is Eppig i the outer ortheast o Meboure, which accordig to RP Data showeda media house price rise i 2010 o 10.7%. Howeveri 2011 there has bee a 0% chage i media houseprices. Oe o the uder perormig suburbs i thewester suburbs is the outer yig suburb o WydhamVae, situated approximatey 34 kiometres west o the

Meboure Cetra Busiess District (CBD). This area is arapidy growig suburb that is predomiated by yougamiies. Accordig to RP Data the media house pricehas ae by 2.5% year to date i 2011. It experieced aicrease o 11.6% i 2010. The more prestigious suburbo Poit Cook, situated approximatey 20 kiometres westo the Meboure CBD, has experieced egative growthi 2011 o 3.5%. This oows a heated market i 2010,which accordig to RP Data, showed that the mediahouse price icreased by 16.2%.

There have bee reports i the media withi the pastweek that, accordig to Westpac Bak, the Reserve Bakmay ower iterest rates by up to 1% over the ext 12

moths. The Reserve Bak Board did ot provide ayidicatio o this at its ast meetig.

Further iterest rate movemets shoud pay a major parti the short term directio o the market.

Regioa Vic

GIPPSlAnD

Gippsland Region - Overview

Overa the Gippsad property market is cosidered tohave sowed i the previous three to six moths withower demad ad ower saes turover. However, the

Trarago market is cosidered to be more stabe thaother areas o Gippsad.

Sale/Mara Property Market

The property market has sowed i the previous threeto six moths with ow demad. This i tur is aectigsaes turover. The sowest poit o the market is theupper ed with properties marketed over $400,000experiecig prooged periods o the market. We

h h d d h

RESIDEnTIAl


23/56

23

The month in review

The ower ad midde ed o the market remais stabewith miima price movemet i the previous three to sixmoths.

The reta market remais cosistet with returs oapproximatey 5.5% to 6.5% i the ower to midde rageo the property market.

90 Mile Beach Areas Property Market

The property market remais sow with o movemet ithe previous ie to 12 moths. We estimate a dowturi vaues o betwee 5% ad 10% i the previous twoto three years. These areas comprise a high suppy oproperties with very miima demad. Properties areexperiecig prooged periods o the market, over 12moths i some cases.

Vacat ad prices have ot moved i recet times.

Rural Residential Property Market throughout

Gippsland/Latrobe Valley

Overa prices remai stabe or estabished homes.However vacat ad prices have icreased sighty i theprevious ie to 12 moths. We beieve this is due to theicreasigy high prices o residetia vacat ad withithe cities ad tows o the Gippsad Regio.

Uortuatey quartery statistics such as this dotaways revea the true picture, ad are ote distorted byeither a reativey sma sampe size, or by the occurrece

o a reativey high umber o saes either at the upperor ower eve o the market durig the reportig period.O ote i the Midura market is that may o the owerrage houses are ackig demad but the $250,000 pusprice category is seeig actio. Buyers have show moreethusiasm or property i the higher ed o the market,with ocas takig the opportuity to trade up to betterstadard homes ad ivestors buyig better quaityhomes i the $220,000 to $300,000 bracket. This hasresuted i a icrease i the media house price over the

past 15 moths eve though vaue eves have remaiedreativey stabe.

.... the residential property market in the

Mildura region has been patchy....

O cocer is the ack o capita growth i the regio overthe past 4 years as a resut o drought, the water crisis,GFC ad sowig popuatio growth. Media house

statistics or Midura show a 40% icrease betwee 2002ad 2010, compared to Regioa Victorias 86% adMeboures 90% or the same period. The media houseprice or Midura is $210,000.

Overa our observatio has bee that the residetiaproperty market i the Midura regio has bee patchy.Demad at the cheaper ed o the market, say beow$200,000, has bee sow, ad there has bee a reductioi vaue i this sector, particuary o od houses, over the

RESIDEnTIAl


24/56

24

The month in review

whie or expectatios to come back i ie with curretmarket coditios, so i a house hast had ay capitagais i a tweve moth period, yet the expectatio is or

a 10% gai the oe coud easiy jump to the cocusiothat the house has ost the equivaet o 10% i vaue,without it actuay beig the case.

With the Adeaide market at a at ie it is dicut topick out the best ad worst perormers. I the shortto medium term itte capita growth is expected adit is dicut to specuate whether we have reachedthe bottom o the cyce or sti have a itte way to go,traditioay the Adeaide property market is quite soidtedig ot to experiece the roercoaster highs adows ad accordigy this trough i the cyce is expectedto be reativey shaow. lad prices are expected to hodquite we, especiay i the ier suburbs ad the cost ohousig, especiay with the itroductio o the carbotax, is ot expected to get ay more aordabe ay timesoo.

....or real hurt, look no urther than the

aordable investor/rst home ownermarket in areas such as the western

corridor....

Overa the market is tedig to be quite upredictabe,whie some houses sit o the market ad are discoutedover time, others se rst ope at better tha expectedprices thereore the market is currety beig drive bythe buyers that are avaiabe at the time. Ucertaity ad

So our broad brush ca is:

Over the past six to twelve months, most markets in SEQ

have seen a 5% to 10% all, or at best remained steady,depending on the sector.

Is that broad eough or you? lets dri dow a itte.

The ier ad ear city semi prestige ad prestige sectorshave show some pai. These are usuay stawart marketswith itte that ca dampe buyer ethusiasm but thereare some higher ed vedors who are obviousy smartigad wiig to meet the market as a quicky as possibe.For exampe:

16McDonaldStGordonParkpurchasedFeb2008for$1.022M. Reported recet sae May 2011 $950,000.

Its aso worth otig that our peope o the groudare reportig with reguar ad righteig mootoyo a rat o other resaes we cat quote here. Most areshowig the magic 5% to 10% a athough some arebuckig the tred ad droppig urther.

