MARKET OUTLOOK CLAREMONT & NORTH FREMANTLE Featuring outstanding schools, entertainment and recreational opportunities, serviced by major public transport infrastructure to metropolitan retail and employment areas, Claremont and North Fremantle are two of 's premium residential locations.

01 Perth's Premium Suburbs 03 Demographics & Lifestyle 05 Sales & Rental Analysis

Prepared exclusively for Mirvac September 2017 PERTH, CLAREMONT & NORTH FREMANTLE

PERTH Perth is Australia’s western gateway and the country’s closest and most accessible capital city to the world’s strongest economic growth regions. It has consistently ranked as one of the most liveable cities in the world and the most affordable of Australia's major cities.

HOUSE PRICE AFFORDABILITY IMPORTANT TIMEZONE Perth shares an approximate time zone with 60% of the Sydney Melbourne Brisbane Perth world’s population. Perth's proximity to South-East Asia 80 provides a valuable strategic advantage.

70 Affordability Tokyo Deteriorating 60 Shanghai

50 New Delhi Hong Kong

40 Index

30 Kuala Lumpur Singapore 20 Affordability Improving 10 Jakarta

0 Dec ‘96 Dec ‘00 Dec ‘04 Dec ‘08 Dec ‘12 Dec ‘16 1 hour time zone 5 hour business Perth time zone Prepared by Urbis; Source: ABS Source: Department of State Development

NATIONAL UNIT COMPARISON INFRASTRUCTURE INVESTMENT

The West Australian Government has a substantial program of infrastructure development over the next few years with a key focus on transport infrastructure and amenity building. Some of the projects include:

Forrestfield Airport Link Perth Children’s Hospital – Forrestfield, $2 Billion – Nedlands, $1.2 Billion (Completion 2020) (Completion – 2018) - Riverside Precinct – Burswood, $1.2 Billion East Perth, $141 Million (Completion 2018) (Completion 2020) New Museum Metronet Rail Network – Northbridge, $428 Million First Stage PERTH MELB SYD (Completion 2019) – Metropolitan wide, $2.5 Billion Median unit sale price* $415,000 $490,000 $705,000

Median asking rent* $350 $390 $510

Indicative gross WESTERN AUSTRALIA * 4.4% 4.1% 3.8% rental yield ACCOUNTED FOR 44% Average house- * $115,452 $96,263 $107,035 hold income OF THE TOTAL VALUE OF ALL GOODS EXPORTED *12 months to March '17 Source: APM PriceFinder March 2017, ABS Household and Income Survey 2014 FROM AUSTRALIA

2 Market Outlook Western Suburbs Claremont and North Fremantle are located within the premium catchment of Perth's metropolitan suburbs. These are comparable to Sydney’s Eastern Suburbs, North Shore and Northern Beaches.

PERTH'S PREMIUM SUBURBS Located between the Perth CBD, Swan River and Indian business, political and community leaders and the key Ocean, Perth’s most premium riverfront residential areas of North Fremantle, Cottesloe, and Claremont suburbs are known as the Western Suburbs. form the core of a connected retail, entertainment and The area is known for its prime coastal strip and dining strip that attracts visitors from across the country. waterfront access and features some of Perth’s most The weighted average sale price of new apartments in valuable and sought after residential real estate. The the Western Suburbs in the first quarter of 2017 carried Western Suburbs are home to many of the state’s a 23% premium over Metropolitan Perth, reflecting the locational attributes of the area.

EDUCATION Western Australia has a thriving and diverse education system, attracting people from all over the world. The University of Western Australia ranks among the top 1% of universities in the world. The Western Suburbs in particular have the highest ranking schools in Perth including:

Presbyterian Ladies’ College Methodist Ladies’ College 2 Peppermint Grove 9 Claremont Christ Church Grammar School Scotch College 4 Claremont 16 Swanbourne St Hildas Anglican Girls School 14 Primary Schools 6 Mosman Park in Western Suburbs

