National Top 10 Best Buys 2016 – copyright hotspotting.com.au 1

National Top 10 Best Buys 2016

Our pick of the 10 best locations for future capital growth

AUGUST to DECEMBER 2016 Copyright hotspotting.com.au

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Table of Contents

Chapter Title Page 1 What are the Best Buys? 5 2 The elements which create hotspots 6 3 The National Top 10 Best Buys 8 - Gold Coast City, 9 - Hobart, Tasmania 26 - Region, Queensland 38 - Charles Sturt LGA, South Australia 42 - , Queensland 52 - City of Greater Geelong, Victoria 62 - Sunshine Coast Region, Queensland 79 - Epping precinct, Victoria 94 - Playford LGA, South Australia 103 - Sunshine precinct, Victoria 109

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Chapter 1 What are the Best Buys?

Each of the reports in the hotspotting.com.au stable of publications contains a Top 5 list of locations tipped to out-perform the general market. These locations are considered to have growth drivers that will achieve capital growth above the norm in the future.

The National Top 10 Best Buys are the pick of the crop – the best 10 locations in Australia for property investors seeking capital growth.

Future hotspots are identified through Core Categories – elements identified by our research as having the ability to create real estate out- performers. These Core Categories are described in Chapter 2.

Potential hotspots are locations which have more than one of these Core Categories in play – an example is a Sea Change destination with improved Transport Infrastructure in prospect.

The Best Buys locations have three, four or more Core Categories in the mix. They are places on the cusp of a phase of good capital growth.

They’re locations with identifiable drivers of demand for real estate, which will place pressure on prices and rents.

We expect them to show growth not only in 2016 but well beyond. They are all locations we expect to show steady growth over the longer-term.

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Chapter 2 Elements which create hotspots

The hotspots to emerge in Australia in recent years have been strongly influenced by one or more of the Hotspot Core Categories – events or influences which create capital growth for property. The areas spotlighted in this report have at least three of the Core Categories in their favour.

Transport New roads and train lines can create value growth. Industrial property benefits the most Infrastructure from new motorways, but residential is also boosted. A major new road can open up previously inaccessible areas or provide faster connections to the CBD for commuters. Rail links and bridges can have similar impacts on real estate. Education-Medical Most major cities have education and medical infrastructure located in the one precinct. Infrastructure North Melbourne has a universities precinct as well as major hospitals. Areas like this attract strong accommodation demand from students, teachers, doctors, nurses and many others. The suburbs surrounding such facilities tend to out-perform on capital growth. Ugly Ducklings/ Some suburbs were once shunned as downmarket but now are regarded as trendy. “Ugly Cheapies with Ducklings” can transform into real estate swans. Richmond in inner Melbourne has made Prospects that change, as has Bulimba in . Whenever affordability is a key issue, Ugly Ducklings with potential to change will do well. Urban Renewal Governments or Local Authorities can transform areas through policy decisions or and targeted action. Urban renewal programs have changed the character of suburbs, Government Policy sometimes turning waterside industrial areas into prestige residential. Regional policy decisions – such as growth management plans – can also have an impact. The Stayers Some locations always seem to perform steadily. They’re the ones that provide at least some growth each year, in good times and bad. While the property industry claims they are mostly found close to the inner-city, our research indicates outer suburbs and regional centres are more likely to be The Stayers than the expensive near-city suburbs. Ripple Effect Property up-cycles often begin with the inner-city suburbs. As prices rise, they become unaffordable for many buyers – who seek less expensive property nearby. The growth, therefore, ripples out – and continues to do so until it reaches the outskirts of the city. Growth cycles can also ripple out from the capital city to regional towns and cities. Lifestyle Features The most expensive real estate tends to be beside water or overlooking it. The ocean rates highest (although climate change may alter that perception), although rivers, canals and lakes aren’t bad either. Homes fronting golf courses command price premiums, but not as high as water. Buyers also pay premiums to live near “eat street” lifestyle precincts. Boom Town Sometimes areas take off for specific reasons. Some towns in Western Australia and syndrome Queensland have real estate booms because of resources activity nearby. Development of major industrial projects can have a similar impact. The key factor is jobs creation. Sea Change and Australians are (arguably) more drawn to live by the ocean than any other people on the Hill Change planet. Sea Change is less in the news today but migration to the beach remains a factor. Investors need to be aware that economies based primarily on tourism and retirement can be fragile and volatile. Hill Change locations are country areas close to major cities. Jobs Nodes A key factor in the decision of where to buy or rent is proximity to work. Major jobs nodes include industrial estates, shopping centres, airports, export ports and big centres of transport logistics. Often big jobs precincts develop near city motorways, especially near the intersection of two motorways – e.g. the Eastern Creek area of western .

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Chapter 3 The Top 10 Best Buys 2016

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GOLD COAST CITY South East Queensland

Highlights  Spending on infrastructure  Strong population growth  $345 million casino project  No.1 LGA in Australia for sales growth  $2 billion resort and casino  Low vacancy rates  $670 million Pacific Fair project  $2 billion Ruby residential project  $500 million athletes village  $1 billion Jewel residential project  $1 billion Iluka Resort project  $1.2 billion cruise ship terminal  $200 million airport expansion  $1 billion Coomera Town Centre

Suburb - Typical Suburb - Typical Suburb- Typical houses prices houses prices units prices Broadbeach Wtr $853,000 Ormeau $450,000 Broadbeach $439,000 Burleigh Wtr $651,000 Pimpama $463,000 Coombabah $398,000 Carrara $475,000 Southport $500,000 Coomera $309,000 Coomera $490,000 Surfers Pdse $1,100,000 Labrador $332,000 Nerang $410,000 Varsity Lks $516,000 Surfers Pdse $351,000

For a long time, Hotspotting has avoided recommending the Gold Coast because of its poor track record on capital growth and its boom-bust history.

But the Gold Coast cannot be ignored. It is the No.1 LGA in Australia in The Price Predictor Index, by a considerable margin, billions are being spent on infrastructure and major developments, and vacancy rates are low. There will be price growth, especially in the genuine residential suburbs.

Investors, however, should avoid the high-rise apartment markets. The Gold Coast has just finished absorbing the previous oversupply, which took five years, and another is looming, with multiple mega projects being built or planned. Median unit prices for some of the high-rise suburbs are the same as, or lower than, 10 years ago - including Surfers Paradise, Broadbeach and Runaway Bay. Many others have experienced negligible growth. The new crop of high-rise is being built for sale to Asian investors, not for local consumption - and oversupply is inevitable.

We recommend that investors on the Gold Coast concentrate on the genuine residential suburbs inland, including the growth corridor heading north towards Brisbane and the canal residential suburbs south of Surfers Paradise, including Burleigh Waters and Mermaid Waters.

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Location

The Gold Coast covers 414km², stretching as far as Coomera and to the north, and the NSW border in the south, and taking in Mt Tamborine and Canungra to the west.

The distance between the most northern and southern points (Coomera and Coolangatta) is approximately 50km, along the Pacific Motorway; while Surfers Paradise is mid-way between the two.

The following distances provide further perspective:

 Brisbane CBD – Coomera: 54km  Brisbane CBD – Southport: 74km  Brisbane CBD – Surfers Paradise: 78km  Brisbane CBD – Coolangatta: 104km

Population & Demographics

The population as at the 2011 Census was 495,000. The estimated population at 30 June 2014 was POPULATION 546,000. Population 2011 Census: 495,000 Projected population by 2021: 628,000 Based on Census data, the main nationalities living Median age: 37 on the Gold Coast are: English 30%, Australian 24%, Source: ABS and Qld Treasury – Office of Economics Irish 8%, Scottish 7% and German 4%. Those born and Statistical Research in China and Japan represented less than 1% each.

According to the , the Gold Coast and Brisbane are projected to record the largest amounts of population growth in Queensland over the decade to 2021.

The Gold Coast population is projected to grow by 133,800 people in the decade, an average annual rate of 2.2%. Much of this growth is expected to occur in suburbs along the northern corridor between Helensvale and Brisbane.

Suburbs which experienced significant growth from 2009 to 2014 include Coomera, where the population increased 8.7%, Pimpama 14.8% and Upper Coomera 6.0%, according to the ABS.

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Economy and Amenities

Renowned for its beaches, glitzy nightlife and perpetual party atmosphere, the Gold Coast Employment by Industry economy revolves around tourism, retail, Retail: 15% healthcare, education and manufacturing. Healthcare & social assistance: 13% Construction: 10% Tourism Accommodation & food services: 10% Education: 8% The theme parks of , , Manufacturing: 7% Source: National Institute of Economic and Movie World and Wet ‘n Wild are feature Industry Research, 2014 attractions in the Gold Coast landscape. In 2014, 3.8 million people visited the theme parks, contributing $198,000 million to the economy.

Besides some of the world’s best surfing beaches, natural attractions like Natural Bridge glow worm cave, waterfalls and picturesque can be found in TOURISM - FAST FACTS the hinterland. 4.3 million overnight visitors per year. But the Gold Coast is best known for China and New Zealand are key source markets. its night life. Night clubs, bars and Forecast FY2017: 8 million visitors spending $113 bil. restaurants litter the glitter strip, Forecast FY2025: 11 million visitors spending $145 bil. becoming inundated during major Source: Gold Coast Tourism Report events such as schoolies week, when around 40,000 students from all over Australia finishing year 12 descend on the party precinct.

Other night life includes Jupiters Hotel and Casino, currently undergoing a $345 million redevelopment to transform it into a 6-star establishment.

The Magic Millions annual horse sale and races is another glamorous event which attracts international racehorse buyers. Zara Phillips, grand-daughter of Britain’s Queen Elizabeth, is the Patron of Magic Millions Racing Women for 2014-2018 and attends the events.

Offering $11.29 million in prize money annually, the Magic Millions is the world’s richest sales- based incentive Race Series.

Education

The Gold Coast was named in the top 100 cities in the world for students to live by the 2016 QS Best Student Cities. The ranking was based on attributes such as institutional quality, lifestyle and public transport access.

Griffith University ranked 37th in the top 50 universities aged under 50 years list, and Bond University came in at number 81.

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Griffith University at Southport has 18,200 students from all over Australia and the world. It is Griffith University's largest campus.

The campus has seen significant growth and development over the last few years, with the opening of the $150 million Griffith Health Centre in 2013 and the launch of the $38 million Griffith Business School building in 2014. The Gold Coast light rail service has two stops on the campus.

Bond University, Australia’s first private not-for-profit university, was an initiative of infamous Alan Bond. It has undergone several upgrades since its inception in 1989 and work is currently under way for a $16 million building to house architect students. Bond University has 6,000 local and international students.

Meanwhile, Southern Cross University has build a campus within the precinct. More detail on this can be found in the tables at the end of this report.

TAFE Colleges are located at Coomera, Southport and Ashmore.

Retail

Exclusive boutiques are the hallmark of Surfers Paradise, Broadbeach and Main Beach.

Pacific Fair, Broadbeach, which held the crown as Queensland’s largest regional shopping centre until 2006, will regain the title in mid-2016 when its $670 million redevelopment is completed. It competes with , the largest shopping centre on the Gold Coast.

Another major shopping centre is Australia Fair at Southport while at Biggera Waters is the location of many popular factory outlets.

The four main shopping centres are complete with cinemas and dining precincts.

Health and medical facilities

Numerous hospitals service the Gold Coast region, the most noteworthy being the Gold Coast University Hospital, which opened in 2013. The 750-bed facility cost $1.8 billion to build and is affiliated with both Griffith and Bond Universities.

Another public hospital can be found at Robina where construction of a $20 million private hospital is under way. As with the Gold Coast University Hospital, the 364-bed Robina hospital serves as a teaching hospital for Bond and Griffith University medical students.

Private hospitals include Pindara Private Hospital, Benowa; Allamanda Private Hospital, Southport; and John Flynn Private Hospital, Tugun. The latter includes the John Flynn Cancer Centre.

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The Gold Coast Airport, formerly known as Coolangatta Airport, caters for domestic and international passengers. In 2014, 5.8 million passengers passed through Gold Coast Airport. Australia’s sixth busiest airport has regular international flights to Kuala Lumpur, Hong Kong, Singapore, Tokyo, Auckland and Christchurch.

An extra 200 flights carrying 35,000 passengers will come through the airport in January 2016, adding $30 million to the local economy.

Property Profile

The Gold Coast remains the clear national leader among the municipalities of Australia in terms of growth suburbs. Hotspotting research, confirmed by that of other entities such as consulting firm Urbis, shows that sales activity increased throughout 2015 and early 2016. Gold Coast City has more suburbs with rising sales momentum that any of the LGA in Australia.

In Hotspotting’s May 2015 survey for the Price Predictor Index, there were 14 suburbs with rising sales activity. Our February 2016 survey found 25 growth suburbs.

Urbis senior consultant Lynda Campbell said the Gold Coast apartment market in 2015 experienced its highest level of activity in eight years, after a lag in residential construction following the global financial crisis.

However, we continue to urge caution about the Gold Coast unit market because of its alarming history of boom-bust scenarios and its poor capital growth record.

Some reports indicate there are 30,000 units in the pipeline on the Gold Coast, with 11,000 of those expected to enter the market within the next few years in the lead up to the 2018 Commonwealth Games. Residential building approvals in the eight months to February 2016 totalled 5,668, which suggests they are headed for an all-time record by June 2016.

Southport in particular is BUILDING APPROVALS making headlines as old Year Houses Units Total Year Houses Units Total houses near the light rail FY2008 3,314 3,615 6,929 FY2012 1,334 940 2,274 line are knocked down FY2009 1,785 2,606 4,391 FY2013 1,265 1,245 2,510 and replaced with high- FY2010 2,318 1,263 3,581 FY2014 1,805 2,586 4,391 rise buildings. The FY2011 1,463 1,197 2,660 FY2015 2,314 2,631 4,945 Southport CBD was Source: ABS declared a Priority Development Area by the Gold Coast City Council in 2013, enabling it to attract around $5 billion in infrastructure and development.

Investors should remain aware that houses in the Southport precinct may have sold to developers for inflated prices in a one-off transaction and therefore median houses prices in Southport could be skewed to the higher end.

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The safest options are the genuine residential suburbs inland, including those in the growth corridor heading north towards Brisbane and also some of the canal residential suburbs south of Surfers Paradise, including Burleigh Waters and Mermaid Waters.

Some of the residential suburbs have delivered double-digit growth in median house prices, but growth around 5-6% in the past year is more common.

The previous oversupply of units was created by high building levels in 2007 and 2008. Dwelling approvals in FY2007 and FY2008 totalled nearly 7,000 in each year, dominated by high-rise units, creating an oversupply which took five years to absorb.

The previous five-year downturn has meant that few Gold Coast suburbs have long-term capital growth rates above 3% per year, i.e. the average annual growth in median house prices for the past 10 years. The few that have delivered 4% per year – Benowa, Burleigh Heads, Burleigh Waters, Coolangatta, Currumbin Waters, Highland Park, Palm Beach and Tallai – are mostly suburbs located away from the main high-rise precinct of Southport, Surfers Paradise, Main Beach and Broadbeach.

The capital growth record of the high-rise unit suburbs is among the worst in Australia. In terms of growth rates over the past 10 years, Surfers Paradise and Runaway Bay both have negative growth rates i.e. unit prices are lower than they were 10 years ago, while Broadbeach has delivered zero growth in 10 years.

In November 2015, Urbis reported a 150% increase in property sales compared to the same time last year. Most of this activity has been concentrated around Gold Coast Central, i.e. the suburbs of Labrador, Southport, Main Beach, Surfers Paradise and Broadbeach.

But Stephen McGee, Queensland state manager of National Property Buyers, warns against new apartment stock for investors looking for sustainability.

“In the Gold Coast, the first sector of the market that softens is your beachside high-rises and your apartments – that’s where the transient population is,” McGee said.

Another warning came from a Heron Todd White report, which tells of high body corporate fees and property outgoings on apartments in the Gold Coast Central region.

Suburbs which offer affordability, i.e. properties with median house prices ranging from about $350,000 to $450,000 include Coombabah, Labrador, Merrimac, Nerang, Ormeau, Oxenford and Upper Coomera.

For investors who are looking for a cashflow strategy, the yields on units are good. Generally, yields of 5.5% to 6.5% can be found across the Coast with Nerang delivering the highest at 7.0%. But, again, the published yield figures assume high occupancy levels, which will be affected in future years when the market has a surplus of apartments. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 15

The following table provides a snapshot of home ownership and dwelling structures of select Gold Coast suburbs compared to the Gold Coast LGA average.

Suburb Home Ownership Dwelling Structures Own their Pay a mortgage Rent % Houses % Units home Broadbeach 24% 16% 56% 1% 99% Burleigh Heads 32% 28% 36% 40% 59% Coolangatta 31% 14% 51% 16% 81% Coomera 8% 35% 56% 72% 28% Labrador 21% 25% 50% 23% 77% Nerang 23% 37% 33% 65% 32% Ormeau 18% 45% 35% 93% 6% Pimpama 13% 30% 55% 76% 23% Robina 30% 34% 33% 73% 26% Runaway Bay 39% 26% 29% 48% 52% Southport 21% 21% 54% 33% 67% Surfers Paradise 23% 19% 54% 15% 85% Gold Coast LGA 26% 35% 36% 60% 38% Source: 2011 Census

Vacancy Rates

Because the Gold Coast covers such a broad area, it isn’t wise to generalise about vacancy rates, as there are some pockets of rental stability and others which are erratic. For example, suburbs in postcode 4217 and 4218 (Benowa, Bundall, Surfers Paradise, Main Beach, Broadbeach, Mermaid Beach) have shown a clear pattern of vacancy spikes of 6–8% during winter months since 2009, but are currently below 2%.

Properties in postcodes 4226 and 4227 (Merrimac, Robina, Varsity Lakes) had vacancy rates from 3–6% during 2008–2013, but have been below 2% since.

Coolangatta experienced vacancy rates of 3–4% in 2010–2012, but has enjoyed rates of less than 2% since, whereas the rates at Palm Beach have been below 2% since 2009.

Ormeau, Pimpama and Coomera offer more stability where rates have generally been below 3% for the last five years.

Vacancy rates across most Gold Coast suburbs are now below 2%, giving the appearance that all is well for now. But in the lead up to the 2018 Commonwealth Games, there is much construction activity occurring, so investors would be wise to monitor the vacancy rates closely.

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Gold Coast Vacancy Rates Suburb Post code Vacancy rate

Arundel, Parkwood 4214 1.0 % Benowa, Bundall, Surfers Paradise, Main Beach 4217 2.0 % Biggera Waters, Coombabah ,Paradise Point, Runaway Bay 4216 1.7 % Broadbeach, Mermaid Beach 4218 1.0 % Burleigh Heads 4220 0.5 % Carrara, Nerang, Pacific Pines 4211 0.8 % Coolangatta 4225 0.5 % Coomera, Oxenford, Upper Coomera 4210 1.5 % Currumbin Waters 4223 0.7 % Labrador, Southport 4215 1.1 % Merrimac, Robina 4226 1.1 % Ormeau 4208 1.8 % Palm Beach 4221 0.6 % Pimpama 4209 2.9 % Varsity Lakes 4227 1.2 % Source: SQM research

The Gold Coast unit market can be summarised as follows:- Location: units No. of sales Median Price 1yr 10yr average Median yield Growth Biggera Waters 357 $438,000 4 % 4 % 6.0 % Broadbeach 577 $439,000 -3 % 0 % 5.5 % Burleigh Heads 277 $429,000 7 % 2 % 5.5 % Carrara 142 $453,000 3 % 1 % 5.9 % Coolangatta 371 $460,000 10 % 1 % 5.4 % Coombabah 103 $398,000 3 % 4 % 6.0 % Coomera 98 $309,000 -12 % 2 % 5.7 % Labrador 474 $332,000 -7 % 2 % 6.2 % Main Beach 222 $628,000 13 % 1 % 5.3 % Mermaid Beach 294 $354,000 -7 % 1 % 5.8 % Nerang 114 $304,000 -2 % 2 % 7.0 % Pacific Pines 109 $330,000 -6 % 3 % 5.7 % Palm Beach 331 $350,000 1 % 2 % 5.5 % Paradise Point 138 $640,000 0 % 4 % 5.2 % Pimpama 39 $365,000 -1 % Snr 5.5 % Robina 316 $440,000 -2 % 2 % 5.5 % Runaway Bay 165 $493,000 23 % -1 % 5.5 % Southport 690 $343,000 4 % 1 % 6.4 % Surfers Paradise 1,557 $351,000 1 % -1 % 6.6 % Upper Coomera 107 $335,000 8 % 1 % 5.7 % Varsity Lakes 260 $405,000 4 % 1 % 5.9 % Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

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The Gold Coast house market can be summarised as follows:- Location: houses No. of sales Median Price 1yr 10yr average Median yield Growth Ashmore 217 $500,000 5 % 3 % 5.4 % Benowa 221 $750,000 11 % 4 % 4.6 % Biggera Waters 104 $460,000 -2 % 3 % 4.5 % Broadbeach Waters 201 $853,000 0 % 3 % 4.1 % Burleigh Heads 114 $638,000 9 % 4 % 4.7 % Burleigh Waters 302 $651,000 13 % 4 % 4.9 % Carrara 250 $475,000 4 % 3 % 5.4 % Coolangatta 39 $688,000 6 % 4 % 4.1 % Coombabah 238 $401,000 6 % 3 % 5.7 % Coomera 275 $490,000 5 % 3 % 5.4 % Currumbin Waters 174 $548,000 10 % 4 % 5.1 % Elanora 267 $560,000 7 % 3 % 5.2 % Helensvale 420 $580,000 9 % 3 % 5.4 % Highland Park 122 $457,000 11 % 4 % 5.4 % Labrador 228 $390,000 3 % 3 % 5.3 % Mermaid Beach 54 $1,224,000 22 % 3 % 3.4 % Merrimac 115 $437,000 9 % 3 % 5.3 % Mudgeeraba 263 $500,000 4 % 3 % 5.4 % Nerang 323 $410,000 8 % 3 % 5.6 % Ormeau 273 $450,000 4 % 1 % 5.3 % Oxenford 341 $420,000 4 % 3 % 5.5 % Pacific Pines 353 $476,000 3 % 3 % 5.4 % Palm Beach 231 $669,000 14 % 5 % 4.6 % Paradise Point 146 $923,000 9 % 2 % 4.1 % Parkwood 160 $540,000 8 % 3 % 5.2 % Pimpama 123 $463,000 4 % 1 % 5.0 % Robina 397 $575,000 7 % 3 % 5.1 % Runaway Bay 174 $778,000 14 % 2 % 4.5 % Southport 373 $500,000 8 % 3 % 5.0 % Surfers Paradise 163 $1,100,000 5 % -1 % 3.7 % Tallai 66 $691,000 5 % 4 % 5.4 % Upper Coomera 535 $438,000 5 % 3 % 5.4 % Varsity Lakes 235 $516,000 6 % 3 % 5.1 % Worongary 98 $535,000 4 % 3 % 5.3 % Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

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Future Prospects

In the lead up to the Commonwealth Games, the Gold Coast CORE INFLUENCES CBD is undergoing a transformation with $5 billion worth of Transport infrastructure, public or private investment planned, under way or recently Education-Medical completed. infrastructure, Lifestyle One of the key projects includes the development of the light Features, Jobs Nodes. rail network. The first section of the system, running from Griffith University, Parkwood, to Broadbeach, opened in 2014. The contract for the second stage, which will run from Griffith University to Helensvale, has been awarded to CPB Contractors with construction starting in April 2016. Newlands said mid-range properties on the northern corridor would be in high demand when the light rail’s extension is finished.