For rea hurt, ook o urther tha the aordabe ivestor/rst home ower market i areas such as the westercorridor. This sector has take a hit as iterest rate risesput ear i the hearts o those who are borrowig o theedge. Iaa ad Redbak Pais are dig serious adreguar as o 20% o prices achieved tweve moths totwo years ago. Oe o our team beieves we are back tothe eary 2007 market i some areas.

RESIDEnTIAl


25/56

25

The month in review

i the orm o overseas studets meas these propertieshave bee reativey paiess i the dowswig.

Mid rig property has bee havig its ups ad dows.Famiy homes here had, uti recety, bee airy soidbut a ew recet saes are ow showig buyers are essethusiastic.

Fiay, arge scae outer suburb projects are aso othe wae. Two recet exampes rom north lakes iBrisbaes orth icude:

1 Wiadra Pde - Sod i May 2010 or $575,000. nowuder cotract but ot ucoditioa at the time owritig or $530,000. Iterestigy the owers aso puti a 36 sqm Bai Hut ad timber deck sice their origiapurchase.

20 Forresta Cct, - Sod i Feb 2009 or $780k, oy to beresod Apri 2011 or $708k. A very ice house accordigto our ma o the scee.

I kow, I kow, it a reads doom ad goom ad it cabe too easy to bame the exampes o the coservativevauers peddig bad ews, but this just ist the case.Our city has had a pretty good ru i the property gamesice 2001 but the sot times are we ad truy upo us.Whie some o our vauers are reportig a tricke o rsthome buyers back ito the market, a serious tred hasot yet emerged. O the pus side, our property marketis presetig some seriousy good opportuities or thecashed up buyer so Brisbae is we worth a ook.

I the cetra souther regio o the God Coast, theBEST PERFORMInG SECTOR is the $400,000 to $650,000housig market, i areas such as Bureigh, Broadbeach,

Mermaid, Robia ad Varsity lakes. I this market sector,there has geeray oy bee a 0% to 5% decie i vaueeve sice the start o 2011. We are sti seeig somepoor resuts where there is some type o egative aspectassociated with the property, or where the vedor isdesperate to se.

The WORST PERFORMInG SECTOR o the cetra southerGod Coast regio is the owrise, highrise, towhouse, viaad dupex uit market. I particuar, ivestmet type

property i arge uit compexes with a high proportioo reta uits, have see a 10% to 20% decie i vaueeves sice the start o 2011. A two bedroom uiti Varsity lakes has just sod betwee $255,000 ad$260,000. A simiar uit sod ast year or $310,000. I thecurret market, a ot o ivestors have egative equity itheir property ad are ookig to se dow these assets.We are aso seeig betwee 10% to 20% decie i vaueeves or the majority o uit stock i the over $700,000

price bracket.

Sushie Coast

RESIDEnTIAl


26/56

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The month in review

suburb o Miyama provides the oowig, via uits(circa $250,000), waterrot apartmets (circa $400,000to $800,000), dry ot housig (circa $350,000 to $600,000),

ad caa rot housig (circa $650,000 to $7 miio).This is ot to metio the various types o commerciaad retai property. I oe quarter there ca be umbero saes o higher priced waterrot properties with amedia workig out to say $1,500,000. I the oowigquarter, i those high-ed saes dot occur the mediumca a to $750,000. The questio is, has the market aeby 50%? I thik ot.

It is aso ot eough to rey o property specics such as

desig aspects, ocatio ad eatures. The circumstaceso each particuar sae are aso critica i determiigot oy the tred o the market pace, but aso vaueso specic properties. Vedors that are uder pressure tose are obviousy takig sigicat discouts to obtaia resut. However there are a sigicat umber ovedors o the market that have purchased properties,or exampe i the 1980s, ad it is purey time or them tomove the property o. They have ot experieced a oss.

To the cotrary, they are takig the prots rom their ogtime i the market.

As per Property Data Soutios we have extracted theoowig % growth statistics YTD.

East Toowoomba 4.8

north Toowoomba -3.4

South Toowoomba -3.6

Ragevie -6.3

Midde Ridge -3.6

Mout loty -0.1

newtow -3.8

Wisoto -0.8

Ceteary Heights -1.6

Harristow 0

Keareys Sprig 0.2

Darig Heights -0.5

Gevae -4.3

Haraxto -4.9

Some recet exampes icude;

A rural residential property valued 12 months agowhich had o additioa improvemets or chages,showed a regressio o 5% over the 12 moth periodi compariso with recet saes evidece.

A rural residential property which originally soldor $720,000 ad had good street appea, coditioad was we maitaied sod or a ractio more 12

RESIDEnTIAl


27/56

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The month in review

The worst perormig suburbs are possiby those wherewe have see a oticeabe reductio i the umber oivestors eavig the market such as Gevae.

Oe iterestig tred is the curret substatia egativegrowth o oder dated product situated o arge ots.

These properties are ot beig we received by themarket ad ote se beow expected vaue at auctio.

A said ad doe it is hard to swaow these statisticswhe our oca uempoymet percetages adwork avaiabiity i our agricutura, miig, eergy,costructio ad commerce sectors are doig reativeywe i compariso with other areas.

Cetra Queesad

ROCKHAMPTOn

Over the past 12 moths the Rockhampto ad CapricorCoast residetia market has remaied airy steadyovera. Athough sae voumes are sti ow, media saeprices have remaied at a simiar eve throughout thisperiod.

Uit saes aog the coasta strip are improvig withreewed iterest i this area as vedors who have hedout or higher prices are ow meetig the market. Reta

vacacies are sti very ow with steady icreases i retsexpected each year.

The umbers idicate that Budaberg is sti a aordabepace to ive.

