Sanctuary Point Property Factsheet 2nd Half 2018 OVERVIEW Sanctuary Point is a town on the shores of St Georges Basin, roughly 25km south of Nowra and 200km south of Sydney. The population was 7,225 in 2016, a 9.3% growth over the past five years. Private dwelling count in 2016 is 4,169; a 5.8% growth over the same timeframe. This suggest room for more residential stock. CHANGE FROM HALF YEAR LAST YEAR House Sales House Median Price MARKET CONDITIONS House Rental Price Sanctuary Point* recorded a median house price of $488,000 in Q2 2018, Land Sales which represents a 14.6% price change over the past 12 months. The number of house sale transactions decreased by -34.8% over this period of time, Land Median Price which suggests that there is an undersupply of housing stock in the market. This trend is mirrored in the wider City of Shoalhaven Local Government Area (LGA), whereby Q2 2018 median house price was $565,000; representing a FUTURE DEVELOPMENTS** more modest annual price change of 5.8%. The number of houses sold in the Sanctuary Point* will see approximately LGA decreased by -24.9% during the same time frame, further confirming an $16.9M worth of development planned for undersupply in the area. Comparatively, houses in Sanctuary Point* can be the 2nd half of 2018, with residential secured at a more affordable price to the LGA, with higher capital growth. This projects being a main focus – making up is good news for first home buyers looking to enter the market. 80.1% ($13.5M) of total future projects value. This is balanced by commercial Vacant land lot owners will be pleased to know that the Q2 2018 median price (9.0%, $1.5M) and infrastructure (10.9%, of $277,000 represented a 13.1% annual price change, suggesting that now is $1.8M) projects, which contributes to the time to sell. This is further confirmed by a tightening in average vendor stimulating the local economy and further discount, from -4.6% in Q2 2017 to -3.5% in Q2 2018, which suggest sellers improving liveability aspects for residents. are achieving closer to their first list asking price, and a -5.8% decrease in the days on market, sitting at 65 days in Q2 2018. That said vacant land price A focus in residential projects is needed growth comes at a -53.8% decrease in sale transactions, which suggests a in Sanctuary Point*, to satisfy population need for more land to be released for housing development. growth. In total 48 units/apartments will be added in the 2nd half of 2018, the key Median house rent in Sanctuary Point* has increased by 5.6% over the past project being Fegen Street Apartments 12 months, to $380 per week in Q2 2018. House rental yield in Sanctuary ($8.2M). This project will construct 25 Point was recorded at 4.4% in June 2018, higher than City of Shoalhaven apartments; to comprise 13 x 3 bedroom, LGA (3.8%), South Coast NSW (3.7%), and Sydney Metro (2.7%). This 9 x 2 bedroom & 3 x 1 bedrooms. Other confirms Sanctuary Point* as an alternative affordable investment hotspot. projects include: Beach Street Units ($3.6M, 12 units), Nowra St Residential CITY OF SHOALHAVEN GROWTH Apartment Building ($1.1M, 8 units), and 800 $700,000 Jacobs Drive Units. ($650K, 3 units). $600,000 Key commercial projects include Island 600 $500,000 Point Road Commercial Building and Golf $400,000 Course Way Caravan Park stages 1-2. 400 Key infrastructure projects include the $300,000 Wool Road Roadworks and Paradise Beach Road and Kingsford Smith $200,000 Median Price 200 Crescent Roundabout – all of which will Number Sales of Number $100,000 improve liveability in the area. 0 $0 *Sanctuary Point market data and key indicators encapsulates aggregate property Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 market conditions in the following suburbs: Sanctuary Point, St George’s Basin, Old Erowal Bay, Basin View, Erowal Bay, and Tomerong. House Vacant Land **Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Median House Price Median Vacant Land Price Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2018. AVERAGE VENDOR DISCOUNT* AVERAGE VENDOR DISCOUNT House Vacant Land AverageAverage vendorvendor discountdiscount reflectsreflects the the 0.0% averageaverage percentagepercentage differencedifference between betweenfirst listed firstprice list priceand andfinal finalsold soldprice . A -1.0% price.lower Apercentage lower percentagedifference differencesuggests (closerbuyers toare 0) willingsuggeststo buyerspurchase are close to 3.2% 3.2% 3.3% - 3.5% - -2.0% - - 4.1% willingthe first to purchaseasking priceclose toof thea firstproperty . - 4.5% 4.6% - - 5.2% 5.2% asking price of a property. - -3.0% - 6.0% - 6.9% -4.0% - MARKET COMPARISON GRAPH 8.5% - -5.0% TheKEY market FACTS comparison UNIT graph provides comparative trend for median price of -6.0% house and land over the past 10 years. -7.0% Suburbs profiled are chosen based on proximity to the main suburb analysed Change from Listing to to Listing Price Sale from Change -8.0% in the factsheet, which is Sanctuary Point. The main suburb is highlighted -9.0% through a dotted black line graph. Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 HOUSE MARKET COMPARISON $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 House House Price Median $100,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018** Sanctuary Point St George's Basin Old Erowal Bay Tomerong VACANT LAND MARKET COMPARISON $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Vavant Vavant Land Median Price 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018** Sanctuary Point St George's Basin Old Erowal Bay Tomerong *Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St George’s Basin, Old Erowal Bay, Basin View, Erowal Bay, and Tomerong. Source: APM Pricefinder. © Copyright PRDnationwide 2018. AVERAGE DAYS ON MARKET** 120 HOUSE KEY FACTS Q2 2018 100 Median Sale Price: $488,000 Annual Growth: 14.6%* 80 Average Days on Market: 76 % Change between First Listed Price and Sold Price: -4.5% 60 99 87 86 82 40 81 76 LAND KEY FACTS Q2 2018 70 Average Days Market on Days Average 67 65 63 KEY FACTS UNIT* 55 54 Median Sale Price: $277,000 Median Sale Price : $785,000 20 Annual Growth: 13.1%* Annual Area Growth: 11% Average Days on Market: 65 Average Days on Market: 36 % Change between First Listed 0 % Change between First Listed Price and Price and Sold Price: -3.5% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Sold Price: -0.1% House Vacant Land Overall Market Trend SALES AND MEDIAN PRICE** 140 $600,000 120 $500,000 100 $400,000 80 $300,000 128 60 125 115 113 Price Median 101 Number of of Sales Number $200,000 40 75 $100,000 20 30 25 26 26 16 12 0 $0 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 House Sales Vacant Land Sales Median House Price Median Vacant Land Price *Annual growth represents price growth for property transactions between Q2 2017 to Q2 2018 (inclusive). **Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St George’s Basin, Old Erowal Bay, Basin View, Erowal Bay, and Tomerong. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. SALES PRICE POINT COMPARATIVE ANALYSIS HOUSE PRICE POINT 1st HALF 2017 HOUSE PRICE POINT 1st HALF 2018 2.9% 10.0% 16.3% 11.9% 10.4% Less than $349,999 7.9% 6.7% $350,000 to $399,999 14.8% $400,000 to $449,999 7.9% $450,000 to $499,999 9.6% 25.4% $500,000 to $549,999 $550,000 to $599,999 12.1% $600,000 to $649,999 13.3% 16.3% $650,000 and above 17.5% 17.0% LAND PRICE POINT 1st HALF 2017** LAND PRICE POINT 1st HALF 2018** 4.1% 8.7% 6.1% 18.4% 17.4% Less than $149,999 13.0% 14.3% $150,000 to $174,999 4.1% $175,000 to $199,999 8.7% $200,000 to $224,999 $225,000 to $249,999 14.3% $250,000 to $274,999 21.7% 18.4% $275,000 to $299,999 17.4% $300,000 and above 20.4% 8.7% 4.3% KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS - UNIT House sales in the 1st half of 2018 was predominantly in The land market in Sanctuary Point* in the 1st half of 2018 the $450-$500K price range, at 17.0%. This shows a shift is showing an interesting dynamic, as the most dominant towards higher pricing, as in the 1st half of 2017 sales price bracket has shifted to $175-$200K (21.7% of the were predominantly in the $350-$400K bracket. This is market), a decrease when compared to the 1st half of 2017 confirmed by the significant contraction in the $350- ($200-225K price bracket, 20.4% share). This suggests $400K price bracket, with the number of house sales increasing affordability within the middle price range. declining from 25.4% to 14.8% over the past 12 months. However there is an increase in activity for premium land Premium houses - those priced above $600K is gaining pricing, as the market share in all price brackets above the momentum, with the number of sales increasing from $250K median price range has increased.