Sanctuary Point Property Factsheet 1st Half 2018 OVERVIEW is a town located approximately 200km south of , on the shores of St Georges Basin. It is a coastal town with waterfront homes and local residents enjoy numerous small beaches. At the ABS 2016 census the population was 7,225 people, which is a 9.3% increase over the past 5 years. Half Change from Last Year Year

House Sales

House Median Price

House Rental Price

MARKET CONDITIONS Land Sales The Sanctuary Point* property market recorded a median house price of $430,000 and $220,000 for vacant land in Q4 2017, representing an annual price change of 7.5% and 7.3% respectively. Over the same period of time Land Median Price house prices in Shoalhaven Local Government Area (LGA) grew by 14.0% to $555,000 and land prices grew by 29.3% to $285,000. Sanctuary Point* Unit Rental Price*** offers a more affordable entry point to the market, without compromising on positive capital growth. FUTURE DEVELOPMENTS** Sanctuary point is set to see approx. Average days to sell in Sanctuary Point* has increased over the past 12 $28.5M of new projects commencing in months to Q4 2017, to 66 days. Average house vendor discounting has the 1st half of 2018. Residential projects widened within the same time frame, from -2.3% in Q4 2016 to -5.2% in Q4 account for the majority this (83.2%), 2017, suggesting buyers have more room to negotiate on first list asking totaling an estimated $23.8M. This is price, which is reflective of less competition to secure the property quickly. followed by commercial developments, at This puts Sanctuary Point* in a unique happy medium whereby buyers have approx. $3.5M (12.3%); and infrastructure room to negotiate yet sellers are still benefiting from positive price growth. projects at approx. $1.3M (or 4.5%). Vacant land owners would be pleased as average vendor discounting has tightened over this timeframe, to -3.8% in Q4 2017, suggesting buyers are Sanctuary Point* plans to add 90 units to more willing to offer closer to first list price - the time to sell is now. its market in the 1st half of 2018. A key project commencing during this period is Median rent in Sanctuary Point* has increased by 2.9% over the past 12 the Anson Street Apartments, estimated months to Q4 2017, currently at $360 per week. This signifies real rental at $17.6M and set to add 56 apartments price growth as the number of houses rented has increased by 11.1% over to the Sanctuary Point* market. The this period, suggesting an increase in rental demand and that now is the project is due for construction in March, prime time for investors to enter the Sanctuary Point* market. with an anticipated completion in 2020.

SHOALHAVEN CITY COUNCIL GROWTH Another important project in the 1st half of 800 $600,000 2018 is the Inasmuch Retirement Village. With an approximate value of $2.5M, the $500,000 600 project will involve improvements to the $400,000 existing village and is expected to finish by late 2018. This assists in maintaining 400 $300,000 local job growth, which in turn creates $200,000 sustainable economic growth in the 200 Sanctuary Point* area.

$100,000 Median Price Number Sales of Number 0 $0 *Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Q3 Q4 Q1 Q2 Q3 Q4 Renowal Bay, , , . 2016 2016 2017 2017 2017 2017 **Estimated values and construction/completion dates quoted are estimate only, as per relevant data authority. House Vacant Land ***Unit rental price is indicative only due to limited number of units rented in the area. Source: APM Pricefinder, realestate.com.au, Real Estate Institute of NSW. Median House Price Median Vacant Land Price © Copyright PRDnationwide 2018. AVERAGE VENDOR DISCOUNT* AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT AverageAverage vendorvendor discountdiscount reflectsreflects the the House Vacant Land average percentage difference 0.0% average percentage difference between betweenfirst listedfirst listprice priceand andfinal final sold price. A -1.0% price.lower A lowerpercentage percentagedifference differencesuggests

- 1.6% (closer to zero) suggests buyers are

- 2.3% buyers are willing to purchase close to

- 3.2% willing to purchase close to the first -2.0% - 3.3% the first asking price of a property. - 3.8% - 4.1% - 4.2% asking price of a property. - 4.6%

-3.0% - 5.2% - 5.6% - 6.0%

Price MARKET COMPARISON GRAPH -4.0% - 6.9% The KEYmarket FACTS comparison UNIT graph provides -5.0% comparative trend for median price of house and units over the past 10 years. -6.0% Suburbs profiled are chosen based on Change from Listing to to Listing Sale from Change proximity to the main suburb analysed in -7.0% the factsheet, which is Sanctuary Point. -8.0% The main suburb is highlighted through a Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 dotted black line graph. HOUSE MARKET COMPARISON $700,000

$600,000

$500,000

$400,000

$300,000 House House Price Median $200,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sanctuary Point St George's Basin Tomerong VACANT LAND MARKET COMPARISON** $250,000

$200,000

$150,000

$100,000

$50,000

$0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Vacant Land Median Price Median Land Vacant

Sanctuary Point St George's Basin Old Erowal Bay Tomerong

*Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Renowal Bay, Basin View, Erowal Bay, Tomerong. **Dashed line in median line price graph is due to limited sales records for that time period and median price displayed is approximate only based on previous known median price and trend. Source: APM Pricefinder, realestate.com.au, Real Estate Institute of . © Copyright PRDnationwide 2018. OVERVIEW AVERAGE DAYS ON MARKET** HOUSE KEY FACTS Q4 2017 120

Median Sale Price: $430,000 100 Annual Growth: 7.5%* Average Days on Market: 66 80 % Change between First Listed Price and Sold Price: -5.2%