HERVEY BAY

Withi the Fraser Coast regio, agets have reported

that most activity is occurrig withi the $200,000 to$350,000 price rage, with a ew saes beow $200,000.At this time, there does ot appear to be ay particuarsuburb outperormig other areas, with saes reativeybaaced across most suburbs. Athough equiry orproperties cose to the beach aroud $200,000 is steady.Buyer equiry seems to be evey spread across oca,itrastate ad iterstate areas, with a comparabe mix oivestors ad ower-occupiers.

The uit market is currety our worst perormig sector,with itte demad ad oversuppy posig as the maiactors or this diemma. The Ramada i Uraga hasrecety reduced their iitia ist prices by approximatey20% or dua ad tripe key apartmets i a cearacesae. Sae prices start at $340,000 ad rise to $540,000.

The reta market is maitaiig cosistet demad,with miima vacacy rates. Agets have oted thatmay teats are choosig ot to move, due to the

RESIDEnTIAl


28/56

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The month in review

The wettest witer i years i 2010 aso caused absoutechaos with the cae harvest resutig i over 1,000,000toes o cae uharvested.

Buidig approvas appear dow o ast acia year,based o gures to the ed o May shows up to 25% dropo ast year, athough saes voumes o dweig appearssteady.

Whie we had pety o goom, there was ot too muchdoom. Vaues have hed reativey we across mostsectors with oy very imited as i isoated saes. Thereta market has remaied buoyat, with ow vacacyrates across a sectors. With the su ow startig to shie,ad the regio startig to dry out, there is a reewedoptimism settig i. Buidig projects deayed are owup ad ruig, theres hope the cae eds wi remaidry to aow a u harvest, ad agets ca ay ivitepeope through their ope homes.

With arge expasio projects paed or the BoweBasi miig areas, arge ad smaer deveopmets i

Mackay, icudig the Base hospita, norther Beaches,Caeads ad Mt Peasat shoppig cetre expasios,the proposed expasio to Darympe Bay coa oadigaciity shoud hod Mackay i good stead movigorward. The oy risk is the proposed Carbo Tax ad theeects o the coa miig idustry, which uy uderpisthe ecoomy i Mackay.

A i a, there has bee o stad out market perormeracross most sectors. The oy dow side is the residetia

Cairs

Our atest statistics idicate that over the 12 moths toMay 2011, the Cairs media house price tred has ae5.4% to $346,000, whie the media estabished uit pricetred has ae more heaviy, showig a 21.3% reductio

to $182,000.

However it is said that statistics are ote used ike a drukuses a amp post, more or support tha iumiatio.

The Cairs property market has deteriorated i recetmoths, with saes rates sow ad some property pricereductios.

However a arge iuece o media property

price statistics is they have bee distorted by higherproportios o mortgagee-i-possessio (MIP) saes,makig them ess represetative o idividua propertyprice movemets. Because o the overa sowess othe market mortgagee-i-possessio saes have becomemore o a iuece, with some buyers oy iterestedi purchasig MIP properties ad buyig other propertyoy at MIP equivaet prices.

I additio the market has ot bee uiorm across

RESIDEn

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The month in review

However, geuie purchasers i the market sti appearwiig to pay or properties, which are avoraby ocatedad we preseted. The other major cetres o Burie

ad Devoport appear to be to be struggig with thecurret market coditios.

As demostrated, tryig to appy a broad brushapproach to the market o a whoe is probematic. Eveprior to the uique ecoomic dicuties Tasmaia isacig i compariso to maiad markets, the markethas ot coormed to ay widespread market treds.

Darwi

The residetia housig market i Darwi has ejoyedgrowth rom eary i the cetury uti mid 2010 withthe idex or estabished house prices i Darwi more

tha doubig whie the Austraia capita cities idexicreased by just 35% (ABS, 2009). It is ow geerayaccepted that the residetia market withi Darwi is ia phase o chage with sowig market coditios ad acorrectio i overa vaue. Whist some market segmetsremai stabe, may segmets that experieced thehighest growth over the past ew years have seriousyweakeed.

What are the best perormig suburbs i Darwi? It

quaity uits. There is aso a arge amout o prestigedeveoper stock which has bee hed rom the market,a utimey reease o which coud urther destabiise the

market.

Fiay, it is air to say the market has peaked withi thecurret cyce with the majority o residetia propertiessoteig. There are sectors however that have hed theirvaue at the curret stage. Oy time wi te what thesevaues wi do headig ito the uture.

Perth

Wester Austraias miig idustry cotiues to be asymbo o Austraias growig ecoomic promiece othe goba stage. The vast riches o oer have resutedi rapid popuatio growth eavig the housig marketi a apparet udersuppy. I theory, this shoud resuti upward pressures o property vaues as demadoutstrips suppy.

RP Data however amed Perth as the worst perormigcapita city durig the May Quarter with vauesdepreciatig 4.2% i seasoay adjusted gures. Acatayst o the atios ecoomy yet statisticay a victim

RESIDEnTIAl


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The month in review

suburbs icude Caig Vae, Eebrook, Badivisad Byord, which cater to a arge proportio o rsthome buyers. However, it shoud be oted that this has

coicided withi a time o reative stabiity i iterestrates ad ay moves by the Reserve Bak is ikey to aectthese midde o the road perormers.

Positivey, some suburbs have bucked the tredad provig to be soid perormers durig this time.Accordig to REIWA, Scarborough emerged as oe o thebest perormig suburbs throughout the period romMarch to May 2011, with media prices icreasig by 8%ad 15% or houses ad uits respectivey.

Boarded by the prestige coasta suburbs o City Beach adTrigg, Scarborough oers coasta ivig withi 10km othe Perth CBD with a media price o $545,000. This mideve price category o betwee $450,000 ad $600,000has experieced strog demad throughout the year toMarch 2011, accoutig or 28% o house saes withi

overseas hoiday makers are ot cosiderig Austraiaas a hoiday destiatio rom a pure aordaby poito view. Cosequety, the short stay market has a high

vacacy rate that subsequety returs ow yieds or theivestor. These actors have hit the short stay market hardad as a resut vaues have reduced cosideraby over theast 12 moths. The rura, rura residetia ad prestigemarkets have weakeed more or ess i ie with theREIWA statistics.