*Based on number median Australian Tertiary Admission Rank (ATAR) 2016

LIMITED SUPPLY PREMIUM VALUE TO METROPOLITAN AVERAGE New apartment development is constrained by land Western Suburbs and Metropolitan Perth availability with land holdings tightly held, resulting in Urbis’ Perth Apartment Essentials Q1 2017 highlights: limited development potential. (Note developments of 25 apartments or more are surveyed) Between 2017 and 2021, there are 16 projects totalling to 1,850 apartments in the Inner City development Metropolitan Perth pipeline. The Western Suburbs pipeline has seven projects totalling to 512 apartments for the same period. $670,737

While the Western Suburbs account for only 4.4% of Western suburbs active development in Perth, they capture 10% of the $826,495 market share of sales. The Western Suburbs features the majority of Perth 23% properties with a median house price in the top 4%. HIGHER 2016 2021

19 7 PERTH'S PREMIUM CATCHMENT, PROJECTS PROJECTS KNOWN AS THE WESTERN SUBURBS HAD THE SECOND HIGHEST WEIGHTED 2922 634 AVERAGE APARTMENT SALE PRICE APARTMENTS APARTMENTS ($826,495) OF ALL PERTH PRECINCTS Inner City Western Suburbs Source: Urbis Q1 2016- Q1 2017 Perth Apartment Essentials

Prepared exclusively for Mirvac 3 CLAREMONT WALKABILITY & ACCESSIBILITY

GREEN SPACE & RECREATION 01 02 Claremont Lawn Tennis Club 03 Claremont Aquatic Centre North Fremantle 28 40 27 04 Lake Claremont Golf Course Mosman Park 05 Lake Claremont 12 06 Cresswell Park 26 Peppermint 07 Rowe Park Grove 08 Claremont Park & Claremont 25 Bowling & Recreation Club 09 Claremont Yacht Club 10 10 Royal Freshwater Bay Yacht Club 11 Swan River 12 East Fremantle Yacht Club 13 Leighton Beach 11 14 Indian Ocean 15 Sea View Golf Club 16 09 Cottesloe Beach 29 17 Swanbourne Beach EDUCATION 18 St Thomas’ Primary School 19 Freshwater Bay Primary School University of Western Australia 3.2km 19 20 Christ Church Grammar School QEII Medical Precinct 4.5km 21 Methodist Ladies’ College Perth CBD 8.3km 08 22 Scotch College 23 North Cottesloe Primary School Bayview Terrace 24 Presbyterian Ladies’ College 25 St Hildas’s Anglican School for Girls 26 Iona Prentation College EMPLOYMENT 27 Port of Fremantle 30 28 Fremantle’s Central Business District 29 Bethesda Hospital RETAIL, DINING & ENTERTAINMENT 30 Stirling Highway, Claremont 31 Claremont Quarter Shopping Centre & Lifestyle Hub 32 Claremont Crescent (IGA X-press) 07 33 Eric Street Shopping Centre (IGA) 34 Marine Parade, Cottesloe 35 Napoleon Street, Cottesloe 36 Cottesloe Central (Woolworths) 37 Mosman Park Shopping Centre 38 Claremont Showground 18 39 Claremont Hotel 38 40 Fremantle

4 Market Outlook Western Suburbs CLAREMONT WALKABILITY & ACCESSIBILITY

13 14

37 15 Cottesloe 36 35 16 34 24 17 23 33

Swanbourne Station 21 Swanbourne 32 20 22 STIRLING HIGHWAY

Claremont 31

St Quentin Avenue

39 06 Claremont Station 02

05

03 04 Reserve The Grandstand

01

Prepared exclusively for Mirvac 5 LEIGHTON WALKABILITY & ACCESSIBILITY

37 35 Claremont

20 10 29 18 19 08 Peppermint Grove 28 16 15 07 17

06 Mosman Park 05 09

04 31

FREMANTLE RAILWAY LINE

26 13

25

22

24

30

RETAIL, DINING 07 Cottesloe Central (Woolworths) EDUCATION & ENTERTAINMENT 08 Napoleon Street Precinct 12 North Fremantle Primary School 01 Bib and Tucker (Boatshed Market) 13 Beehive Montessori School 02 Coast at Port Beach 09 Mosman Park Shopping 14 Santa Maria College 03 Centre (Coles) Queen Victoria Street 15 Iona Presentation College 04 10 Claremont Quarter (David Jones) Marine Parade 16 St Hilda's Anglican School for Girls 05 11 The Orange Box Glyde Street 17 Presbyterian Ladies' College 06 572 Stirling Highway (IGA) 18 Methodist Ladies' College

