R E S E OVERVIEWOVERVIEW is located approx. 200km of . The area is home to predominately elderly couples and well established families seeking a relaxed lifestyle. The area offers picturesque views to St Georges Basin and Booderee National Park. Half Change from Last Year Year

House Sales

House Median Price

House Rental Price

MARKET CONDITIONS Unit Sales The Sanctuary Point* market recorded a median price of $400,000 for houses and $340,000 for units, representing a respective price change of Unit Median Price -4.3% and 9.7% between the past 12 months to Q4 2016. Dwelling prices in the area* sit slightly below the Shoalhaven City Council median of price of Unit Rental Price $469,000 for houses and $385,000 for units. This indicates that the Sanctuary Point* market provides a more affordable entry point for those FUTURE DEVELOPMENTS** seeking to purchase a dwelling in the area. The Sanctuary point area* is set to see an approx. $91.0 M of projects Average days on market for houses in Q4 2016 saw a slight decline from commence over the first half of 2017. the same period in the previous annum, now situated at 41 days. Average Residential accounted for the vast vendor discounts remained tight leading into Q4 2016, situated at -0.6% for majority of development over the period houses and -1.4% for units. This indicates a strong demand for both houses totaling $56.4 M (62.0%). Commercial and units in the Sanctuary Point area, in which buyers are willing to pay projects accounted for $30.6 M (33.7%), close to seller asking prices to secure their ideal property. followed by infrastructure $2.1 M (2.3%) and mixed use at approx. $1.8 M (2.0%). Median rents in the Sanctuary point area* have seen a relatively stable trend over the past 12 months to Q4 2016, with houses renting for $350 per The main project seen over the first half week. Units over the same period, saw a slight softening to $220 per week of 2017 is the Bayswood retirement living respectively. Over the annum the Sanctuary Point area saw a declining village, which has an estimated value of vacancy rate, situated at 1.1%.This reflects the substantial rental demand $54.8 M. This project is anticipated to level present throughout the wider Illawara region of , and commence in February 2017 and will see the desirable nature of the Sanctuary Point* area. 166 units added to the market.

SHOALHAVEN CITY COUNCIL GROWTH Other residential projects include the 1000 $500,000 Norwa Street Residential apartment building (8 units) and Island point Road 800 $400,000 units (3 units), both of which scheduled to 600 $300,000 commence in early 2017. Currambene St Shop Top Housing is a mixed use project, 400 $200,000 set to add 8 units into the market.

200 $100,000 Price Median

*Sanctuary Point market data and key indicators encapsulates aggregate Number of Sales of Number property market conditions in the following suburbs: Sanctuary Point, St 0 $0 Georges Basin,Heading Old , , , Bewong, Erowal Bay, , , Hyams Beach, Vincentia, Q3 Q4 Q1 Q2 Q3 Q4 Huskisson, , Falls Creek, , Wandandian & Sussex 2015 2015 2016 2016 2016 2016 Inlet. **Estimated values are based on construction value provided by the House Unit relevant data authority and does not reflect commercial and/or re-sale value. Quoted construction and completion dates are estimate only. Median House Price Median Unit Price Source: APM Pricefinder, realestate.com.au, Real Estate Institute of NSW AVERAGE VENDOR DISCOUNT* AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT House Unit AverageAverage vendorvendor discountdiscount reflectsreflects the the 5.0% averageaverage percentagepercentage differencedifference between 4.0% betweenfirst listed first listprice priceand andfinal final soldsold price. A price.lower A lowerpercentage percentagedifference differencesuggests 3.0% (closerbuyers to zero)are suggestswilling to buyerspurchase are close to 2.0% willingthe tofirst purchaseasking closeprice to theof firsta property.

3.7% asking price of a property. 1.0% 0.0% MARKET COMPARISON GRAPH The KEYmarket FACTS comparison UNIT graph provides

-1.0% 1.4%

- comparative trend for median price of

2.5%

-

3.0%

3.1% 3.1%

0.6%

3.3%

- - -2.0% -

- house and units over the past 10 years.

-

3.8%

1.2% 1.0%

4.0%

-

- - - -3.0% Suburbs profiled are chosen based on proximity to the main suburb analysed in -4.0% the factsheet. The main suburb is highlighted through a dotted black line

Change from Listing to Price SalefromChange -5.0% Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 graph, which is Sanctuary Point. HOUSE MARKET COMPARISON

$800,000

$700,000

$600,000

$500,000

$400,000

House Median Price MedianHouse $300,000

$200,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sanctuary Point** St Georges Basin Huskisson Vincentia AREA XXXXXX UNIT MARKET COMPARISON

$600,000

$500,000

$400,000

$300,000

Unit Median Price Unit Median $200,000

$100,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sanctuary Point** St Georges Basin Huskisson Vincentia

Disclaimer: *Sanctuary Point market data and key indicators encapsulates aggregate conditions in the following suburbs: Sanctuary Point, St Georges Basin, , Worrowing Heights, Basin View, Bewong, Erowal Bay, Wrights Beach, Bream Beach, Hyams Beach, Vincentia, Huskisson, Woollamia, Falls Creek, Tomerong, Wandandian & Sussex Inlet. Source: APM Pricefinder, realestate.com.au, Real Estate Institute of . AVERAGE DAYS ON MARKET** OVERVIEW 80 HOUSE KEY FACTS Q4 2016