I cotrast, the ower to medium ed o the market hasbee reativey resiiet over the ast year. This marketsegmet is sti at with steady but uspectacuar saes

occurrig up to $500,000. Vedors are cotiuig to haveto meet the market to achieve saes ad the averagedays to se has icreased which has caused dowwardpressure o prices. However it appears that uess beigorced to se, vedors woud rather take the propertyo the market ad to ret as a aterative, as the retamarket is strog. This is a preerred optio to droppigthe price. Cosequety, there does ot appear to bearge as i prices but a sideways process at this stage.

Thereore, athough the market is sow, the marketsegmet has ot see as o 10%.

Overa, there is a geera perceptio that the market ispresety ear the bottom o the cyce at this time butwhether it has reached the bottom remais ucear.Steady icreases i ie with wage iatio are predictedover the oger term due to the eects o imited suppyad icreased popuatio drive demad i the SouthWest o WA. With iterest rates o hod ad apparety

RESIDEnTIAl


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The month in review

COnTACTS

Ofce Phone Email

Abu Dhabi, UAE +971 02 4173581 [email protected]

Adeaide, SA 08 8231 6818 [email protected]

Abury/Wodoga, nSW/VIC 02 6041 1333 [email protected]

Bairsdae, VIC 03 5152 6909 [email protected]

Bathurst, nSW 02 6334 4650 [email protected]

Bedigo, VIC 03 5480 2601 [email protected]

Brisbae Commercia, QlD 07 3002 0900 [email protected]

Brisbae Residetia Oces, QlD 07 3353 7500 [email protected]

Brisbae Rura Queesad, QlD 0417 753 446 [email protected], WA 08 9791 6204 [email protected]

Budaberg/Wide Bay, QlD 07 4154 3355 [email protected]

Busseto, WA 08 9754 2982 [email protected]

Cairs, QlD 07 4057 0200 [email protected]

Caberra, ACT 02 6273 9888 [email protected]

Darwi, nT 08 8941 4833 [email protected]

Deiiqui, nSW 03 5881 4947 [email protected]

Dubbo, nSW 02 6884 2999 [email protected]

Echuca, nSW 03 5480 2601 [email protected]

Emerad, QlD 07 4980 7738 [email protected]

Gadstoe, QlD 07 4972 3833 [email protected]

God Coast, QlD 07 5584 1600 [email protected]

Goodiwidi, QlD 07 4671 5300 [email protected]

Gosord, nSW 1300 489 825 [email protected]

Grith, nSW 02 6964 4222 [email protected]

Hervey Bay, QlD 07 4124 0047 [email protected]

Cotacts


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33

The month in review

property market as we move through a chaegigperiod. There is ight at the ed o the tue! Ejoy theatioa market summaries cotaied i this editio.

Roger Hi Ph: (07) 4724 2000

1 August 2011

nORTHERn nSW COAST

Wecome to the August 2011 editio o the Rura MothI Review. There is o doubt the rippe eect rom therecet ba o live Exports o Catte to Idoesia is haviga impact o the norther Austraia markets ad serviceidustries. Eve though the ba is ow ited, it wi takesome moths beore cash ow is actuay received. The

Rural Market Directions

RURAl


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34

The month in review

Macadamias

The harvest is amost compete. The Austraia

Macadamia Society report that the crop is expected tobe about 25,000 toes i 2011. This is we dow oidustry records. Property vaues have decied.

Cattle

Geeray above average pasture coditios approachigthe traditioa orth coast eed gap o witer ad earysprig.

Tea tree

Tea tree prices at aroud $ 35 /kg remai avourabe.Ucertaity however with the ukow potetia impacto myrte rust cotiues. The auctio o a reativey argetea tree patatio aggregatio o two properties i theBugawabi area is to be hed i Sydey o Juy 28 asa goig cocer with pat & equipmet icuded. Thisauctio may give some curret idicatio o the stregth

o this market give curret reativey strog tea tree oiprices but sigicat market ucertaity i reatio tomyrte rust.

Chicken Broiler Farms

loca broier grower codece aecdotay appears tohave icreased ow that Ighams have purchased theoca chicke processor.

The rura rea estate markets remai subdued across theregio whie most armers are sti recoverig rom theog-term drought. The outook or irrigatio properties

is sti uder doubt with cotiued ucertaity overthe Murray Darig Basi Pa overshadowig buyercodece i this sector. The regios traditioa summercrops icude rice, cotto, cor, citrus, grapes, vegetabesad other horticutura ad broad acre crops.

Overa the markets are showig sigs o recovery. Give2011 reaps soid, witer ad summer crops, we shoudsee rura markets pick up pace ad move ito the extphase o the property cyce i eary 2012.

Cotact:

Peter Gu Ph: (02) 6953 8007

AlBURY/WODOnGA

The souther wet seaso cotiues. It has bee cod,wet ad widy or the ast moth i souther new SouthWaes ad orth easter Victoria. The period rom earyMay uti ate Jue provided idea sowig coditiosor croppig, provided the ad beig sow was wedraied ad did ot cotai soaks. However sice thestart o Juy it has bee cod ad wet. May armers haveoud it very dicut to sow ate crops due to treacherousgroud coditios ad there have bee may icidetso air seeders ad tractors gettig bogged durig sowig.Sowig has aso bee deayed due to the extremey heavyburde o vegetatio brought about by the very earyseaso rai i February ad March. It has bee dicut i

RURAl


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The month in review

RURAl

durig the sprig seig period rom September throughto ate november or eary December.

