Logan Highlight Report

Third Quarter l 2009 BrisbaneLogan | Property March | 2009 Market Overview

Local Area Characteristics – A city in transit

The Logan City Local Government Area is located approximately 15 and 50 kilometres south from the Brisbane CBD and borders the Brisbane LGA to the north and Gold Coast LGA to the south. The Logan City LGA is now the fifth largest city within Queensland. The amalgamation of Queensland LGA’s in 2008 saw the region absorb parts of the Beaudesert and Gold Coast LGA, further expanding the region and solidifying itself as a key metropolitan centre .

Logan City is a growing residential area or a city in transit, with substantial rural, rural residential, commercial and industrial areas. Residentially, the area is made up of a diverse mix of dwellings to suit all budgets and lifestyles.The region encompasses a total land area of about 913 square kilometres. Rural areas are located mainly in south, west and eastern edges of the City.

It’s central location between Queensland’s largest municipalities (Brisbane and Surfers Paradise) has seen the area rapidly expand both demographically and economically over the past 10 years and coupled with is accessibility to the national highways and rail networks. Logan is set to become a major residential and employment hub as both Brisbane the Gold Coast continue to expand.

Colliers International 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. Colliers International 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. Use with written permission only. Copyright © – 2009 BrisbaneLogan | Property March | 2009 Market Overview

Demographics & Population Population Snapshot – Queensland Largest Local Government Areas

0ne Five Year 2001 2002 2003 2005 2007 2008 LGA 2004 2006 Year % “Build it and they will come...” Grth % P.A Brisbane (C) 896,649 917,554 939,052 957,882 973,931 991,260 1,010,479 1,027,847 1.7% 1.8% Gold Coast (C) 387,102 403,566 420,961 435,772 450,482 466,433 484,638 497,848 2.7% 3.4% Moreton Bay (R) 286,532 294,530 304,792 315,505 325,067 332,862 344,878 356,709 3.4% 3.2% • The population of Logan City as at June 2008, was Sunshine Coast (R) 247,167 256,403 267,613 277,830 286,591 295,084 304,070 312,804 2.9% 3.2% 269,986 residents. With new town planning and further Logan (C) 237,236 241,976 246,321 251,254 255,471 260,021 264,761 269,986 2.0% 1.9% Townsville (C) 144,789 148,435 151,720 155,367 160,220 165,278 170,408 175,542 3.0% 3.0% expansion of the urban footprint, the population of Logan Cairns (R) 128,095 130,622 134,122 137,549 141,993 147,538 152,668 158,653 3.9% 3.4% is projected to double between now and 2031. Toowoomba (R) 137,593 139,747 142,010 144,702 148,305 151,297 153,467 155,124 1.1% 1.8% Ipswich (C) 125,451 127,458 129,776 133,227 138,167 142,477 148,049 154,153 4.1% 3.5% Redland (C) 117,252 120,088 124,170 127,063 129,438 131,210 134,068 136,944 2.1% 2.0% • Overall the Logan City LGA will experience a population Prepared by PRDnationwide Research Source: ABS, Estimated Residential Population Data growth of approximately 2% per annum over the next 22 Population Projection – Logan City LGA years. This equates to an average growth of 6,633 new 450,000 425,918 residents per annum and a demand of 2,368 new dwellings per annum needed to supply the residential 400,000 386,962

growth. 351,382 350,000

310,606 Residents

• Logan City is classified as family oriented as only 32.2% f 300,000 of residents are aged below 19 years and under, with the 270,275

largest proportion being between 10 to 14 years of age, 250,000 equating to 8.3%. The average household is also greater

