Why Canberra? Pg 04

WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE

CONTENTS

WHY CANBERRA? PG 04

INVEST IN THE MOLONGLO VALLEY PG 06

3 PROPERTY GROUP PG 08

DETAILED INVESTMENT ANALYSIS PG 11

Population Growth

Demographics

Tenure & Typology

House prices & Rental yields

Future Residential Supply & Infrastructure WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE “NET OVERSEAS MIGRATION WAS THE MAIN CONTRIBUTOR IN THE ACT’S GROWTH AT GROWTH IN ACT’S THE MIGRATION WAS CONTRIBUTOR MAIN THE OVERSEAS “NET 48%. NATURAL INCREASE AND NET INTERSTATE MIGRATION CONTRIBUTED 44% AND 8% 8% AND 44% INTERSTATE NET AND MIGRATION CONTRIBUTED INCREASE NATURAL 48%. ABS Demography Director Anthony Grubb Anthony Director Demography ABS HIGHEST LEVELS EVER EXPERIENCED IN A CALENDAR YEAR BY THE ACT” BY ACT” THE YEAR IN ACALENDAR EXPERIENCED EVER HIGHEST LEVELS RESPECTIVELY. BOTH NET OVERSEAS MIGRATION AND NATURAL INCREASE WERE AT WERE THE INCREASE NATURAL MIGRATION AND RESPECTIVELY. OVERSEAS NET BOTH Centrally Located Centrally leisure. time for ample provides which week awork and wages average above tenure, long-term by characterised that are in capital’s roles the of population 40% than to more employment stable offers service public –the market housing residential the of stability the on impact a significant has is which of Parliament seat the Canberra 72 quarters. the of 66 over increase an recording drops, minimal four only have seen prices house Canberra of 2000, since June the quarter years eighteen In the term. longer the over value retains residential which market strong its for is well-known Australia of city Capital The CANBERRA IS AUSTRALIA’S LARGEST INLAND CITY AND IS LOCATED ABOUT 170KM ABOUT IS LOCATED AND CITY INLAND LARGEST IS AUSTRALIA’S CANBERRA WHY CANBERRA? SOUTH- WEST OF SYDNEY AND 410 MILES NORTH-EAST OF MELBOURNE. OF 410 AND NORTH-EAST SYDNEY MILES OF SOUTH- WEST © MACRO PLAN DIMASO PLAN © MACRO 3 PROPERTY GROUP 3 PROPERTY MELB OURNE C ANBERRA S YDNEY BRISB population fluctuation on adaily on Located basis. fluctuation population significant provide Wales also South New of regions surrounding the rate, a rapid at is growing population While Canberra’s Tuggeranong. and Woden Valley, Molonglo Gungahlin,include Belconnen, centres town the centre, addition to city the In infrastructure. city capital larger the cities within as micro operate which centres, town major five around is designed Canberra 800,000 people. to day over any given on population the grow can and employment for capital utilise the all Yass Bungendore and Murrumbateman, Googong, as Queanbeyan, such areas Canberra, minutes from 30-45 approximately ANE CEN BEL TUG TRAL W C ODEN GERANONG ONNEN GUNG C ANBERRA CIT L AHLIN Y

L OCA Y TED "CLEARLY CANBERRA IS GREAT FOR FAMILIES, AND ITS SUPERIOR PAY PACKETS ARE ATTRACTIVE FOR YOUNG PROFESSIONALS.”

CommSec Senior Economist Craig James

Language Annual House Price Growth

Other than English, the top three Canberra Growing Australia households are Mandarin, Arabic and Cantonese. 2.5

2.0 1 Mandarin 1.5 2 Arabic 1.0 3 Cantonese 0.5

0.0 Population SA NT WA IC TAS ACT LD NSW Canberra’s total population is 415,916 and is A expected to reach 437,032 by 2022. WHY CANBERA? WHY

Market stability

In the nearly eighteen years since the turn of the century, Canberra’s house price has 415,916 437,032 increased in 66 of the 72 quarters – the capital offers a level of stability over the longer term, Year Population Avg Age which is rarely seen in other capital cities. 2022 437,032 36 years When compared to the two major capital 2027 469,015 37 years cities, Sydney and Melbourne, Canberra has 2032 499,463 38 years 2037 529,330 38 years experienced the highest percentage of growth 2042 559,569 39 years at 242.8% 2047 590,492 39 years 2052 621,492 40 years 2057 652,053 40 years 2062 681,187 41 years Canberra displays the greatest strength over the longer term Canberra has one of the fastest growing CBR SYD MEL populations in Australia which is largely driven % Growth /15 Yrs 242.8% 241.3% 216.67% by interstate and overseas migration and the 2015 Median capital status as a regional city for the purpose of House Price $641,000 $ 1,150,357 $855,000 skilled migration. Canberra is also experiencing a baby boom due to more young families and couples calling the capital home. The table below shows the most recent percentage of population growth for Australia and the capital cities.

