URBIS RESIDENTIAL MARKET REGIONAL OVERVIEW

GOLD COAST NORTH

APRIL 2016

Strategically located between the Gold Coast and Brisbane, Gold Coast North provides a vital link between two of Australia’s largest cities. Boasting strengthening employment, tourism, and education sectors as well as ongoing large-scale infrastructure investment, Gold Coast North has recorded one of Queensland’s strongest increases in population growth in recent years.From a local perspective, the ensuing development of the highly anticipated Coomera Town Centre will provide a further catalyst for ongoing investment and set the benchmark for a new wave of commercial, retail and residential development across the northern suburbs of the Gold Coast.

HOPE ISLAND ROAD

HOPE ISLAND

21

SURFERS PARADISE

COOMERA

12

15

23

26

17

18

BROADWATER

27

14

FUTURE COUNCIL PARK

9

CONNECTIVITYGold Coast North

2 URBIS GOLD COAST NORTH OUTLOOK© URBIS.COM.AU

The Gold Coast is one of Australia’s fastest growing regions, with population growth of 2.3 per cent per annum forecast, compared to 1.6 per cent across Australia.

In recent times there has been a notable shift within the residential market towards the Northern Corridor of the Gold Coast LGA. The area is linked to major arterial roads providing access to significant local and major employment nodes in Brisbane and on the Gold Coast.

The highly anticipated $1.5 billion Coomera Town Centre will drive the market within the Northern Corridor, cementing the area as a major growth region within the Gold Coast LGA incorporating large scale retail, commercial and employment centres.

FOXWELL ROAD

TRAIN LINE

M1 MOTORWAY

10 Dreamworld

11 Movie World & Wet ‘n’ Wild

12 The Pines Golf Club

13 Gainsborough Greens Golf Club

14 The Palms Golf Club

15 Hope Island Golf Club

16 Coomera Sports Club

17 Gold Coast Marina

18 Gold Coast Marine Precinct

Leisu

re an

d Rec

reat

ion

Educ

ation 1 Coomera Rivers State School

2 Pimpama State Secondary College

3 TAFE Queensland

4 Coomera Springs State School

5 Coomera Primary School

6 Saint Stephen’s College

7 Upper Coomera State College

8 Pimpama State Primary School

9 Future Catholic School

Train Station

19 Pimpama Junction Shopping Centre

20 Helensvale Homeworld

21 Sanctuary Cove Marine Village

22 Coomera Town Centre (future) including Westfield

23 Hope Island Shopping Centre

24 Westfield Helensvale

25 Local Red Edge Shopping Centre

26 Foxwell Road Retail Centre

27 Sanctuary Cove

Reta

il an

d D

inin

g

HELENSVALE

COOMERA TRAIN STATION

PIMPAMA

25

2411

16

10

20

13 19

2

221

3

5

4

67

HINTERLAND

8

© URBIS.COM.AUURBIS GOLD COAST NORTH OUTLOOK 3

COMMONWEALTH GAMES $786 MILLION

In preparation for the 2018 Commonwealth Games, Gold Coast City, Queensland State

Government and Federal Government will invest over $786 million in new infrastructure and upgrading of existing facilities between now and 2018. The Games will leave a legacy of world-class sporting venues.

COOMERA EXIT 54 INTERCHANGE UPGRADE – PACIFIC MOTORWAY (UNDER CONSTRUCTION) $74 MILLION

The upgrade of Exit 54 along the Pacific Motorway will provide the road infrastructure

needed to enable the successful development of the Coomera Town Centre to improve traffic flow and ease congestion. The new interchange will incorporate a new bridge to the north of the existing bridge over the Pacific Motorway for east bound traffic, as well as a northbound exit loop ramp. Roundabouts would also be upgraded with signalised intersections.The project is expected to be complete late 2016.