than the Brisbane and Gold Coast LGA’s, averaging 2.9 200,000 Projected Number o Number Projected person per household. 150,000 2011 • Within Logan City LGA 66.5 % of dwellings are owner 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 occupied. This is slightly higher than the Brisbane LGA Year average of 64.5%. In addition, the rental market equates Prepared by PRDnationwide Research Source: PIFU to approximately 33.1% of dwelling tenure and as such is Fastest Growing Suburbs – Logan City LGA generally associated with flat, unit or apartment living. ERP Population ERP Population Growth % Suburb Such dwellings represent 3.5% of total dwelling 2007 2008 One Year structures in the LGA , a total of 76.6% of flat, unit or BERRINBA 116 173 49% apartment dwellings are rented. WATERFORD 1210 1634 35% NEW BEITH 2257 2594 15% VERESDALE SCRUB 923 1032 12% • The ma jor ity o f dwe llings t ypes withi n L ogan Cit y are BELIVAH 398 424 7% Separate Houses equating to 86.1% of dwellings. EAGLEBY 8953 9464 6% Nonetheless, the area is slowly transforming from WATERFORD WEST 5769 6083 5% traditional suburbia and seeing a greater acceptance of Prepared by PRDnationwide Research Source: ABS, Census 06 medium density dwelling development. Tenure Logan LGA Brisbane LGA • To date, the majority of flat, unit or apartments in the Fully owned 13,561 24.3% 106,607 31.0% area have been made up of 2-storey brick buildings of six Being purchased 23,566 42.2% 115,245 33.5% Rented 18,478 33.1% 119,627 34.8% to ten units each. As the area goes through urban Other tenure type 258 0.5% 2,633 0.8%

renewal and the council encourages increased living Prepared by PRDnationwide Research Source: ABS, Census 06 densities within proximity to civic centres, we can expect to see more large-scale projects appearing. Dwelling Characteristics Characteristics – LoganLogan City LGA LGA Brisbane LGA • Generally speaking, the Logan City LGA will play an Separate house 49,317 86% 260,124 74% important role in accommodating the increase in Semi‐detached: pppopulation that South East Queensland is currentl y and One storey 1,935 3% 9,907 3% will continue to experience in the future. This is due to its Two or more storeys 3,564 6% 17,802 5% geographical location between Brisbane and Gold Coast Total 5,499 10% 27,709 8% Flat, unit or apartment: and its efficient accessibility between both municipalities. 1 to 2 storey block 1,861 3% 30,520 9% 3 storey block 90 0% 17,272 5% 4 storey block or higher 3 0% 14,202 4% “The Logan City LGA will experience a Attached to a house 51 0% 441 0% population growth of approximately 6,633 Total 2,005 4% 62,435 18% Other dwelling: new residents per annum over the next Caravan/ cabin/ houseboat 403 1% 1,850 1% Improvised home 17 0% 329 0% 22 years.” Attached to a shop 19 0% 411 0% Total 439 1% 2,590 1% Prepared by PRDnationwide Research Source: ABS, Census 06

Future Development and Infrastructure The Logan City precinct is located approximately 20 kilometres south of the Brisbane CBD. Through recent years Logan City has exper ience diifid significan tdilt radial grow th promp tdbthdted by the deve lopmen tft of ma jtjor transpor t corr idors ildithBincluding the Been lihleigh rail corridor and the Pacific and Logan Motorways. In order to further develop the region and ensure growth, continued upgrades to the Pacific Motorway are under construction or in the pipeline. Furthermore, there are also a number of significant social infrastructure developments designed to accommodate the future population growth. The most significant projects under construction or proposed include; Pacific Motorway: Loganlea to Rochedale Improvements to 15 km of Pacific Motorway through Rochedale South, Springwood, Daisy Hill, Shailer Park & Loganholme at an ex pense of approx imately $490 million. Mt Lindesay Highway upgrade – focusing on Green Road to Jimboomba Upgrade of the Mount Lindesay Highway at Park Ridge, with the duplication of the existing highway to four lanes. Estimated at a cost of $100 million. Logan Hospital: Emergency Department Expansion of the Logan Hospital Emergency Department at a cost of $44 million. This will enhance the Logan Hospital’s ability to service the outer southern suburbs of Brisbane between the Brisbane CBD and the Gold Coast. Logan Metro Sports Park Development of over 108 hectares at a cost of $43 million. This project services any and all recreational and sporting activities in Southern Brisbane and Northern Gold Coast. Due for completion in December 2026. Motorline City Located in Daisy Hill, this $350 million development will incorporate a 25-storey residential tower, seven office buildings and a shopping centre. This project will be staged with the expected completion in 15 years.