5 3 PROPERTY GROUP

INVEST IN THE MOLONGLO VALLEY

LOCATED 14-MINUTES WEST OF THE CANBERRA CBD AND 15-MINUTES SOUTH OF THE BELCONNEN CBD, THE MOLONGLO VALLEY IS BORDERED BY DUFFY AND HOLDER IN THE SOUTH, MOUNT STROMLO TO THE WEST, THE KAMA AND LOWER MOLONGLO NATURE RESERVES IN THE NORTH AND MOLONGLO IN THE EAST.

Over the last two years the Molonglo region The demographic profile of the area reflects population has grown by 81.1%, from 3,228 in young families with high household incomes, 2015 to 5,847 in 2017. This growth was largely who are buying their own homes. driven by the suburb of Wright. WRIGHT DENMAN PROSPECT COOMBSWRIGHT PROSPECT DENMAN AREA PROFILE

Population growth

The region of Wright/Denman Prospect/ ACT Treasury predicts Canberra’s population Coombs is experiencing significant population will grow by 31,585 residents by 2022 and more growth due to its popularity as a premium infill than 13,000 of this population growth will be area. Projected population growth is 13.1% or choosing to call Wright home. 2,892 residents annual.

WRIGHT/ WRIGHT/DENMAN DENMAN PROSPECT/ PROSPECT/COOMBS COOMBS POPULATION POPULATION WILL INCREASE TO OVER 5,847 200%

With population growth comes demand for To accommodate the vast population growth in new homes. The demand in the Molonglo the Molonglo Valley, there is a 10,600 (square Valley and the suburbs of Wright, Denman foot/metre?) retail floorspace planned. This Prospect & Coombs has been significant will include a Woolworths and ALDI amongst and will result in a shortfall in supply in the 37 other speciality shops. coming years. 1096 homes have currently Located in the centre of Woden, an 11-minute been approved to be delivered by 2023 which drive from the Wright – Denman Prospect - is a significant shortfall when compared to Coombs area, is Westfield Woden. This major population growth in the region. regional centre offers 64,100m2 of retail space including major retailers such as David Location Jones, Woolworths, Big W, Coles and JB Hi-Fi. The Molonglo Valley is very well-known for an The centre also has 198 specialty stores. outdoors focus, which attracts a significant There are four bus routes that run through the

amount of people to the region, including VALLEY MOLONGLO IN THE INVEST centre of the area: 83, 182, 783 and 983. the 167,000 that attend events or visit Mount Stromlo Forest Park – a purpose-built outdoor John Gorton Drive runs through the centre of recreation facility. the area, providing access to the Canberra CBD in the east and the University of Canberra/ Beyond the suburb, Wright/Denman Prospect/ Belconnen CBD in the north. Coombs is very close to the geographical centre of Canberra and is 10-15 minutes to Education major locations of interest, including Woden Town Centre, Canberra City Centre, Canberra Within a five minute drive from the area there Hospital, Calvary Hospital, University of are five schools including the Charles Weston Canberra Hospital, Australian National School, Duffy Primary School, St Jude’s University, University of Canberra and School, Orana Steiner School and Islamic Canberra’s International Airport. School of Canberra. In the surrounding suburbs there are an additional five schools. Liveability & Leisure The University of Canberra (UC) Belconnen The Molonglo Valley is a sought-after campus is a 15-minute drive from the area destination for families and those seeking and the Australian National University (ANU) a lifestyle based around recreation, health Woden Valley campus is a 12-minute drive. and fitness. The area is a five-minute drive Canberra Institute of Technology is an away from Mount Stromlo where visitors can 11-minute drive from the Wright – Denman enjoy hiking, bird-watching, mountain biking, Prospect - Coombs area. swimming and bush walking. Furthermore the Mount Stromlo Observatory offers visitors an interactive astronomy exhibit and stunning InvestmentAnnual PropertyMedian DataMedian For All HousesRental Growth Price Rent Yield views across Canberra. Close by are the 5.8% $794K $740/wk 4.8% Forest Park Riding and Equitation School, National Zoo and Aquarium and National Arboretum. Investment Property Data For All Units