The ba o ive catte exports has impacted catte pricesi these areas, with most ies o catte easig over theast moth. Hopeuy the reitroductio o ive trade toIdoesia wi reverse this dowward tred i prices.

WAGGA WAGGA

The rura market i Wagga Wagga ad surroudigareas is currety static with vaues hodig. The majority

o saes that do occur are usuay to adjoiig or ocaestabished ad hoders. Vedors i the market that areachievig saes are beig reaistic with the askig pricesad are wiig to egotiate. We beieve this tred wicotiue i the rura market or the ear uture.

Cotact:

David Shuter Ph: (02) 6041 1333

outook more positive o the back o exceet seasoacoditios ad geeray improved commodity prices,this icrease woud be expected.

However a dry autum with itte rai i the ast ha oApri, May ad Jue is causig major cocer, ad i itdoes ot rai withi the ext three weeks, it wi havea sigicat impact o crop yieds. The dry autumcombied with sigicat damage caused by mice isstartig to rui what was a very promisig seaso.

....due to the large amount o surace

water available there has been little

demand or permanent bore water....

The irrigatio seaso is promisig with the major damsat ear capacity apart rom Dartmouth o the Murraysystem at about 64%.

The market or dry grazig coutry has bee static,however agets are reportig oers we i excess orecet eves o vaue, as buyers try to take advatage

o the arge body o eed avaiabe ad the strog sheepprices.

The market or Geera Security cass water (MurrayVaey) has bee hoverig aroud $700 per uit (dowrom a high o $1,200 per uit as a resut o govermetbuybacks), whie the market or Murray Irrigatio limitedWater ad Deivery etitemets (Geera security casswater) is aroud $550 per uit.


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The month in review

The average prices paid i the Suraysia regio showeves o $235 per toe or Chardoay; $188 per toeor Coombard; $307 per toe or Sauvigo Bac ad

up to $427 per toe or Piot Gris. The mai red varietiesshowed $311 per toe or Caberet Sauvigo; $278per toe or Merot; $285 per toe or Shiraz ad $336per toe or Piot noir. Amost a variety returs wereower tha the previous depressed eves o 2010, urtheriustratig that at preset wie grape growig is otprotabe.

leadig idustry bodies suggest that it is ikey to be ateast aother two years beore the idustry recovers.

Dryland Cropping

Seasoa coditios or the cerea croppig ad grazigsector have bee very good ad aother promisigseaso beckos. A good drop o rai woud be beeciai the ext coupe o weeks. This seaso may oca

Water

The Jue permaet water buyback teder by the

Commoweath Govermet or Souther Murray-Darig Basi water resuted i strog iterest rom seerswith 560 coormig bids submitted to the teder whichover subscribed the $60 miio budget. As a resut o thisteder, the Austraia Govermet are ikey to purchase32 gigaitres o permaet water etitemets.

A average teder price accepted by the govermet ithis teder or Victoria High Reiabiity water was $1,839/Ml. The spreadsheet beow iustrates the average teder

prices rom Govermet teders datig back to Jauary2010 or this regio.

Victorian Murray - (Below Choke)

Tender Date Entitlement

Class

Ave price $/ML

Ju-11 High Reiabiity $1,839

May-11 High Reiabiity $1,856Mar-11 High Reiabiity $1,846

Feb-11 High Reiabiity $1,821

nov-10 High Reiabiity $1,833

May-10 High Reiabiity $1,824

Mar-10 High Reiabiity $2,050

Ja-10 High Reiabiity $2,072

RURAl


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The month in review

Demad or o-oca ivestors ad iestye buyers issti reative ow ad there are imited sigs these typeso buyers wi re-eter the market i the short to medium

term.

Demad or vieyards remais sot ad we are aware ovieyards saes ot progressig uti the vies have beeremoved ad sod or aterativey agricutura ie-styevaues

Cotact:

David Suiva Ph: (02) 6334 4650

SOUTHERn QlD

Strong Demand or Chicken Meat

With the strog demad by Austraias or chickemeat expected to cotiue, Ighams, oe o the majorpayers withi the Austraia Chicke Meat Idustry, haveembarked o a major expasio o their operatios iorder to meet that growig demad. This has resuted ithe costructio o extesive ew deveopmets i theorm o ew grow out operatios, may o which wi beprovided by third parties or cotractors.

RURAl

however, icuded a moder, our bedroom brick home,together with a moder habitabe machiery shed/oce.

The sae reected $21.80 per bird, or approximatey 10%

above the accepted bechmark vaue o $20 per bird,excudig these ameities, ad geeray reects theupward tred o where the idustry is headig.

Cotact:

Doug Kight Ph: (07) 4339 2119

nORTHERn QlD

Grazing Industry

The cod sap o witer has arrived with pastures ow wehayed o ad the Fiders grass ast disappearig. Cattedo cotiue to ow ito the Charters Towers seig yards

with prices uctuatig but remaiig reasoaby strog.

It has bee a og time sice orces withi our owatioa boudaries have bought about such disruptioad heartache to the iveihood ad we beig o ourorther graziers. The ucertaity o atioa poicyto ive export operatios has had a impact upo theproperty market o the north. This ucertaity combiedwith the geera poor ecoomic outook or Queesadhas resuted i sma grazig properties, mosty with


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The month in review

RURAl

movemets throughout the seaso. Govermet adMis are sayig that this arragemet is oy a temporaryarragemet uti the lucida Port aciity is repaired.

Horticulture

Bowe has commeced pickig tomatoes. The voumeis somewhat reduced because o the uusuay codcoditios beig experieced i the district, but voumeswi icrease rapidy with a ew warm days. There has beesevera ad saes i the district, but these saes do otreect ay icrease above estabished eves. Irrigatiowater avaiabiity is stabe ad as a resut o reductios

throughout the year are predicted.

