Carina & CarindaleProperty Factsheet1st Half 2018

OVERVIEW

FUTURE DEVELOPMENTS**Carina and its surrounding suburbs* are set to invest approximately $80.8M of new developments in the 1st half of 2018, the majority (74.2%) being commercial projects. This will stimulate commerce in the area with positive spill over benefits to property demand.

The main commercial development in Carindale is the re-development of Aveo Carindale Retirement Village ($30.0M), which will construct 32 two-bedroom and 4 one-bedroom units. The main commercial development in Carina is the Prescare Carina Retirement Village ($30.0M) which will construct additional 164 two-bedroom independent living units in 4 separate buildings.

Residential projects planned will add a total of 56 new townhouses and 19 units/apartments. The Herbertson Road Townhouses ($3.5M) is the largest residential project in Carina Heights, bringing much needed residences to the highly competitive housing market. It will involve constructing 12 three-bedroom/three-bathroom townhouses. It is interesting to see the shift towards townhouses and unit developments in a single-dwelling dominated suburbs.

Carina and Carindale are adjacent suburbs located approximately 10km East of the Brisbane CBD. At the 2016 ABS Census, Carina and Carindale recorded a population of 11,019 and 15,740 respectively; which represents a 6.9% and 1.0% growth over the past 5 years.

*Carina/Carindale market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Carina & Carindale. **Projects refers to the top developments within the suburbs of Carina, Carindale and Carina Heights. Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Quoted construction and completion dates are estimate only, as per relevant data authority.Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2018.

MARKET CONDITIONS

CHANGE FROMLAST YEAR HALF

YEAR

House Sales

House Median Price

House Rental Price

Unit Sales

Unit Median Price

Unit Rental Price

BRISBANE CITY COUNCIL GROWTH

The Carina/Carindale* property market recorded a median price of $780,000 for houses and $490,000 for units in Q1 2018, representing annual price changes of 4.0% and 0.0% respectively. Over the same period (Q1 2017 – Q1 2018), house prices in the Brisbane City Council Local Government Area (LGA) rose by 0.5% to $660,000, while unit prices softened by -2.9% to $435,000. Carina/Carindale* is a premium market when compared to Brisbane City LGA, both from an entry price point and capital growth perspective. Despite concerns of a unit market downturn in Brisbane, the unit market in Carina/Carindale* has proven to be more resilient. Owner/occupiers and investors are urged to secure stock while it remains available on the market.

Average vendor discounting has slightly widened to -2.0% for houses and -1.6% for units over the past 12 months to Q1 2018. This suggests that there is room for negotiation on first list asking price, with discounts favoring buyers. That said, sellers can still benefit from positive capital growth thanks to a positive change in both house and unit median prices over the past 12 months. Thus, now is the time to transact in Carina/Carindale* as the market provides a unique mutually beneficial condition for buyers and sellers.

Median weekly rent in Carina/Carindale* has grown 8.0% for houses (to $540 per week) and 1.2% for units (to $435 per week). Investors are currently benefiting from rental yields of 3.2% for houses and 5.3% for units. Furthermore, median household incomes in both suburbs surpass the QLD state average, making for high quality tenants. For first time investors wishing to rent-vest their way up the property ladder, Carina/Carindale* presents an exciting opportunity.

$0

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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House Unit Vacant Land Median House Price Median Unit Price Median Land Price

Source: APM Pricefinder. © Copyright PRDnationwide 2018.

HOUSE MARKET COMPARISON

UNIT MARKET COMPARISON

KEY FACTS UNIT

Average vendor discount reflects theaverage percentage difference betweenfirst listed price and final sold price. Alower percentage difference suggestsbuyers are willing to purchase close tothe first asking price of a property.

AVERAGE VENDOR DISCOUNT

Average vendor discount reflects the average percentage difference between first list price and final sold price. A lower percentage difference (closer to 0) suggests buyers are willing to purchase close to the first asking price of a property.

AVERAGE VENDOR DISCOUNT

MARKET COMPARISON GRAPHThe market comparison graph provides comparative trend for median price of house and units over the past 10 years. Suburbs profiled are chosen based on proximity to the main suburb analysed in the factsheet, which is Carina. The main suburb is highlighted through a dotted black line graph.