The Logan LGA has been identified as one of the main areas in the South Western Corridor that has the potential to expand residentially and commercially, which would ease growth pressures on other neighbouring South East Queensland areas, such as the Gold Coast. North Maclean has been identified for future employment growth, that would accommodate office, commercial, warehouse, retail, and low impact industrial services, while Greater Yarrabilba is planned to be developed into a compact community, with access to an effective public transportation system. Greenbank would see the development of a residential and employment precinct that would benefit from access to a passenger rail system. The biggest area reserved for development is Flagstone. This area will likely be developed into a major residential centre that will draw a need for a public rail corridor between Flagstone and Salisbury. The neighbourhoods to be developed will range with a selection of housing choices on affordability, with employment opportunities, retail and community facilities. By 2031, it is estimated that approximately 70,000 additional dwellings will be required to accommodate Logan’s growth.

HiMktHousing Market LCitLGATYHSlClLogan City LGA Ten Year House Sales Cycle 4,000 $400,000 Number of sales Median “Opportunity for both owner occupiers and 3,500 $350,000

investors” 3,000 $300,000

2,500 $250,000 The data included within this historical market analysis 2,000 $200,000 er of sales er represents settled transactions over the past ten years, by price n sale a b Num half year period, and is current to March 2009. 1,500 $150,000 Medi The region has experienced solid median price growth 1,000 $100,000 over the past decade and provided solid equity growth for real estate owners within the region. 500 $50,000

• The median house price at the end of the six months 0 $0 ending March 2009 for the Logan City LGA was 1999 SEP 1999 SEP 2000 SEP 2001 SEP 2002 SEP 2003 SEP 2004 SEP 2005 SEP 2006 SEP 2007 SEP 2008 $342,000, derived from a total of 1,660 settled house MAR 1999 MAR 2000 MAR 2001 MAR 2002 MAR 2003 MAR 2004 MAR 2005 MAR 2006 MAR 2007 MAR 2008 MAR 2009 sales. The median house price is still within an affordable half year period Prepared by PRDnationwide Research Source: RP Data price point compared to the median of Logan’s neighbours, Brisbane and the Gold Coast. Logan City Highest Growth Suburbs • Logan City’s affordability provides an excellent Grth % Over March 09 Half Suburb Mar 2008 Dec 2008 Mar 2009 opportunity for both owner occupier and investors. One Year Year No Sales NORTH MACLEAN $472,500 $560,000 $510,000 8% 10 • Despite the median house price recording a decline of NEW BEITH $504,500 $500,000 $543,500 8% 20 3.9% over the year, Colliers International Research MEADOWBROOK $365,000 $365,000 $375,000 3% 30 believes that the region has not necessarily decreased in PARK RIDGE