Meanwhile, the Gold Coast City Council is working on future stages of the light rail which would connect Broadbeach to Coolangatta Airport. A feasibility study for the $1.54 billion link will begin in FY2017.

Another project is the Gold Coast Aquatic Centre, a world- class swimming facility located in Southport’s Broadwater Parklands. Costing $42 million and opening in 2014, it will be the swimming and diving facility for the 2018 Commonwealth Games.

Elsewhere, three of the four major shopping centres (Pacific Fair, Australia Fair and Harbour Town), Oasis at Broadbeach and Jupiters Casino are spending serious money on upgrading their premises. (More detail about these can be found in the tables at the end of this report.)

While Jupiter’s Casino aims to have a redevelopment completed before the 2018 Commonwealth Games, it also has long term plans to house permanent residents. An $850 million master plan allows for up to five hotel or apartment buildings, more recreational space and a connection to Pacific Fair.

Residential developers are keen to cash in on the action too, so high-rise construction is becoming prolific. Numerous residential developments are under construction at Surfers Paradise, Budd’s Beach and Southport.

In the past 12 months, 15,000 jobs have been created on the Gold Coast, according to the State Government.

Around 690,000 visitors are expected to arrive on the Gold Coast in April 2018 for the Commonwealth Games, according to council documents, with around 1.5 million people attending ticketed events.

Regardless of the economic activity that the Commonwealth Games will generate, strong population growth will independently spur on development.

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In February 2015, demographer Bernard Salt said Robina-Varsity Lakes was the Gold Coast’s next key office precinct and would increase to 100,000 people, provide 50,000 jobs and contribute $5.4 million to the Gold Coast economy by 2050.

With the population of the entire Gold Coast expected to double in the next 35 years, Salt said: “There is no great western corridor that is going to create a new version of the Gold Coast — what you see now is largely what you will see into the future,” he said. Housing density, jobs and the number of businesses will all be doubled.

Coomera is recognised in the South East Queensland Regional Plan 2009-2031 as a regional development area for residential and employment growth. The area is expected to provide 25,000 new dwellings to house 50,000 residents.

A FINAL WORD OF WARNING: While the Gold Coast is poised for a real estate boom and generally looks attractive, oversupply looms on the apartment skyline. There are reports that banks are reluctant to lend for off-the-plan purchases of high-rise units and some have included the Gold Coast high-rise suburbs on “black lists” of locations to avoid.

Recommended areas

The genuine residential markets of the Gold Coast – i.e. the inland housing markets – are the best options for long-term growth. Two precincts stand out as having strong momentum – the canal residential suburbs south of Surfers Paradise and the northern growth corridor centred on Coomera and Upper Coomera.

Projects in the Gold Coast region are outlined below and on the following pages:-

INFRASTRUCTURE – EDUCATIONAL AND CULTURAL

Project Value Status Impact Southern Cross $30 million Completed. University campus, A six-story building airport precinct, and 500-seat Coolangatta lecture theatre. Cultural Precinct, $37 million Under construction. Evandale The performing Stage 1 to be completed arts precinct is to by 2018. City Council be redeveloped over 15 years.

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INFRASTRUCTURE – SPORT AND ENTERTAINMENT

Project Value Status Impact Sporting hub, $3 billion Proposed. Carrara Golf, tennis and entertainment Wanda Group precinct. Gold Coast Hockey $15 million Under construction. Centre, Labrador A facility to house Due for completion in 5,000 spectators. 2017.

INFRASTRUCTURE - TRANSPORT

Project Value Status Impact Gold Coast Airport $200 million Approved. Jobs: 230 construction, expansion New terminal and To be completed by late 180 operational. air bridges to deal 2017. To improve capacity with larger planes. before 2018 Games. Light rail system – $420 million Under construction. Jobs: stage 2, Southport– The Federal Govt Contract awarded to CPB 1,000 construction. Helensvale will chip in $95 mil; Contractors; work to be includes three new finished in 2017. State Govt & GCCC stations.

COMMERCIAL DEVELOPMENTS – GENERAL

Project Value Status Impact Jupiters Casino $345 million Under construction. Jobs: redevelopment An upgrade to six- A new restaurant opened 500. star status and 80 in Jan 2016. Completion Echo Entertainment extra rooms. expected late 2017. AFS Resort and $2 billion Proposed. Casino, Main Beach Master plan expected to be completed in early ASF Consortium 2016.

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COMMERCIAL DEVELOPMENTS – GENERAL Continued

Project Value Status Impact Pacific Fair shopping $670 million Under construction. Jobs: centre David Jones, 120 Completion due mid-2016. 1,115 construction; redevelopment specialty stores 1,540 operational. and a food market AMP Capital to be added. Harbour Town $20 million Under construction. shopping centre 25 new retail Completion expected in redevelopment stores. mid-2016. Australia Fair $25 million Under construction. shopping centre Coles and the redevelopment cinemas will be expanded. Oasis, Broadbeach $25 million Under construction. upgrade Includes a bank, restaurants and a Abacus Property Grp call centre. Cruise Ship Terminal $1.2 billion Proposed. Cruise terminal, Previous proposals by ASF Breakwater Group hotels, resorts, consortium were declined bridge and tunnel. by the State Govt. Gold Coast Marine $120 million Under construction. Jobs: Precinct, Coomera A precinct for 60ha of 250ha has been 2,500 to date; River manufacturing and developed. 5,000 upon completion. maintaining GCCC recreational boats.

RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Iluka Resort redevt, $1 billion Approved. Surfers Paradise 693 apartments, shops, restaurants. Forise Holdings Oxford on Queen, TBA Proposed. Cnr Queen & 240 units, offices DA lodged December Scarborough Sts, and retail. 2015. Southport

PSR Southport MP Investment Pty Ltd

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RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Jewel development, $1 billion Under construction. Surfers Paradise 500 apartments, Completion expected in 171 hotel rooms. 2018. Wanda Group Coomera Town $1 billion Under construction. Centre Master planned Work began in December community for 2015. 25,000 residents. Residential towers, $500 million Proposed. Dreamworld, Two residential DA lodged February 2016. Coomera towers, a hotel and retail complex. Gordon Group The Surrounds, $500 million Under construction. Jobs: Helensvale A master planned A 10 year project. 1,500. community to Villaworld house 7,000 in 2,000 dwellings. Inspire & TBA Proposed. Broadwater Central, 79 units, medical DA lodged December Labrador and retail to be 2015. built on the site of Richard Cavill Cav’s Steakhouse. Residential $250 million Proposed. development, 694 apartments. DA lodged March 2016. Wavebreak Island

ASF Consortium KFC site Labrador, $90 million Proposed. redevelopment 217 high rise units. DA lodged March 2016.

Sunland Residential devt, $350 million Proposed. Coomera 747 homes.

Stockland

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RESIDENTIAL DEVELOPMENTS Continued

Project Value Status Impact Eden Court, near $600 million Proposed. Nerang train station 1,600 homes. DA submitted August 2015. Nifsan Residential project, $40 million Approved. Mermaid Beach 116 apartments. Approved September 2015. Rentgrove & Bracken River Residential project, $200 million Proposed. Arundel 500 dwellings. Villa World purchased 25ha in Sept 2015. Villaworld Parkside Estate, $50 million Under construction. Coomera 107 lots.

Villaworld Apartment towers, TBA Proposed. Harbour Town 500 apartments. DA lodged in early 2016. Shopping Centre

Lewis Land Rosewood devt, TBA Proposed. Broadbeach 184 apartments, DA lodged December cnr Gold Coast 2015. Rosewood Hwy and Broadbeach Rosewood Ave. Sundale Towers, $400 million Under construction. Southport 133 units & retail on the Sundale Meriton Motel site.

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RESIDENTIAL DEVELOPMENTS Continued

Project Value Status Impact Elegance residential $160 million Proposed. development, 409 apartments, Mermaid Beach shops, restaurants, offices. Sunshine Invests Mariners Cove $600 million Proposed. residential devt, The 370 apartments DA lodged in June 2015. Spit and a 69-room hotel. Sunland Group Seabright residential TBA Under construction. devt, Jacobs Well 108 lots.

Villa World Commonwealth $500 million Under construction. Jobs: Games Athletes’ Will house 6,500 Completion expected in 1,500 construction. Village, Parklands athletes for the March 2018. Games. Development, Cnr TBA Proposed. Frank & Robert St, 98 units and retail. DA lodged October 2015. Labrador

Citywest Corp Unit development, $75 million Approved. Acacia & Oak Aves, 211 apartments. Surfers Paradise Development, TBA Proposed. Gooding Drv & 1,500 dwellings. Preliminary approval, Robina Parkway, subject to amendments, Merrimac given for 970 units by GCCC in 2013. Orient Central Development Corp Ruby devt and $2.0 billion Under construction. Sapphire devt, 2,600 units, retail, Budd’s Beach restaurants and an ice-rink in Ralan Group adjoining projects.

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HOBART Tasmania

Highlights  Affordability  $1 billion Macquarie Point  Rising sales activity Master Plan  Low vacancy rates  $676 million hospital upgrade  $70 million Wrest Point redevt  Gateway to the Antarctic.

Suburb - Typical Suburb - Typical Suburb - Typical houses prices houses prices units prices Claremont $265,000 Kingston $365,000 Bellerive $294,000 Glenorchy $250,000 Lindisfarne $387,000 New Town $269,000 Howrah $361,000 Moonah $290,000 Sandy Bay $350,000

Hobart’s star is beginning to rise in concert with improvements to the state economy.

After many years of sub-par performance, the Tasmanian economy is rising on the back of big improvements in tourism and in business investment. Building activity is rising and unemployment is falling. The property market has started to respond, with sales activity steadily improving.

Hobart presents an attractive package to investors, with affordable prices compared to other capital cities, the lowest vacancies in capital city Australia and the highest rental yields.

There is growing evidence that the improved state economy and rising market activity is translating into price growth in Hobart.

Location

. South-east Tasmania, on the estuary of the Derwent River. . 1.25-hour flight to Melbourne. . 3-hour drive to Devonport (where ferries from Melbourne dock). . Greater Hobart incorporates the LGAs of:

1. City of Hobart The CBD and surrounding suburbs such as Battery Point, North Hobart and Glebe. 2. City of Clarence: Eastern shore of Derwent River but west of Hobart International Airport. 3. City of Glenorchy: Northern suburbs of Hobart, but west of the Derwent River. 4. Kingborough Council: South of Hobart CBD and including Bruny Island. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 27

Population and Demographics

Greater Hobart encompasses a region from Kettering in the POPULATION south, Mt Wellington in the west, Brighton to the north and Greater Hobart: 211,600 Marion and Blackman Bays to the east. Median age: 39 Source: 2011 Census Within Greater Hobart at the 2011 Census, there were fewer residents of working age (i.e. those aged from 25-49) than the national average – 33% compared to 35%; but the number of people aged over 50 (35%) was slightly higher than the national average of 32%.

The more common occupations are professionals (22%); clerical & administrative workers (16%); technicians & trades workers (14%); community & personal service workers (12%); and managers (11%).

Tasmania has a high concentration of Antarctic and Southern Ocean scientists , according to Wikipedia.

Economy and Amenities

Hobart is the financial and administrative heart of Tasmania. It also serves as the home port for both Australian and French Antarctic operations.

Australia has had a presence in Antarctica for 100 years and Hobart’s proximity to East Antarctica and the Southern Ocean makes it suitable as a port for scientific research.

Access to the Antarctic is gained via sea and air, with an air link existing between Hobart International Airport and Casey Station, a permanent base in Antarctica.

The port of Hobart loads around 2,000 tonnes of Antarctic cargo a year for the Australian research vessel Aurora Australis which doubles as an ice- breaker.

Based in Hobart, Australian Antarctic Division (AAD), a division of the Department of the Environment, Kingston, employs 300 staff. The AAD comprises science personnel who support expeditions in the Antarctic and also have an affiliation with the University of Tasmania.

The CSIRO’s Marine and Atmospheric Research (CMAR) Division in Hobart has Australia’s largest marine research library and also employs 300. CSIRO’s facilities include ocean marine laboratories, engineering workshops and the $120 million vessel RV Investigator which is capable of carrying 40 scientists and 20 crew.

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The CSIRO, AAD and the Commission for the Conservation of Antarctic Marine Living Resources are just three of the organisations that make up the Antarctic and Southern Ocean sector which employs around 1,200 and contributed $187 million to the Tasmanian Gross State Product in 2012, with the flow-on effect estimated to be about $257 million.

But Hobart’s connection to Antarctic research is not exclusively Australian. The French Antarctic program injects about $9 million into the southern Tasmanian economy from its use of Tasmanian shipping agents to food, fuel, boating supplies and waste disposal services.

The city is also a hub for cruise ships during the summer months, with up to 40 ships carrying 100,000 passengers docking during the season.

Vessels for the Antarctic berth at the Macquarie Wharf No. 2 Cruise Terminal, managed by Tasports, which underwent a $7 million upgrade in 2012.

Light Industry

Hobart supports a host of light industry manufacturers. Major local employers include catamaran builder Incat, zinc refinery Nyrstar, Cascade Brewery, Cadbury's Chocolate Factory and Norske Skog which produces around 290,000 tonnes of newsprint and paper annually.

In 2014, Norse Skog became the only paper manufacturer in Australia to produce light-weight coated paper for catalogues, after spending $85 million on converting its newsprint machine.

Tourism

Hobart’s rich history as a penal settlement, its heritage-listed architecture and snow-capped Mt Wellington are just some of the reasons why tourists visit Tasmania every year.

Other attractions include Salamanca Place, the site of restaurants, galleries, craft shops and offices as well as a weekly market with 300 stallholders selling arts and crafts.

The annual Sydney to Hobart yacht race creates much excitement at Constitution Dock in the Port of Hobart where the race finishes on New Year’s Eve. Running since 1945, the race has become one of the top three offshore yacht races in the world and attracts around 100 international competitors.

Wineries have become popular in the last 15–20 years with many popular vineyards located around the Derwent, Coal River and Huon Valleys, closer to Hobart than any other capital city.

The Wrest Point Hotel Casino in Sandy Bay was Australia's first legal casino, opening in 1973. The Casino houses several bars and restaurants, accommodation and a conference centre. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 29

In the past few years, $78 million has been spent on extending the runway and re-surfacing the tarmac at the Hobart International Airport, allowing it to accommodate mainstream international commercial flights, a direct route to South-East Asia and more international charter flights. The airport handles 300 flights a week and in FY2015, 2.1million passengers passed through its gates.

Education

The main provider of tertiary education in Hobart is the University of Tasmania. It claims to be ranked in the top 2% of universities worldwide and have 29,000 local, national and international students.

The university’s extensive array of faculties located around the city include: the Tasmanian Conservatorium of Music, the Tasmanian Centre for the Arts, a multi-million dollar Medical Sciences Precinct which includes the School of Medicine, the Menzies Research Institute and the School of Health Sciences.

There is the Faculty of Science, Engineering and Technology, the University Farm near Richmond, which is the site for agricultural research, the University’s observatories and the Grote Reber Physics Museum at Cambridge.

The Institute for Marine and Antarctic Science, a specialist institute of the University, is located in new $45 million premises which provide teaching and research facilities for around 290 staff and students.

Several TAFE colleges can be found across Hobart.

Health

Hobart is serviced by the Royal Hobart Hospital and two private hospitals. The Royal Hobart Hospital is Tasmania’s largest hospital and as the major clinical teaching and research centre, it works closely with the University of Tasmania. The hospital employs around 3,000.

Property Profile

Tasmanian property markets are building steady momentum on Home ownership the back of an improving state economy, where tourism, construction, agriculture and other sectors are doing well. In 34% own their homes 2012 and 2013, before the economic upturn, Tasmania was 36% have mortgages selling 2,000-2,400 homes per quarter, but now the state is 28% rent their homes consistently recording above 2,600 per quarter. Source: 2011 Census

Each quarter of 2015 recorded higher sales than in the same period of 2014, except for the June Quarter, which was marginally less. This pattern has continued in 2016. This has translated into solid price growth, with multiple research sources recording increases in Hobart prices in the past 12 months.

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Sales in the suburb of Glenorchy in Hobart’s northern suburbs have risen from 47 to 49 to 55 to 75 and 72 in the past five quarters, while in Howrah – on the other side of the River Derwent – sales have been 40, 47, 54, 60, 52, 50 and 68 in the past six quarters.

When comparing median houses prices in Hobart to other capital cities, affordability becomes apparent. For example, the busiest suburbs for sales are Blackmans Bay, Claremont, Glenorchy, Howrah, Kingston, Moonah and Sandy Bay. With the exception of Sandy Bay and Blackmans Bay, which have median house prices of $675,000 and $436,000 respectively, the other suburbs all have median house prices of less than $400,000, while Claremont, Glenorchy and Moonah are priced in the mid-to-high 200,000s.

According to the REIT, the median house price in Tasmania is 41% of the median house price in Sydney and 55% of the median house price in Victoria.

In the last 12 months, good growth in median house prices has occurred in many suburbs. Median house prices in Blackmans Bay and Lenah Valley are up 9%, Lutana has risen 8%, Lindisfarne and Sandy Bay both 7% and Claremont is up 6%.

Another encouraging factor for investors is the strong yields, mostly above 5%. Some suburbs have median rental yields above 6%. This is supported by the lowest vacancy rates among the capital cities.

Hobart is Australia’s second oldest city behind Sydney, so there are plenty of character cottages to be found. But there are also modern homes and units. Standalone houses make up 83% of all dwellings while 17% are units, flats or townhouses.

The Hobart apartment market has delivered a fairly steady pattern of gradually rising sales volumes since late in 2012, although the total number of sales remains small.

Most of the suburbs listed below currently have vacancy rates below 1.5%, according to SQM Research.

Vacancy rates P/code Suburb Vacancy P/code Suburb Vacancy rate rate 7004 South Hobart 2.0% 7011 Claremont 0.6% 7005 Sandy Bay 0.8% 7015 Geilston Bay, Lindisfarne 0.8% 7008 Lenah Valley, New Town 0.9% 7018 Bellerive, Howrah 0.7% 7009 Lutana, Moonah, W. Moonah 0.6% 7050 Kingston 0.6% 7010 Glenorchy 0.4% 7052 Blackmans Bay 1.4% Sqmresearch.com.au

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The Hobart house market can be summarised as follows: Location No. of sales Median price 1yr growth 10yr ave. Median yield Bellerive 68 $408,000 -4 % Snr 4.9% Blackmans Bay 146 $436,000 9 % Snr 5.4% Claremont 113 $265,000 6 % Snr 6.3% Geilston Bay 68 $353,000 5 % Snr Snr Glenorchy 180 $250,000 5 % Snr 6.4% Howrah 181 $361,000 -2 % Snr 5.2% Kingston 171 $365,000 4 % Snr 5.4% Lenah Valley 87 $418,000 9 % Snr 4.9% Lindisfarne 96 $387,000 7 % Snr 5.2% Lutana 38 $298,000 8 % Snr 6.1% Moonah 111 $290,000 4 % Snr 5.9% New Town 80 $458,000 3 % Snr 4.7% Sandy Bay 173 $675,000 7 % Snr 4.2% South Hobart 73 $415,000 -1 % Snr 5.0% West Moonah 63 $300,000 2 % Snr 5.8% Source: Australian Property Monitors – “No. of sales” is the number of house sales over 12 mths; “Growth ave.” is the average annual growth in median house prices over 10 yrs. “Snr”: statistically not reliable

The Hobart unit market can be summarised as follows: Location No. of sales Median price 1yr growth 10yr ave. Median yield Battery Point 33 $520,000 7 % Snr 5.0% Bellerive 26 $294,000 5 % Snr 5.5% Blackmans Bay 24 $326,000 18 % Snr 5.8% Claremont 23 $180,000 13 % Snr 6.9% Hobart 52 $483,000 -2 % Snr 54% New Town 28 $269,000 11 % Snr 5.8% Sandy Bay 80 $350,000 6 % Snr 5.2% Source: Australian Property Monitors – “No. of sales” is the number of house sales over 12 mths; “Growth ave.” is the average annual growth in median house prices over 10 yrs. “Snr”: statistically not reliable

Future Prospects

Tourism appears to be gaining momentum as a powerful economic driver in Tasmania’s economy, prompting much development activity CORE INFLUENCES: Boom Towns, in Hobart’s CBD. Lifestyle Features,

A 2015 report by the NAB indicated that Tasmania’s tourism indsutry Cheapies with Prospects. was responding positively to the lower Australian dollar, encouraging Australians to holiday at home and also encouraging inbound tourism from overseas.

The Tasmanian Visitor Survey revealed in September 2015 that Tasmania was expected to break the one million domestic visitors mark for the first time. In FY2015, 988,000 Australian travellers crossed Bass Strait while international visitors increased by 22%.

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The NAB business survey for August 2015 showed Tasmanian confidence is heading in the opposite direction to the nation. A spokesperson for the Tasmanian Chamber of Commerce said positive signs included record tourism numbers, growth in the forest industry, high retail figures, strong construction activity and increased new car sales.

The results are supported by the reduction in unemployment which has improved significantly in the last 12 months. Tasmania’s unemployment had risen sharply in 2012 and 2013, peaking at around 8% in 2013 before slowly declining. ABS figures released in June 2016 show Tasmania’s unemployment rate as 6.5%, compared to the national rate of 5.8%.

Some examples of projects currently impacting Hobart are as follows:-

INFRASTRUCTURE – TRANSPORT

Project Value Status Impact Hobart International $40 million Under construction. Airport upgrade (1) Runway extension. Completion expected in early 2018. Hobart International $25 million Under construction. Airport upgrade (2) The terminal will be The arrivals hall is due upgraded. for completion in Sept 2016; overall completion due in 2017.

INFRASTRUCTURE – EDUCATION

Project Value Status Impact Creative Industries $90 million Approved. Economic benefit: and Performing Arts Includes a Construction is 3,000-8,000 new Precinct Conservatorium of expected to be students; Music, a 300-seat finished in late 2017. $660 million. University of Tasmania recital hall, 300-seat studio theatre. New science and TBA Proposed. Jobs: technology precinct, Would cater for 4,000 200 academic staff. Hobart CBD students.

University of Tasmania

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RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Equity House, Murray $12 million Proposed. St redevelopment To become student DA lodged in June accommodation with 2015. Riverlee Developments 110 flats and retail space. Melville St student $65 million Under construction. Jobs: accommodation 430 apartments and Completion expected 80. retail space. in 2017. University of Tasmania Whitewater Park $60 million Approved. residential estate, 200 homes. Approved in December Kingston 2015, to be developed in six stages. WWP Developments Spring Farm sub- $150 million Approved. division, Kingston 500 homes on 290 lots.

INFRASTRUCTURE – HEALTH AND MEDICAL FACILITIES

Project Value Status Impact Royal Hobart $676 Million Under construction. Hospital Completion expected in redevelopment late 2018.

State & Federal Governments Glenorchy $21 million Approved. Community Health Completion expected in Centre 2018.