AVERAGE VENDOR DISCOUNT

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Carina Carina Heights Carindale Camp Hill

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Carina Carina Heights Carindale Camp Hill

-1.0

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-1.6

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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House Unit

AVERAGE DAYS ON MARKET**

SALES AND MEDIAN PRICE**

*Annual growth represents price growth for property transactions between Q1 2017 to Q1 2018 (inclusive).**Carina/Carindale market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Carina & Carindale. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018.

KEY FACTS UNIT*Median Sale Price : $785,000Annual Area Growth: 11%Average Days on Market: 36% Change between First Listed Price and Sold Price: -0.1%

HOUSE KEY FACTS Q1 2018

UNIT KEY FACTS Q1 2018Median Sale Price: $490,000Annual Growth: 0.0%*Average Days on Market: 79% Change between First Listed Price and Sold Price: -1.6%

Median Sale Price: $780,000Annual Growth: 4.0%*Average Days on Market: 75% Change between First Listed Price and Sold Price: -2.0%

36

48

30 37 44

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42

86 74

120

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790

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Aver

age

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s on

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House Unit Overall Market Trend

9489 86 88

74

5457 55 51

63 61

43

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

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House Sales Unit Sales Median House Price Median Unit Price

HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017

SALES PRICE POINT COMPARATIVE ANALYSIS

KEY IMPLICATIONS - HOUSE The largest proportion of houses sold during 2017 were priced in excess of $900K (26.4%), representing healthy growth (from 2016’s 5.9%) in a premium priced market. There were also contractions in the less than $600K (from 15.2% to 9.4% in 2017) and $600K-$650K (from 13.8% to 9.6% in 2017) price ranges, reflective of the 4.0% median price growth over the past 12 months.

Though there were some fluctuations in price brackets between $650K and $800K, the stability of sales between $800K and $900K pricing confirms Carina/Carindale's reputation as a premium market in Brisbane’s highly desirable suburbs.

UNIT PRICE POINT 2016 UNIT PRICE POINT 2017

KEY IMPLICATIONS - UNITThe largest proportion of units sold during 2017 remained in the $450,000-$500,000 bracket. The market for units has not seen big movements in the price structure. This is reflective of the stable market in the area and 0.0% median price growth over the past 12 months.

While there is some contraction in the highest priced bracket of $650,000 and more, affordable options are expanding, with approximately 18.7% of units sold in 2017 priced below $400,000. This is exciting news for first time investors wanting to get into the market as rental yield (5.3%) in the area is higher than the average East Brisbane’s 4.8% and Brisbane Metro’s 5.0%.

Source: APM Pricefinder. © Copyright PRDnationwide 2018.

15.2%

13.8%

13.6%

12.2%9.0%

8.3%

7.6%

20.5%Less than $599,999$600,000 to $649,999$650,000 to $699,999$700,000 to $749,999$750,000 to $799,999$800,000 to $849,999$850,000 to $899,999$900,000 and above

9.4%

9.6%

18.0%

9.1%12.3%

8.9%

6.4%

26.4%

7.3%

11.4%

17.5%

23.8%

11.4%

13.3%

9.8%5.4%

3.1%

16.1%

18.6%

25.1%

14.6%

9.0%

5.0%8.7%

Less than $349,999$350,000 to $399,999$400,000 to $449,999$450,000 to $499,999$500,000 to $549,999$550,000 to $599,999$600,000 to $649,999$650,000 and above

Overview

HOUSE UNIT

MEDIAN RENT AND AVERAGE DAYS ON MARKET*

KEY COMMENTSInterest in Carina/Carindale has been recorded at an average of 760 online visits per property, signifying a high demand market when compared to the average online visits for Queensland (343). Over the past 12 months to Q1 2018, the number of properties rented has increased by 31.9% and 9.6% for houses and units respectively, yet median rent continues to increase by 8.0% to $540 for houses and by 1.2% to $435 for units. This suggests a real increase in demand and investment value for investors. Investors need to buy now to start benefiting from robust rental demand in Carina/Carindale*.

*Disclaimer: Carina/Carindale market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Carina and Carindale.Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018.