6 Market Outlook Western Suburbs LEIGHTON WALKABILITY & ACCESSIBILITY

38

21

34 14

Attadale

33

32

East Fremantle

Swan River

27 23

North Fremantle

12

STIRLING HIGHWAY

PROPOSED FUTURE DEVELOPMENT 03

Latitude at Leighton

11 01 36 02

19 Christ Church Grammar School 26 Cottesloe Beach 34 Point Walter Golf Course 20 Scotch College 27 Swan Yacht Club 35 Kings Park and Botanic Garden 21 The University of Western Australia 28 Royal Freshwater Bay Yacht Club EMPLOYMENT GREENSPACE & RECREATION 29 Claremont Yacht Club 36 North Quay (Port of Fremantle) 22 Indian Ocean 30 Vlamingh Parkland 37 Queen Elizabeth II Medical Centre 23 Swan River 31 Buckland Hill 38 Perth CBD (21 mins drive) 24 Leighton Beach 32 Sea View Golf Club 25 Cable Station Artificial Surfing Reef 33 Mosman Park Golf Club

Prepared exclusively for Mirvac 7 DEMOGRAPHICS & LIFESTYLE

CLAREMONT NORTH FREMANTLE Located a short car, train or bus ride from the CBD North Fremantle offers proximity to the Swan River, and featuring high levels of amenity, Claremont is one Indian Ocean and direct connectivity and accessibility of the best connected locations in Perth. to local amenities. Claremont is serviced by major public transport North Fremantle is well connected to both the Perth and infrastructure, offering direct access to key metropolitan Fremantle CBDs providing direct access to key retail and retail as well as quality schools, entertainment and recreational activities. recreational opportunities within walking distance. Retail: There are numerous local retailers within the Retail: Claremont Quarter is the hub of Claremont. The suburb as well as ready access to boutique shopping on centre includes numerous retailers including David Jones, High Street in Fremantle and the iconic Cottesloe retail French Connection and Nike. Other retail options are strip on Napoleon Street. available on Stirling Highway and Claremont Crescent. Fremantle CBD: Is a major retail and employment hub Food and Beverage: Claremont has a variety of food options in Perth's southern coastal suburbs. It comprises various available in Claremont Quarter as well as other dining attributes including heritage characteristics, fishing and alternatives including Typika, Brooklyn Lounge and Miss tourism industries, the University of Notre Dame and Chow’s to name a few. There are more formal dining options dining options such as The Mantle, Strange Company and available on Bay View Terrace and Stirling Highway. Bread in Common. Community Amenity: With the Swan River in close Community Amenity: North Fremantle has plenty of proximity and nearby recreational amenities in Claremont recreation options as it is positioned next to the Indian Oval, Lake Claremont Golf Course, Claremont Yacht Ocean and Swan River as well as renowned Leighton Club and the Claremont Aquatic Centre & Tennis Club, Beach. Other features include Vlamingh Parklands, Claremont provides the platform for access to high levels Gilbert Fraser Reserve and Cable Station artificial of recreational and community amenity. Further, the Good surfing reef. Sheds recent completion won the Heritage Award in 2017 Entertainment: Positioned strategically between Australian Institute of Architects Awards. Fremantle and Cottesloe, North Fremantle provides ease Entertainment: Claremont features a range of of access to various entertainment opportunities on offer entertainment venues like the Showgrounds and the including Fremantle's famous live music and events scene. Claremont Hotel as well as numerous bars and nightclubs. Accessibility: North Fremantle is well serviced by public Accessibility: Claremont is highly accessible with the transport including the Fremantle railway line and is also Fremantle railway line and Stirling Highway which provides highly accessible by car with Stirling Highway running ready access to the CBD, employment nodes and education through the suburb to provide access to Claremont, Perth services including the University of Western Australia. CBD and in to Fremantle.