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COMMERCIAL DEVELOPMENTS

Project Value Status Impact Macquarie Point $1 billion Proposed. Masterplan The 8ha old railyards A 10-15 year plan. would be transformed Macquarie Point into commercial, retail Development Corp and recreation space. Claremont Golf Club $100 million Proposed. redevelopment A hotel, marina and serviced apartments. Chinese consortium Wrest Point $70 million Proposed. Jobs: redevelopment Upgrade of casino-hotel 100. complex, including 5 new Federal Group restaurants, more bars, upgraded gaming areas, revitalised waterfront areas. Myer site, $45 million Deferred. Macquarie St A 225-room hotel, cafe, Approved in Aug 2015; redevelopment restaurant, retail and approval overturned by conference complex on the Planning Appeal Ressen Property the old Myer site. Tribunal because of Group building heights. Ressen took case to Supreme Court in March 2016. Crown Plaza Hotel, $45 million Under construction. Liverpool St 187 rooms. Completion due October 2017. Intercontinental Hotels Group 4.5 star hotel, ICON TBA Approved. Complex, Argyle St 115 rooms. Raadas Property Hotel, Macquarie St $35 million Under construction. Fragrance Group Touted as Tasmania’s biggest hotel with 296 rooms, six restaurants and retail space.

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COMMERCIAL DEVELOPMENTS cont.

Project Value Status Impact Macquarie Wharf Shed 1 redevt (MAC1) $35 million Under Federal Group 4.5 star hotel with 113 construction. rooms. Completion due early 2017. Retail complex, Elizabeth St mall TBA Proposed. Thompson Land The former ANZ site is Site purchased in to be redeveloped into November 2015, four retail outlets. DA yet to be lodged. Palace Hotel project former Westpac site, $40 million Proposed. Jobs: CBD 196 rooms. 177. Elizabeth Tasmania Pty Ltd Odeon Theatre redevelopment $69 million Proposed. Jobs: To be developed into DA lodged in 1,850. Riverlee Devts office space. April 2015. Parliament Square redevelopment $150 million Under Jobs: Includes a new office construction. 400. Citta Property Group building, hotel and To be built in retail outlets. stages with final completion in 2018. Rosny Hill conference centre TBA Proposed. Accommodation, Hunter Devts restaurants and conference centre. Mona museum and light house extension $20 million Proposed. Hotel, Sandy Bay $15 million Proposed. Rd 147 rooms.

Tribe Hotel Group

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MORETON BAY REGION Far northern suburbs of Brisbane

HIGHLIGHTS  Affordable housing  Principal Regional Activity Centre in  No.2 in Aust. for family livability State Govt plan  $980 million in spending on new  Road and rail links to Brisbane infrastructure and Sunshine Coast  New Moreton Bay Regional  $140 million expansion of Westfield University Precinct North Lakes shopping precinct

Suburb - houses Typical prices Suburb – units Typical prices Burpengary $420,000 Burpengary $260,000 Caboolture $333,000 Caboolture $231,000 Deception Bay $331,000 Deception Bay $237,000 Morayfield $343,000 Morayfield $246,000

The sales volumes in the suburbs of the Moreton Bay Region show the importance of affordability in residential real estate. Four of the core suburbs of this region have each sold over 350 houses in the past 12 months. Three of the four have median house prices below $350,000.

The Moreton Bay Region, which covers the Brisbane metropolitan area’s urban sprawl in the northern growth corridor heading to the Sunshine Coast, offers affordable housing as well as good rail and road links to Brisbane to the south and the Sunshine Coast (and beyond) to the north.

With a new university and a new town plan in prospect – including the new suburb of Caboolture West – the Caboolture-Morayfield area is destined to continue absorbing urban growth. This region has been identified by the State Government as a Principal Regional Activity Centre for major growth in the Brisbane area.

The proposed Caboolture West Master Plan covers 6,500ha west of Caboolture and Morayfield.

Location

. 50km north of the Brisbane CBD . Covers 2,000km² and 12 Council Divisions . This report covers Divisions 2 & 3: Beachmere, Burpengary, Deception Bay, Narangba, Caboolture, Upper Caboolture, Caboolture South, Bellmere and Morayfield.

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Economy and amenities

Caboolture is a former timber and dairy POPULATION & DEMOGRAPHICS: centre. Cheap land, de-regulation of the dairy . 410,000 Moreton Bay LGA (2013) industry in 2001 and decline of the timber . 70,000 in Divisions 2 & 3 industry led to Caboolture changing from an . 40% families (aged 35-49) agricultural centre to an urban village. . 31% aged 55+

The introduction of electric trains and the upgrade of the Bruce Highway in the 1980s meant the Brisbane CBD could be reached in less than an hour. Train stations are located at Caboolture, Morayfield, Burpengary, Narangba, Dakabin, Petrie and Lawnton.

Morayfield Shopping Centre is the principal shopping complex, anchored by Coles, Big W, Target and Kmart, with 150 speciality stores, 3,000 car parks and a Birch Carroll and Coyle Cinema.

Westfield North Lakes, which is mid-way through a $140 million expansion, is another major shopping centre in this precinct. Caboolture has several state and private schools. The State Government announced in 2013 it would build a primary school at Caboolture as one of 10 new schools to be built in high-growth areas. SPORTING FACILITIES Medical care can be sourced at Caboolture . $13 million Moreton Bay Complex (AFL) Hospital, a 206-bed hospital. . Caboolture Regional Aquatic Centre . Caboolture Golf Club Attractions include an historical village and . Centenary Lakes Sports Club & Function the Queensland State Equestrian Centre, a Centre multipurpose events venue which hosts major equestrian events as well as the Urban Country Music Festival and Farm Fantastic Expo. There is also the Caboolture Hub comprising a conference centre, art gallery and library.

Citytrain has regular train services from the Brisbane CBD to Caboolture and the Sunshine Coast; these stop at Caboolture, Morayfield, Burpengary and Narangba.

The Caboolture airfield caters for ultra-light aircraft.

Ranked second best suburb in Australia

Morayfield was named the second best suburb in Australia for family living early in 2014. Mortgage broker Aussie Home Loans commissioned the Top 100 Suburbs for Family Living report, which ranked Morayfield second among 3,800 suburbs across Australia on a range of factors, including house prices, block size, average number of bedrooms, historic capital gains and proximity to local amenities. The Moreton Bay area as a whole figured prominently in the top 100, with Narangba (43), Bellmere (75) and Deception Bay (77) all making the list.

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Property profile

The Moreton Bay Regional Council is planning for the HOME OWNERSHIP population in the Caboolture precinct, which includes Caboolture, Deception Bay, Burpengary, Morayfield and 23% own homes outright Narangba, to increase by 24,000 between 2016 and 2021. 31% have mortgages 38% rent their homes In support of this growth, it’s estimated that 13,500 new Source: 2011 Census dwellings will be needed. At present, there are eight housing estates under construction between North Lakes and Burpengary, according to realestate.com.au.

Six suburbs in the Moreton Bay precinct have recorded 100 or more house sales in the past 12 months, including four with over 350 sales each, reinforcing the popularity of this area with buyers seeking homes at affordable prices.

Sales increased in some suburbs from 2013. In the 12 months to January 2016, Caboolture, Morayfield, Burpengary and Narangba collectively had 1,616 sales, up from 1,464 a year before and significantly more than the 1,007 recorded in the year to January 2014. Steady growth in market activity has continued in 2016 and the Moreton Bay Region now ranks as the No.2 LGA in Australia (behind the Gold Coast) in terms of the number of suburbs with growing sales activity.

Price growth to date has been moderate, with Caboolture recording an increase of 7% in the last 12 months and several other suburbs achieving growth of 3–4%.

The appeal of this precinct is affordability – houses at prices below $350,000 are readily available in many suburbs.

Most homes around Caboolture, Morayfield and Burpengary are standalone houses while small acreages are also popular. The unit market is small, with median prices in Caboolture, Deception Bay and Morayfield generally in the $200,000s.

Vacancy rates throughout this precinct are low: Caboolture 0.9%, Morayfield 1.5%, Burpengary 1.7% and Narangba 2.1%, while rental yields are generally in the 5.2% to 5.8% range. This presents an attractive package for investors: affordable prices, low vacancies and high rental yields.

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The housing market in the Moreton Bay Region can be summarised as follows:

Suburb No. of sales Median price 1yr growth Growth ave. Median yield

Beachmere 84 $330,000 -4 % 2 % 5.2 % Bellmere 102 $344,000 2 % 1 % 5.4 % Burpengary 191 $420,000 1 % 4 % 5.2 % Caboolture 405 $333,000 7 % 4 % 5.5 % Caboolture Sth 80 $303,000 1 % 4 % 5.8 % Deception Bay 368 $331,000 4 % 3 % 5.5 % Morayfield 403 $343,000 4 % 2 % 5.4 % Narangba 384 $450,000 3 % 3 % 5.2 % Upper Caboolture 78 $381,000 -1 % 2 % 5.2 % Source: APM. “No. of sales” is the number of house sales in the past 12 months. “Growth ave.” is the average annual growth in median prices over the past 10 years.“ snr” = statistically not reliable

Future prospects

The Regional Council says the Moreton Bay Region is one of the fastest-growing urban areas in Australia, with residential land sales outpacing the rest of South-East Queensland.

A Council report says: Latest figures from CORE INFLUENCES the Queensland Government show more Ugly Ducklings/Cheapies with Prospects, new home lots are sold in the Moreton Ripple Effect, Transport Infrastructure, Bay Region than in Brisbane, Ipswich, the Government Policy. Sunshine Coast and Gold Coast, Logan, , , Mackay, or Gladstone. CORE INFLUENCES With 3,800 hectares of greenfield and infill landUgly ideal Ducklings/Cheapies for residential and commercial with Prospects, projects, and significant other opportunities for redevelopment,Ripple our Effect, region Transport is expected Infrastructure, to grow more than 40% over the next 20 years. We also have 750 hectaresGovernment identified Policy. for possible future enterprise and employment activities.

The Council says $980 million has been invested in community and transport infrastructure over the past six years including the State Equestrian Centre, the Caboolture Hub and the AFL precinct.

The next addition will be a university campus – the Moreton Bay Regional University Precinct – at Petrie. The Council spent $50 million buying the old Amcor Paper Mill site at Petrie for that purpose and in November 2015 the University of the Sunshine Coast was selected to develop the university. Expected to be much the same size as the Sippy Downs campus within its first 10-15 years, the Precinct is expected to cater for up to 10,000 students by 2030.

In June 2016, the Moreton Bay Regional Council sought confirmation from the State Government to declare the university precinct a Priority Development Area. At the same time, the Federal Government pledged $35 million for the university project as part of its 2016 election campaign. Moreton Bay Regional Council estimates the project will give a $950 million annual boost to the local economy and create 2,100 ongoing jobs in the region.

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Elsewhere, the State Government has named Caboolture-Morayfield as a Principal Regional Activity Centre in the South East Queensland Regional Plan 2009-2031 - one of only three Activity Centres north of the Brisbane CBD.

Other areas identified by the State Government for future development include Narangba East and Elimbah East. But probably the most interesting proposal is the Caboolture West Master Plan which covers 6,500ha west of Caboolture and Morayfield and extends north beyond Wamuran.

The Caboolture West site has been selected because much infrastructure is already in place and it is not significantly affected by slope, flood, water supply catchment areas or Class A agricultural land.

It is projected that Caboolture West would have a 40-year development horizon accommodating 70,000 residents. There would be seven new suburbs, three high schools, nine primary schools and new commercial and industrial areas.

According to the Council’s website, the new draft planning scheme which incorporates Caboolture West came into effect in 2015.

The Council also says 12,300 jobs were created within the region during 2015, while the FY2017 Budget has marked $315 million for spending on roads, capital works and infrastructure.

"This budget delivers $173.8 million for capital works across the Moreton Bay Region, including a $91 million investment in renewing and improving our road and transport network, $32 million for capital projects on parks, sport and recreation facilities, and expenditure of $17 million on maintaining sporting fields and community facilities across the region," Mayor Sutherland said.

The following projects will also impact economic activity in the Moreton Region:

INFRASTRUCTURE – EDUCATION

Project Value Status Impact New Moreton Bay $200 million Proposed. Jobs: Regional University Will cater for Sunshine Coast University 100 per year during Precinct, Petrie 10,000 students by was chosen to develop the construction; 2030. university in Nov 2015. 2,100 operational. Sunshine Coast Uni.

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COMMERCIAL

Project Value Status Impact Westfield North $140 million Under construction. Jobs: Lakes Event cinema, Ikea The $80 mil Stage 1 3,000 construction. redevelopment and JB Hi-fi will be opened in Nov 2015; added. The no. of cinemas opened in 2016; Scentre Group and stores will increase Kmart, JB Hi-fi and 58 Dexus Wholesale from 60 to 280. other stores are under construction. Queensland State $6 million Proposed. Equestrian Centre upgrade, Caboolture

MBRC Northlakes $17 million Under construction. Homemaker Centre Work began in February 2016 and is expected to be Primewest finished in early 2017.

COMMERCIAL-RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Caboolture West TBA Proposed. Expected to ultimately urban area, New urban area: Council plan approved in have a population between Caboolture 2 Town Centres, 7 January 2014. To proceed between 65,000 and River Rd and suburbs, about 12 over 40 years. Has been 70,000. Will include D’Aguilar Hwy schools, dedicated declared a Master Planned commercial and busway. Area by the State Govt. industrial precincts.

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CHARLES STURT LGA Metropolitan Adelaide, SA

Highlights  Strong middle market area  $2 billion in urban renewal projects  Rising sales activity  $3 billion in transport infrastructure  Low vacancy rates  Strong sporting infrastructure  Stamp duty concessions  Proposed light rail project

Suburb - Typical Suburb - Typical Suburb- units Typical houses prices houses prices prices Beverley $464,000 Grange $666,000 Findon $320,000 Brompton $478,000 Henley Bch $790,000 Seaton $286,000 Findon $473,000 Seaton $460,000 West Beach $291,000 Fulham Gdns $599,000 Wst Beach $756,000 Woodville $335,000

The City of Charles Sturt is in the process of launching itself as a powerhouse of economic activity.

It is at the forefront of Adelaide’s efforts to evolve its economy, as manufacturing industries fade.

Topping the list of projects is the $2 billion Royal Adelaide Hospital, due for completion in late 2016. This is destined to become one of the largest health and medical research centres in the southern hemisphere.

There is also a serious focus on improved transport infrastructure, including road and rail, which will better connect industrial precincts and outer suburbs with the CBD, the Port of Adelaide and .

Charles Sturt, well located in terms of the CBD, beaches and important infrastructure, offers affordable homes, low vacancies and a strong construction pipeline – at a time when the Adelaide market generally is emerging as a national leader in sales activity.

Location

. Middle market suburbs stretching west and north-west from the Adelaide CBD . 12km of shoreline along the Indian Ocean . LGA: City of Charles Sturt

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Economy and Amenities

The Charles Sturt area is characterised by a POPULATION & DEMOGRAPHICS: mix of residential, industrial and commercial 2011 Census: 105,000 land uses, which include contemporary and Proposed population 2040: 152,000 highly valued heritage areas. Median age: 41 Ethnic mix: English (23%), Australian (21%), The City of Charles Sturt attracts people Italian (11%), Irish (5%) & Scottish. (5%). because it is close to the beaches, the CBD, Source: 2011 Census the airport and regional shopping facilities.

Henley Beach is one of Adelaide’s most popular, offering an excellent restaurant precinct with boutique shopping.

The LGA has long been considered the sporting and entertainment hub of Adelaide, with national basketball, soccer and football stadiums, three privately-owned golf courses, an international rowing course, the River Torrens Linear Park, the Adelaide Entertainment Centre, the coast and numerous highly-regarded local sporting venues.

Education and medical precinct Industry Sector of Employment The City is well catered for in terms of schools Health care and social assistance 13% and medical services. Retail trade 11% Manufacturing 11% Health is the largest employer in South Construction 8% Australia and has replaced manufacturing as Public administration and safety 8% the largest employer in Charles Sturt. Health Education and training 8% provides 6,000 jobs, according to the City of Source: 2011 Census Charles Sturt.

Many major amenities are clustered together around the Torrens River in North Adelaide, between the CBD and the City of Charles Sturt. The facilities are encircled by North Terrace, Port Road, Park Terrace, Robe Terrace and Hackney Road, thus forming a compact education and medical precinct interwoven with government departments.

The LGA has two major hospitals: The Queen Elizabeth Hospital (the Western Region’s primary health care provider) and Western Hospital at Henley Beach, both complementing the hospitals in North Adelaide.

The University of Adelaide, which has five campuses throughout the state, has its main campus at North Adelaide. The majority of its 25,000 students study at this location. The University of South Australia also has two campuses near the University of Adelaide.

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Located near the two universities is the Royal Adelaide Hospital, Adelaide’s largest hospital. It is being rebuilt at a cost of $2.1 billion and is reportedly the single largest infrastructure project in South Australia's history.

Scheduled to open in November 2016, it will be Australia’s most technically advanced hospital, employing 6,000 staff and offering 800 beds.

Government facilities, such as the police barracks, Government House and the state library, are co- located alongside the Adelaide Zoo, the City of Adelaide Golf Course and the Botanic Gardens while several other sports fields and parks are also scatted throughout the precinct.

Nearby at Hindmarsh is the Adelaide Entertainment Centre, which underwent a $52 million redevelopment in 2010 and can accommodate 12,000 people. Show business luminaries such as Kylie Minogue and Miley Cyrus have performed at the Centre.

Retail and Industrial Major shopping centres include Westfield shopping centre and cinema complex at West Lakes and the Port Canal Shopping Centre.

Harvey Norman, Bunnings and the SA Manufacturing Park form a light industrial precinct at Woodville, near the council chambers.

According to the Charles Sturt Council, 30% of the state’s manufacturing businesses, including biomedical, advanced manufacturing, office and warehousing, are located in the western suburbs.

The Charles Sturt Industrial Estate, located on the former Holden site, is recognised as one of Adelaide’s leading industrial estates, while Electrolux recently built a $27 million National Distribution Centre at Beverley.

Sporting Facilities Adelaide is serious Australian Rules football territory and the Charles Sturt LGA includes Football Park, also known as AAMI Stadium, with a seating capacity of 51,000 at West Lakes. It is earmarked for a major residential redevelopment.

Nearby is Adelaide Oval which, after a $535 million redevelopment, now holds 53,500 and hosts international cricket matches, rugby league, rugby union, soccer and concerts as well as Australian Rules games.

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Transport The transport networks within the LGA are well developed and are set to be further developed in future years to improve public transport from the West to the CBD.

Adelaide airport, on the LGA’s southern fringe, is accessed via Tapleys Hill Road (A15), a major road connecting to the northern suburbs.

Port Road, the major freeway linking the CBD to the Port of Adelaide, runs through the middle of the City of Charles Sturt.

The LGA is serviced by the Outer Harbour and Grange line of the Adelaide rail network, complemented by tram and bus services.

Adelaide Airport is a major driver for investment and growth. Adelaide Airport is the single largest employer in South Australia, employing 8,726 people directly and 9,000 indirectly. It is estimated that, by 2019, 10 million passengers will pass through the airport each year.

Property Profile

The City of Charles Sturt is a solid middle-market area that is HOME OWNERSHIP performing well amid the steady rise of Adelaide real estate.

36% own their home The Charles Sturt LGA includes bayside suburbs west of the 29% have mortgages Adelaide CBD, including rising markets such as Henley Beach 31% rent (median house price $790,000) and Henley Beach South Source: 2011 Census ($763,000), as well as some more affordable locations such as Findon ($473,000), Kidman Park ($570,000), Semaphore Park ($467,000) and Seaton ($460,000).

Hotspotting research for The Price Predictor Index finds that the Charles Sturt LGA has seven Rising Steadily suburbs and ranks as the second strongest precinct in the Adelaide metropolitan area.

Long-term growth rates (the average annual growth in median house prices over the past 10 years) are generally 5–6% per year. Henley Beach, Henley Beach South and Woodville Park are slightly higher at 7% per year.

Most of properties in the city are stand-alone houses (73%), while 28% are units, according to the 2011 Census. Consequently, the number of unit sales is relatively low.

However, there has been a marked increase in the number of units being built in the last three years. In the five years from 2009 to 2013, an average of 350 units per year was built.

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A record 654 was built in FY2014, followed by 409 in FY2015, while approvals are on track to exceed 700 in FY2016. At present, there are seven unit projects under construction across the LGA, according to realestate.com.au.

Vacancies across Charles Sturt are generally low, with many postcodes having vacancy rates below 2%. Only postcodes 5020 and 5021 (which includes West Lakes and West Lakes Shore) have vacancies outside the general comfort zone.

The Charles Sturt LGA unit market can be summarised as follows:-

Location: units No. of sales Median Price 1yr 10yr average Median yield Growth Findon 48 323,000 7 % 3 % 5.8 % Henley Beach 36 327,000 -8 % 4 % 4.5 % Seaton 44 286,000 4 % 2 % 5.1 % Semaphore Park 20 320,000 2 % 4 % 4.9 % West Beach 30 291,000 5 % 4 % 5.0 % West Lakes 27 455,000 9 % 4 % 4.1 % Woodville 60 335,000 23 % 5 % 5.5 %

Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

Charles Sturt LGA vacancy rates Postcode Suburbs Vacancy rate 5014 Albert Park, Royal Park, Cheltenham, Hendon 1.3 % 5009 Allenby Gardens, Beverley 1.2 % 5012 Athol Park, Woodville North 1.2 % 5007 Brompton 3.2 % 5023 Findon, Seaton 1.4 % 5025 Flinders Park, Kidman Park 1.1 % 5024 Fulham Gardens, West Beach 2.9 % 5022 Grange, Henley Beach, Henley Beach South, Tennyson 3.0 % 5013 Pennington, Rosewater 1.4 % 5008 Renown Park, West Croydon, Ridleyton 1.3 % 5019 Semaphore Park 2.1 % 5021 West Lakes 4.1 % 5020 West Lakes Shore 4.7 % 5011 Woodville, Woodville Park, Woodville Sth, Woodville West 3.4 % Source: sqmresearch.com.au

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The Charles Sturt LGA market can be summarised as follows:- Location: houses No. of sales Median Price 1yr 10yr average Median yield Growth Albert Park 38 426,000 6 % 5 % 4.6 % Allenby Gardens 33 535,000 1 % 4 % 4.4 % Athol Park 33 350,000 -1 % 6 % 4.6 % Beverley 30 464,000 10 % 6 % 4.4 % Brompton 92 478,000 2 % 5 % 4.5 % Cheltenham 29 440,000 -13 % 4 % 4.3 % Findon 94 473,000 6 % 5 % 4.1 % Flinders Park 76 517,000 -1 % 5 % 4.0 % Fulham Gardens 87 599,000 7 % 5 % 4.0 % Grange 78 666,000 5 % 5 % 4.0 % Hendon 25 393,000 -3 % 5 % Snr Henley Beach 81 790,000 23 % 7 % 3.5 % Henley Beach South 54 763,000 -5 % 7 % 3.6 % Kidman Park 54 570,000 9 % 4 % 4.0 % Pennington 37 375,000 1 % 5 % 4.8 % Renown Park 26 449,000 7 % 6 % 4.4 % Ridleyton 21 475,000 12 % 5 % 4.3 % Rosewater 64 350,000 6 % 5 % 4.9 % Royal Park 47 400,000 9 % 5 % 4.6 % Seaton 163 460,000 6 % 5 % 4.4 % Semaphore Park 71 467,000 -1 % 5 % 4.5 % Tennyson 22 990,000 -4 % Snr Snr West Beach 58 756,000 19 % 6 % 3.9 % West Croydon 56 520,000 7 % 6 % 3.9 % West Lakes 100 650,000 -5 % 3 % 4.0 % West Lakes Shore 56 546,000 3 % 5 % 3.7 % Woodville 47 500,000 9 % 4 % 3.7 % Woodville North 39 360,000 -6 % 5 % 4.7 % Woodville Park 23 608,000 11 % 7 % 3.9 % Woodville South 61 460,000 0 % 5 % 4.1 % Woodville West 45 483,000 5 % 6 % 4.3 % Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

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Future Prospects

Much is happening in Adelaide generally and the City of Charles Sturt specifically, and this is partly attributed to CORE INFLUENCES the State Government’s 30-Year Plan for Greater Government Policy, Urban Adelaide. Renewal, Education-Medical Precincts, Transport Using the plan as a guide, Renewal SA is initiating urban Infrastructure. renewal developments, led by four major projects valued at over $2 billion. An estimated 6,100 new dwellings are to be built in the developments listed in the table below. Location Cost Dwellings Bowden $1 billion 2,400 The largest project will see the population The Square, Woodville West $130 million 400 of the small inner suburb of Bowden grow St Clair $500 million 1,700 from a few hundred to 3,500 over the AAMI Stadium $500 million 1,600 next decade.