SOUTH $490,000 $495,000 $499,000 2% 11 capital value. Due to market conditions (low interest SLACKS CREEK $320,000 $300,000 $325,000 2% 72 rates) and incentives (first home owners grant) during the HILLCREST $326,000 $331,000 $330,000 1% 73 end of 2008 and start of 2009, activity flourished in the Prepared by PRDnationwide Research Source: RP Data affordable segment of the market. As activity in the affordable segment outweighed the higher segment in Logan City Most Affordable Suburbs the market, it ultimately lead to a correction in median Grth % Over March 09 Half price, which was shown by a decline in the house sales Mar 2008 Dec 2008 Mar 2009 Suburb Year No Sales graph to the right. One Year WOODRIDGE $285,000 $252,500 $260,000 ‐9% 80 • The top performing suburbs during the period were LOGAN CENTRAL $290,500 $274,000 $261,450 ‐10% 49 located mostly in the west of the LGA and are suburbs KINGSTON $286,000 $265,500 $280,000 ‐2% 151 that are lightly developed and offer large acreage blocks . EAGLEBY $302,500 $282,000 $283,000 ‐6% 119 North Maclean was the top performer, registering the HOLMVIEW $297,500 $322,000 $295,000 ‐1% 10 greatest growth over the year ending March 2009 of 8%. CRESTMEAD $303,500 $290,000 $295,000 ‐3% 153 LOGANLEA $322,500 $302,000 $303,500 ‐6% 38 • Suburbs to keep an eye on in the future however are BETHANIA $320,000 $300,003 $305,000 ‐5% 45 Meadowbrook and Slacks Creek, due to there BORONIA HEIGHTS $310,000 $300,000 $306,000 ‐1% 97 surrounding amenity and overall affordability. MARSDEN $320,000 $310,000 $309,000 ‐3% 137 • Logan City offers a number of locations in which first Prepared by PRDnationwide Research Source: RP Data home buyers and investors can pick up a bargain. The most affordable suburb in Logan City was Woodridge, Logan City Sales Activity Suburbs registering a median house price of $260,000 at the end Grth % Over March 09 Half Suburb Mar 2008 Dec 2008 Mar 2009 of the six month endingg009 March 2009. One Year Year No Sales • The suburb of Regents Park registered the highest REGENTS PARK $355,000 $345,000 $342,500 ‐4% 160 number of transactions during the half year ending March CRESTMEAD $303,500 $290,000 $295,000 ‐3% 153 2009 half year. The majority of top activity suburbs during KINGSTON $286,000 $265,500 $280,000 ‐2% 151 the period were located within close proximity to major MARSDEN $320,000 $310,000 $309,000 ‐3% 137 arterial roads and employment nodes. ROCHEDALE SOUTH $394,000 $375,000 $377,000 ‐4% 137 EAGLEBY $302,500 $282,000 $283,000 ‐6% 119 SHAILER PARK $463,000 $436,500 $430,000 ‐7% 115 “Suburbs to keep an eye on in the future BORONIA HEIGHTS $310,000 $300,000 $306,000 ‐1% 97 however are Meadowbrook and Slacks Creek, JIMBOOMBA $420,000 $412,000 $417,000 ‐1% 92 due to there surrounding amenity and overall BEENLEIGH $335,000 $324,000 $315,000 ‐6% 91 affordability.” Prepared by PRDnationwide Research Source: RP Data