70 Median Sale Price: $400,000 60 Annual Area Growth*: -4.3% Average Days on Market: 41 50 % Change between First Listed Price and Sold Price: -0.6% 40 75 65 67 30 57 59 KEYUNITS FACTS KEY UNIT* FACTS Q4 2016 52 55 43 Median Sale Price : $785,000 Average Days MarketonDays Average 20 42 41 Annual Area Growth: 11% Median Sale Price: $340,000 27 Average Days on Market: 36 10 Annual Area Growth*: 9.7% % Change between First Listed Price Average Days on Market: N/A and Sold Price: -0.1% 0 % Change between First Listed Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Price and Sold Price: -1.4% House Unit Overall Market Trend

SALES AND MEDIAN PRICE**

250 $500,000

$450,000

200 $400,000

$350,000

150 $300,000

$250,000 228 100 200 $200,000 Price Median Number of of SalesNumber 180 183 169 $150,000

50 99 $100,000

$50,000 11 10 8 18 17 3 0 $0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

House Sales Unit Sales Median House Price Median Unit Price

*Annual growth represents price growth for property transactions between Q4 2015 to Q4 2016 (inclusive). **Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Erowal Bay, Worrowing Heights, Basin View, Bewong, Erowal Bay, Wrights Beach, Bream Beach, Hyams Beach, Vincentia, Huskisson, Woollamia, Falls Creek, Tomerong, Wandandian & Sussex Inlet. Source: APM Pricefinder, realestate.com.au, SQM Research, Real Estate Institute of NSW, Shoalhaven City Council. RENTAL MARKET ANALYSIS OVERVIEW HOUSE UNIT HOUSE KEY FACTS Q4 2016 Median Rent: $350 p/w 2 Bedroom 1 Bedroom Rental Yield: 4.6% Average Days on Market: 34 3 Bedroom 2 Bedroom Bedroom Breakdown: 1-2 Bed: 18%, 3 Bed: 54%, 4+ Bed: 4+ Bedroom 3+ Bedroom 29%

UNITS KEY FACTS Q4 2016 KEY COMMENTS Interest in the Sanctuary Point* area is recorded at an average of 317 online visits per property. Median rent for houses remained stable over Median Rent: $220 p/w the past 12 months to Q4 2016, whilst it saw a slight softening for units. Rental Yield: 3.4% Vacancy rates are currently at 1.1%, lower than that of Sydney at 1.9%. Average Days on Market: 28 This indicates strong levels of rental demand. Rental yields within Bedroom Breakdown: Sanctuary Point are currently situated at 4.6% for houses and 3.4% for 1 Bed: 19%, 2 Bed: 38%, 3+ Bed: units, providing a conducive environment for solid investments. 44%

MEDIAN RENT AND AVERAGE DAYS ON MARKET*

140 400

120 350

300 100

250 80 200

60 118 105 106 150 94 88 Number of of RentalsNumber 40 73 100

20 50 Days Market/ onRentAverage ($) Median 22 17 17 11 12 10 0 0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 House Unit HouseHeading Average Days Unit Average Days Median House Rent Median Unit Rent

*Disclaimer: Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Erowal Bay, Worrowing Heights, Basin View, Bewong, Erowal Bay, Wrights Beach, Bream Beach, Hyams Beach, Vincentia, Huskisson, Woollamia, Falls Creek, Tomerong, Wandandian & Sussex Inlet. Source: APM Pricefinder, realestate.com.au, SQM Research, Rental Tenancy Authority of NSW. st PROJECT DEVELOPMENT MAP 1 HALFOVERVIEW 2017*

2.3%

33.7% 62.0%

2.0%

Residential Mixed Use Commercial Infrastructure

Estimated Location Project** Type Commence Date^ Value***

1 Vincentia Village Town Centre Commercial $30,000,000 12/06/2017

2 Huskisson Beach Motel Commercial $390,000 06/02/2017

3 Superior Cabinetes Scallop St Commercial $250,000 16/01/2017

4 Naval College Road Infrastructure $2,133,000 16/01/2017

5 Currambene St Shop Top Housing (8 Units) Mixed Use $1,800,000 16/01/2017

6 Bayswood Retirement Living Village (166 Units) Residential $54,804,000 01/02/2017

Nowra St Residential Apartment Building 7 Residential $1,095,000 01/02/2017 (8 Units)

8 Island Point Road Units (3 Units) Residential $500,000 06/02/2017

*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 developments within the suburbs of Sanctuary Point, St Georges Basin, Old Erowal Bay, Worrowing Heights, Basin View, Bewong, Erowal Bay, Wrights Beach, Bream Beach, Hyams Beach, Vincentia, Huskisson, Woollamia, Falls Creek, Tomerong, Wandandian, Sussex Inlet. ***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 in which each project commences and/or is completed. Source: Cordell Database, BatchGeo, Department of Planning and Environment NSW, Shoalhaven City Council. ABOUT PRDnationwide RESEARCH

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Our experts are highly sought after consultants for both corporate and • Rental and investment return AREAgovernmentXXXXXX bodies and their advice hasAREA helped steerXXXXXX the direction of a analysis number of property developments and secured successful outcomes for our clients. Wayne Poole, Managing Director PRDnationwide Sanctuary Point OUR SERVICES 3/18 Paradise Beach Road, Sanctuary Point NSW 2540 Our research services span over every suburb, LGA, and state within Australia Australia; captured in a variety of standard and customized products T +61 2 4443 0519 We have the ability and systems to monitor market movements, M +61 408 424 138 demographic changes and property trends. We use our knowledge of E [email protected] market sizes, price structure and buyer profiles to identify opportunities www.prd.com.au/sanctuarypoint for clients and provide market knowledge that is unbiased, thorough and reliable. Heading

PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the Information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2017