This area is being revitalised with cafés, restaurants, shops, offices and parks.

The old AAMI Stadium (also known as Football Park) at West Lakes is to be redeveloped. In 2014, the South Australia National Football League sold AAMI Stadium to developers Commercial and General for $71 million. Commercial & General has plans to develop the site into residential, commercial and community land uses. It is estimated 1,600 homes will eventually occupy the site.

Another Renewal SA project will see land adjacent to the Woodville Railway Station transformed with a mix of medium-density to high-rise dwellings.

Transport The Cities of Charles Sturt and Port Adelaide Enfield have united to call for the construction of a Light Rapid Transit (LRT) rail corridor to link the Adelaide Entertainment Centre tram stop to Outer Harbor – the Northwest Corridor Light Rail.

The alignment of the Northwest Corridor LRT will enhance the accessibility of the Port Road corridor, ensuring that properties can be redeveloped to more intense uses, with resultant increases to property values.

The 28.5km LRT project will utilise the existing 25km priority rail corridor, plus an additional 3.5km tram link along the Port Road median, extending from the existing terminus at the Adelaide Entertainment Centre.

The project will include additional spur lines to service both the existing Grange service and to West Lakes and two tram stops in Port Adelaide. A further spur to Semaphore Road could be completed as a future stage.

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Benefits of the IRT are seen as:

1. The better facilitation of major development and urban renewal (Port Adelaide, Kilkenny, West Lakes) and tourist areas (Semaphore). 2. Ability/potential to run considerably higher frequencies than existing heavy rail (from 4 services per hour to 20 services per hour) enabling significant patronage growth. 3. The creation of a greenway or medium density development of the redundant rail corridor from Bowden to Kilkenny, realising 200-500 residential allotments.

Following completion of the $842 million South Road Superway, linking the Port River Expressway to Regency Road, the Australian and South Australian Governments are funding $1.5 billion to enhance the North-South Corridor. The corridor will be the major route for north and south traffic, including freight vehicles, running between Gawler and Old Noarlunga, a distance of 78km. This will improve linkages between Port Adelaide, industrial and commercial zones, Adelaide Airport, southern and northern Adelaide.

It is expected that the improved connectivity will create opportunities in the industrial areas of the City. Larger warehousing, office and manufacturing options are available in the Beverley Business Precinct, which includes the recent construction of Electrolux’s $27 million National Distribution Centre. This is also the site of a proposed $18 million office and warehouse development.

There is also the Charles Sturt Industrial Estate located on the former Holden site. Two stages of the 23ha site have been developed, while 36,000m² of office warehouse space will be added in the third stage.

Medical facilities Western Adelaide has a growing health business cluster. T\the new Royal Adelaide Hospital, due for completion in late 2016, and the SA Health and Medical Research Institute, will have one of the largest health and medical research centres in the Southern Hemisphere.

This is strengthened by a Bio Tech Precinct centred around Bio Innovation SA which is a key member of Charles Sturt’s Western Business Leaders Group.

Upon completion of the Royal Adelaide Hospital, the next phase of the Precinct development will see the following projects undertaken:

 The University of Adelaide Integrated Clinical School will introduce an integrated teaching and research centre. This will result in 500 undergraduate and post graduate health students each year and build upon its existing research in cancer, nutrition & dietetics, cardiovascular and neuroscience.

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 University of South Australia Interprofessional Health Clinic will expand its Centre for Cancer Biology. This will result in an additional 100 researchers and an extra 550 graduates per year.

Stamp duty concessions Yet another example of the eagerness of the South Australian Government to keep construction alive in the state is its decision to extend the stamp duty concessions for qualifying off-the-plan apartments for one year, to 30 June 2017, and the removal of the boundary for the concession, so that it will apply across the whole state.

The current stamp duty concession, which applied to the city and inner city suburbs, boosted the apartment market in parts of the City of Charles Sturt, including the Bowden Urban Village

In the ten months to April 2016, the City of Charles Sturt approved more “other residential” buildings than any other Council; 560 compared to 447 for the next highest – Adelaide City Council.

The City of Charles Sturt has held number 1 spot in the state for four of the past five years for the number of “other residential” buildings approved, which includes semi-detached, row, terrace houses or townhouses; and flats, units or apartments.

For contracts entered into between 20 June 2016 and 30 June 2017, the concession applies to purchases of off-the-plan apartments located anywhere in South Australia.

Projects impacting the City of Charles Sturt include these:

RESIDENTIAL DEVELOPMENT

Project Value Status Impact Bowden residential $1 billion Proposed. development 2,400 dwellings.

AAMI Stadium/ $500 million Proposed. Football Park 1,600 dwellings. Redevelopment

Commercial & General The Square, $130 million Proposed. Woodville West 400 dwellings. St Clair $500 million. Proposed. 1,700 dwellings.

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TRANSPORT INFRASTRUCTURE

Project Value Status Impact Torrens Road to $896 million Under construction. River Torrens The Federal & Completion due in 2018. project State Govts are each contributing Federal & State $448 mil. Governments North West Corridor $558 million Proposed. Light Rail A 28.5km route would link Cities of Charles Adelaide Sturt & Port Entertainment Adelaide Enfield Centre to Outer Harbor. North-south $1.5 billion Proposed. corridor 78km linking Gawler and Old Federal & State Noarlunga. Governments.

HEALTH AND MEDICAL FACILITIES

Project Value Status Impact Royal Adelaide $2.1 billion Under construction. Jobs: Hospital Completion due November 2,000 construction; 2016. 6,000 operational. SA Health

COMMERCIAL DEVELOPMENT – GENERAL

Project Value Status Impact Henley Square $8 million Under construction. redevelopment

City of Charles Sturt

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LOGAN CITY South East Queensland

HIGHLIGHTS  Affordable properties  Location between Brisbane CBD  Good rental yields and the Gold Coast  Excellent infrastructure  Proximity to major retail centres  Strong road and rail links  $600 million retirement village  Emerging industrial parks  $450 million Logan Mwy upgrade  $4 billion Yarrabilba Priority Development Area

Suburb - houses Typical prices Suburb – units Typical prices Beenleigh $310,000 Beenleigh $210,000 Daisy Hill $450,000 Browns Plains $288,000 Eagleby $290,000 Eagleby $229,000 Kingston $300,000 Loganlea $254,000 Shailer Park $501,000 Woodridge $189,000

Affordability and amenity are the keys to the appeal of Logan City. It is a nation-leading example of the “power combination” that leads to price growth: Affordability + Infrastructure + Jobs Nodes.

Logan City is a cluster of affordable suburbs midway between Brisbane City and the Gold Coast, and is well-connected by road and rail.

Already one of the fastest-growing municipalities in Australia, Logan City is the location of Yarrabilba, a new city-within-a-city by Lendlease to house 45,000.

It continues to rank as one of the leading LGAs in the nation for the number of suburbs with growing sales activity, leading to price growth.

Location

 Mid-way between Brisbane and the Gold Coast  Rochedale South, a northern suburb within Logan City LGA, is 19km south of Brisbane CBD  Beenleigh, a southern suburb within Logan City LGA, is 34km south of Brisbane CBD  Logan City is connected by rail to both Brisbane and the Gold Coast  Road links include the Pacific, Logan and Gateway Motorways National Top 10 Best Buys 2016 – copyright hotspotting.com.au 53

Population and demographics

About 295,000 people live in Logan City, which is expected to grow by 200,000 over the next 20 years. EMPLOYMENT Manufacturing: 13.6% Logan City is strongly influenced by multi-culturalism Retail: 11.5% with the population increasing 2% each year, largely Construction: 11.3% due to migrants moving to the area. Healthcare & social assistance: 10.6% Transport, postal & warehousing: 7.2% Logan City provides services to 215 different Education & training: 6.4% nationalities and cultures and is recognised as the Source: Census 2011 most culturally diverse city in Australia. In the six years to June 2012, 7,766 people settled in Logan City. Of these, 2,538 (33%) were migrants.

According to the 2011 Census, Logan City attracts young families. The median age is 33 years and 31% of the population is aged under 20 years.

In the past, Logan City has struggled with high unemployment. In July 2015, the jobless rate was 8.3%, compared to the national average of 6.0%. There has been recent improvement and, as at May 2016, it was 6.5%, but still higher than the national average of 5.7%.

Economy and amenities

Logan City offers a diversity of attractions and amenities. The local economy is estimated to be worth between $9 billion and $10 billion annually.

Retail

The area is especially strong on retail facilities. The Logan Hyperdome is among the largest shopping centres in Australia while Swedish furniture and homewares store Ikea has a large outlet in Springwood.

The Logan Mega Centre has 28 retail stores which mostly offer household and furniture outlets, but also camping and sporting goods.

In July 2015, the Hyperdome added a $17 million retail precinct called The Market Room, bringing the total number of employees within the shopping centre to 24,000.

In Marsden, a shopping complex anchored by Woolworths opened in February 2015, creating 95 jobs. Marsden Park Shopping Centre is also earmarked for a $60 million upgrade, creating 250 local retail jobs and tripling the size of the shopping centre.

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Medical & Education facilities

Logan City is serviced by the Logan Hospital, which opened a $145 million extension in 2015, and is supported by five medical centres. Around 10 primary schools and 10 high schools attend to the educational needs of Logan families.

General amenities

Teys Australia, the second largest meat processor and exporter in Australia, is based in Beenleigh. Teys, which employs 800 people, was inducted into the Queensland Business Leaders Hall of Fame in December 2014.

The Beenleigh Rum Distillery, Australia’s oldest rum distillery and built by convicts, has a new $5 million visitors' centre and museum. Bickford’s Cordials has invested $25 million in upgrading the distillery since buying the business in 2012.

Tourism injects $450 million a year into the Logan region and supports 2,600 local jobs. Some of the attractions include the Daisy Hill Koala Centre, Buddhist temples, Kingston Butter Factory, the Beenleigh Historical Village and Museum and regional parks beside the . There is also the Logan Entertainment Centre which can seat 1,200 patrons.

Sporting enthusiasts can get their fix at one of the six aquatic centres, three indoor sports centres or 116 sporting facilities. Golfers can indulge at the 27-hole Logan City Golf Club and numerous other golf courses.

There is also the Logan Metro Sports Centre, a $17 million multi-purpose venue capable of seating 2,000 spectators.

Property profile

During the 1960s and 1970s, the Queensland Housing Commission built public housing in Kingston and Woodridge. Subsequently, these HOME OWNERSHIP suburbs developed a somewhat shabby reputation. 23% own their homes 43% have mortgages Kingston still suffers the “poor relation” image. In January 2015, Fitch 31% rent their homes Ratings reported that Kingston had the worst mortgage delinquency Source: 2011 Census rate in Australia. The delinquency rate of 3.2% was 3.5 times the national average.

But many older suburbs in Logan City have been revitalised through urban renewal partnership projects between Logan City Council and the State Government. New estates flourish, giving locals a wide range of lifestyle options, from leafy suburbs to bushland acreage.

Logan City attracts investors because of the affordable prices, steady long-term growth and above- average rental returns. Its good transport links and proximity to major jobs nodes are also an advantage for home-buyers.

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Many suburbs have capital growth rates around 5% per year (average annual rise in median prices over 10 years). Yields ranging generally between 5% and 6% are consistently available for houses – and between 6% and 7.5% for units. Vacancy rates are low in most suburbs.

Solid growth has been evident in the last 12 months with many suburbs recording house median increases from 5% to 9%, while Loganlea and Loganholme both rose 11%.

In Property Observer in November 2014, REIQ CEO Antonia Mercorella said: “Logan and Ipswich are emerging as the south-east’s rental hotspots as tenants move further afield from inner-Brisbane in search of more affordable rents. You can get a four-bedroom house in Brisbane’s outlying areas for up to $65 less a week than you would pay closer to Brisbane.”

For this reason, Logan and Ipswich had tight rental markets with the lowest vacancy rates in the Greater Brisbane region, she said.

In 2016 this still rings true. The median house rent of Beenleigh is $335 per week and Eagleby is $320, while closer to the City in the Brisbane Southside precinct you can expect to pay $430 per week in Mt Gravatt or $440 in Annerley. Most Logan City precincts have vacancy rates around 2%.

Logan City vacancy rates Postcode Suburbs Vacancy 4114 Kingston, Woodridge and Logan Central 1.8% 4127 Springwood, Slacks Creek and Daisy Hill 1.4% 4128 Shailer Park and Tanah Merah 2.1% 4129 Loganholme 2.0% 4207 Beenleigh, Eagleby, Edens Landing, Holmview, Mt Warren Park, Windaroo 3.1% Source: SQM research

The positioning of units within the market may change as the number of units being built around Logan increases. For the four years to FY2014, the number of units approved totalled 2,134, almost half the number of houses approved – 4,761. Prior to 2011, the ratio was 25-30% units.

In FY2015, 1,955 houses and 345 units were approved in Logan City.

There may also be an increase in the number of “auxiliary units and secondary dwellings” since the Logan City Council introduced a new planning scheme in 2015. The concept is similar to granny flats.

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A summary of the Logan City house market is as follows:

Location: houses No. of Median Price 1-year 10-year Median house sales Growth average yield Beenleigh 155 $310,000 -2 % 3 % 5.7 % Bethania 89 $313,000 4 % 3 % 5.9 % Browns Plains 116 $325,000 8 % 4 % 5.7 % Cornubia 151 $555,000 -4 % 4 % 5.2 % Daisy Hill 158 $450,000 4 % 5 % 5.3 % Eagleby 224 $290,000 7 % 4 % 6.0 % Edens Landing 132 $338,000 5 % 2 % 5.8 % Holmview 50 $358,000 0 % 5 % 5.6 % Kingston 162 $300,000 8 % 5 % 5.8 % Loganholme 142 $410,000 11 % 4 % 5.5 % Loganlea 127 $350,000 11 % 5 % 5.6 % Meadowbrook 35 $380,000 0 % 3 % 5.3 % Mt Warren Park 118 $361,000 5 % 3 % 5.5 % Rochedale South 282 $467,000 7 % 5 % 4.9 % Shailer Park 239 $501,000 4 % 3 % 5.0 % Slacks Creek 170 $318,000 7 % 5 % 5.9 % Springwood 188 $451,000 2 % 4 % 5.1 % Tanah Merah 138 $410,000 3 % 3 % 5.3 % Underwood 134 $473,000 -3 % 5 % 4.8 % Waterford West 109 $315,000 3 % 4 % 6.0 % Windaroo 83 $480,000 3 % 4 % 5.5 % Woodridge 213 $285,000 9 % 5 % 6.1 % Source: Australian Property Monitors. “No. of sales” is the number of house sales in the past 12 months; “10yr ave.” is the average annual rise in median house prices in the past 10 years. “Snr”: Statistically not reliable

A summary of the Logan City unit market is as follows:

Location: units No. of Median Price 1-year 10-year Median unit sales Growth average yield Beenleigh 74 $210,000 5 % 4 % 7.3 % Browns Plains 20 $288,000 -16 % 1 % 6.2 % Eagleby 59 $229,000 11 % 6 % 6.8 % Loganlea 12 $254,000 Snr Snr Snr Waterford 15 $230,000 Snr 3 % Snr Woodridge 57 $189,000 3 % 4 % 7.5 % Source: Australian Property Monitors. “No. of sales” is the number of house sales in the past 12 months; “10yr ave.” is the average annual rise in median house prices in the past 10 years. “Snr”: Statistically not reliable

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Future prospects

Hotspotting research shows that affordability plus commuter train links plus proximity to jobs nodes is a powerful CORE INFLUENCES: combination in driving good capital growth and that is part of Transport Infrastructure, Logan City’s appeal. Cheapies with Prospects, Urban Renewal, Ripple It also offers good education, shopping and recreational Effect, Govt Policy. options – and a handy location halfway between the Brisbane CBD to the north and the Gold Coast to the south – with major road and rail links in both directions.

Given its central location, good transport links and young workforce, Logan has thriving commercial, retail and manufacturing precincts, as well as healthy service and wholesale industries. There are also light industrial precincts at Marsden, Crestmead, Slacks Creek and Loganholme, which are expanding.

Already one of the fastest growing municipalities in Australia, Logan is about to expand further as work on the Yarrabilba Priority Development Area, 20km south of Logan Central, gets under way. The master planned community is being developed by Lendlease. Costing $4 billion and located on the Waterford Tamborine Road, Yarrabilba, the development will result in 17,000 dwellings to accommodate 45,000.

Included in the plan are 11 private and public schools, with construction of the first school of 770 students to commence in 2016. The Yarrabilba school is expected to be open by 2019.

In response to growth, safety concerns and the impending 2018 Commonwealth Games, there are also moves to have the Logan Motorway upgraded and widened. Initiated by Transurban and likely to be a joint venture between public and private enterprise, funding of the upgrades may come from toll increases for trucks across the Logan and Gateway Motorways.

Another transport project is the State Government’s long-term plan for a passenger rail link between Salisbury and Beaudesert, a distance of around 55km.

A major boost to the region will be the $600 million redevelopment of Jeta Gardens Retirement Village, approved by Logan City Council in May 2014. A private hospital and international training college specialising in geriatrics will also be developed in partnership with one of Queensland's universities and will incorporate student accommodation.

Jeta Gardens is expected to grow from housing 200 residents and 150 staff to 2,000 residents and 1,000 staff in around 10 years. It currently injects $10 million into the local economy annually; that's set to rise to $100 million.

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Berrniba is becoming known as a freight and logistics hub. CEVA Logistics, Toll NQX and Stoddart Manufacturing all have warehouses in Berrniba while All Purpose Transport is building an office and warehouse there. This will be joined by a new distribution centre for Sigma Pharmaceuticals, scheduled to open in 2017.

Nearby in Crestmead, Brezac Constructions has opened a multi-million-dollar steel fabrications facility.

Recommended areas

There are two distinct types of suburbs within Logan City: the well-established ones and the new- growth suburbs. We suggest investors focus on the established suburbs, which tend to be proximate to the major road and rail services, the major retail centres which line the Pacific Motorway and established infrastructure such as schools, public transport, medical services and shopping. Proximity to these features provides the best chance of achieving long-term capital growth.

The newer suburbs are being developed in the western part of Logan City and tend to be some distance from the established infrastructure such as commuter rail services and major motorways.

A snapshot of projects impacting Logan City can be viewed below and on the following pages:-

INFRASTRUCTURE – RECREATION, SPORT AND ENTERTAINMENT

Project Value Status Impact Logan River Marina $35 million Approved. Complex, Construction of a Approved in Planning & Dulwich St, 10ha Marina basin for Environment Court Loganholme wet berths, dry February 2015. storage sheds and shops. Jimboomba $5 million Under construction. Park redevelopment It will accommodate Expected to be netball, rugby league, completed in 2017. Locan City Council touch football and a covered equestrian dressage arena. New HQ and $9.3 million Approved. training facility, The facility will be Logan City Council will Logan Metro home to the Brisbane fund $9 mil; Football Roar A-league soccer Brisbane $300,000. Football Brisbane club.

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INFRASTRUCTURE – GENERAL

Project Value Status Impact Logan Water $180 million Under construction. Infrastructure $60 million of capital Work began in July 2015 Alliance works each year to and will take three years improve Logan’s to complete. JV: Logan City water and Council and wastewater networks engineers Downer; and meet the demand Cardno; and WSP for infrastructure in Parsons Brinckerhoff growth areas.

RESIDENTIAL DEVELOPMENT

Project Value Status Impact Yarrabilba Priority $4 billion Under construction. Jobs: Development Area Includes 17,000 15,000 construction. dwellings for 45,000, Lendlease 11 schools. Re-development, $600 million Under construction. Jobs: 850. Jeta Gardens Retirement units, To progress in stages; Retirement Village aged care facilities; completion expected will grow from 200 to around 2025. 1,000 residents. SouthWest 1 TBA Approved. Jobs: precinct, Browns Urban village with a 2,000. Plains Rd, Berrinba hotel, tavern, café and food venues. Stoneleigh Reserve, $200 million Under construction. Logan Reserve Residential estate will house 1,400, schools Lendlease and shops. Logan Reserve $250 million Proposed. residential project Villa World paid To be developed in 15 $32mil in 2016 for stages. Villa World 57ha capable of producing 726 lots.

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COMMERCIAL DEVELOPMENTS

Project Value Status Impact Logan Hyperdome TBA Proposed. expansion Expand shopping DA lodged. centre and relocate home centre to create an extra 40,525m². Marsden Shopping $60 million Proposed. Jobs: Centre expansion The centre will triple 250 retail. in size. Chatswood Central $8 million Approved. shopping centre Construction is expected redevelopment to begin in 2016.

Lancini Group Sigma $65 million Under construction. Jobs: Pharmaceuticals A new distribution Completion expected in 50 construction jobs. retail warehouse, centre. 2017. Berrinba Eco-friendly tourism $550 million Proposed. Jobs: village, Carbrook Includes 5-star hotel MOU signed by Multi Hundreds of with 220 units, retail Cultural Tourism Village construction; plaza, convention P/L, Dalian Jin Ma Hong 450 operational. centre, 200 Huan Group and Logan residences on the Council in Oct 2014. Logan River. McNevin’s Motel TBA Approved. expansion, Hotel to be upgraded Opening is expected to Loganholme to 5-star with 47 coincide with the 2018 units; restaurant/ Commonwealth Games. function space will be extended. Freight warehouse, TBA Under construction. Berrinba A new office and Stage 1 opened in March warehouse for 280 2016; stages 2 & 3 to All Purpose staff. follow. Transport

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COMMERCIAL DEVELOPMENTS Continued

Project Value Status Impact Darlington Park TBA Proposed. Jobs: Raceway redevt, The Empire Industrial To be rolled out over 10 5,000. Yatala Estate will house 250 years. Economic benefit: buildings. Existing $1 billion. The Stephens Group tenants: Caterpillar Logistics and Cope Sensitive Freight. SouthWest 2 TBA Proposed. Jobs: precinct, Browns Industrial park near The GPT Group bought 1,000. Plains Rd, Berrinba SouthWest1 the land from the community. Council in July 2015. GPT Group

INFRASTRUCTURE – TRANSPORT

Project Value Status Impact Logan Motorway $450 million Proposed. Jobs: upgrade Work could begin in 1,300 2017 and be finished in Transurban 2019.