Annual Median Median Rental Growth Price Rent Yield 2.9% $391K $450/wk 6.0% 7 WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE products for your consideration within our Luxe development. Luxe our within consideration your for products analysis sample investment of a detailed Valley. Molonglo the of provided also region We have the within Coombs, and Prospect Denman Wright, of suburbs of overview an provides report This infrastructure. planned and current and yields, rental and prices house demographics, and location of understanding analysis in investment to the assist athird-party with clients our in value providing the We see control. one with within property appliance or your system any device master virtually to capability the have you Group, built 3Property in ahome by invest you When home. connected a of promise the on to deliver 3PUSH use and space automation home in the pioneers also We are environment. the on have homes Group 3Property impact the reduces and costs energy your together, work minimises home your of position the and environment natural the way the optimises which rating energy aminimum with 6-star designed are homes Our benchmark. anew setting developments our of each with inclusions, sustainable environmentally on focus astrong We place city. our of betterment to the and living of ways better environments, to better contribute that projects unique to create looking constantly are and community and customers to our committed are team Our GROUP PROPERTY 3 SUSTAINABLE VALUE AND CONTRIBUTE TO THE SOCIAL AND ECONOMIC WELFARE OF OUR CITY. OUR OF WELFARE ECONOMIC AND SOCIAL THE TO CONTRIBUTE VALUE AND SUSTAINABLE 3 PROPERTY GROUP CREATES3 OUTSTANDING PROPERTY THAT PROJECTS ENDURING, DELIVER © MACRO PLAN DIMASO PLAN © MACRO

3 PROPERTY GROUP 3 PROPERTY INTRODUCTION 9

DETAILED INVESTMENT ANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE Regional Population, Australian Capital Territory Government Treasury – Population Projections 2017 -2041 Projections –Population Treasury Government Territory Capital Australian –Estimated Population, Statistics of Regional Bureau Australian Source: SA3 –Namadgi Cotter the for rates growth forecast the on based are projections Note Historical and forecast population – Molonglo region, 2015 region, –Molonglo -2036 population forecast and Historical 13.1%. of growth annual is average an This 60,798. to this of region population the taking 2036 by 54,951 additional an to residents see area the expect projections Treasury ACT years. 81.1 by grown has and 5,847 currently in two is Molonglo of region in the population The STRONG POPULATION GROWTH IS EVIDENT IN THE MOLONGLO AREA – A POPULAR NEW INFILL NEW – APOPULAR AREA MOLONGLO IN THE IS EVIDENT GROWTH POPULATION STRONG AREA FOR CANBERRANS, THIS GROWTH IS LARGELY DRIVEN BY THE SUBURB OF WRIGHT. OF SUBURB THE BY DRIVEN IS LARGELY GROWTH THIS CANBERRANS, FOR AREA 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0

2015 (a )

2016 (a ) POPULATION POPULATION 2017 (a )

2018 (p )

2019 (p ) GROWTH

2020 (p )

2021 (p ) © MACRO PLAN DIMASO PLAN © MACRO

2022 (p ) GROUP 3 PROPERTY

2023 (p )

2024 (p )

2025 (p )

2026 (p ) Treasury. Government ACT the by 3produced Area Statistical – Namadgi Cotter the for rate growth the from derived are projections Resident the and Population Estimated Statistics of Bureau Australian the from is sourced population Historical

2027 (p )

2028 (p )

2029 (p )

2030 (p )

2031 (p )

2032 (p )

2033 (p )

2034 (p )

2035 (p )

2036 (p ) 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% The figure below illustrates the components Increasing net interstate migration indicates of population change each year over the last confidence in the ACT economy is strong 17 years. and should have a positive effect on wages and employment. Since 2006, net overseas migration has been a strong driver of the ACT’s growth while net inter-state migration increased moderately between 2006 and 2012 before again falling below zero over up until 2016.

Regional population growth context DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS

8000

6000

4000

2000

-2000

-4000 un 2012 un 2007 un 2008 un 2009 un 2010 un 2001 Jun 2011 J Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017 J J J J Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 J

Source: Australian Bureau of Statistics, Cat. no. 3101 – Australian Demographic Statistics