HOUSE KEY FACTS Q1 2018

UNIT KEY FACTS Q1 2018Median Rent Price: $435 per weekRental Yield: 5.3%Average Days on Market: 27Bedroom Breakdown: 1 Bed: 2%, 2 Bed: 30%, 3+ Bed: 68%

Median Rent Price: $540 per weekRental Yield: 3.2%Average Days on Market: 26Bedroom Breakdown: 2 Bed: 4%, 3 Bed: 48%, 4+ Bed: 48%

INVESTMENT ANALYSIS

97 9480

100

81

124

7583

7363

84 91

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Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Med

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Ren

t ($)

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tals

House Unit House Average DaysUnit Average Days Median House Rent Median Unit Rent

2 Bedroom

3 Bedroom

4+ Bedroom

1 Bedroom

2 Bedroom

3+ Bedroom

Carina Carindale Brisbane LGA Queensland

Median weekly household income $1,739 $2,118 $1,746 $1,402

Median monthly mortgage repayments $2,000 $2,167 $2,000 $1,773

Unemployed 4.9% 5.4% 6.8% 7.6%

Professionals 28.1% 30.0% 29.9% 19.8%

Owned outright 27.6% 47.2% 26.5% 28.5%

Owned with mortgage 34.2% 35.4% 33.3% 33.7%

Rented 34.9% 14.9% 36.9% 34.2%

KEY COMMENTSTwo+ bedroom houses provide the highest annual growth at 8.6%.

Rental returns in Carina/Carindale were at 3.2% for houses and 5.3% for units in December 2017. Unit rental yields have increased steadily over the past 12 months and it’s higher than the unit rental yield in East Brisbane’s 4.8% and Brisbane Metro’s 5.0%.

In the 6 months before December 2017 vacancy rates in Carina/Carindale declined sharply, indicative of strong rental demand in the area. This is in contrast to Brisbane’s increasing vacancy rate trend which confirms the area as an investment hotbed.

Suburb/Postcode/

LGA

House Rental Yield

Unit Rental Yield

Carina/Carindale 3.2% 5.3%

East Brisbane 3.7% 4.8%

Brisbane Metro 3.8% 5.0%

RENTAL YIELD 2017

KEY HOUSING DEMOGRAPHICS

RENTAL PERFORMANCE 2017*

VACANCY RATES 2017

*Rental performance graph represents aggregate house median rent prices in the following suburbs: Carina and Carindale. Annual change is a comparison between 2016 and 2017 median rent figures. Source: APM Pricefinder, SQM Research, ABS Census 2016. © Copyright PRDnationwide 2018.

$380 $450

$600

8.6%0.0%

-4.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

$-

$100

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$700

Two Bedrooms Three Bedrooms Four + Bedrooms

Median House Rent P/W Annual Change

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%

Dec-14

Mar-15

Jun-15

Sep-15

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Sep-16

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Dec-17

Carina/Carindale East Brisbane Brisbane Metro

*Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburbs of Carina, Carindale and Carina Heights.***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date. Source: Cordell Database, ESRI ArcGIS. © Copyright PRDnationwide 2018.

PROJECT DEVELOPMENT MAP 1st HALF 2018*

Location Project** Type Estimated Value***

Commence Date***

1 Aveo Carindale Retirement Village Redevelopment Stages 1 & 2 Commercial $30,000,000 22/04/2018

2 Prescare Carina Retirement Village Stages 1-3 Commercial $30,000,000 21/05/2018

3 Herbertson Road Townhouses (12 Townhouses) Residential $3,600,000 18/01/2018

4 Murchison Street & Mayfield Road Apartments (6 Apartments) Residential $1,800,000 23/06/2018

5 Orana Street Townhouses (4 Townhouses) Residential $1,600,000 08/06/2018

6 Hill Crescent Townhouses (7 Townhouses) Residential $1,500,000 04/06/2018

7 Orana Street Townhouses (5 Townhouses) Residential $1,500,000 19/02/2018

8 Orana Street Townhouses (5 Townhouses) Residential $1,500,000 15/01/2018

9 Orana Street Townhouses (5 Townhouses) Residential $1,500,000 28/03/2018

10 Cambridge Street Townhouses (6 Townhouses) Residential $1,400,000 18/06/2018

11 Orana Street Units (4 Units) Residential $1,200,000 18/05/2018

12 Herbertson Road Townhouses (4 Townhouses) Residential $1,200,000 02/02/2018

13 Jones Road Townhouses (4 Townhouses) Residential $1,200,000 18/06/2018

14 Koolatah Street Townhouses (4 Townhouses) Residential $1,200,000 16/04/2018

15 Mcewan Street Units (3 Units) Residential $850,000 03/05/2018

16 Adelaide Street Units (6 Units) Residential $790,000 03/01/2018

74.2%

25.8%

Commercial Residential

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