INFRASTRUCTURE – HEALTH AND MEDICAL FACILITIES

Project Value Status Impact Logan Hospital $11 million Approved. Jobs: extension 11 extras beds in the 41. Emergency Dept. Qld Govt

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CITY OF GEELONG Regional Victoria

Highlights  Population growth  Hospital upgrades  Economic diversification  $5 billion Regional Rail Link  Growth of Deakin University  $2 billion Armstrong Creek project  $4 billion Point Henry redevt  Upgrade of

Suburb - Typical Suburb - Typical Suburb - Typical houses prices houses prices units prices Barwon Heads $803,000 Newtown $625,000 Belmont $276,000 Belmont $395,000 Portarlington $402,000 Geelong $453,000 Geelong West $502,000 Waurn Ponds $495,000 GeelongWest $339,000 Leopold $371,000 Whittington $255,000 Ocean Grove $394,000

Geelong is being seen increasingly as an affordable alternative to Melbourne. It offers a water- based lifestyle at a considerable price discount to Melbourne, with good transport links to the capital city.

This factor is likely to be enhanced now that the $5 billion Regional Rail Link is completed.

Negative events such as the impending closure by Ford have been counter-balanced by positive announcements that give confidence in Geelong’s future, including business expansion and government infrastructure spending.

Key transport infrastructure, including the road networks and rail links, is being upgraded. Of particular promise is the G21 Regional Growth Plan which has 15 priority projects of strategic importance in the making.

The City of Greater Geelong currently ranks as the leading property market in Victoria, in terms of the number of suburbs with growing sales activity.

Location

. On the Bellarine Peninsula, 75km south-west of central Melbourne . Connected to Melbourne by the Princes Freeway and commuter train links . LGA: City of Greater Geelong.

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Economy and Amenities

Once well known for its manufacturing and POPULATION & DEMOGRAPHICS processing industries, Geelong is evolving from its industrial roots into a diversified city, capable of Victoria’s fastest growing region handling the overflow of an ever-growing Melbourne. Population (ERP 2014): 225,000 Projected population by 2026: 290,000 The manufacturing and processing industries, Projected population by 2036: 320,000 Source: ABS once major employers for the people of Geelong, are shrinking. Ford Motor Company has announced it will close its Geelong plant in 2016, forcing around 500 people out of work.

The Shell oil refinery at Coria was sold to Swiss energy group Vitol in mid-2014. According to the Sydney Morning Herald, around 10% of the workforce was cut, leaving 450 staff on the payroll.

Target, which had its headquarters in Geelong, has also announced it will move to closer to Melbourne, near the West Gate Bridge. The 900 staff have the option of taking a redundancy, transferring to the new premises or re-deploying to other Wesfarmers’ businesses such as Kmart and Bunnings.

But there are numerous compensating factors, with other industries emerging strongly. The biggest employer in Geelong today is Barwon Health, which employs almost 4,000 people.

Deakin University is another of the region’s largest employers, employing over 1,500 at the Waterfront and Waurn Ponds campuses. Ranked in the top 400 universities in the world, the Geelong campuses are worth $425 million annually to the region’s economy, according to Deloitte Access Economics.

Around 9,530 students study at Deakin’s two campuses in Geelong – with 4,900 living in the region during their studies.

The City of Greater Geelong Council says: Geelong’s economy has experienced considerable diversification over the past decade. Traditional industries will continue to be key economic and employment drivers in the region, however there is a focus on the following strategic growth sectors: knowledge, innovation and research; advanced manufacturing; health; tourism; education; transport and logistics; information, communications and technology; food, horticulture and aquaculture; and small, micro and home-based business.

Another diversification is events, for which the region has developed a reputation. In January 2015, the Festival of Sails, which is considered the largest annual keel boat regatta in the Southern Hemisphere, attracted a crowd of 100,000.

The Australian International Airshow, which features military aircraft, is hosted by Geelong biennially. The 2015 show brought $20 million to the local economy through associated conferences and seminars which were attended by around 2,000 delegates.

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Geelong Port is the largest regional port in Victoria with a total throughput of 12.2 million tonnes. Crude oil and petroleum products account for the majority of trade while grain, woodchips and fertiliser also make a significant contribution. The port contributes an estimated value of $7.6 billion annually to the local economy while providing around 700 direct jobs and another 500 indirect jobs.

Avalon airport, which lies 15km north-east of Geelong, is the second busiest of the four airports serving Melbourne (in passenger traffic) – according to Wikipedia.

In recent years, large-scale redevelopment of the city centre and gentrification of inner suburbs has heralded much change. Geelong has a number of shopping precincts and major shopping centres located in the CBD with outer suburbs serviced by smaller centres.

Geelong has been earmarked as a future regional growth centre by the State Government to take some of the overflow from Melbourne's population growth. One outcome of that policy is greater government spending on infrastructure in the region and a redirection of resources to Geelong. The State Government FY2017 Budget is testimony to this, providing funding for road, rail and educational projects, while government agencies are already begun to relocate to Geelong.

Geelong has a number of land and employment precincts which can accommodate a diverse range of needs. They include …

 Northern Gateway … A National Transport and Logistics Hub offering land for development and potential for business and employment growth. Key assets include Avalon Airport; Port of Geelong; Geelong Ring Road; rail for freight; and land for development.  Waterfront and Central Geelong … The cosmopolitan heart offering lifestyle and cultural, tourism, residential and commercial development opportunities. Key assets include the commercial hub; cultural and entertainment centre; recreation and tourism focus; health services; and education facilities.  Southern Corridor … Set to be a centre of growth in knowledge, innovation and research, as well as residential and commercial development. Key assets include land for growth; knowledge and research capability; and niche businesses.

Property Profile

The median house price across Greater Geelong was about $125,000 in 2000, according to PRDnationwide. By 2010, it had reached $352,000 – an average annual growth rate around 10.5%.

Growth rates moderated in 2011 and 2012, in line with national trends, but the market returned to solid growth in 2013 and 2014. And most suburbs in Greater Geelong have delivered some level of price growth in the past 12 months, headed by Drysdale and Newtown, both up 11% followed by Geelong West and Herne Hill, both up 8% and Barwon Heads, up 7%. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 65

Affordability remains a driving force, with many Geelong suburbs Year No of dwelling having median house prices below $400,000. This high level of Approvals affordability, in conjunction with the region’s water-based lifestyle, 2015 2,613 is part of Geelong’s appeal as an alternative to Melbourne. 2014 2,457 2013 2,101 Several suburbs in Geelong have proven to be popular with first- Source: ABS home buyers. Statistics from the State Revenue Office of Victoria show that suburbs in postcode 3216 (Belmont, Grovedale, Highton, Marshall and Waurn Ponds) and 3217 (Charlemont, Armstrong Creek, Mount Dundeed and Freshwater Creek) have consistently been listed in the top 10 places for first-home buyer grant applications in Victoria since 2000.

According to the REIV, Deakin University, the health industry and being within commuting distance of Melbourne are also reasons people buy property in Geelong.

The dwelling makeup of the City of Greater Geelong includes 86% houses and 14% units, with the unit content gradually rising. In recent years, developers have driven a trend of property transitioning from industrial to residential uses, buying older buildings on large blocks and demolishing them to build townhouses. In FY2013 and FY2014, around 270 units were approved in each year. That number rose to 478 in FY2015.

Meanwhile, new residential settlements are also occurring in planned corridors at Armstrong Creek, Lara West, Ocean Grove and Jetty Road, Clifton Springs.

The City has approved at least 1,300 new dwellings every year since 1997 and this trend is expected to continue with the Australian Bureau of Statistics forecasting that 52,000 new homes will be built from 2011 to 2036. In FY2015, $1.28 billion was spent on building permits, placing the Greater Geelong municipality second only to Melbourne in building expenditure.

Areas identified for the biggest growth are listed in the table below: Suburb No of new dwellings Suburb No of new dwellings by 2036 by 2036 Armstrong Creek 8,897 Leopold 3,442 Curlewis 2,501 Marshall - Charlemont 2,871 Highton - Wandana Heights - Ceres 2,740 Mount Duneed 3,815 Lara 4,395 Ocean Grove 2,715 Source: ABS

Vacancy rates Vacancy rates are a little high in some parts of Geelong, according to SQM research, but they are improving. In January 2014 and mid-2015, the vacancy rate for postcode 3220 was nudging 6%, but it has been falling for the last 12 months and is currently 3.5%.

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Postcode Suburb Vacancy rate 3218 Geelong West, Herne Hill, Manifold Heights 3.1% 3219 East Geelong, Breakwater, Thomson, Newcomb, 2.0%

St Albans Park, Whittington

3220 Geelong, Newtown, South Geelong. 3.5% Source: SQM Research

The current state of the housing market in this precinct is summarised in the following table:

Suburb No. of sales Median price 1yr growth Growth ave. Median yield Barwon Heads 136 $803,000 7 % 7 % 3.1 % Belmont 305 $395,000 6 % 5 % 4.7 % Clifton Springs 192 $350,000 -1 % 4 % 4.7 % Drysdale 75 $420,000 11 % 5 % 4.7 % Geelong 97 $605,000 6 % 7 % 3.9 % Geelong West 158 $502,000 8 % 7 % 4.0 % Herne Hill 59 $372,000 8 % 5 % 4.8 % Indented Head 50 $380,000 -10 % 4 % 4.0 % Jan Juc 82 $638,000 6 % 6 % 3.6 % Leopold 235 $371,000 2 % 4 % 5.2 % Manifold Hts 62 $475,000 -6 % 5 % 4.0 % Newtown 230 $625,000 11% 6 % 3.8 % Ocean Grove 422 $545,000 6 % 5 % 4.0 % Portarlington 122 $402,000 1 % 3 % 3.9 % Queenscliff 32 $729,000 3 % 2 % snr St Albans Park 77 $329,000 0 % 3 % 5.3 % St Leonards 122 $384,000 4 % 4 % 4.1 % Thomson 30 $294,000 1 % 4 % 5.3 % Waurn Ponds 75 $495,000 3 % 4 % 4.3 % Whittington 37 $255,000 -3 % 3 % 5.5 % Source” APM – “no. of sales” is house sales in past 12mths. “Growth ave.” is average annual growth in median house prices over 10yrs. “snr” is statistically not reliable.

The current state of the unit market in this precinct can be summarised as follows:-

Suburb No. of sales Median price 1yr growth Growth ave. Median yield Belmont 40 $276,000 -13 % 4 % 5.1 % Geelong 41 $453,000 -8 % 4 % 4.1 % Geelong West 13 $339,000 snr 6 % 4.8 % Newtown 28 $311,000 0 % 4 % 4.9 % Ocean Grove 31 $394,000 1 % 4 % 4.1 % Source” APM – “no. of sales” is house sales in past 12mths. “Growth ave.” is average annual growth in median house prices over 10yrs. “snr” is statistically not reliable.

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Future Prospects

Geelong has two main factors in its favour: it offers a relaxed CORE INFLUENCES: water-based lifestyle within commuting distance of central Transport Infrastructure, Melbourne and it is the focus of significant government spending Government Policy, – both on transport infrastructure and on the relocation of Cheapies with Prospects, government agencies to the Geelong region. Urban Renewal.

Population projections by the State Government indicate that Geelong is set to become a larger city than Hobart and Darwin. It has projected that in 20 years Geelong would have a population well over 300,000.

In July 2016, The Department of Environment, Land, Water and Planning’s Victoria in Future report said Greater Geelong, Greater Bendigo and Ballarat combined are expected to be responsible for half of all regional growth to 2031, with Greater Geelong having the largest growth.

The G21 Regional Growth Plan, a 40-year blueprint for Geelong, was released in April 2013. G21 is the formal alliance of government, business and community organisations working within the Geelong region across five member municipalities – Colac Otway, Golden Plains, Greater Geelong, Queenscliffe and Surf Coast.

The G21 Regional Growth Plan includes 15 priority projects, though much of the funding will need to be sourced from the Federal and State Governments. Some of these projects are listed in the tables at the end of this report.

Deakin University real estate professor Richard Reed said Geelong’s key attributes in the eyes of international, and particularly Asian investors, included its airport links, with direct flights now between Shanghai and Avalon, and affordability.

Government policy

Geelong is expected to play a key role in the State Government's push to boost Victoria's population, as live-ability issues start to bite in Melbourne. The State Government’s $11 million Geelong Advancement Fund and $4 million Geelong Industry Fund have been designed to help businesses and organisations make the city a better and more attractive place.

Other support can also be expected from both the State and Federal Governments which plan to shore up employment gaps by bringing five government agencies to Geelong.

The Transport Accident Commission (TAC) and Australian Bureau of Statistics have already moved to the city while the National Disability Insurance Agency and the headquarters of WorkSafe Victoria will be based in Geelong. The Department of Human Resources also plans to open an office.

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Combined, the five agencies will boost Geelong's employment by 5,685 direct and indirect jobs. That, in turn, would inject nearly $2 billion annually into the local economy, says Enterprise Geelong, the council's business development arm.

The Australian Bureau of Statistics moved into a new office at Deakin University in March 2016. The alliance between the ABS and the university is intended to create partnerships in teaching, research and internships as well as job opportunities for Deakin students and graduates. The office will eventually employ 300.

WorkSafe will move into the old Dalgety & Co site, at 1 Malop Street. The site will be turned into a 14-storey building following a $120 redevelopment and house 700 WorkSafe staff when it opens in 2018.

WorkSafe will begin the move from its current headquarters in Melbourne's CBD later in 2016, with 150 staff to work from the TAC building until the new office is completed in 2018. When finished, about 640 WorkSafe employees and up to 100 contractors will be based in the Dalgety building.

Another new building will be constructed to house the National Disability Insurance Agency and the Department of Human Resources.

According to Economic Benefits of the NDIS in Victoria, a report prepared by Charles Sturt University economist Dr Brendan Long, 10,800 people with a disability would be able to seek work with help from an NDIS package. It also shows 8,300 people, who are currently carers, may be able to return to the workforce. Overall, the package could generate $5 billion in activity for Victoria's economy each year.

At a local level, NDIS modelling indicates 350 jobs will be created at the NDIS headquarters in Geeking and 1,200 jobs generated in the next three years.

A defence procurement office opened in Geelong in March 2015. The office is expected to support Geelong’s bid for the Land 400 armoured vehicle contract to be manufactured in Geelong. If the bid is successful, the $10 billion project would deliver 700 vehicles over 30 years. Ocean Grove – Barwon Heads

The Ocean Grove/Barwon Heads area is the focus of substantial development. A $6 million sporting facility has recently opened and a shopping centre is to be built between Grubb Road and the Bellarine Highway. Woolworths, Aldi, Dan Murphy’s and McDonalds are some of the tenants to occupy the neighbourhood centre of Kingston Village, which is expected to be opened by early 2018.

Around 3,500 new homes are planned for this area, which will also feature Ocean Grove’s first major retirement village covering 7.5ha. There will be a new light industrial precinct established which will further enhance the employment opportunities in Ocean Grove.

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Transport infrastructure: rail

The completion of the $5 billion Regional Rail Link in June 2015 has made commuting from Geelong to Melbourne much easier. Regional trains have been separated from metro trains, giving Geelong trains their own dedicated tracks and alleviating bottlenecks.

The rail link follows the opening of a new train station at Waurn Ponds, an area that has the focus of the local council because of increased road traffic.

Geelong rail links are likely to further benefit when the lease on the Port of Melbourne proceeds. It is expected $700 million will be set aside from the expected $7 billion sale price, for investment in regional transport infrastructure. Extra rail services to Geelong and Warrnambool are just some of the projects to be implemented with the sale funds.

In the meantime, rail patronage between Geelong and Melbourne has increased, according to State Transport Minister Jacinta Allan in April 2016. This has prompted the State Government to allocate $130 million in the FY2017 Budget to accommodate 50 additional rail services to the Geelong line. In addition, a further $3 million will be spent examining the potential of rail duplication between South Geelong and Waurn Ponds.

Transport infrastructure: airport

Avalon Airport has plans to expand its domestic operations and to begin international passenger operations, which will provide a range of significant economic advantages to the Geelong region.

The Linfox Group – owner of Avalon Airport – together with HNA Group Hainan Airlines, plan to begin flights between Australia and China within 18 months. Once an overseas carrier is confirmed, Australian Customs Service and Australian Quarantine and Inspection Service facilities will need to be established. This will require federal support.

The Federal Government has committed $15 million towards getting the project off the ground and will assist with attracting an international carrier. The State Government will chip in $53 million and will deliver a rail link to Avalon Airport.

Transport infrastructure: roads

A key beneficiary in the FY2017 State Budget is the Drysdale Bypass, which will be developed with $109 million contribution from the Government. Acquisition of land is due to be carried out in 2017 with construction expected to begin in 2018.

The FY2017 also covers $3 million in funding to investigate further transport options for Armstrong Creek. Stage one of the east-west link to the Armstrong Creek Urban Growth Area opened in May 2015. The $90 million upgrade to Baanip Boulevard connects the Geelong Ring Road, Princes Freeway, and Surf Coast Highway.

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The development of the $695 million Geelong ring road has also had a major impact on the Geelong community. It provides a 23km freeway link between Corio and Waurn Ponds, along Geelong's western outskirts. VicRoads says: “By using the Ring Road you can avoid up to 31 sets of traffic lights and reduce your travel times.”

Since the Geelong Ring Road opened, traffic volumes through central Geelong have almost halved, while freight on the main routes is down by up to 75 %, according to VicRoads. Another project in the pipeline is the Western Distributor, a new toll road linking Geelong and Melbourne. It is forecast to save commuters 20 minutes. Funding of $1.46 billion for the project was committed by the State Government in the FY2017 Budget.

Transport infrastructure: port

Geelong Port is the largest regional port in Victoria and is expected to show strong growth.

Trade through the port is set to triple by 2030, according to a report by the Victorian Regional Channels Authority. The Port of Geelong Economic Impact Study highlights the Port as a gateway to the world for local industries, businesses and farmers from across the region. It reportedly is the state’s most important bulk cargo port, handling over 11.2 million tonnes of imports and exports annually with an estimated value of $6.6 billion.

The Study forecasts that imports and exports would rise to 35 million tonnes and generate 4,320 direct and indirect jobs. Gross regional product was estimated to jump from $180 million to $550 million, and Geelong, with its deep-water berths, industry-best cargo handling facilities, and strategic road and rail links, would handle a larger share of the car import industry.

Other infrastructure

Geelong’s public education system is another area to receive a cash injection from the FY2017 State Government. Funds of $35 million will be spent on refurbishing 10 of Geelong’s primary and secondary schools. Geelong High School also plans to carry out a $20 million refurbishment to replace portable classrooms with a new building from a separate source of funding.

The Catholic Education Office announced in 2011 that 13 new Catholic schools would be built in the Geelong region by 2023. They included 10 primary and three secondary schools.

At the same time, Westbourne Grammar announced it had bought 28ha at Lovely Banks to establish a new school.

Geelong Christian College said in October 2012 it would build a new “kinder to year 9” school in the Spring Creek area. The 15ha site would house a campus for about 600 students.

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Agriculture

A new agri-business sector - based on a $12 million pipeline which will water 4,000ha of agricultural land at Lethbridge - is under construction with the first stage being opened in May 2016. The investment of $160 million is expected to create 775 jobs, with another 45 during the pipeline’s construction, and $516 million in revenue over 10 years.

Manufacturing and other struggles

The City of Geelong has had its share of industry turmoil and unsettling governance.

Ford will cease its manufacturing operations at its Broadmeadow and Geelong plants in October 2016, after making an after-tax loss of $141 million in FY2013 and a $600 million loss over the past five years.

Alcoa’s Point Henry aluminium smelter in Geelong, which contributed $100 million a year into the Geelong region and employed 700, closed its operation in December 2014. With the aluminium industry contracting and being impacted by the Asian market, the company said the operation was no longer viable.

Power for Alcoa’s Point Henry operation was generated by a plant at Anglesea which operated for 46 years. This plant closed in August 2015. On the positive side, the Shell oil refinery at Corio survived when Swiss energy trader Vitol bought it for $2.9 billion in February 2014. Vitol subsequently announced a $150 million upgrade to the Geelong plant, thus extending its life by five years.

But in another event, the State Government sacked the Mayor and all the Geelong Councillors in April 2016. The dismissals followed a Commission of Inquiry that found the Council generally failed to provide good governance and was riddled with conflict, dysfunction and bullying.

A temporary Administrator has been appointed and will run the Council until the Local Government elections in late 2017.

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Projects which are likely to impact the Geelong Region in the near future are listed below:

INFRASTRUCTURE – EDUCATION

Project Value Status Impact New school, Anakie $25 million Proposed. A 1,300-student DA lodged August Bacchus Marsh campus to be built 2015. Grammar over 15 years. Gordon Institute $10 million Proposed. expansion A new tech school will Work is expected to be added. begin in late 2016 and State Government be finished in 2018. Geelong High School $20 million Proposed. refurbishment Portable classrooms Construction is will be replaced by a expected to begin in new building. early 2017.

INFRASTRUCTURE - TRANSPORT

Project Value Status Impact Port of Geelong $9 million Under construction. upgrade Dredging will allow larger ships easier access to the port. Duplication of the $371 million Under construction. Princes Hwy - Waurn Funded by State and Work began in May Ponds to Winchelsea. Federal Governments. 2015; completion expected in 2019. Facilities to improve $257 million Proposed. Jobs: 200. train services, 21 V/Line carriages; The new carriages will Waurn Ponds new maintenance and allow V/Line to carry stabling yard. an extra 1,500 State Government passengers each day. Drysdale Bypass $109 million Proposed. 6km from Jetty Rd to Construction is State Government north of Whitcombe expected to begin in Rd will bypass the 2018 and be township. completed in 2020.

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INFRASTRUCTURE - HEALTH AND MEDICAL FACILITIES

Project Value Status Impact Geelong Hospital $93 million Under construction. expansion 64 new beds for Completion expected cancer patients. in 2017. Epworth Geelong $227 million Under construction. Jobs: Private Hospital Completion expected 900 construction; Waurn Ponds in 2016. 700 ongoing.

Deakin University and Epworth Healthcare Barwon Health North $33 million Approved. health hub, Emergency centre, Construction expected Norlane chemotherapy, dialysis to begin in 2016 and and other services. be finished in 2017. Mineral spa, $20 million Proposed. Jobs: 84. Corio Bay Spa and wellness Economic Benefit: centre. $13 million. St John of God $21 million Under construction. Hospital Geelong A new intensive care Completion expected expansion unit. in late 2016.

Barwon Health Queenscliff Health $47 million Proposed. Centre masterplan Health centre and independent living for Bellarine Community 66 residents. Health

INFRASTRUCTURE – COMMUNITY

Project Value Status Impact Old Waterworld site $80 million Proposed. redevelopment, A new Waterworld, Funding yet to be Norlane library and community sourced. hall.

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INFRASTRUCTURE – SPORT & ENTERTAINMENT

Project Value Status Impact Geelong Cats: Simonds $90 million Under construction. Stadium upgrade Seating capacity would Expected to be be increased from completed in 2017. 2,500 to 36,000. State Govt donating $75 mil. Convention and $164 million Proposed. Jobs: Exhibition Centre To include a 4-star 650 construction; hotel and a 1,000-seat 434 operational. A G21 priority project theatre. Economic benefits: $107mil p.a. Royal Geelong Yacht $31 million Proposed. Jobs: Club revamp The clubhouse and Would be developed in 42 construction; marina to undergo a two stages. 21 operational; major upgrade. 100 casual.