13 WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE 10% 15% 2 2 3 3 Source: Australian Bureau of Statistics – Census 2016, MacroPlan Dimasi MacroPlan 2016, –Census Statistics of Bureau Australian Source: Age structure in ACT and Wright/Denman and Prospect/Coombs in ACT structure Age Territory. in the 35.8% with compared area in the 18.4% population just the of represent over and 45 aged Residents to 6.7%. compared 8.3% at average ACT the 0-14 16.6%. of is above The population average ACT to the 33.1% at area in the living compared olds year 25-34 of a high proportion by is driven difference This 35. of age median territory the than significantly younger is 30, area &Coombs Prospect Denman Wright, in the age median The STRUCTURE AGE average. above are incomes household and Personal 29.3 29.4%. and at types household dominant the are children without and families with Couple 35. of age median territory the than significantly lower 30, was area in the In 2016, residents of age median the 0% 5% 0% 5% 0% 5% THE DEMOGRAPHIC PROFILE OF THE AREA REFLECTS YOUNG FAMILIES WITH HIGH WITH FAMILIES YOUNG REFLECTS AREA THE OF PROFILE DEMOGRAPHIC THE 8.3% DEMOGRAPHICS 0-4 9.9% HOUSEHOLD INCOMES BUYING ARE WHO THEIR HOMES. OWN 5-14 3.0% 15-19 9.0%

Median personal and household incomes in Income in ACT and Wright/Denman Prospect/ the area at $1,366 and $2,780 per week are Coombs higher than the ACT averages of $998 and WRIGHT- $2,445 respectively. DENMAN INCOME PROSPECT- ACT COOMBS Household expenses are moderately higher Median personal for renters and lower for mortgage payers weekly income $1,366 $998 Median family compared to the ACT. The median weekly rent weekly income $2,780 $2,445 is $400 while the median monthly mortgage Median household DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS weekly income $2,323 $2,070 repayment is $1,950 in the area compared to the ACT at $380 and $2,058 respectively. HOUSEHOLD EXPENSES Median weekly rent $400 $380 Median monthly mortgage repayments $1950 $2,058

Source: Australian Bureau of Statistics – Census 2016, MacroPlan Dimasi

HOUSEHOLD COMPOSITION

The average household size in the area was 2.3 Household composition in ACT and Wright/ people in 2016, compared with the ACT at 2.5. Denman Prospect/Coombs

Family households represent 65.9% of all 45% 40% households in the area, driven almost equally 35% by couple families with and without children 30%

25% 33.2% 29.4% (29.3% and 29.4%). This compares with the 20% 29.3% 26.6% ACT where family households represent 70.7% 15% 10% 9.8% of all households. 5% 12.1% 5.9% 1.6% 1.0% 10.7% 0% Lone person households represent 12.1% of all households in the area compared to the ACT at 10.7%.

Molongo Valley

Source: Australian Bureau of Statistics – Census 2016, MacroPlan Dimasi

15 3 PROPERTY GROUP

© MACRO PLAN DIMASO 17 WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE HOUSING TENURE TENURE HOUSING significantly below the ACT average of 67.0%. of average ACT the significantly below 34.1% at houses is separate of proportion The ACT. the to 17.7% compared area in the dwellings in all of 16.3% represent houses Semi-detached 15.0%. of average territory to the compared 49.6% at area the area, in the all of dwellings dominate units and in market the Apartments TYPOLOGY HOUSING 32.5%. of average ACT to the compared 21.4% just up made dwellings of Renters 39.3%. at ACT the with compared 70.8% at a mortgage with purchased dwellings of a high proportion arelatively by driven is largely difference The 66.9%. at ACT significantly the for higher than average the 77.8% at is area in the ownership Home TENURE AND TENURE TYPOLOGY © MACRO PLAN DIMASO PLAN © MACRO 3 PROPERTY GROUP 3 PROPERTY

MacroPlan Dimasi 2016, –Census Statistics of Bureau Australian Source: 10% 10% 20% 30% 40% 50% 60% 70% 80% 20% 30% 40% 50% 60% 70% 80% Denman Prospect/Coombs Denman Wright/ and in ACT tenure Housing Denman Prospect/Coombs Denman Wright/ and in ACT Typology Housing MacroPlan Dimasi 2016, –Census Statistics of Bureau Australian Source: 0% 0% 34.1% 7.0% 7.0% 67.0% 27.6% 27.6% 16.3% 70.8% Molongo Valley Molongo Valley 17.7% 39.3%

49.6% 21.4% 21.4%

15.0% 32.5% HOUSE PRICES AND RENTAL YIELDS

DWELLING PRICES AND SALES VOLUMES

Sales prices in the 2611 postal area were Sales rates grew substantially in 2013, DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS steady over the period 2010 to 2013, but reflecting the initial development of the the number of sales increased. Prices then area. Since then annual sales have declined, recovered in 2016 and have remained stable in line with the decline of available land and since. In 2018 year to date the median sale dwellings. price was $668,750, an average annual growth Lot sizes have declined slightly over the period of 2.5% over the period 2010 – 2018 YTD. from an average 900m2 in 2010 to 794m2 in 2018 YTD.