COOMERA INDOOR SPORTS CENTRE (UNDER CONSTRUCTION) $40 MILLION

The new indoor sports centre at Coomera will feature eight mixed use sports courts and purpose built gymnastics centre. Design and

construction will generate 130 full-time jobs, with more than 1,000 workers expected to play a role in delivering this world-class venue before the project is completed in 2016.

Over $9 Billion worth of infrastructure projects (planned or under construction)

are set to benefit Gold Coast North.

COOMERA TO HELENSVALE RAIL DUPLICATION (UNDER CONSTRUCTION) $163 MILLION

The Brisbane rail line was extended from Beenleigh to Coomera and Helensvale in 1996, with further extension through to Varsity Lakes. In March 2016 work will begin on the duplication of tracks between Coomera and Helensvale stations to significantly improve train service capacity and reliability. The train connection allows commuters and visitors to access Brisbane CBD and Brisbane Airport. An estimated 26,000 workers commute to Brisbane each day on the train.

GOLD COAST LIGHT RAIL STAGE 1 (COMPLETE) $1.8 BILLION

Commencing construction in January 2012, the Gold Coast Light Rail project was one of the

largest public transport projects in Australia. Stage One was completed and began operation in July 2014, providing frequent trams, stopping at 16 stations, along a 13-kilometer route from the Health and Knowledge precinct in the north to the commercial, retail and recreational centres of Southport, Surfers Paradise and Broadbeach in the south.

GOLD COAST LIGHT RAIL STAGE 2 (UNDER CONSTRUCTION) $500 MILLION

Construction commenced in April 2016 for Stage Two of the Gold Coast Light Rail

extending the service from the Parkwood Health & Knowledge Precinct north through to Helensvale in just 11 minutes. This is an important transport link for Coomera allowing just a 6 minute connection via heavy rail to Helensvale and then to the coast via the G-link.

GOLD COAST UNIVERSITY HOSPITAL (COMPLETE) $1.76 BILLION

The Gold Coast University Hospital was completed in late 2013 at a cost of $1.76 billion.

It provides a floor space of 170,000 square metres for clinical teaching and research facilities combined with specialised health services. Made up of seven main buildings, the facility provides a final capacity of 750 beds.

COOMERA TOWN CENTRE $1.5 BILLION

The Coomera Town Centre Master Plan is intended to create a transit oriented activity centre which focuses on an active street life with a network of public streets and open space areas, with a major Westfield Shopping Centre. The Town Centre itself will be the main retail, commercial and employment centre for the Pimpama-Coomera area, with large amounts of residential land expected to be developed around these core areas. The Coomera Town Centre will service a catchment of approximately 130,000 people by 2026, with population within the area forecast to reach 50,000. Development of the area will create approximately 1,200 construction jobs.

4 URBIS GOLD COAST NORTH OUTLOOK© URBIS.COM.AU

Gold Coast light rail connection to Helensvale along with the commencement of the Coomera Town

Centre development will provide a catalyst for the northern Gold Coast corridors continued growth.

INFRASTRUCTURE

HISTORICAL AND PROJECTED POPULATIONGold Coast North 2001–2036

Prepared by Urbis; Source: QGSO 2015Note: The Gold Coast North Catchment includes the suburbs of Helensvale, Hope Island, Kingsholme-Upper Coomera, Molendinar, Oxenford-Maudsland, Pacific Pines-Gaven, Ormeau-Yatala, Parkwood-Arundel, Pimpama-Coomera Prepared by Urbis; Source: ABS Census 2011

KEY EMPLOYMENT NODESGold Coast 2011–2031

Prepared by Urbis; Source: NIEIR *includes 200 construction jobs predicted for Rail Upgrades

Prepared by Urbis; Source: Dept. of Employment Small Area Labour Markets June QTR