Armstrong Creek $8 million Approved. Community Centre The centre will provide and Sports Pavilion a wide variety of community services. G21 Regional Trails $35 million Proposed. Jobs: 344 direct; 104 Network The devt of existing To be carried out in indirect. and proposed regional stages. State Govt has Economic benefits: A G21 priority project. trails. chipped in $7mil. $28mil.

COMMERCIAL DEVELOPMENT – GENERAL

Project Value Status Impact Woolworths, $100 million Approved. Jobs: Armstrong Creek The centre will include Completion due 2017. retail, commercial, 120. dining, offices and gym. Coles expansion in $100 million Under construction. Jobs: Geelong area Coles Lara opened in 800. Corio, Lara, Drysdale Dec 2014, creating 120 and Torquay jobs.

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COMMERCIAL DEVELOPMENT – GENERAL Cont.

Project Value Status Impact Leopold’s Gateway Plaza $72 million. Under construction. Jobs: expansion Includes Bunnings, Completion due late 200. Kmart and 40 2016. Vicinity Centres specialty stores. Redevelopment of $120 million Approved. Carlton Hotel site A 9-level office Approved Dec 2014. block. Techne Development Office complex, Myers St $40 million Approved. An 11-storey office Approved Dec 2014. Michael King building. Federal Woollen Mills TBA Approved. project, North Geelong Building to be Exemption from converted into office Heritage Victoria Cameron Hamilton space. approved. Rippleside Quay project $100 million Under construction. Jobs: To be rebranded as Work began in Feb 1,360 over four years. A consortium led by BMA Balmoral Quay; 90 2016; the first stage is Property townhouses and 200 to be completed by marina berths. Easter 2017. Chemical storage facility $150 million Proposed. Jobs: expansion, 9 tanks will be built DA submitted in 300 construction. North Geelong adjacent to the September 2013. May Wharf Rd site take five years to Terminals P/L complete. Portarlington Safe $58 million Approved. Harbour Commercial Approved by the State aquaculture and Govt in 2009. A G21 priority project recreational fishing, The State Govt will boating, recreation chip in $15mil. and tourism activities.

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COMMERCIAL DEVELOPMENT – GENERAL Cont.

Project Value Status Impact Geelong Ring Road $38 million Under construction. Jobs: Employment Precinct Set on 500ha, the State Govt has 10,000. (GREP) GREP is the largest committed $2.5mil; A G21 priority project industrial precinct in funding of $36mil still the G21 region. needed. Apollo Bay Harbour $11 million Under construction. development A Fisherman’s CoOp The marina upgrade Centre, tourist centre, was completed in early A G21 priority project marina, sailing club 2015. facilities, commercial space. DisabilityCare TBA Proposed. Jobs: headquarters, National Disability Full roll-out expected 350. Geelong Insurance Scheme by 2019/2020. established in 2012. Dept of Human TBA Proposed. Jobs: Resources, To be co-located with 400. Commonwealth Govt DisabilityCare Barwon Water $29 million Under construction. Jobs: office revamp 100 employees will be Completion expected 100. relocated to the in mid-2017. upgraded head office. Yarra Street Pier $34 million Proposed. Jobs: Reconstruction A purpose built cruise 234 construction, liner facility for cruise 400 operational. A G21 priority project ships, naval vessels, Economic benefits: tall ships. $61 million. Golden Plains Food $160 million Under construction. Jobs: Production and 20 intensive agri- 45 construction, Employment Precinct, businesses on 4,000ha. 775 operational. Lethbridge Point Henry Smelter $4 billion Proposed. redevt (to be known 3,000 homes, marina, as Point Henry 575) multi-sports stadium, retail and commercial. Alcoa

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COMMERCIAL DEVELOPMENT – GENERAL Cont.

Project Value Status Impact Dalgety site $120 million Under construction. Jobs: redevelopment, 1 Will become the HQ Completion expected 300 construction. Malop St for WorkSafe Victoria in 2018. and house 700 staff. Quintessential Equity Second-hand furniture $130 million Proposed. store redevelopment, 11-storey office tower. 44 Ryrie St

Quintessential Equity Kingston Village $50 million Proposed. Jobs: shopping centre Woolworths, 20 retail Expected to be opened 500 construction; shops, service station, by early 2018. 400 operational. Lascorp Devt Group medical centre and offices.

RESIDENTIAL DEVELOPMENT

Project Value Status Impact Armstrong Creek $2 billion Approved. Jobs: Precinct Development The devt of 2,580ha, State Planning issued 22,000. will eventually provide approval for 5,800 A G21 priority project 22,000 homes, 9 homes in March 2013. schools, retail space. Nexus apartments, $20 million Approved. Jobs (Nexus & Urban Highton 64 apartments. Edge conjointly): 156. Glengarry Devts Urban Edge $12 million Approved. Jobs (Nexus & Urban apartments, 22 apartments. Edge conjointly): Highton 156.

Glengarry Devts

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RESIDENTIAL DEVELOPMENT Cont.

Project Value Status Impact Lonsdale Golf Club TBA Approved. housing devt 100 residential lots Re-zoning approved by and an 18-hole golf City of Greater course. Geelong in Aug 2013. Healthy Living Centre, $15 million Proposed. Jobs: Norlane An aged care facility 24 construction; for culturally and 16 ongoing. Diversitat linguistically diverse communities. Charlemont Rise, TBA Under construction. Charlemont 1,400 lots.

Lillrose Developments CSIRO site TBA Proposed. redevelopment, 87 dwellings. Belmont

Up Property

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SUNSHINE COAST South East Queensland

Highlights  Strong population growth  $150 million private hospital  Nation’s 10th largest city  $350 million Sunshine Plaza upgrade  $2 billion University Hospital  $450 million airport upgrade  $2 billion light rail proposal  Economy based on tourism, retail,  $5 billion Oceanside Kawana healthcare, construction and  Caloundra South development education.

Suburb - Typical Suburb - Typical Suburb- units Typical houses prices houses prices prices Buderim $570,000 Noosa Hds $750,000 Buderim $400,000 Kawana $289,000 Pacific Pdse $415,000 Marcoola $314,000 Little Mountain $531,000 Pelican Wtrs $673,000 Maroochydore $357,000 Mooloolaba $640,000 Sippy Downs $470,000 Mooloolaba $355,000 Nambour $351,000 Warana $493,000 Nambour $268,000

The Sunshine Coast market in 2014 returned to growth for the first time in six years. Having previously been hampered by a struggling tourism economy, an over-supply of dwellings and poor affordability, the coast moved into a strong growth phase, which continued in 2015 and 2016.

The market is being helped by multiple factors. The tourism industry is stronger; the market is more balanced in terms of supply–demand; previous price decline has made property more affordable; apartments are increasing in popularity with both home-buyers and investors; and some serious infrastructure is being built in the area.

This last factor is important. Nothing supports property price growth like major new infrastructure, which generates jobs, economic activity and improved amenity for residents.

The big-ticket item is the $2 billion Sunshine Coast University Hospital due for completion in 2016. There is also the $150 million private hospital being built in association with it, as well as the Oceanside Kawana Health Hub. The Sunshine Coast University continues to expand, with a $37 million engineering learning hub the latest project to be announced. That combination of medical and education facilities is always powerful in driving real estate demand.

Infrastructure and property developments under way or in planning for the Sunshine Coast total around $15 billion. This represents a major boost to economic activity, jobs and real estate demand.

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Location

. 100km north of Brisbane . Stretches 55km from Caloundra to Noosa . Includes Kawana, Mooloolaba, Maroochydore, Buderim and Coolum . Hinterland towns include: Beerwah, Landsborough, Montville, Maleny and Mapleton . LGAs: Sunshine Coast Regional Council and Noosa Council

Economy and Amenities

The economy is dominated by three sectors:  tourism  retail POPULATION & DEMOGRAPHICS:  construction.  10th largest metropolis in Australia  Population 2011: 307,000 (Census) This is why the area has struggled as an  Projected population 2036: 470,000 economy and as a property market –  Popular retirement destination. locations that are essentially based on tourism and speculative property development often fail to produce consistent growth.

But the Sunshine Coast economy is diversifying and strengthening – and this is reflected in improvements in the jobless rate. Historically, the local figure has been higher than the Queensland average. The 2011 Census showed the Coast rate at 7.1% (Queensland 6.1%). At October 2015, the jobless rate was 5.6%, below the national average of 5.9% and by July 2016, the Sunshine Coast unemployment rate had fallen to 4.6% against the state average of 6.4%.

Ongoing efforts are being made by the Regional EMPLOYMENT Council to diversify the economy, with an emphasis on knowledge-based businesses such as information Healthcare & social assistance: 13.3% Retail: 12.7% technology, cleantech, creative industries, aviation and Construction: 11.6% education. The creation of major health facilities and Accommodation & food services: 9.1% the ongoing expansion of the university are also Education & training: 8.1% important. Manufacturing: 6.5% Source: Census 2011 The university’s Innovation Centre encourages innovative businesses, hosting 80 start-up businesses – mainly in the ICT, cleantech and creative industry sectors. The Sippy Downs site is designated as a “Knowledge Hub” in the State Government's South East Queensland Regional Infrastructure Plan and is master planned as Australia's first university town based on UK models - with the potential for 6,000 workers in knowledge based businesses.

Tourism

Tourism remains important. Large stretches of the coast are lined with unbroken beaches: a 17km stretch from Sunshine Beach near Noosa to Coolum Beach; 11km from Point Arkwright to Mudjimba; 5.6km in the Maroochydore-Mooloolaba stretch; and 22km from Buddina-Caloundra. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 81

Notable beaches include Noosa Main Beach, Coolum, Maroochydore, Alexandra Headland, Kawana Waters and Kings Beach.

Australia Zoo, Underwater World, Aussie World, TOURISM - FAST FACTS the Buderim Ginger Factory and the Majestic 2.8 million visitors each year; Theatre at Pomona are popular attractions. There $2.5 billion in tourist expenditure (2014); are also the Mapleton Falls, Kondalilla National 16% growth in international visitors (2015); Park, Glasshouse Mountains, Noosa and Great Sandy national parks.

The Sunshine Coast attracted 10 cruise ships with an average 1,500 passengers during 2014-15. In the 12 months to May 2017, 20 cruise ships are scheduled to stop at Mooloolaba.

Jetstar introduced an extra 40,000 seats in and out of the during the 2015– 2016 summer season to capture growing tourist demand. Over 900,000 passengers passed through the airport in 2015, a 4% increase on the previous year.

Education

Facilities include the University of the Sunshine Coast at Sippy Downs, a campus of Central Queensland University and TAFE campuses at Noosa, Nambour, Maroochydore and Mooloolaba.

Retail

The region has major shopping precincts including Sunshine Plaza, anchored by Myer, Coles, Woolworths, Target and Kmart. Roy Morgan Research found Sunshine Plaza to be the seventh busiest shopping centre in Queensland in 2016.

Sunshine Plaza has received approval for the region’s first David Jones store while Kawana Shopping World has recently undergone a $73 million upgrade and is now home to Aldi, Big W, Woolworths and JB Hi Fi. Woolworths supermarket in Maroochydore's Big Top also underwent a $10 million upgrade in 2015.

Health and medical facilities

Nambour Hospital is the region’s major hospital at present, but that will change when the Sunshine Coast University Hospital is completed. There are also smaller hospitals at Caloundra and Maleny, plus private hospitals at Buderim, Caloundra, Nambour, Kawana and Noosa.

Located in the emerging Kawana health precinct, the $100 million Sunshine Coast Private Hospital is Ramsay Health's newest facility.

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Access and transport

Sunshine Coast Airport lies 10km north of Maroochydore, with direct flights to Sydney and Melbourne through Qantas, Jetstar, Tiger Airways and Virgin. There are also direct flights to Auckland, New Zealand. Planning is under way to expand the airport.

Commuter train links south to Brisbane run through the Sunshine Coast Hinterland towns such as Nambour, Landsborough and Beerwah. Buses connect to the coastal strip. Bus services on the coast are operated by Sunbus which operates under the Translink public transport system.

Property Profile

The Sunshine Coast was one of the worst performers on capital growth in Queensland over the six years to 2014, but has now moved into a solid growth phase.

HOME OWNERSHIP Over 10 years, growth in house prices in many Sunshine Coast suburbs has averaged less than 4% per year. Most of the growth 33.5% own their homes that contributes to these averages was in the strong period from 31.3% have mortgages 2003 to 2007. Between 2008 and 2013, prices generally went 28.7% rent their homes backwards. 73% live in houses 25% live in units

There was a general return to growth in 2014 and the growth pattern spread in 2015. In the last 12 months, some markets have delivered double-digit annual growth in median house prices: Dicky Beach rose 31%, Mount Coolum 26%, Eumundi 17%, Peregian Beach 14% and Sunrise Beach and Bokarina both rose 11%.

Price statistics in the unit sector are a little erratic, as is often the case with median unit prices, but many suburbs have recorded growth in the past year, including 16% rises in the Sunrise Beach and Pelican Waters markets, 14% in Noosa Heads and 10% in Sippy Downs.

Longer-term, unit markets have delivered little or no growth in median prices over the last 10 years; the best performers being Nambour with increases averaging 4% per year and Buderim and Sunrise Beach with 3% per year each. Caloundra, Coolum Beach, Marcoola and Sunshine Beach are in negative territory – i.e. values are lower than 10 years ago.

Two core issues have hurt the Sunshine Coast market in the past: an economy over-reliant on tourism (hampered by bad weather in 2011-2013) and an over-supply of new dwellings.

From FY2003 to FY2007 inclusive, the Regional Council approved almost 20,000 dwellings. That included 6,650 apartments/townhouses, which led to over-supply that took years to absorb.

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Dwelling approvals fell away sharply after FY2007 as the market grappled with surplus and only 1,783 new dwellings were approved in FY2012 and 1,693 in FY2013.

In the subsequent two years, that number crept Residential approvals 2013: 1,693 up again to 2,806 (including 860 units) in FY2014 Residential approvals 2014: 2,806 and 3,104 (including 699 units) in FY2015. Total Residential approvals 2015: 3,104 approvals in FY2016 are on track to exceed 3,000 homes and 1,000 units.

Commenting on the number of unit sales on the Sunshine Coast in the March 2016 quarter, the REIQ states the number of unit sales dropped 536 year-on-year. However, the REIQ figures show that, despite a decline in the number of sales, there was a 3.7% increase in the median sales price to $370,000 compared to the 2015 March quarter.

Sunshine Coast vacancy rates Postcode Suburbs Vacancy rate 4558 Maroochydore, Kuluin 1.3% 4573 Coolum, Peregian 1.9% 4567 Noosa Heads, Sunshine Beach 2.2% 4556 Buderim, Sippy Downs 2.1% 4575 Kawana, Buddina, Wurtulla, Minyama 2.2% 4551 Caloundra, Moffat Beach, Golden Beach, Pelican Waters 1.8% 4557 Mooloolaba 3.2% Source: sqmresearch.com.au

MASTER PLANNED COMMUNITIES – Approved or under construction

Aura (Caloundra South): $5 billion, 50,000 residents; 20,000 dwellings; 25 schools; 20,000 jobs Oceanside Kawana: $5.3 billion residential & town centre; 45,000 construction jobs; 21,000 ongoing jobs Palmview: 16,000 residents; 8,000 dwellings, 3 schools Sunshine Cove: 6,000 residents Sippy Downs Town Centre: 78 units; 250 construction jobs; 190 retail jobs Pelican Waters: 2,000 dwellings, town centre, golf club, marine precinct.

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The Sunshine Coast unit market can be summarised as follows:-

Location: units No. of sales Median Price 1yr 10yr average Median yield Growth Alexandra Head. 151 348,000 6 % 0 % 5.9 % Buderim 152 400,000 8 % 3 % 5.5 % Caloundra 136 383,000 -5 % -1 % 5.2 % Coolum Beach 104 354,000 -3 % -1 % 5.3 % Golden Beach 91 402,000 4 % 0 % 5.4 % Marcoola 80 314,000 -12 % -2 % 5.6 % Maroochydore 421 357,000 -4 % 0 % 5.8 % Mooloolaba 290 355,000 -2 % 0 % 5.7 % Mount Coolum 51 335,000 -4 % 2 % 5.9 % Nambour 83 268,000 8 % 4 % 7.0 % Noosa Heads 204 570,000 14 % 0 % 5.4 % Noosaville 208 414,000 5 % 2 % 5.2 % Pelican Waters 42 457,000 16 % 1 % 6.2 % Peregian Beach 35 400,000 -4 % 0 % 4.7% Sippy Downs 31 230,000 10 % 1 % Snr Sunrise Beach 37 400,000 16 % 3 % 5.2 % Sunshine Beach 61 600,000 3 % -2 % 4.4 % Twin Waters 27 535,000 5 % 0 % 5.3% Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

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The Sunshine Coast house market can be summarised as follows:- Location: houses No. of sales Median Price 1yr 10yr average Median yield Growth Alexandra Head. 37 920,000 8 % 5 % 4.3 % Bli Bli 137 475,000 8 % 4 % 5.2 % Bokarina 21 618,000 11 % 3 % 4.3 % Buddina 73 640,000 8 % 3 % 3.9 % Buderim 599 570,000 4 % 3 % 4.8 % Caloundra 35 419,000 3 % 1 % 4.3 % Caloundra West 191 450,000 5 % 3 % 5.3 % Coolum Beach 122 543,000 6 % 3 % 4.7 % Currimundi 122 471,000 5 % 3 % 5.0 % Dicky Beach 40 725,000 31 % 6 % 3.9 % Doonan 82 690,000 6 % 2 % 4.3 % Eumundi 43 630,000 17 % 1 % 4.7 % Golden Beach 93 485,000 7 % 3 % 4.6 % Kawana 46 289,000 -5 % 3 % 5.6 % Little Mountain 202 531,000 7 % 4 % 5.2 % Marcoola 48 529,000 0 % 2 % 4.7 % Maroochydore 187 515,000 7 % 3 % 4.8 % Minyama 69 620,000 -8 % 5 % 4.2 % Moffat Beach 41 650,000 3 % 5 % 3.9 % Mooloolaba 101 640,000 -5 % 4 % 4.4 % Mount Coolum 75 615,000 26 % 5 % 4.8 % Nambour 230 351,000 2 % 3 % 5.5 % Noosa Heads 136 750,000 7 % 0 % 4.5 % Noosaville 221 700,000 4 % 2 % 4.7 % Pacific Paradise 35 415,000 4 % 3 % 5.2 % Palmwoods 134 465,000 1 % 2 % 5.0 % Parrearra 89 580,000 4 % 3 % 4.8 % Pelican Waters 170 673,000 1 % 3 % 4.5 % Peregian Beach 80 689,000 14 % 1 % 3.6 % Peregian Springs 171 557,000 2 % 0 % 5.2 % Sippy Downs 201 470,000 6 % 3 % 5.2 % Sunrise Beach 59 641,000 11 % 2 % 4.2 % Sunshine Beach 60 758,000 -20 % -2 % 3.6 % Tewantin 279 465,000 4 % 2 % 5.1 % Twin Waters 83 725,000 3 % 2 % 4.8 % Warana 84 493,000 4 % 2 % 4.5 % Woombye 67 440,000 2 % 3 % 5.0 % Wurtulla 122 508,000 7 % 4 % 4.7 % Source: Australian Property Monitors – “growth average” is the average annual growth in median house prices over the past 10 years. Snr: “statistically not reliable”

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Future Prospects

The Sunshine Coast’s fortunes improved markedly in 2014 and 2015. It now looks to have strong prospects for capital growth, boosted by infrastructure developments such as the University Hospital, the Maroochydore CBD project and the airport expansion.

A new city centre is being established in Maroochydore and the $2.3 billion tertiary teaching hospital will open in 2016. The Sunshine Coast Airport is to be expanded to deliver Australia's next international airport and an $81 million expansion of the University of the Sunshine Coast is nearing completion. Several billions of dollars have been committed across these four major projects, in addition to significant private investment fueling growth in a number of high-value industries across the region, according to the Sunshine Coast Regional Council.

- Sunshine Coast University Hospital

The Sunshine Coast University Hospital project has been described as “the Sunshine Coast’s coal mine”; the economic benefit in the construction phase alone is estimated at $2.3 billion.

The Sunshine Coast University Hospital forms part of the Oceanside Health Hub, a $5 billion health district estimated to create 3,000 jobs every year for 15 years and 12,000 ongoing jobs. The health hub comprises 19 precincts covering commercial, community and residential development.

The hospital is scheduled to open in 2016 with 450 beds and 5,000 staff. This number is expected to reach 750 beds and 7,500 staff by 2021.

Coupled with the employment generated by the private hospital and forecast employment demand from the wider Oceanside Kawana Health Precinct, it is estimated the health industry will add $250 million annually to gross regional product.

- Maroochydore Activity Centre

The core of the Regional Council’s plan is the Principal Activity Centre (PAC) at Maroochydore on the Horton Park Golf Club site. The PAC was approved by the State Government in July 2014.

“This major development, which will be delivered over the next 25 years, will provide a mix of residential, commercial, retail, civic and community uses to create a thriving and vibrant business district and city centre,” Mayor Mark Jamieson said. “The master planning process has also identified entertainment and convention facilities, community facilities and meeting spaces, parklands, walkways, recreation areas, waterways and an enhanced public transport network.”

Construction on the first phase, consisting of civil works and roads, began in 2016. The development is expected to create 10,000 jobs over 20 years.

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- Regional Council

The Regional Council aims to triple the Sunshine Coast economy within 20 years, according to the Sunshine Coast Regional Economic Development Strategy 2013–2033.

"We have set clear goals – a $33 billion economy by 2033, household incomes above the state average, and 20% of our goods and services produced for export," Mayor Mark Jamieson said. The plan targets traditional industry pillars and large projects like the University Hospital, the airport expansion, the Maroochydore city centre and the expansion of the university.

The focus is currently on the airport which has received the Federal Government’s environmental approval for the proposed runway. The next steps involve the Sunshine Coast Regional Council securing a $181 million concession loan from the Queensland Treasury Corporation and an extensive due diligence process.

Once funding is in place, construction will begin with a targeted completion date of December 2020. A longer and wider runway would increase freight capacity, provide new export opportunities and create 2,230 new jobs by 2040.

The Caloundra CBD will undergo a revitalisation process and feasibility work is being carried out on a proposed light rail system. (For more detail on the light rail, see the tables under Future Prospects at the end of the report.)

Meanwhile, the State Government has plans to increase train services between Brisbane and the Sunshine Coast by building stabling yards at Woombye and Elimbah.

The Council has also improved its DA process. It now offers free pre-lodgment meetings and electronic lodgment services to encourage builders and developers. This seems to be paying off. The six months to December 2015 saw an additional $114 million in construction value over the same six months of the previous year, while unit approvals look set to almost double.

Recommended areas

We believe the best part of the Sunshine Coast for investors to consider is the southern precinct, from Maroochydore south to Caloundra.

This is the area where most of the key new infrastructure is being built, including new commercial precincts, the University Hospital, the associated private hospital and major residential developments. This is where the new jobs are being generated.

This is also the precinct that offers the best affordability on the Sunshine Coast. Other parts of the Sunshine Coast will show growth also, but the Kawana precinct offers the best combination of affordability and growth drivers of anywhere on the coast.

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Current projects in the Sunshine Coast region are outlined as follows:-

INFRASTRUCTURE - HEALTH AND MEDICAL FACILITIES

Project Value Status Impact Sunshine Coast $2.3 billion Under construction. Jobs: University Hospital Hospital of 450 Scheduled to be 3,500. Kawana beds initially completed in 2016. growing to 750 State Govt beds by 2021. Oceanside Kawana $5 billion Under construction. Jobs: Health Hub A major health and Completion expected 3,000 per year for 15 residential around 2021. years. Stockland precinct.