....the Burdekin continues to be o interest

to several larger players seeking to

establish urther plantation style areas....

Meos ad heavy crops shoud be ow estabishedwithi the Burdeki ad Herbert River areas ad icoditios hod, soid suppies shoud become avaiabe

which may hep ower the weeky resh ood bi i theear uture. There is oy oe baaa grower i thisregio ad to date suppies rom that arm are sma adsod at the gate.

Rural Sales

As outied previousy, severa sma grazig propertieshave sod or are uder cotract. large good quaitygrazig properties are ot movig.

Other CQ grazig properties Mooka Park adGegowa recety wet uder the hammer, howeveraiig to se, which iustrates there is sti a cosiderabe

disparity betwee vedor ad purchaser as the marketcotiues to d directio.

Cotact:

Wi Mclay Ph: (07) 4927 4655

nORTHERn TERRITORY

The cotract ad diversicatio i the Darwi oce


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39

The month in review

South Wester WA

Precisio Agricuture - What impact is techoogy ikey tohave o armad vaues?

Whist the crops start to grow i Wester Austraiaswheat growig areas, the agricutura property marketas a whoe remais sow with imited saes activity beigrecorded across the state.

Meawhie behid cosed doors ad aroud kitchetabes there is tak o the ext geeratio o armerstakig up the reis ad gettig ready to ride ito theuture. For those ivoved i the idustry there is odoubt that agricuture is a upredictabe mare, whichca prove too much or may to hade. With some

exitig the idustry, those ext geeratio armers whoare ookig to take o the chaege ote eed guidacead support. I the moder era o agricuture thisguidace ad support ot oy comes i the orm o wisewords rom past geeratios but rom GPS, Auto steerad Eectromagetic (EM) variabe rate techoogy. Thisprecisio agricuture techoogy ca steer your tractorwithi 20mm whe seedig, sprayig ad spreadigertiiser ad the map your crop yieds at harvest. It camik your cows without you beig preset, map their

What vaue does this Eectromagetic techoogy have toour armig busiess? Ad/or armad?

From a vaue to arm busiess poit o view, thistechoogy ca prove to be a very vauabe asset aowigthe maager to make iormed decisios which may eadto maximisig the prot o the operatio by maximisigproductio o productive ad ad mitigatig wastagead costs o o productive ad. However it is asoimportat to questio, as with a arm ivestmets, isthis techoogy suited to your operatio? It may prove to

RURAl


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The month in review

MARKETInDICATORS

Comparative Property Market Indicators - July 2011

Comparative Analysis o Capital City Property Markets

To discuss the appicabiity o the Capita City idicators to idividuaproperties or situatios, cotact your oca Herro Todd White oce:

Sydey (02) 9221 8911Meboure (03) 9642 2000Brisbae Commercia (07) 3002 0900Brisbae Residetia (07) 3353 7500Adeaide (08) 8231 6818Perth (08) 9388 9288Hobart (03) 6244 6795

Darwi (08) 8941 4833Caberra (02) 6273 9888

Comparative Analysis o New South Wales/ACT Property Markets

To discuss the appicabiity o the nSW/ACT idicators to idividua proper-

ties or situatios, cotact your oca Herro Todd White ofce:

The oowig pages preset a geeraised overview o the state o property markets i Capita City, new SouthWaes/ACT, Victoria/Tasmaia, Queesad, South Austraia/norther Territory/Wester Austraia & MEnAocatios usig acig risk-ratig scaes. They are ot a guide to idividua property assessmets.

For urther iormatio cotact Richard Jekis, Research Director, Herro Todd White, o (03) 9642 2000, or byemai o [email protected]


41/56

41

The month in review

MARKET

InDICATORS

Comparative Analysis o Queensland Property Markets

To discuss the appicabiity o the Queesad idicators to idividuaproperties or situatios, cotact your oca Herro Todd White oce:

Brisbae Commercia (07) 3002 0900Brisbae Residetia (07) 3353 7500Budaberg/Wide Bay (07) 4154 3355Cairs (07) 4057 0200Emerad (07) 4980 7738Gadstoe (07) 4972 3833God Coast (07) 5584 1600

Hervey Bay (07) 4124 0047Ipswich (07) 3282 9522Mackay (07) 4957 7348Rockhampto (07) 4927 4655Sushie Coast (Mooooaba) (07) 5444 7277

Toowoomba (07) 4639 7600 Towsvie (07) 4724 2000Whitsuday (07) 4948 2157

Comparative Property Market Indicators - July 2011

Comparative Analysis o South Australia/Northern Territory/Western

The oowig pages preset a geeraised overview o the state o property markets i Capita City, new SouthWaes/ACT, Victoria/Tasmaia, Queesad, South Austraia/norther Territory/Wester Austraia & MEnAocatios usig acig risk-ratig scaes. They are ot a guide to idividua property assessmets.

For urther iormatio cotact Rick Carr, Research Director, Herro Todd White, o (07) 4057 0200, or by emai [email protected]

i


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Hn T Wht Cpyght 2009N pnblty ccpt t ny th pty t ht y u ly n th whl ny pt f th cntnt f th publctn.

markeT iNdiCaTors

The month inreview

Capital City Property Market Indicators as at July 2011 Houses

42

Factor Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra

Rental Vacancy Situation Shortage ofavailable propertyrelative to demand

Shortage ofavailable propertyrelative to demand

Balanced market Shortage ofavailable propertyrelative to demand



Over-supply ofavailable propertyrelative to demand

Balanced market

Rental Vacancy Trend Tightening Tightening Steady Steady Tightening Steady Increasing Steady

Demand for New Houses Fair Strong Fair Fair Soft Soft Fair Fair

Trend in New House Construction Steady Steady Steady Declining Declining Declining Steady Steady

Volume of House Sales Declining Declining Steady Declining Declining Declining Steady Declining