LABOUR FORCE GROWTH RATE P.A.Gold Coast 2010–2015

Gold Coast LGA2011 JOBS 223,725 2031 FORECAST 328,399

Oxenford2011 JOBS 3,311 2031 FORECAST 5,190

Hope Island2011 JOBS 3,712 2031 FORECAST 5,234

Helensvale2011 JOBS 3,839 2031 FORECAST 4,136

Coomera–Cedar Creek2011 JOBS 17,491 2031 FORECAST 29,227

Nerang2011 JOBS 11,676 2031 FORECAST 13,708

Parkwood2011 JOBS 1,062 2031 FORECAST 1,351

Employment growth in the Gold Coast LGA is set to outpace that of the Brisbane LGA at an annual growth rate of 1.9 per cent (2011 to 2031) compared to the Brisbane

LGA growth rate of 1.6 per cent over the same period.

© URBIS.COM.AUURBIS GOLD COAST NORTH OUTLOOK 5

WHO LIVES IN GOLD COAST NORTH?

GOLD COAST NORTH

GOLD COAST LGA

Median Age of Residents 33.5 38.2Aged 0–14 24% 18%Aged 30–44 24% 21%Household size 2.9 2.5Professionals 6% 18%Household income (weekly) $1,711 $1,468Owners 19% 27%

RENTALAGREEMENT Renters 35% 37%

Detached dwellings 80% 61%

EMPLOYMENT

DEMOGRAPHICS

Population estimates from the Queensland Government identified that the population within the Gold Coast North catchment increased by more than 88,600 persons between 2001 and 2014, equating to approximately 6,817 additional persons per annum. Looking forward, the region is projected to house an additional 192,000 persons by 2036, equating to 8,758 additional persons per year or 7.1 per cent per annum. Increasing population is expected to support housing demand and drive increasing sale price and rental growth in and around the Gold Coast North.

The demographic make-up of the Gold Coast North has historically demonstrated a broad range of resident characteristics with the population generally comprised of working families. As the area’s transport accessibility improves, coupled with continued infrastructure investment, the residential market will continue to strengthen as residents seek a low maintenance lifestyle.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

RESI

DEN

T PO

PULA

TIO

N

PERIOD (YEAR)

AVERAGE 8,758 NEW RESIDENTS PER ANNUM

PACIFIC PINES – GAVEN

COOMERA

4.5%7.2%

2.5%4.2%4.3%

2.9%13.7%

6.1%

HELENSVALE

HOPE ISLAND

ORMEAU – YATALA

OXENFORD –MAUDSLAND

PIMPAMA

UPPER COOMERA – WILLOW VALE

1,876 new jobs

Gold Coast North2011 JOBS 41,091 2031 FORECAST 58,846

1,522 new jobs

297 new jobs*

11,736 new jobs

2,032 new jobs

289 new jobs

17,755 new jobs

104,674new jobs

EMPLOYMENT & DEMOGRAPHICS

The Gold Coast North catchment is characterised by recent Greenfield land releases and the development of new housing estates, leading to above average house price growth in some areas. House price growth for the region has increased significantly by 9.5 per cent over the 12 month period ending December 2015 resulting in a median price of $495,000.

In the period ending December 2015, sales for vacant land in the catchment registered a median price of $240,000 based on 704 settled transactions. Median sale price for vacant land has increased by 5.6 per cent during the 12 month period ending December 2015, and has recorded steady long-term growth of 1.8 per cent per annum over the previous decade. Analysis of vacant land sales within the catchment over the past three years ending December 2015 demonstrates an increasing volume year on year. The last 12 month period recorded 1,343 vacant land transactions; while still fewer sales than currently required by the market, vacant land sales are trending positively as Gold Coast North welcomes additional residents, infrastructure investment and new major projects.

Nearly 5,000 new residential dwellings per annum will be required in order for Gold Coast North to

accommodate the projected resident population by 2021.

RESIDENTIAL ANALYSIS

As a result of limited developable land entering the market over the past decade, the Gold Coast LGA and more specifically Gold Coast North, is well positioned to accommodate for a significant increase in Greenfield development. In the ten year period ending December 2015, Gold Cast North realised a cumulative undersupply of residential land resulting in pent up demand equating to more than 10,000 new dwellings being required in the Gold Coast North.