UitMktUnit Market Logan Cit y LGA T en Y ear U nit S al es C ycl e

700 $300,000 Number of sales Median “A product in demand and a sign of progression” 600 $250,000

500 The data included within this historical market analysis $200,000

represents settled transactions over the past ten years, by 400 half year period, and is current to March 2009. $150,000 ber of sales of ber 300 ian sale price m d Nu Me $100,000 The region currently lacks an overall supply of residential 200

units and the result has been a strong historical median price $50,000 growth within a tightly held market. 100

0 $0 • From an overall perspective, the Logan City LGA has 1999 SEP 2000 SEP 2001 SEP 2002 SEP 2003 SEP 2004 SEP 2005 SEP 2006 SEP 2007 SEP 2008 SEP shown strong long term median unit price growth, with the 1999 MAR 2000 MAR 2001 MAR 2002 MAR 2003 MAR 2004 MAR 2005 MAR 2006 MAR 2007 MAR 2008 MAR 2009 MAR regggion registerin g a median unit price of $245,000 durin g half year period the half year ending March 2009. The median unit price Prepared by PRDnationwide Research Source: RP Data was derived from 247 settled transactions. The lack of activity has prevented any recent median unit price growth Logan City Highest Growth Suburbs during the year ending March 2009. Grth % Over March 09 Half Mar 2008 Dec 2008 Mar 2009 Suburb Year No Sales • The emerging Logan City unit market is currently mostly One Year confined to the north of the LGA, where many of the key EAGLEBY $265,250 $294,500 $285,000 7% 33 infrastructure modes for transportation are located. These SLACKS CREEK $235,000 $245,400 $245,000 4% 11 MEADOWBROOK $270,000 $275,000 $277,500 3% 16 include the M1, Logan Motorway, and rail which links BROWNS PLAINS $287,500 $295,000 $295,000 3% 14 Brisbane to the Gold Coast. As a result of the unit market being currently concentrated to the north, key suburbs that Prepared by PRDnationwide Research Source: RP Data achieved high growth and activity levels are grouped next to each other. Eagleby was the top performer, registering the greatest growth over the year ending March 2009 of Logan City Most Affordable Suburbs 7%, through 33 settled transactions. This was followed by Grth % Over March 09 Half Slacks Creek with 4% growth through 11 sales. SbSuburb Mar 2008 Dec 2008 Mar 2009 One Year Year No Sales LOGAN CENTRAL $190,000 $173,000 $174,000 ‐8% 12 • In terms of sales activity, Woodridge leads the way with 39 WOODRIDGE $205,000 $196,000 $192,500 ‐6% 39 settled transactions. First homebuyers and investors have MOUNT WARREN PARK $210,000 $195,000 $195,000 ‐7% 11 possibly found this area very appealing, as its not only a BEENLEIGH $248,000 $241,000 $240,000 ‐3% 30 central, easily accessible location in Logan, but also has SLACKS CREEK $235,000 $245,400 $245,000 4% 11 the second most affordable price. MEADOWBROOK $270,000 $275,000 $277,500 3% 16 EAGLEBY $265,250 $294,500 $285,000 7% 33 • The most aff ord abl e su bur b in Logan City was Logan LOGANLEA $227,000 $264,250 $288,000 27% 11 Central, registering a median unit price of $174,000 at the BROWNS PLAINS $287,500 $295,000 $295,000 3% 14 end of the six month ending March 2009. Considering its LOGANHOLME $537,515 $437,550 $374,553 ‐30% 12

location along the railway line, that provides a hassle free Prepared by PRDnationwide Research Source: RP Data alternative to getting to and from employment, Logan Central could be another suburb for investors to keep a Logan City Sales Activity Suburbs lookout for. Grth % Over March 09 Half Mar 2008 Dec 2008 Mar 2009 Suburb Year No Sales • If the Motorline City development in Daisy Hill proceeds, it One Year WOODRIDGE $205,000 $196,000 $192,500 ‐6% 39 will bring further amenity to a well serviced area. Suburbs EAGLEBY $265,250 $294,500 $285,000 7% 33 that would benefit in the future would be Meadowbrook and BEENLEIGH $248,000 $241,000 $240,000 ‐3% 30 Slacks Creek, which have already achieved solid median MEADOWBROOK $270,000 $275,000 $277,500 3% 16 price growth. Slacks Creek and Meadowbrook are also BROWNS PLAINS $287,500 $295,000 $295,000 3% 14 relatively affordable, when comparing to other Logan City LOGAN CENTRAL $190,000 $173,000 $174,000 ‐8% 12 suburbs. LOGANHOLME $537,515 $437,550 $374,553 ‐30% 12 LOGANLEA $227,000 $264,250 $288,000 27% 11 SLACKS CREEK $235,000 $245,400 $245,000 4% 11 MOUNT WARREN PARK $210,000 $195,000 $195,000 ‐7% 11

Prepared by PRDnationwide Research Source: RP Data Logan Property Market Overview

Vacant Land Market LCitLGATYVtLdSlClLogan City LGA Ten Year Vacant Land Sales Cycle

1,600 $250,000 Number of sales Median “Scarcity pushes prices north” 1,400

$200,000 The data included within this historical market analysis 1,200 1,000 represents settled transactions over the past ten years, by $150,000