Stage of Property Cycle Peak of market Declining market Bottom of market Declining market Declining market Declining market Declining market Declining market

Are New Properties Sold at PricesExceeding Their Potential Resale Value

Frequently Occasionally Occasionally Occasionally Occasionally Occasionally Frequently Almost never

Red entries indicate change from previous month to a higher risk-rating Blue entries indicate change from previous month to a lower risk-rating

Rental Vacancy Trend

0

1

2

3

4

5

6

Syd

ney

Melbour

ne

Brisb

ane

Adelai

de

P

erth

Hob

art

Darw

in

Canb

erra

Increasing Sharply

Increasing

Steady

Tightening

Tightening Sharply

Stage of Property Cycle

0

1

2

3

4

5

6

Sydney

Melbou

rne

Brisbane

Adelaide

Perth

Hob

art

Darwin

Canberra

Declining Market

Peak of Market

Rising Market

Bottom of Market

Start of Recovery

Demand for New Houses

0

1

2

3

4

5

6

Sydn

ey

Melbour

ne

Brisba

ne

Adelai

dePe

rth

Hob

art

Darw

in

Canbe

rra

Very Soft

Soft

Fair

Strong

Very Strong

The month in review


43/56


markeT iNdiCaTors

The month inreview

Capital City Property Market Indicators as at July 2011 Units

43


Rental Vacancy Situation Shortage ofavailable propertyrelative to demand





Over-supply ofavailable propertyrelative to demand

Balanced market

Rental Vacancy Trend Tightening Tightening Steady Steady Tightening Steady Increasing Steady

Demand for New Units Fair Strong Fair Fair Soft Soft Fair Fair

Trend in New Unit Construction Steady Steady Steady Declining Declining Declining Steady Steady

Volume of Unit Sales Declining Declining Steady Declining Declining Declining Steady Declining

Stage of Property Cycle Peak of market Declining market Bottom of market Declining market Declining market Declining market Declining market Declining market

Are New Properties Sold at PricesExceeding Their Potential Resale Value

Frequently Occasionally Occasionally Occasionally Occasionally Occasionally Frequently Almost never



0

1

2

3

4

5

6

Sydn

ey

Melbou

rne

Brisba

ne

Adelai

dePe

rth

Hob

art

Da

rwin

Canbe

rra

Increasing Sharply

Increasing

Steady

Tightening

Tightening Sharply


0

1

2

3

4

5

6

Sydne

y

Melbourn

e

Brisban

e

Adelai

de

Perth

Hoba

rt

Darwin

Canberra

Declining Market

Peak of Market

Rising Market

Bottom of Market

Start of Recovery

Demand for New Units

0

1

2

3

4

5

6

Sydn

ey

Melbo

urne

Brisba

ne

Ade

laide

Perth

Hob

art

Darw

in

Canbe

rra

Very Soft

Soft

Fair

Strong

Very Strong

The month in review


44/56


markeT iNdiCaTors

The month inreview

1

Capital City Property Market Indicators as at July 2011 Ofce

44


Rental Vacancy Situation Over-supply ofavailable propertyrelative to demand

Balanced market Over-supply ofavailable propertyrelative to demand



Large over-supplyof availableproperty relative todemand

Rental Vacancy Trend Tightening Steady Steady Steady Tightening Steady Steady Steady

Rental Rate Trend Stable Stable - Increasing Stable Stable Increasing Stable Stable Stable

Volume of Property Sales Increasing Increasing - Steady Steady Declining Increasing Declining Declining Steady

Stage of Property Cycle Bottom of market Rising market Bottom of market Declining market Rising market Declining market Bottom of market Bottom of market

Local Economic Situation Flat Flat Flat Flat Steady growth Contraction Flat Flat

Value Difference between Quality Propertieswith National Tenants, and ComparableProperties with Local Tenants

Significant Significant Large Significant Significant Small Significant Very large

Red entries indicate change from 3 months ago to a higher risk-rating Blue entries indicate change from 3 months ago to a lower risk-rating


0

1

2

3

4

5

6

Sydney

Melbourn

e

BrisbaneAd

elaide

Perth

Hobart

DarwinCa

nberra

Increasing

Sharply

Increasing

Steady

Tightening

Tightening

Sharply


0

1

2

3

4

5

6

Sydney

Melbo

urneBr

isbaneAdelaide Perth Hobar

t

Darwin

Canberra

Declining Market

Peak of Market

Rising Market

Bot tom of

Market

Start of Recovery

Local Economic Situation

0

1

2

3

4

5

6

Sydney

Melbour

ne

Brisban

e

Adelai

de

Perth

Hoba

rt

Darwin

Canber

ra

Severe Contraction

Contraction

Flat

Steady Growth

High Growth

The month in review


45/56


markeT iNdiCaTors

The month in review

New South Wales Property Market Indicators as at July 2011 Houses

45

Factor Albury BathurstCan-berra/Qbeyan

CentralCoast

Dubbo GriffithMudgee

New-castle

Orange SydneyTam-worth

NSW FarNthCoast

WaggaWagga

Wollon-gong

Rental Vacancy Situation Over-supply ofavailablepropertyrelative todemand

Severeshortage ofavailablepropertyrelative todemand

Balancedmarket

Shortageofavailablepropertyrelative todemand -Balancedmarket

Shortage ofavailablepropertyrelative todemand


Shortageofavailablepropertyrelativetodemand

Shortageofavailablepropertyrelative todemand

Severeshortageofavailablepropertyrelative todemand



Balancedmarket -Over-supply ofavailablepropertyrelative todemand

Balancedmarket

Shortageofavailablepropertyrelative todemand -Balancedmarket

Rental Vacancy Trend Increasing Tightening Steady Steady Tightening Steady Steady Steady Tightening Tightening Tightening Steady -Increasing