Gold Coast North has registered a significant shortfall in the supply of new dwellings to accommodate the future population forecasts, with new dwelling approvals consistently recording under that of the number of new dwellings required in the past five years. Moving forward, Gold Coast North may require at least 3,000 new dwelling approvals per year, on top of what is already a healthy demand for new residential dwellings within the catchment.

Excluding traditional housing, the current supply of new medium and high density residential buildings (encompassing semi-detached, terrace homes or townhouses; flats, units or apartments) have also remained low, equating to approximately 20 per cent of the Gold Coast LGAs medium and high density residential supply. As the Gold Coast North population increases and investment from State Government, private and public investors continue to grow, so too will the requirement for higher density residential alternatives in Gold Coast North.

RESIDENTIAL SUPPLY

HOUSE AND VACANT LAND SALES CYCLE Gold Coast North Dec 1985 – Dec 2015

Prepared by Urbis; Source: APM PriceFinderNote: Gold Coast North Catchment includes the suburbs of Hope Island, Upper Coomera, Molendinar, Oxenford, Maudsland, Pacific Pines, Gaven, Ormeau, Parkwood, Ormeau Hills, Arundel, Pimpama, Nerang and Coomera

NUMBER OF HOUSE SALESNUMBER OF LAND SALES

MEDIAN HOUSE SALE PRICEMEDIAN LAND SALE PRICE

$495,000

$240,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

0

500

1,000

1,500

2,000

2,500

1995

DEC

2015

DEC

20

15 JU

N

2014

DEC

20

14 JU

N

2013

DEC

20

13 JU

N

2012

DEC

20

12 JU

N

2011

DEC

20

11 JU

N

2010

DEC

20

10 JU

N

2009

DEC

20

09 JU

N

2008

DEC

20

08 JU

N

2007

DEC

20

07 JU

N

2006

DEC

20

06 JU

N

2005

DEC

20

05 JU

N

2004

DEC

20

04 JU

N

2003

DEC

20

03 JU

N

2002

DEC

20

02 JU

N

2001

DEC

20

01 JU

N

2000

DEC

20

00 JU

N

1999

DEC

19

99 JU

N

1998

DEC

19

98 JU

N

1997

DEC

19

97 JU

N

1996

DEC

19

96 JU

N

MED

IAN

PRI

CE

NU

MBE

R O

F SA

LES

PERIOD (HALF YEAR)

NEW DWELLING APPROVALS (HOUSE) Gold Coast North vs. remainder Gold Coast LGA – Dec 2015

Prepared by Urbis; Source: ABS

0500

1,0001,5002,0002,5003,0003,5004,0004,500

96/9

7

97/9

8

98/9

9

99/0

0

00/0

1

01/0

2

02/0

3

03/0

4

04/0

5

05/0

6

06/0

7

07/0

8

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

13/1

4

14/1

5

15/1

6 Y

TDNU

MBE

R O

F D

WEL

LIN

G A

PPRO

VA

LS

PERIOD (ANNUAL)

GOLD COAST NORTHGOLD COAST REMAINDER

HOUSING DEMAND AND SUPPLY Gold Coast North – Dec 2015

Prepared by Urbis; Source: ABS

GOLD COAST NORTH RESIDENTIAL DWELLING APPROVALSRESIDENTIAL DWELLINGS REQUIRED

1,324

2,736

0

500

1,000

1,500

2,000

2,500

3,000

3,500

20032002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

NU

MBE

R O

F D

WEL

LIN

GS

SALES PRICE GROWTH – HOUSE VS LANDGold Coast North – Dec 2015

Prepared by Urbis; Source: APM PriceFinder

1 YEAR 3 YEAR P.A. 10 YEAR P.A.

HOUSE

LAND

9.5%

5.6%

5.6%

2.2% 3.