half year period, and is current to March 2009. 800 er of of er sales n sale price n sale b a $100,000 Num 600 Medi There is currently an under supply of vacant land in the 400 region which has resulted in a strong, positive median price $50,000 growth within a tightly held market. Based on current 200 household projections, the Department of Infrastructure and 0 $0 Planning has identified, residential land stock within the Logan LGA that could facilitate supply in the area for 12 to 1999 SEP 2000 SEP 2001 SEP 2002 SEP 2003 SEP 2004 SEP 2005 SEP 2006 SEP 2007 SEP 2008 SEP 1999 MAR 2000 MAR 2001 MAR 2002 MAR 2003 MAR 2004 MAR 2005 MAR 2006 MAR 2007 MAR 2008 MAR 2009 MAR 21 yy(pgears (depending on local growth ). half year period Prepared by PRDnationwide Research Source: RP Data • The Logan City LGA has shown strong long term median unit price growth, with the region registering a median Logan City Highest Growth Suburbs vacant land price of $207,900 during the half year ending Grth % Over March 09 Half Suburb Mar 2008 Dec 2008 Mar 2009 March 2009. This was achieved through 267 settled sales, One Year Year No Sales the least amount transacted for over a decade. With LOGANHOLME $207,000 $219,000 $220,250 6% 18 contracting levels of supply readily available eon the EAGLEBY $174,750 $187,000 $185,000 6% 18 market, scarcity has pushed prices north. HOLMVIEW $$,199,995 $$,206,900 $$,209,900 5% 18 NEW BEITH $220,000 $210,000 $230,000 5% 13 • Out of the six top suburbs for the highest median vacant UNDERWOOD $308,750 $322,500 $322,500 4% 10 land price growth in the Logan LGA, four are located WATERFORD $182,000 $200,000 $185,000 2% 37 around the developed suburb of Beenleigh. Loganholme Prepared by PRDnationwide Research Source: RP Data and Eagleby both achieved 6% growth, while Holmview and New Beith registered 5% growth. Logan City Most Affordable Suburbs

Grth % Over March 09 Half • When looking at the most affordable suburb (table to the SbSuburb Mar 2008 Dec 2008 Mar 2009 One Year Year No Sales right) in terms of median vacant land price, the three EAGLEBY $174,750 $187,000 $185,000 6% 18 suburbs that shared the median price of $185,000 are all WATERFORD $182,000 $200,000 $185,000 2% 37 located to the north of the LGA. BORONIA HEIGHTS $190,000 $185,000 ‐3% 15 HOLMVIEW $199,995 $206,900 $209,900 5% 18 • The suburb with the most activity experienced during the JIMBOOMBA $164,750 $220,000 $214,000 30% 10 March 2009 half year period was Waterford, with 37 settled LOGANHOLME $207,000 $219,000 $220,250 6% 18 sales. Waterford seemed to be a popular pick when NEW BEITH $220,000 $210,000 $230,000 5% 13 loo king at it ’s a ffor da ble me dian pr ice o f $185, 000 an d GREENBANK $235,000 $241,000 $231,750 ‐1% 22 median price growth of 2%. Greenbank saw 22 sales, UNDERWOOD $308,750 $322,500 $322,500 4% 10 while there were three suburbs that registered 18 sales. Prepared by PRDnationwide Research Source: RP Data

Logan City Sales Activity Suburbs

Grth % Over March 09 Half Suburb Mar 2008 Dec 2008 Mar 2009 “There is currently an under One Year Year No Sales WATERFORD $182,000 $200,000 $185,000 2% 37 supply of vacant land in the GREENBANK $235,000 $241,000 $231,750 ‐1% 22 EAGLEBY $174,750 $187,000 $185,000 6% 18 region which has resulted in a HOLMVIEW $199,995 $206,900 $209,900 5% 18 LOGANHOLME $207,000 $219,000 $220,250 6% 18 strong, positive median price BORONIA HEIGHTS $190,000 $185,000 ‐3% 15 NEW BEITH $220,000 $210,000 $230,000 5% 13 growth within a tightly held JIMBOOMBA $164,750 $220,000 $214,000 30% 10 market.” UNDERWOOD $308,750 $322,500 $322,500 4% 10 Prepared by PRDnationwide Research Source: RP Data www.prd .com .au

Prepared by PRDnationwide Research

For further details contact Aaron Maskrey Research Analyst P: +61 7 3370 1702 or E: [email protected]

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. Use with written permission only. Copyright © – 2009