Postal area 2611 dwelling sale prices and volume, 2010- 2018

$800,000 450

$700,000 422 422 400 390 350 $600,000 344 336 300 $500,000 274 250 $400,000 256 200 $300,000 182 184 150

$200,000 100

$100,000 50

$0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: SQM Research

19 WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE annual of 6.1%. average an at period, the over grown have units while for yields 1.4%, of annual average an by declined 2018, houses for yields rental 2611 area postal In the 2010 to period the over RENTAL YIELDS Source: SQM Research SQM Source: 2611, area 2010Postal rate, -2018 vacancy yields and rental 10 15 20 25 30 35 40 45 50 0 5 2010 4 2011 6 2012 11 © MACRO PLAN DIMASO PLAN © MACRO 2013 23 3 PROPERTY GROUP 3 PROPERTY 2014 35 tightening. some experiences fall market the and rates vacancy as to grow expected are Yields declined. has vacancies of number the years three last the over and area & Coombs Prospect Denman establishment of Wright, the 2010 initial the from to 2015, this reflects period the over grew vacancies of volume The 2015 38 2016 34 2017 28 2018 20 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 21 WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE FUTURE RESIDENTIAL residential dwellings. residential other 56.4% or 972 and houses 43.6% or 750 of up made was period the over market to the added dwellings additional The slightly to up 129 in 2018recovered (YTD). has of approvals number the years three last the in 2014 Over to 181approvals 584. from dwelling of number in the a reduction was 2012 period the to 2017over 107. was There year per approvals of number average The APPROVALS DWELLING are completedprojects as expected. all if delivered will be that dwellings of number the illustrates right the on figure The 1,096 2023. additional an by deliver dwellings will projects these Ifcompleted Connect. Cordell from to data according area Coombs - Prospect –Denman Wright in the projects 26residential 2018, are August of there As SUPPLY –FUTURE PROJECTS RESIDENTIAL INFRASTRUCTURE SUPPLY AND SUPPLY

© MACRO PLAN DIMASO PLAN © MACRO 3 PROPERTY GROUP 3 PROPERTY Source: Cordell Connect, 2018 Connect, Cordell Source: 100 200 300 400 500 600 Future pipeline of residential projects pipeline residential of Future market at 60.5% of all of approvals. 60.5% at market the again driving are dwellings residential 2018 for other indicate approvals YTD to up 2015.market the dominated dwellings residential Other 0 2018 16 2019 12 3 2020 13 9 2021 53

1 2022 16 3 2023 90

RESIDENTIAL PROJECTS – REGIONAL SUPPLY

According to the ACT Land and Property Report Regional pipeline of residential projects issued in September 2017, there were around 1,100 dwellings undergoing construction and 4,250 4,200 3,500 dwelling sites waiting for construction 4,200 4,150 to start. 4,100 4,120 4,050 Furthermore, there are around 13,300 4,000 4,000 dwellings in the development pipeline, 3,950

including some 2,300 dwelling sites undergoing 3,900 3,930 DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS land servicing. 3,850 3,800 7.0% The ACT Land Agency has also released 3,750 2017-18 2018-19 2019-20 2020-21 englobo land for up to 600 dwellings in Denman Prospect.

This higher level of activity is partly the Source: Cordell Connect, 2018 result of an increase in planning activity in the inner north that occurred in 2015 after the Government committed to light rail.

In Weston, just five minutes south of the Wright – Denman Prospect - Coombs area, is MAJOR DEVELOPMENTS the Weston Neighbourhood Centre supporting Between 2017-18 and 2018-19 the Government 10,600m2 of retail floorspace, including a is investing $1.7 billion in physical and digital Woolworths, ALDI and 37 specialty shops. infrastructure in the ACT, and a further Located in the centre of Woden, an 11-minute $576 and 494 million in 2019-20 and 2020-21 drive from the Wright – Denman Prospect - respectively. Coombs area, is Westfield Woden. This major Planning and design is underway for the regional centre offers 64,100 m2 of retail Molonglo Valley commercial centre and space including major retailers such as David immediate surrounding residential area, which Jones, Woolworths, Big W, Coles and JB Hi-Fi. aims to accommodate 7,000-9,000 people of The centre also has 198 specialty stores. the total 18,000 anticipated for stage 2.

INFRASTRUCTURE

John Gorton Drive runs through the centre of the area, providing access to the Canberra CBD in the east and the University of Canberra/ Belconnen CBD in the north.

23 3 PROPERTY GROUP

WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE

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