WHO LIVES IN WESTERN SUBURBS? North Perth Claremont Fremantle Metropolitan The average household income for both suburbs is relatively greater than Average household income $107,042 $111,146 $93,009 the Perth Metropolitan Area. It is alive Residents aged 20-39 25% 28% 29% with young professionals aged 20-39 Home Ownership 40% 32% 30% accounting for 25% in Claremont and 28% in North Fremantle as well as Renters 33% 40% 28% those aged 40-59 accounting for 25% in Family Households 60% 60% 72% Claremont and 23% in North Fremantle. Both suburbs are home to a large Lone Persons 35% 33% 24% population of couple families without Couple family with no 43% 53% 38% children. children Both suburbs have a high concentration White Collar Workers 88% 86% 68% of professional end older families, singles Catch Public Transport to and couples with significant disposable Work 19% 19% 13% income, high levels of home ownership Car Ownership (2+) 48% 52% 60% and subsequent strong asset bases. Prepared by Urbis, Source: ABS (2011)

8 Market Outlook Western Suburbs The Western Suburbs continue to grow in appeal for younger, aspirational, professional singles and couples.

DEMOGRAPHIC SHIFT By 2036, the populations of Claremont and North This demographic segment is comfortable with rental Fremantle are forecast to increase by 38% and or purchase and commonly seeks a broader range of 30% respectively. lifestyle dwelling options that are beginning to emerge in While the Western Suburbs has long been the home the Western Suburbs. The amenity rich nature of the area to higher income, asset rich professionals, the area suits both those seeking to move there as well as those is increasingly sought after by younger, aspirational, long term residents who are keen on staying in the area professional singles and couples with higher than and who are seeking transitional housing options. average disposable incomes.

GENERATION Y BABY BOOMERS IMMIGRATION Born 1981 to 1994 Born 1946 – 1964 The amenity and value of the Equity rich empty nesters are Western Suburbs appeals transitioning from full time to aspirational Gen Y as this employment and increasingly demographic forms independent considering downsizing to well households (rent and purchase). designed, larger apartments. 56%

2016 2026 18% Gen Y BABY BOOMERS OVERSEAS MIGRATION ACCOUNT FOR 11% IN ACCOUNTS FOR 56% 18% WESTERN SUBURBS, OF WA'S POPULATION OF WESTERN SUBURBS GREATER THAN GROWTH IN THE IS GENERATION Y. METROPOLITAN PERTH. LAST 5 YEARS. Source: ABS Census 2011 POPULATION DISTRIBUTION BY AGE COHORT CLAREMONT AND NORTH FREMANTLE SMALL AREA FORECAST I.D POPULATION PROJECTIONS

Claremont North Fremantle Greater Perth Claremont North Fremantle 30% 14 12.4 11.9 25% 12 11 10

10 9

20% 8.1 7.6 8 7.4 15% 6 4.3 4.3 4.3 10% 4.1 % of Population of % 3.3

4 2.9 (thousands) 2.7 2.4 5% 2 Projected Population Population Projected 0% 0 0-14 15-19 20-24 25-34 35-44 45-54 55-74 75+ 2001 2006 2011 2016F 2021F 2026F 2031F 2036F

Prepared by Urbis; Source: ABS 2011 Cencus Source: Small Area Forecast i.d (SAFi)

Prepared exclusively for Mirvac 9 Median house and unit prices in Claremont and North Fremantle reflect a premium in the CLAREMONT overall Perth market.

SALES ANALYSIS

The weighted average sale price for apartments in Over the past 10 years the median house and unit prices Claremont is $707,971 which reflects a price premium has increased by 2.3%. From Q1 2016 to Q1 2017, 37% of of 6% over the Perth Metropolitan Area as a whole. apartments sold in Claremont were 2 bed + 2 bath with a Claremont house and unit prices are 136% and 55% weighted average sale price of $771,154. higher than the Perth metropolitan average, respectively.