1%

1.8%

6 URBIS GOLD COAST NORTH OUTLOOK© URBIS.COM.AU

RESIDENTIAL MARKET ANALYSIS

On the back of new residential supply entering the Gold Coast North market after years of dwindling supply, suburbs in the Gold Coast North are now demonstrating strong indicative gross rental returns. In the twelve month period ending December 2015, Gold Coast North registered indicative rental yields between 4.8 and 5.3 per cent for houses.

According to the Residential Tenancy Authority (RTA) median weekly rents across all product types within the catchment have increased during the last five years. Since December 2010 median weekly rents in the Gold Coast North Catchment for three-bedroom houses have increased by 1.9 per cent per annum resulting in rents of $422 per week. Median weekly rents for four-bedroom houses have increased over the same period by 1.9 per cent per annum, resulting in a median weekly rent of $497. Townhouses have also recorded increased rents with three-bedroom townhouses increasing by 1.7 per cent per annum during the five years to December 2015.

Strong rental yields, high demand and long-term rental price growth are expected to drive future investment opportunities and market interest

in Gold Coast North.

The postcode of 4209, comprising the suburbs of Coomera, Pimpama, Willow Vale and Yawalpah, holds the majority of rental bonds within the wider Gold Coast North catchment. The area holds 70.7 per cent of new three-bedroom townhouse bonds, 57.8 per cent of three-bedroom house bonds and 55.8 per cent of four-bedroom house bonds. Four-bedroom houses within Coomera have recorded the highest jump in the number of rental bonds, increasing by 44 per cent during the five year to December 2015. Given the ongoing greenfield development of the region, the demand for rental product is likely to continue moving forward.

The demand for new residential rental stock in Gold Coast North has increased

significantly in 2015/2016.

HOUSING RENTAL YIELD RANGEGold Coast North vs Gold Coast LGA Dec 2015

Prepared by Urbis; Source: APM PriceFinder

AVERAGE WEEKLY RENTAL RATES AND ANNUAL GROWTH RATEGold Coast North Dec 2010 – Dec 2015

Prepared by Urbis; Source: Residential Tenancy Authority (RTA)Note: Gold Coast North Catchment is postcodes 4209, 4208 and 4212 including the suburbs of Coomera, Pimpama, Willow Vale, Yawalpah, Boykambil, Helensvale, Hope Island, Gilberton, Jacobs Well, Ormeau and Sanctuary Cove

COOMERA RENTAL DEMAND (BONDS LODGED) Proportion of Gold Coast North Catchment Dec 2015

Prepared by Urbis; Source: Residential Tenancy Authority (RTA)Note: Gold Coast North Catchment is postcodes 4209, 4208 and 4212 including the suburbs of Coomera, Pimpama, Willow Vale, Yawalpah, Boykambil, Helensvale, Hope Island, Gilberton, Jacobs Well, Ormeau and Sanctuary Cove

$

3 BED TOWNHOUSE $395 GROWTH RATE

1.7%

3 BED HOUSE

$422 GROWTH RATE1.9%

4 BED HOUSE $497 GROWTH RATE

1.9%

57.8% 55.8%

4 BED3 BED

4.8% - 5.3%GOLD COAST NORTH

INDICATIVE RENTAL YIELD

$

4.5%GOLD COAST LGA

INDICATIVE RENTAL YIELD

COOMERA COOMERA

GOLD COAST NORTH GOLD COAST NORTH

© URBIS.COM.AUURBIS GOLD COAST NORTH OUTLOOK 7

RENTAL MARKET ANALYSIS

Brisbane Level 7, 123 Albert St Brisbane QLD 4000

07 3007 3800

This publication is prepared on the instruction of Pointcorp and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effort to ensure that the forecasts

and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know, or unknown, risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be

regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Pointcorp and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form

or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquires should be addressed to the publishers. / EMR0361