INFRASTRUCTURE – GENERAL

Project Value Status Impact Maroochydore TBA Under construction. Jobs: City Centre Education services, Approved by the State 10,000. (Principal Activity retail, dining, 5- Govt in July 2014, Centre or PAC) star hotel, offices, infrastructure work began apartments and a in February 2016. Regional Council & convention centre. State Govt. Engineering $37 million Under construction. Learning Hub, Includes an Due to open in September University of the interactive lecture 2016. Sunshine Coast theatre for 120 students.

RESOURCES AND ENERGY

Project Value Status Impact Sunshine Coast $49 million Under construction. Jobs: Solar Farm, Valdora Solar farm near Expected to be operational 60. Coolum will power in 2017. Economic benefit: Regional Council 5,000 homes. $22 million.

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INFRASTRUCTURE – TRANSPORT

Project Value Status Impact Sunshine Coast $347 million Proposed. Jobs: Airport upgrade EIS approved July 2016. 2,230. Funding yet to be secured. Economic benefit: Regional Council $4.1 billion Sunshine Coast light $2 billion Proposed. Jobs: rail Stage 1: $1.3 bil Long term project, studies 9,000. Stage 2: $710 mil were undertaken in 2015. Economic benefit: State Govt May be delivered by 2025. $3.6 billion Bruce Hwy upgrade, $384 million Under construction. Jobs: Sunshine Coast 10km of highway Work began in March 684. from Cooroy to 2016. Curra will be widened to four lanes. Mooloolah River TBA Proposed. Interchange (The previous Govt Planning for the project had allocated $441 was finalised in late 2015. State Govt million for the project.) Bruce Highway - $1 billion Approved. Caloundra Rd to 7km to be Work to begin in late 2016 Sunshine Coast Mwy widened to 6 lanes and be finished in 2021. and upgrades at State Govt two intersections. Beerburrum to TBA Approved. Nambour rail Upgrade and The business case and final upgrade duplicate 40km of decision are expected to train line. be completed in 2017. Dept of Transport

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COMMERCIAL DEVELOPMENT – GENERAL

Project Value Status Impact Expansion, $350 million Approved. Jobs: Sunshine Plaza, New David Jones, Received Council approval 6,900 construction, Maroochydore expanded Myer, in March 2013. Individual 1,350 retail. 120 specialty assessments still in the Lend Lease and the stores. process in June 2016. GPT Group Residential and $200 million Proposed. Jobs: retail development, Restaurants, retail, 859 construction; Mooloolaba accommodation; 271 operational. Mooloolaba Esp & Economic benefit: ARIA Property Group Burnett St. $62 million. Mooloolaba Wharf $100 million Proposed. redevelopment The old site to be Evans Long bought the site demolished and in early 2016. Evans Long transformed into residential/ commercial. Sports theme park $400 million Proposed. Jobs: and tourism hub Has preliminary approval 2,000. from Council. More details Economic benefit: Sanad Capital of the plan to be released $60 million per year in late 2016. during construction. Youi insurance $80 million Proposed. Jobs: office HQ, Sippy DA submitted March 2015. 700. Downs Economic benefit: $1.2 billion. Coolum Hotel $20 million Approved. redevelopment Includes a tavern Approved by Council in and Dan Murphy's February 2014. ALH liquor barn. Bli Bli commercial $20 million Approved. Jobs: and retail project A 3-level retail and Approved by SSCRC in 70 construction; commercial March 2016. 150 retail. Michael & Roz White precinct. Kawana TBA Approved. Jobs: Shoppingworld 10 cinemas will be 200 retail. extension added.

Mirvac

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COMMERCIAL DEVELOPMENT – GENERAL Continued

Project Value Status Impact Auto and General TBA Approved. Jobs: Insurance Company A second office 250 operational. expansion, Kawana will be built. Woolworths, $30 million Proposed. Jobs: Corner Jones Rd & DA submitted September 160 construction; Maroochydore Rd, 2015. 140 operational. Buderim 5-Star Beachfront TBA Proposed. Resort, Yaroomba Conference centre with 220 hotel Sekisui House & rooms. Starwood Hotels Luxury resort & spa, $60 million Proposed. Buderim 125 hotel rooms, restaurants, Carroll & Meyer conference facility.

RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Buderim Forest $90 million Approved. residential project 221 apartments to Approved by Council in house 800 people. April 2015. Michael Cullen Parklakes Estate, TBA Under construction. Bli Bli (Stages 1 & 2) 700 homes, school and golf course. Birtinya residential TBA Approved. development 325 houses and Approved in July 2015. 426 units near the Stockland new University Hospital. Breeze, Mooloolaba $44 million Under construction. Jobs: 58 apartments. Completion expected in 210 construction. ARIA late 2016. North Shore $30 million Approved. Jobs: Oceanside Kawana 60 apartments. 220 construction.

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RESIDENTIAL DEVELOPMENTS Continued

Project Value Status Impact The Cosmpolitan, TBA Approved. Cotton Tree 143-units and commercial property in two towers. Sundale aged care $80 million Approved. village expansion, 218 additional Nambour units. New Sundale aged $50 million Under construction. care village, 180 units. Tewantin Student $35 million Proposed. Accommodation, Accommodation Work is expected to begin Aerodrome Rd, for 330 students. in 2016 and be completed Maroochydore in early 2017.

Park Avenue Group Buddina Urban $55 million Proposed. Village 94 units next to Construction could begin Kawana Shopping in 2016 and be completed Park Avenue Group World. in 2018. The Rhythm on $40 million Proposed. Beach, 80 units. Maroochydore

INFRASTRUCTURE – SPORT AND ENTERTAINMENT

Project Value Status Impact Mt Coolum Golf $15 million Proposed. Club redevelopment Includes a redesigned course, new clubhouse and 100 residences.

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EPPING PRECINCT Northern suburbs of Melbourne

Highlights  $2.2 billion M80 Ring Rd  $1.2 billion business park  $1.8 billion Aurora estate  Coles distribution centre  Fruit & Vegetables Markets  Epping a key centre in Plan  Major retail projects Melbourne strategy

Suburb - houses Typical prices Suburb – units Typical prices Doreen $475,000 Bundoora $358,000 Epping $430,000 Epping $324,000 Lalor $458,000 Lalor $339,000 South Morang $476,000 South Morang $366,000 Thomastown $445,000 Thomastown $299,000

Locations with three or four “Core Categories” working in their favour have the best chance of becoming real estate hotspots. The Epping precinct, apart from being an affordable Cheapies with Prospects area, has strong drivers from Transport Infrastructure, Jobs Nodes, Government Policy and Urban Renewal.

The Epping region – and the Whittlesea LGA generally - has plenty of good reasons to move forward and therefore be worthy of consideration by investors. They include:-

o The M80 Ring Road upgrade to further improve traffic flow (Transport Infrastructure). o Further expansion of commuter train services in this precinct (Transport Infrastructure). o The relocation of Melbourne’s fruit & vegetable markets to Epping (Government Policy). o Epping’s status as a key centre in the Plan Melbourne strategy (Government Policy). o Jobs generators such as Austrak intermodal terminal at Somerton (Jobs Nodes). o Relocation of Coles Myer’s key distribution facility to Somerton (Jobs Nodes). o The $1.2 billion business park at Mickleham (Jobs Nodes). o Major population growth (Urban Renewal). o Major housing developments and retail developments. (Ugly Ducklings/Urban Renewal).

These and other projects in the Epping precinct involve entities such as Westfield, Australand, Stockland, Places Victoria (formerly VicUrban) and GPT.

The impact of such projects means this precinct has improved access, new employment nodes, improved shopping facilities and the injection of modern housing in an area which has many 1970s homes. All of this helps make the area more attractive to both residents and property investors.

Several of the suburbs in this precinct recorded double-digit growth in median prices in the past 12 months. Recent increases in sales activity suggest further growth will occur. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 95

Location

 Northern suburbs of Melbourne, about 35km north of the CBD  LGA: City of Whittlesea  A mix of city lifestyle and country comfort.

Population and demographics

Victoria can expect a substantial shift in demographics POPULATION between now and 2051, according to the State EPPING NORTH Government, and changes are already occurring. Estimated population 2015: 20,200

Projected population 2036: 51,500 Bureau of Statistics figures released in August 2015 EPPING show population figures in South Morang grew 27,289 Estimated population 2015: 18,900 in the five years to 2014, while Craigieburn added Projected population 2036: 24,000 15,356. Source: ABS These and other growth suburbs are all close to Epping which is also likely to be impacted.

Economy and amenities

This precinct has featured strongly in various plans promoted by successive State Governments.

In 2009 the State Government released a package of proposals titled Delivering Melbourne’s Newest Sustainable Communities, with four components: Urban Growth Boundary Review; Regional rail link; Outer-metropolitan Ring Road and E6; and strategic assessment of biodiversity. Of these four projects, all affected the City of Whittlesea except the regional rail link.

Epping was named a Transit Cities location under the Melbourne 2030 plan. This State Government program was designed to allow people to live and work in the same area, reducing commuting. It sought to make centres economically stronger, upgrade transport and improve access to shops, services and jobs.

More recently, Plan Melbourne has continued the focus on this precinct, with Epping nominated as a key activity and job centre.

Epping has the Northern Melbourne Institute of TAFE, the Northern Hospital (recently expanded), Epping Plaza shopping centre (also expanded).

The Northern Hospital is a 355-bed facility which employs around 3,000 people, making it the biggest local employer in Epping Central. Further expansions to make the hospital a 600-bed facility are planned.

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The Northern Centre for Health Education and Research, a partnership between Northern Health, the University of Melbourne, La Trobe University and the State and Commonwealth governments, was completed in early 2015. The $34 million Centre will be able to train an additional 900+ health professionals.

Pacific Epping offers 230 different stores including Big W, Target, Best & Less, JB Hi-fi and Harris Scarfe. Also in the centre are Reading Cinemas and the Urban Diner restaurant and entertainment precinct. Pacific Epping employs around 2,600 people and has expansion plans approved.

The Plenty Valley Town Centre in South Morang is a joint venture between the Westfield Group and Deutsche Diversified Trust. Following a $200 million extension, Westfield’s Plenty Valley Town Centre offers Target, K Mart, Best & Less, a 600-seat food court, 125 extra specialty stores, 1,800 extra car parks and more cafes.

Meanwhile Melbourne’s Wholesale Fruit and Vegetable Market relocated from Footscray to Epping in 2015, bringing with it 3,000 businesses and 7,500 staff.

Craigieburn is one of Melbourne’s strongest growth centres for new residential and is attracting major new infrastructure, such as the Craigieburn Central development by Lend Lease.

Property profile

Epping is mortgage belt territory, with 45% of households 63,000 new homes by 2036 being owners with mortgages (compared with the Melbourne Source: ABS average of 27%). It’s the kind of area first-time buyers and others on a budget will target.

As at the 2011 Census, 90% of homes across the Whittlesea LGA were separate houses and 10% were units. Since then, building approvals show not only an increase in building activity, but also an increase in higher-density dwellings. In FY2015, 2,706 houses and 866 units were approved, an increase of 918 dwellings on FY2014. Hotspotting estimates that the current breakdown of houses and units is 88% houses, 12% units.

Epping and neighbouring suburbs have a solid but unspectacular residential property market. The suburbs in this precinct are among The Stayers of Melbourne real estate, with price growth virtually every year since 2000 (an exception was 2012). Vacancy rates across Epping precinct The pattern for most of these suburbs has been a price Postcode Suburb Vacancy rate peak in 2003/2004, smaller growth across 2005 to 3074 Thomastown 1.1% 2007 and then a return to solid growth in 2008 and 3075 Lalor 1.1% 2009, with a significant upturn in 2010. There was 3076 Epping 1.1% further (but small) growth in 2011, before the market 3082 Mill Park 1.0% declined in 2012. Source: SQM Research

Sales numbers began to increase again in 2013 and in National Top 10 Best Buys 2016 – copyright hotspotting.com.au 97 the last 12 months the precinct recorded 3,267 house and unit sales, proving its consistency as a busy market. The increase in sales has led to all suburbs delivering moderate to good housing growth. Six of the 11 suburbs on the list below have recorded a double-digit increase in their median house prices.

There have also been reports from the REIV of an increase in auctions across South Morang, Epping, Thomastown and Mernda, with South Morang leading the way in auction volumes – up 62% in 2016 compared to the same period in 2015.

Local real estate agents report the area is popular with younger buyers, attracted by affordability and new homes. Data from APM shows house prices mostly in the $400,000s and units mostly in the $300,000s.

Many suburbs in this precinct have long-term growth records of 4-5% per year over 10 years, which is towards the lower end of the performance range in Melbourne – steady, but unspectacular. Bundoora, Mill Park and Lalor are higher at 7% and 6% per year respectively.

The house market in the Whittlesea LGA can be summarised as:

Suburb Sales Median 1-year Growth Median Houses Houses Growth Average Yield Bundoora 340 $616,000 10 % 7 % 3.6 % Doreen 395 $475,000 6 % 2 % 5.3 % Epping 386 $430,000 11 % 5 % 4.6 % Hurstbridge 60 $561,000 10 % 5 % 4.0 % Lalor 283 $458,000 14 % 6 % 4.2 % Mernda 285 $425,000 8 % 3 % 5.0 % Mill Park 351 $500,000 14 % 6 % 4.2 % Sth Morang 358 $476,000 13 % 4 % 4.6 % Thomastown 240 $445,000 8 % 5 % 4.2 % Whittlesea 87 $415,000 -1 % 4 % 4.9 % Wollert 181 $440,000 7 % Snr 5.1 %

The Epping unit market can be summarised as:

Suburb Sales Median 1-year Growth Median Units Units Growth Average Yield Bundoora 70 $358,000 -6 % 4 % 4.9 % Epping 50 $324,000 3 % 3 % 5.3 % Lalor 45 $339,000 6 % 4 % 5.2 % Mill Park 35 $365,000 2 % 4 % 4.5 % Sth Morang 28 $366,000 14 % 3 % 4.9 % Thomastown 73 $299,000 3 % 3 % 5.2 % Source” APM – “no. of sales” is house sales in past 12mths. “Growth ave.” is average annual growth in median house prices over 10yrs. “snr” is statistically not reliable.

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Future prospects

Figures released by the ABS in September 2015 show CORE INFLUENCES: Whittlesea is the ninth fastest growing local government Transport Infrastructure, area in Australia. The estimated residential population grew Government Policy, Jobs by 8,130 people, or 156 people per week, between 2014 and Nodes, Urban Renewal. 2015.

Growth is expected to continue, especially as the State Government’s strategy Plan Melbourne, which focuses on infrastructure growth over the next 30 years, becomes entrenched.

Population projections by demographers profile.id indicate that the population of the City of Whittlesea will grow by 131,000 between 2016 and 2036. The largest concentrations of growth will be found in Mernda-Doreen (55,000), Epping North (51,000) and the Donnybrook sub-region (36,000). Numerous residential housing estates are in the planning while 11 are under construction.

Accompanying this growth is the biggest (reportedly) infrastructure program in the history of the state and includes major transport projects and urban renewal.

Under Plan Melbourne, Epping will become a key activity and job centre. In conjunction with Plan Melbourne, the City of Whittlesea has prepared the Epping Central Project, which is supported by the State Government. This project will see Epping targeted with $90 million of investment.

Implementation of the Plan Melbourne began when Epping received rezoning approval from the State Government in March 2015. The new zoning is designed to attract businesses and residential developers to Epping and ultimately to create jobs.

West of Epping Central is the Cooper Street Employment Area (244ha) that is expected to bring 20,000 new jobs to the area when completed.

Epping is seeing growth in medium-high density applications with over $250 million in development approved, while the Council has $100 million earmarked for infrastructure and amenity upgrades.

It is expected about 4,500 homes will be built in Epping Central by 2030 in accordance with the demand identified in the Epping Central Market Analysis Report.

Transport Infrastructure

Transport infrastructure has helped to revitalise this area, improving road links to other parts of the Melbourne metropolitan area and attracting warehousing and distribution businesses – which has meant new jobs in the area.

The next proposed project will see the South Morang line of the Melbourne train network extended by 8km to Mernda where a new train station will be integrated with the proposed Mernda Town Centre. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 99

Another new station will be built near Marymede Catholic College, Williamsons Road, South Morang and a third station near Hawkstowe Parade, halfway between South Morang and Mernda, is being considered.

New train stations have recently opened at Epping, Thomastown and South Morang.

The Transit Cities plans for Epping include developing land around Epping railway station “so that it becomes a vibrant mixed-use community hub”.

The Mernda extension will improve connections to employment, health care, education and retail while creating hundreds of jobs.

This precinct is increasingly a focal point for transportation and logistics – and people working in those industries may seek to buy homes close to their work.

The $500 million Craigieburn bypass between the Hume Highway at Craigieburn and the Ring Road has been influential, because it meant motorists using the Hume Highway avoided 13 sets of traffic lights and saved 30 minutes travel time.

The bypass links with the M80 Ring Road (also known as the Western Ring Road or Metropolitan Ring Road), which provides a key road transport link to and the Port of Melbourne. It has brought increased focus to the area from investors in industrial real estate – which translates into jobs.

Further upgrades to the M80 Ring Road are well under way. A joint State-Federal project costing $2.25 billion, the upgrade of the M80 began in 2009 and is expected to take about eight years to finish.

The M80 Ring Road carries up to 142,000 vehicles per day, including more than 22,000 trucks. The upgrade will reduce accidents, traffic disruption and delays along the entire route.

Business Parks

The Epping area is already renowned as a light industrial precinct. There is the Thomastown Industrial Area, home to around 1,800 businesses employing close to 11,000 people and contributing $1.1 billion to the Australian economy.

Thomastown Industrial Area will soon be joined by a $1.2 billion business park at Mickleham, 20- 25km north-east of Epping.

The business park is part of the Merrifield project, a joint venture between Melbourne-based MAB Corporation and Gibson Property Corporation that will gradually transform 770ha into a commercial, residential and industrial precinct. Paint manufacturer Dulux has announced it would move into Merrifield and relocate some of its paint operations from Sydney and Brisbane to a new $165 million plant in Mickleham by 2017.

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There are 3,400 people employed at the Northpoint Enterprise Park, a 120ha Business Park located in Epping.

Eriez Magnetics, an authority in advanced technology for magnetic, vibratory and inspection applications, has moved to a new facility in Northpoint Enterprise Park, doubling its previous floor space in Campbellfield. Other businesses located in Northpoint Enterprise Park include Edlyn Foods, Stratco, Stanley Black and Decker and Mission Foods.

Coles Myer has a distribution facility in Somerton, not far from Epping. The $100 million Coles Myer distribution centre covers 75,000m2 and is part of the Austrak’s 120ha business park and intermodal terminal.

Currently under construction are the Meridian Business Park at Thomastown and the Alliance industrial development at Epping. Both parks are being developed by MAB Corporation.

Thomastown Industrial Area precinct is home to around 1,800 businesses employing 11,000 people.

Lowest departure rates

Whittlesea Council has lowest departure rates in Melbourne, ABS data published in September 2015 shows. Just 4.8% of Whittlesea residents moved out of the area in 2014, the lowest departure rate from a Melbourne council, and about a third lower than the average departure rate for councils across the city.

The data revealed that people living on the outskirts of Melbourne are much less likely to move than those close to the CBD. The six council areas with the city’s lowest departure rates were all on the urban fringe – Whittlesea, Hume, Mornington Peninsula, Yarra Ranges, Macedon Ranges and Wyndham.

Media reports suggest that people move to the Whittlesea for the affordability but stay for the lifestyle, sense of community and high standards of services and amenities.

Major projects currently impacting the region are:

INFRASTRUCTURE – TRANSPORT

Project Value Status Impact Mernda rail extension $588 million Proposed. The train line will State Government extend to Mernda and include two new train stations.

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COMMERCIAL DEVELOPMENTS

Project Value Status Impact New business park, $1.2 billion Under construction. Jobs: Mickleham Part of the Merrifield A new distribution 2,700 construction; project, 770ha will centre is expected to 11,000 operational. MAB Corp JV Gibson become a commercial, be operating by late Property Corp residential and 2016. industrial precinct. Mernda Town Centre TBA Approved. To be located on 45ha at the intersection of Plenty Rd and Bridge Inn Rd. Epping Plaza $30 million Approved. Jobs: entertainment Now known as Pacific 100. precinct expansion Epping; will have and development restaurants & bowling centre. Mixed-used project, TBA Approved. 719 High St, Epping Retail, supermarket, Council announced the office space, 95 apts. approval in May 2014. Pelligra Holdings Mixed-used project, TBA Approved. 67 Rufus St, Epping 92 units, medical centre, food and beverage outlets. Alliance Business Park $80 million Under construction. Jobs: development, Epping Light industrial estate 4,000. near the Hume Hwy. MAB Corporation Ormond Square, TBA Under construction. Jobs: University Hill, 20,000m² of office 1,300 operational. Bundoora space.

MAB Corporation Ikea superstore - TBA Deferred. Jobs: Campbellfield Ikea’s biggest retail Approved in 2010. 700 construction; outlet in the southern 400 operational. Ikea hemisphere. Economic benefit: $170 million. Costco Store, $30 million Deferred. Jobs: Jovic Rd, Epping Includes a Costco fuel Approved in 2013, but 300 direct, 200 station and other retail the site was still vacant indirect. outlets. in late 2015.

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RESIDENTIAL DEVELOPMENTS

Project Value Status Impact Aurora development, $1.8 billion Under construction. Epping North Two town centres, five schools, 8,500 homes Places Victoria on 630ha. (formerly VicUrban) Laurimar master- $500 million Under construction. planned community – 1,900 residential lots Whittlesea to house 9,000 people, primary school, town Lend Lease centre, sports fields. Kalkallo community $3 billion Under construction. development, 20km A new community with To be developed over north of Epping. 11,000 homes to 30 years. house 30,000. Stockland Former Lalor Park $35 million Approved. Primary School site 87 dwellings. Approved by VCAT in development September 2015.

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CITY of PLAYFORD Northern suburbs of Adelaide

Highlights Fastest-growing LGA in South Australia Multiple major jobs nodes Growth over 2.5% in 6 of past 10 years Edinburgh Defence complex Affordable housing and high yields Logistical and distribution capital of SA $250 million Playford Alive Town Centre development

Suburb - houses Typical prices Suburb - houses Typical prices Blakeview $306,000 Elizabeth Downs $176,000 Craigmore $280,000 Munno Para $255,000 Davoren Park $177,000 Andrews Farm $279,000

Playford LGA is the fastest-growing local government area in South Australia and has one of Adelaide’s most active property markets.

The real estate market in this northern region of Adelaide is characterised by affordable housing, low vacancy rates and high rental yields. There is a high turnover of dwellings through home-buyers seeking affordable options close to major jobs nodes, as well as investors seeking attractive buy-in prices and high returns.

The property market is underpinned by the region’s strong industrial sector, its status as Adelaide’s leading sector for transport and logistics, and the presence of many significant jobs nodes, including the vast Edinburgh Defence facility.

Location

The City of Playford is the most northern Local Government Area in the Adelaide metropolitan area and supports myriad land uses including commercial, residential, horticultural, industrial, manufacturing and open space.