Steady Tightening- Steady

Demand for New Houses Fair Strong Fair Fair Fair Fair Fair Fair Strong Fair Fair Soft Soft Fair

Trend in New House Construction Declining Steady Steady Declining Decliningsignificantly

Steady Steady Declining Increasing Steady Steady Declining Declining Steady

Volume of House Sales Declining Steady Declining Declining Declining Steady Steady Declining Steady Declining Steady Declining Declining Increasing- Steady

Stage of Property Cycle Peak ofmarket

Start ofrecovery

Decliningmarket

Peak ofmarket -Declining

market

Risingmarket

Bottom ofmarket

Risingmarket

Decliningmarket

Risingmarket

Peak ofmarket

Risingmarket -Peak of

market

Bottom ofmarket -Rising

market

Decliningmarket


marketAre New Properties Sold at PricesExceeding Their Potential ResaleValue

Almostnever

Almostnever

Almostnever

Occasion-ally

Almostnever

Occasionally Almostnever

Almostnever

Occasion-ally

Frequently Occasion-ally

Occasion-ally

Occasion-ally

Occasion-ally



0

1

2

3

4

5

6

Albury

Bathurs

t

C'be

rra/ Q'beya

n

Centr

alCoa

st

Dubbo

Griffith

Mudge

e

Newc

astleOrange

Sydne

y

Tamw

orth

NSW

FarNth

Coast

Wag

gaWagg

a

Illawarr

a

Increasing Sharply

Increasing

Steady

Tightening

Tightening Sharply


0

1

2

3

4

5

6

Albury

Bathurst

C'berr

a/Q'

beyan

Centr

alCoastDu

bboGr

iffithMu

dgee

Newc

astleOr

angeSy

dney

Tamw

orth

NSW

FarN

thCoast

Wag

gaW

aggaIlla

warra

Declining Market

Peak of Market

Rising Market

Bottom of M arket

Start of Recovery

Demand for New Houses

0

1

2

3

4

5

6

Albury

Bathurs

t

C'be

rra/Q

'beyan

Centr

alCoas

t

Dubbo

GriffithMudge

e

Newc

astleOrange

Sydne

y

Tamwort

h

NSW

Far N

thCoa

s

Wagg

a Wagg

a

Illawarr

a

Very Soft

Soft

Fair

Strong

Very Strong

The month in review


46/56


markeT iNdiCaTors

The month in review

New South Wales Property Market Indicators as at July 2011 Units

46

Factor Albury BathurstCan-berra/Qbeyan

CentralCoast

Dubbo Griffith MudgeeNew-castle

Orange SydneyTam-worth

NSW FarNth Coast

WaggaWagga

Wollon-gong

Rental Vacancy Situation Balancedmarket

Severeshortage ofavailablepropertyrelative todemand

Balancedmarket

Shortageofavailablepropertyrelative todemand -Balanced

market


Balancedmarket


Balancedmarket

Severeshortageofavailablepropertyrelative todemand



Balancedmarket -Over-supplyof availablepropertyrelative todemand

Balancedmarket

Shortageofavailablepropertyrelative todemand -Balanced

marketRental Vacancy Trend Increasing Tightening Steady Steady Tightening Steady Steady Steady Tightening Tightening Tightening Steady -

IncreasingSteady Tightening

- Steady

Demand for New Units Fair Fair Fair Soft Fair Soft Fair Fair Strong Fair Fair Soft Soft Fair

Trend in New Unit Construction Declining Steady Steady Declining Declining Declining Steady Declining Increasing Steady Steady Declining Declining Declining -Steady

Volume of Unit Sales Steady Steady Declining Declining Declining Steady Steady Declining Steady Declining Steady Declining Declining Increasing- Steady

Stage of Property Cycle Peak ofmarket

Start ofrecovery

Decliningmarket

Bottom ofmarket

Risingmarket

Bottom ofmarket

Risingmarket

Decliningmarket

Risingmarket

Peak ofmarket


market

Bottom ofmarket -Rising

market

Decliningmarket


marketAre New Properties Sold at PricesExceeding Their Potential ResaleValue

Almostnever

Almostnever

Almostnever

Occasion-ally

Almostnever

Occasion-ally

Almostnever

Almostnever

Occasion-ally

Frequently Occasion-ally

Occasion-ally

Occasionally

Occasion-ally



0

1

2

3

4

5

6

AlburyBathurs

t

C'be

rra/Q

'beyan

Centr

alCoa

st

DubboGriffithMudge

e

Newc

astle

Orange

SydneyTa

mworth

NSW

FarN

thCoast

WaggaW

agga

Illawarr

a

Increasing Sharply

Increasing

Steady

Tightening

Tightening Sharply


0

1

2

3

4

5

6

AlburyBa

thurst

C'berr

a/Q'

beyan

Centr

alCoastDu

bboGr

iffithMu

dgee

Newc

astleOr

angeSy

dney

Tamw

orth

NSW

FarN

thCoas

t

Wag

gaW

aggaIlla

warra

Declining Market

Peak of Market

Rising Market

Bottom of Market

Start of Recovery

Demand for New Units

0

1

2

3

4

5

6

Albury

Bathurs

t

C'be

rra/Q'beya

n

Centr

alCoas

t

Dubbo

GriffithMudge

e

Newc

astleOrang

e

SydneyTa

mworth

NSW

FarNth

Coast

Wag

gaWagg

a

Illawarr

a

Very Soft

Soft

Fair

Strong

Very Strong


47/56

Th nth n review


48/56

Th nth n review


markeT iNdiCaTors

Victoria/Tasmania Property Market Indicators as at July 2011 Houses

48

Factor Bendigo Echuca Gippsland Melbourne Mildura Wangaratta LatrobeValley

WodongaBurnie -Devonport

Hobart Launceston

Rental Vacancy Situation Severeshortage ofavailablepropertyrelative todeman

Documents

Herron Todd Aug 2011