MEDIAN HOUSE AND UNIT PRICES APARTMENT PRICES BY BEDROOM TYPE 12 months to March 2017 Q1 2016 - Q1 2017

Claremont Perth Metro

Claremont Perth Metro $1,400,000

$1,200,000

$1,000,000 $1,320,000

$669,500 $800,000 $1,259,375 $1,259,375 $601,923 $601,923 $1,137,679 $520,000 $530,446 15,000 $600,000 $495,455 $495,455 $458,652 $4 $400,000 $771,154 $771,154 Weighted Average Sale Price Sale Average Weighted $700,248 $200,000

$-

1Bed + 1Bath + 1Car 2Bed + 1Bath 2Bed + 2Bath 3Bed + 2Bath House Unit

Source: APM PriceFinder March 2017 Source: Urbis Q1 2016- Q1 2017 Perth Apartment Essentials

RENTAL ANALYSIS MULTI-UNIT RESIDENTIAL ASKING RENTS Q1 2017 Unit rents in the Western Suburbs generally enjoy a significant premium over the Perth metropolitan area. $700 Claremont Perth Metro Suburb median asking rents for Claremont range from $585 $300 (for 1 bed units) up to $585 for 3 bed units. On $600

average, asking unit rents were 27% higher than the Perth $500 Metropolitan average. Gross rental yields, while slightly $425 $405 $373 softer than the Perth average are reliable, and the high $400 $325 $335 locational amenity of Claremont and the sought after $300 $285 nature of the locations means that demand for rental $300 accommodation remains robust. As a whole, unit rent $200 prices decreased by 20% since Q1 2015 however they only declined by 5% in Claremont. $100

$- All 1 bed 2 bed 3 bed

Source: Urbis analysis of REIWA data Q1 2017

10 Market Outlook Western Suburbs NORTH FREMANTLE

SALES ANALYSIS APARTMENT WEIGHTED AVERAGE SALE PRICE Over 12 months Overall the Western Suburbs’ weighted average sale price reflect a 23% premium over the Perth Weighted Avg Premium Over Metropolitan Area. North Fremantle however, Sale Price Perth Metro Area has a 59% premium with a price of $1,068,293. Western Suburbs $826,495 23% North Fremantle house and unit prices are 83% and 77% higher than the Perth metropolitan average, North Fremantle $1,068,293 59% respectively. Over the past 10 years the median house Perth price has increased by 2.5% and unit price by 3%. $670,737 Apartment prices by type range from $539,285 (1 bed Metropolitan Area units) up to $1,508,929 (3 bed units) between Q1 2016- Q1 2017. During this period, 49% of apartments sold Source: Urbis Perth Apartment Essentials Q1 2016- Q1 2017 were 2 bed + 2 bath apartments. (note surveyed projects are 25 apartments or more)

MEDIAN HOUSE AND UNIT PRICES APARTMENT PRICES BY BEDROOM TYPE 12 months to March 2017 Q1 2016 - Q1 2017

North Fremantle Perth Metro North Fremantle Perth Metro $1,600,000 $1,400,000 $1,200,000 $960,000 $1,000,000 $945,000 $525,000 20,000

$800,000 $700,248 $4 $1,508,929 $1,508,929 $744,500 $539,286 $539,286 $600,000 $530,446 $458,652 $400,000 $1,137,679

Weighted average sale price price sale average Weighted $200,000 $-

1Bed + 1Bath House Unit + 1Car 2Bed + 1Bath 2Bed + 2Bath 3Bed + 2Bath

Source: APM PriceFinder March 2017 Source: Urbis Q1 2016- Q1 2017 Perth Apartment Essentials

RENTAL ANALYSIS MULTI-UNIT RESIDENTIAL ASKING RENTS Q1 2017

North Fremantle median asking rents range from $250 North Fremantle Perth Metro (1 bed units) up to $775 for 3 bed units, reflecting a $900 56% premium on average over the Perth Metropolitan $800 $775 Area. Rent prices have only dropped 10% since Q1 2015, indicating resilience in median asking rent. $700 $573 $600 $523 $500 $373 $400 $335 $285 $325 $300 $250 $200 $100 $- All 1 bed 2 bed 3 bed

Source: Urbis analysis of REIWA data Q1 2017

Prepared exclusively for Mirvac 11 BRISBANE GOLD COAST MELBOURNE PERTH SYDNEY CISTRI — SINGAPORE cisrico BRISBANE GOLD COAST MELBOURNE PERTH SYDNEY This publication is prepared on the instruction of Mirvac and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it CIScan beTRI affected — bySING a numberAPORE 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 known, 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. Itcisrico 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 Mirvac 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. EM R0383/P