The Playford LGA is about 30km from the Adelaide CBD and comprises 35 suburbs, including Blakeview, Davoren Park, Evanston Gardens, Penfield Gardens, Angle Vale, Virginia, Craigmore, Smithfield and One Tree Hill, as well as the various Elizabeth suburbs.

Postcodes covering the City of Playford include 5112 (Elizabeth, Elizabeth East, Elizabeth Grove), 5113 (Davoren Park, Elizabeth North, Elizabeth Park), 5114 (Andrews Farm, Craigmore, One Tree Hill, Smithfield), 5115 (Munno Para, Munno Para West), 5117 (Angle Vale), 5114 (Blakeview), 5120 (Buckland Park, Virginia) and 5121 (Penfield Gardens).

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Population and Demographics

The City of Playford is home to around 88,000 people (ABS estimated population 2015) and is growing at rates well above national averages. In six of the 10 years between 2005 and 2015, the Playford growth rate exceeded 2.5%.

The population has grown from 70,500 in 2005 to an estimated 88,200 in 2015.

Economy and Amenities

Playford, formed in 1997 through the merger of the cities of Elizabeth and Munno Para, is a diverse community with a well-established industry base, strong community spirit, cultural diversity, affordable housing and open spaces.

Playford is becoming the logistical and advanced distribution capital of South Australia. As part of this evolution, the SCT Logistics Rail Freight Terminal opened in January 2011.

Also in 2011, a $750 million expansion of the RAAF Base Edinburgh, including facilities for 7th RAR (Mechanized Army Battalion), was completed.

The Edinburgh Defence Precinct is a key national Defence research, manufacturing and sustainment hub housing RAAF Base Edinburgh, the Defence Science and Technology Group and major defence companies including BAE Systems Australia, Lockheed Martin Australia, Airbus Group Australia, Raytheon Australia, CAE Australia and Meggitt Training Systems.

Located 25 kilometres north of the Adelaide CBD, the precinct has easy access to major transport routes, with links to the national highway network, port facilities and the Adelaide–Darwin rail line. The precinct encompasses major Australian Defence Force capabilities, national defence research and development facilities, and manufacturing and sustainment capabilities of national importance including the maritime strike capability, Jindalee Operational Radar Network and 1st Brigade Adelaide.

From 2012 to 2015, the City of Playford Council partnered with the University of Adelaide to launch the Stretton Centre for research into regional innovation. Its "anchor tenant" is Adelaide University's Australian Workplace Innovation & Social Research Centre (WISeR). The Stretton Centre includes the Stretton Research Centre (occupied by WISeR), a community library, public and private community meeting spaces and the Innovation Design Lab.

The Edinburgh North Business Forum has been established to form strategic alliances with regional stakeholders to upgrade the precinct and the surrounding environs. The Forum will drive industrial renewal which, according to the Council, is “integral to the revitalisation of Playford and the development of a Northern CBD at Elizabeth Regional Centre”.

The suburb Edinburgh North was approved by the Surveyor General and gazetted by the State Government in 2011. Already headquarters for over 100 businesses, Edinburgh North is positioning itself as an eco industrial centre for the state and leader in environmental sustainability. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 105

The Edinburgh North Master Plan promotes new industrial development and potential environmental and sustainable urban design practices to attract new businesses to the precinct.

There is a variety of housing throughout Playford and ongoing urban development continues to spread, with new housing estates offering affordable housing in Blakeview, Andrews Farm, Craigmore and Hillbank. The City of Playford Council says many of the longer-established areas of Playford are earmarked for revitalisation.

Open space comprises about 20% of the Playford area, with a range of recreational reserves including Fremont Park, Jo Gapper Park and Stebonheath Park, as well as conservation areas such as Para Wirra Recreational Park and Humbug Scrub Wildlife Sanctuary.

The LGA’s Regional Centre at Elizabeth has extensive shopping facilities as well as major hos pital and health services.

Regency Institute of TAFE offers tertiary education and training programs for industry.

A new Civic Centre including council chambers, library, theatre and function centre has been built. Other notable developments are a new library in Smithfield, and the revamp of the Elizabeth shopping centre, including an eight-screen cinema complex.

Property Profile

The City of Playford is known for its affordable housing, but in fact offers a broad range of housing options. Median house prices for the various suburbs of Playford range from $163,000 (Elizabeth North) and $177,000 (Davoren Park), through $306,000 (Blakeview) to $500,000 (Angle Vale) and Virginia ($528,000). Financial Dwellings Year Approved Playford is an area of extensive new development, having ample land for the creation of new housing communities. Residential building approvals 2015 616 in the LGA have exceeded 600 in each of the past 10 years, including 2014 783 three years with over 1,000 new dwellings approved. 2013 739 2012 984 Standalone houses dominate: in the 10 financial years from FY2006 to 2011 1299 FY2015, there were 8,920 houses approved and just 280 units. 2010 1456 2009 899 Despite extensive new development, vacancy rates remain low. All of the major postcodes which comprise the residential areas of Playford have vacancies well below 3%, including some below 2%, according to data from SQM Research.

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Playford is one of the steadiest housing markets in PLAYFORD VACANCY RATES the metropolitan area and has Postcode Suburb Vacancy many suburbs which deliver 5112 Elizabeth, Eliz. East, Eliz. Grove 0.7 % steady sales levels. The 5113 Davoren Park, Eliz. North, Eliz. Park 1.8 % suburb of Blakeview, for 5114 Andrews Farm, Craigmore, Blakeview 2.0 % example, has recorded 5115 Munno Para, Munno Para West 2.7 % between 36 and 47 house Source:sqmresearch.com.au sales in each of the past eight quarters.

Other high volume markets in the Playford LGA include Andrews Farm, Craigmore, Davoren Park and Elizabeth Downs.

There is little consistency in the price growth figures for the past 12 months, but three suburbs have recorded double-digit growth in their median house prices. Others have had 4-5% increases over the past year.

A standout feature of this market is the high rental yields for houses. Many suburbs have median rental yields above 6%, including two that are above 7%.

The City of Playford house market can be summarised as follows:-

Suburb No. of sales Median 1yr growth 10yr average Median yield Andrews Farm 159 $279,000 1 % 3.9 5.2 % Angle Vale 27 $500,000 5 % 4.0 SNR Blakeview 138 $306,000 4 % 3.8 5.5 % Craigmore 181 $280,000 -2 % 2.7 5.7 % Davoren Park 116 $177,000 -2 % 3.5 6.8 % Elizabeth 16 $234,000 SNR 4.5 6.0 % Elizabeth Downs 119 $176,000 -4 % 2.4 7.3 % Elizabeth East 88 $210,000 5 % 3.4 6.6 % Elizabeth Grove 29 $193,000 10 % 3.3 6.6 % Elizabeth North 72 $163,000 2 % 3.1 7.1 % Elizabeth Park 86 $200,000 11 % 3.5 6.6 % Elizabeth South 48 $180,000 -8 % 4.4 6.9 % Elizabeth Vale 82 $225,000 5 % 4.1 6.2 % Hilbank 72 $311,000 -10 % 2.0 5.6 % Munno Para 56 $255,000 14 % 5.4 5.7 % MunnoPara West 102 $266,000 -3 % -0.9 5.6 % Smithfield 32 $245,000 0 % 4.1 5.8 % Smithfield Plains 35 $204,000 14 % 5.0 6.6 % Virginia 14 $528,000 SNR SNR SNR Source: APM. “No. of sales” is the number of house sales in the past 12mths“Growth average” is the average annual growth in median house prices over the past 10yrs. “Snr”: statistically not reliable.

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Future Prospects

Northern Adelaide is evolving rapidly, in part due to the 30 Year Plan for Greater Adelaide.

The centre of SA's economic activity is moving north. Not only are the Defence and advanced manufacturing industries driving this growth, but “a new era of industrial innovation supported by road and rail infrastructure will secure the future of northern Adelaide”, according to the City of Playford Council.

The LGA’s population is growing at over 2,000 people per year, with about 2,000 hectares of residential land in the pipeline (already zoned) and another 1,500 hectares about to be zoned in Angle Vale, Virginia and the Playford North Extension. In addition, there is another 1,100 hectares of industrial land about to be made available within Greater Edinburgh Parks.

“There is about $23 billion of investment currently under way or in the pipeline in Northern Adelaide, with nearly $11 billion in civil, residential and commercial development and a further $12 billion in defence projects mainly around Edinburgh and the Lefevre Peninsula,” the council says.

Playford Alive

In 2003 it was announced that $1 billion would be allocated to rejuvenate the Peachey Belt. Known as the Playford North Urban Regeneration project, it was projected at the time that the population of the area would increase from 13,000 residents to 30,000 in 15 years and would involve the demolition of Housing SA homes in the area.

The project has since been renamed "Playford Alive" and the future population project for this precinct has risen to 40,000.

The Playford Alive project covers close to 1,000 hectares of land in the Playford North area including the Peachey Belt, Munno Para West and Andrews Farm South. The development is a master-planned community which is delivering new housing, public housing upgrades, new shopping centres, school sites, transport upgrades, parks and sporting facilities.

The $250 million Playford Alive Town Centre was opened in October 2015. It includes a Woolworths supermarket, specialty shops, cafés, restaurants and local services.

Playford Alive also has a GP Super Clinic, allied health services, aged care facilities and the Lyell McEwin Hospital nearby.

SCT Rail Freight Centre

In January 2011, major rail freight operator SCT opened the $30 million first stage major rail freight terminal development on a 70ha site in Greater Edinburgh Parks.

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In March 2015, SCT completed a major expansion of the facility, bringing its investment in the Rail Freight Centre to $150 million.

SCT says the intermodal rail hub is a benchmark within the group in terms of logistics, design, layout and ultimately, service capability and offering. It will enable the precinct to further expand and cater for increased state import and export freight movements, with daily rail shuttles to the Port of Adelaide.

The site is also home to the SCT Logistics Rail Freight Terminal, SBR Locomotive Provisioning Facility, the CUB distribution centre and the recently-completed 22,500m2 Treasury Wine Estates temperature controlled distribution centre.

Lyell McEwin Upgrade

The Lyell McEwin Hospital has undergone a $300 million upgrade which was completed in 2015.

The expansion included a 96-bed inpatient building, a new women’s and children’s health hub, upgraded intensive care unit and outpatients building.

The expanded facility is a 385-bed acute care teaching hospital, located at Elizabeth Vale in the City of Playford.

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SUNSHINE PRECINCT Western suburbs of Melbourne, VIC

HIGHLIGHTS

 $150 million Foundry project  $880 million in transport  Sunshine health hub project infrastructure (Regional Rail Link)  $200 million St Albans rail project  Metropolitan planning strategy  Orica’s 72ha Deer Park with focus on Sunshine re-development project  Role in Airport Rail Project

Suburb - Typical Suburb - Typical Suburb - Typical houses prices houses prices units prices Albion $451,000 Sunshine $530,000 Albion $200,000 Ardeer $400,000 Sunshine North $497,000 Sunshine $375,000 Deer Park $390,000 Sunshine West $454,000 Sunshine W $356,000

The precinct of western Melbourne suburbs focused on Sunshine has emerged strongly as a hotspot, with extensive investment of government and private sector development money helping to generate a strong housing market.

Once tainted with the image of a crime-ridden problem area, Sunshine and surrounds are destined to become a major regional hub within the Melbourne metropolitan area.

It is nominated in the Melbourne metropolitan planning strategy as the key area for development and infrastructure spending in the city’s western suburbs.

Location

. About 15km west of Melbourne CBD . LGA: City of Brimbank POPULATION & DEMOGRAPHICS: . Suburbs include Sunshine, Sunshine North, Population 2011: 183,000 (Census) Sunshine West, Derrimut, Deer Park, St Population 2041: 218,000 (forecast) Albans West, St Albans East, Keilor Park, Australian born: 56% Albion and Ardeer. Ethnic mix: Vietnam, Italy, UK, Malta. Source: ABS

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Economy and Amenities

The City of Brimbank was created in 1994 through the amalgamation of the municipalities of Keilor and Sunshine. Brimbank is the second largest municipality in Melbourne and the largest in the western region.

Brimbank encompasses 25 new and established suburbs including Albion, Cairnlea, Deer Park, Delahey, Hillside, Keilor, Kings Park, St Albans, Sunshine, Sydenham and Taylors Lakes. Much of the recent residential growth has been in Delahey, Sydenham, Taylors Lakes and Cairnlea.

Growth is expected to continue, particularly in Deer Park, Derrimut and Cairnlea through the redevelopment of older residential and industrial sites.

ABS projections indicate growth will be concentrated around Sunshine and St Albans, with both attracting an extra 7,000 people by 2041. Growth will occur also at St Albans East, St Albans North and Sunshine North; each of these suburbs can expect an influx of about 3,000.

Brimbank has a reputation for its broad ethnicity and is one of Victoria’s most culturally diverse regions, having embraced 156 nationalities in its population. Vietnamese head the list of immigrants at 11%, followed by English (10%) and Italian and Maltese (each 6%).

Unemployment has been consistently above the state and national average for the past five years and remains an issue for the City of Brimbank. As at the December Quarter 2015, Brimbank’s unemployment rate was 9.93%, 4% higher than the national average of 5.9%. According to the Brimbank City Council, the high number of residents in the community for whom English is a second language is one possible reason for the high unemployment.

Manufacturing is Brimbank’s largest industry with close to 1,000 businesses employing 8,800 workers or 21% of the workforce. Brimbank is home to much of the western region’s manufacturing industry, with many businesses located in Derrimut, Keilor Park and Sunshine West. Key manufacturing businesses include the Schiavello Group, SEW Eurodrive, Rhine Ruhr, Caterpillar, Sleepyhead, Ferguson Plarre and Lombards the Paper People.

Brimbank is a favoured location for businesses because it offers affordable land and proximity to key infrastructure such as the Melbourne Airport, Avalon Airport and the Port of Melbourne.

About 12% of the Brimbank workforce is employed in retail services. There are major retail precincts in Sunshine, St Albans and Watergardens, with smaller retail hubs scattered across the municipality including Keilor Village, Deer Park and Brimbank Central.

In Brimbank, 10% of the workforce is employed in education and training. The LGA has a well- established education and training sector with two campuses of Victoria University - in Sunshine and St Albans, including a recently-opened $44 million trade training centre called Construction Futures. The higher education and TAFE sector are complemented by an extensive network of state, Catholic and independent secondary and primary schools. National Top 10 Best Buys 2016 – copyright hotspotting.com.au 111

The Health and Social Services sector employs 9% of the workforce while the Sunshine Hospital, which is a teaching hospital with 426 beds, is located in St Albans.

Sunshine Hospital has a comprehensive range of services and is also home to the Western Centre for Health Research and Education. Within the Centre is a 200-seat auditorium, a 100-seat lecture theatre, library facilities, simulation centres and a number of seminar and tutorial rooms.

The centre operates in partnership with the University of Melbourne and also houses researchers, academics and educators from Western Health, Victoria University and the University of Melbourne.

Sunshine Town Centre accommodates 450 businesses encompassing retail, commercial, social, community, transport, leisure and educational activities. From July 2016, Sunshine is also home to the new $52 million Brimbank Community and Civic Centre.

The Regional Rail Link funded by the State and Federal Governments included the $880 million transport facility which has established Sunshine as the regional transport hub of the west with direct rail links to Sunbury, Melton, Ballarat, Bendigo and Geelong. Being only 7-8 train stops from the city puts Sunshine within easy commuting distance for those who work in the CBD.

Sydenham Town Centre has 257 businesses. It includes the Watergardens Shopping Centre, which is developing into one of Melbourne’s major regional retail centres.

St Albans Activity Centre contains 300 businesses and generates retail sales of $95 million per year. Alfrieda Street in St Albans is well known as a centre for Asian cuisine and Asian fresh food markets. The Lunar Festival, which attracts 80,000 people in January each year, is held in St Albans where a $9 million community centre and performing arts theatre has recently opened.

Industrial areas in the City of Brimbank include the 262ha Brooklyn Industrial Precinct, the 100ha Calder Park industrial area and the 560ha Derrimut Industrial Estate.

In late 2015, the $6.5 million extension of the Keilor Basketball Netball Stadium opened while there are plans for a regional multi-sports facility at Albion.

Property Profile

Sunshine was a suburb of consistent price growth between 2006 and 2011, including two years (2007 and 2010) when the median Home ownership: house price increased 20%. Owned outright: 35% With mortgages: 45% After 2011 there was a decrease in the median house price, Renting: 21% according to data from Australian Property Monitors, in line with Source: 2011 Census citywide trends, but the market turned the corner in 2013.

By 2014 it was one of the fastest-growing suburbs in the Melbourne metropolitan area, as buyer demand shifted because the inner-city suburbs became increasingly expensive, according to the REIV.

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In the past 12 months, median house prices across the precinct have experienced good growth – Sunshine North being the stand out at 20%. Albion, Ardeer, Sunshine West, Braybrook and Sunshine have all recorded double-digit growth.

The long-term growth rates (average annual growth over 10 year) are around 7% to 8% per year throughout the LGA.

Sunshine’s popularity has continued with a rise in the number renters in Sunshine. In July 2015, Investar ranked Sunshine as the fastest rental growth suburb nationally, with a 20% increase in the previous 12 months. Statistics by Ripehouse are in alignment, showing that 38% of Sunshine properties are now rented compared to 21% over the remainder of the Brimbank LGA.

The current price rises are a result of recent increases in sales volumes in this precinct. Throughout 2013, Albion, Braybrook, Deer Park, Sunshine, Sunshine North and Sunshine West collectively recorded a 10% increase in the number of house sales. Sales continued to rise in 2014 and 2015, which has resulted in solid price growth in many of the suburbs of this precinct in the past year.

Around 85% of dwellings are separate houses but the content of units and townhouses has grown in recent years. In FY2013, the number of new units (400) approved outnumbered the number of new houses (310) for the first time in the history of the municipality. Sunshine precinct vacancy rates

In the past five financial years, around 1,420 new Postcode Suburbs Vacancy 3019 Braybrook 1.7 % units have been approved by the City of Brimbank. 3020 Albion, 2.8 % Sunshine Median rents across the Sunshine Precinct range 3023 Deer Park 1.9 % from $300 a week in Ardeer to $330 in Deer Park. Source: sqmresearch.com.au

The precinct’s house market can be summarised as follows:- Houses No. of Median price 12mth growth Growth average Yields sales Albion 60 $451,000 10 % 7 % 3.7 % Ardeer 65 $400,000 10 % 7 % 4.0 % Braybrook 136 $543,000 17 % 10 % 3.3 % Deer Park 342 $390,000 8 % 6 % 4.4 % Sunshine 135 $530,000 12 % 8 % 3.2 % Sunshine North 228 $497,000 20 % 8 % 3.5 % Sunshine West 270 $454,000 16 % 7 % 3.9 % Source: APM – “growth average” is the average annual growth in median house prices over the past 10 years “snr”: statistically not reliable

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Future Prospects

Sunshine’s emergence as a National Employment Cluster has CORE INFLUENCES: the potential to bring 28,000 jobs, 30,000 homes and 58,000 Ugly Ducklings, residents into the area, according to growth estimates Transport Infrastructure, produced by the Metropolitan Planning Authority. Education-Medical, Government Policy. Brimbank Council plans to rezone 19ha to allow mixed-use development on redundant industrial land and a further 9ha to enable residential development with existing commercial uses.

Sunshine attracted around $1 billion in public and private investment between 2010 and 2015. Significant projects include the:

 $880 million re-construction of Sunshine Station, integrated bus interchange and Anderson Road grade separation for the Regional Rail Link;  $150 million mixed-use development Foundry Towers, with two more stages to follow.  $6 million Visy Cares Hub extension on Harvester Road (a youth centre servicing 35,000 youths each year);  $44 million Victoria University Futures Training Facility.

More recently, plans have been announced by chemical company Orica to transform 72ha of Deer Park into shops, offices and light industrial. The project has the potential to create 3,600 jobs. Decontamination and site remediation works have started and development is due to begin in 2016.

Other plans impacting the Sunshine precinct are:-

Regional Rail Link The $5 billion Regional Rail Link included $880 million of infrastructure in the City of Brimbank.

This incorporated a re-development of Sunshine railway station, a bus interchange and car parking which was completed in 2014.

Ballarat and Bendigo trains began using dedicated tracks from Sunshine to Southern Cross Station in mid-2014, separating them from metropolitan services and reducing congestion.

The Regional Rail Link was completed in June 2015 when Geelong trains began using the new track through Wyndham Vale and Tarneit.

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Airport Rail Link The State Government has announced Sunshine as a major link in the Airport Rail Project which will be a catalyst for further development, bringing more people and businesses into the town centre.

Airport chief Chris Woodruff said the airport was well advanced in planning for the rail link. "The main entrance to the airport is already approved – the rail goes straight up the middle of Airport Drive currently under construction," he said.

Construction of the $11 billion rail link may begin in 2017 and be completed by 2026, according to a report in The Age.

St Albans level rail crossing The rail crossing at St Albans is to be removed, the rail line lowered and a train station built under Main Road. Both St Albans and Ginifer Stations will be rebuilt. The St Albans train station car park will also be moved, and a new bus interchange and pedestrian overpass will be created to replace the existing crossing at Ruth Street.

The $200 million project, funded jointly by the State and Federal Governments, is designed to improve the safety of over 20,000 people who use the crossing daily. Work began in late 2015 and is expected to be completed in mid-2017.

Sunshine health hub Brimbank City Council approved a 10-storey private hospital at St Albans in February 2014. Costing $130 million, the hospital will have 150 beds and employ up to 50 medical staff. It will be built opposite Sunshine Hospital, and form part of a centralised health and tertiary precinct.

In December 2013, Sunshine Hospital opened a $6 million psychiatric assessment and planning unit, providing additional services to around 400 patients.

Foundry development Stage one of the $150 million Foundry project in Sunshine was completed in 2014.

The mixed-use development includes 119 apartments and 13 shops in the first stage, with another 138 apartments, 16 shops and 15,000m2 of offices to follow in later stages.

Other development

Brooklyn Industrial Precinct Brooklyn has 262ha of industrial land which is earmarked by Council to become a $20 million world- class eco-park. It is well-located in terms of the Port of Melbourne, the CBD and the airport, with access to standard and broad gauge rail, as well as the Princes Freeway and Western Ring Road. The route of the proposed metropolitan East-West Road Link passes through the area.

Calder Park Calder Park has 100ha of industrial land near the Calder Freeway and the Sunbury railway line. It has the capacity to be a significant employment hub for the Western Region.

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Derrimut Industrial Estate The Derrimut industrial precinct has 560ha of industrial land. It is the second largest industrial- zoned area in Melbourne.

Albion Triangle The Albion triangle next to the Sunshine Town Centre and Energy Park has opportunities for high- density residential. It includes the heritage-listed John Darling Flour Mills next to Albion Railway station. The John Darling Flour Mill is reportedly earmarked to be transformed into a ‘transport- oriented development’ featuring residential, retail and hotel uses.

Energy Park This area comprises 44ha of vacant land which is expected to evolve over time as a regional sports venue. It has good rail and road connections and has easy access to Melbourne Airport.

Favoured locations The suburb of Sunshine has plenty working in its favour, as it shakes off its former image as a downmarket problem area.

It offers affordability, good existing infrastructure plus spending on new infrastructure, and proximity to jobs nodes. It’s also undergoing urban renewal processes, with former industrial areas being transformed into residential and retail precincts.

Its commuter rail station was the focus of $880 million worth of transport infrastructure investment as part of the Regional Rail Link project and a private hospital is proposed to add to the medical facilities of Sunshine Hospital.