60 108 106 KEY FACTS UNIT*

91 LAND KEY FACTS Q4 2017 87 40 81 Median Sale Price : $785,000 70 69 67 66 Average Days Market on Days Average Annual Area Growth: 11% 55 54 Median Sale Price: $220,000 47 Average Days on Market: 36 20 Annual Growth: 7.3%* % Change between First Listed Price and Average Days on Market: 91 Sold Price: -0.1% 0 % Change between First Listed Price Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 and Sold Price: -3.8% House Vacant Land Overall Market Trend

SALES AND MEDIAN PRICE**

140 $500,000

$450,000 120 $400,000

100 $350,000

$300,000 80

$250,000

60 125 115 113 114 $200,000 107 103 Price Median Number of of Sales Number 40 $150,000

$100,000 20 36 31 30 25 26 $50,000 18 0 $0 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

House Sales Vacant Land Sales Median House Price Median Vacant Land Price

*Annual growth represents price growth for property transactions between Q4 2016 to Q4 2017 (inclusive). **Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Renowal Bay, Basin View, Erowal Bay, Tomerong. Source: APM Pricefinder, realestate.com.au, SQM Research, Real Estate Institute of , Shoalhaven City Council. © Copyright PRDnationwide 2018. SALES PRICE POINT ANALYSIS* HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017

4.3% 7.5% 9.6% 14.2% 5.5% Less than $349,999 9.9% 32.3% $350,000 to $399,999 9.8% $400,000 to $449,999 7.9% $450,000 to $499,999 23.1% $500,000 to $549,999 13.8% $550,000 to $599,999 14.7% $600,000 plus 26.8% 20.7%

LAND PRICE POINT 2016 LAND PRICE POINT 2017

4.8% 5.7% 25.7% 21.4% Less than $124,999 20.0% $125,000 to $149,999 32.1% $150,000 to $174,999 $175,000 to $199,999 $200,000 to $224,999 $225,000 to $249,999 $250,000 plus 24.3% 24.3% 38.1%

KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS – VACANT LAND The proportion of houses sold in Sanctuary Point* during The dominant proportion of vacant land sales in the 2017 were mainly in the $350K - $399K price segment Sanctuary Point* market is in the $250K plus price (23.1%). Sanctuary Point* experienced a significant drop bracket, increasing from 0.0% in 2016 to 25.7% in 2017. in the less than $350K price bracket, from 32.3% in 2016 to 14.2% in 2017. This shows that there has been a A substantial contraction of land sales occurred in the significant shift in affordability within the market, lower and middle segments of the market during 2017. indicating the time for first home buyers to secure their In particular, price segments $175K – 200K decreased dream properties is now. from 38.1% (2016) to 20.0% (2017) and $150K - $175K from 21.4% to 5.7%. In contrast the higher end of the Compared to 2016 the proportion of house sales for price market, within the $225K – $250K bracket, expanded segments above $400K almost doubled in 2017, from 4.8% to 24.3% in 2017. This reflects the increasing particularly within the $400K – $450K bracket (20.7%). value of vacant land stock in Sanctuary Point*, providing This indicates increasing appetite for high quality stock. attractive development opportunities.

*Sanctuary Point data encapsulates aggregate conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Renowal Bay, Basin View, Erowal Bay, Tomerong. Source: APM Pricefinder. © Copyright PRDnationwide 2018. OVERVIEW INVESTMENT ANALYSIS HOUSE KEY FACTS Q4 2017 HOUSE Median Rent Price: $360 per week Suburb Rental Yield: 4.4% 2 Bedroom Average Days on Market: 27 3 Bedroom Bedroom Breakdown: 2 Bed: 23%, 3 Bed: 46%, 4+ Bed: 31% 4+ Bedroom

UNITS KEY FACTS Q4 2017 KEY COMMENTS Sanctuary Point* attracts an average 737 online views per property, on Median Rent Price: $195 per week par with the New South Wales average of 856. The rental market grew by Suburb Rental Yield: 5.5% Overview2.9% over the past 12 months to Q4 2017, which when combined with the Average Days on Market: 37 11.1% increase in the number of houses rented suggests a high demand Bedroom Breakdown: market. Sanctuary Point* rental yield is 4.4%, which is significantly higher 1 Bed: 8%, 2 Bed: 88%, 3+ Bed: 4% than the Shoalhaven City Council (3.6%). This further confirms Sanctuary Point* as having conducive conditions for sustainable investment returns.

MEDIAN RENT AND AVERAGE DAYS ON MARKET*

64 400

62 350

60 300

58 250

56 200 63 63

Number of of Number Rentals 61 54 60 60 150

52 100

54 Market on Days / Rent ($) Average Median 50 50

48 0 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

House House Average Days Median House Rent

*Disclaimer: Sanctuary Point market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Sanctuary Point, St Georges Basin, Old Renowal Bay, Basin View, Erowal Bay, Tomerong. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. 2017* KEY COMMENTS RENTAL PERFORMANCE Sanctuary Point (4.4%), St George’s Basin (4.4%), Basin View (4.3%) house rental Median House Rent P/W Annual Change yields are positioned well above the $500 12.0% Shoalhaven LGA, South Coast NSW, and 10.0% $450 Sydney Metro rental yields. 10.0% $400 4+ Bedroom houses provide the highest 6.1% $350 annual rental growth at 10.0%, currently at 8.0% $440 per week in 2017. $300 3.5% $250 6.0% Despite a comparably low household $440 income, it is much more achievable to own $200 a property outright in Sanctuary Point $350 4.0% $150 $293 (44.4%) than in Sydney (32.2%). Vacancy $100 rates in postcode 2540 is 1.8%, lower than 2.0% Sydney Metro’s 2.6% - indicating healthier $50 rental demand. Affordable and high returns $- 0.0% present vast opportunities for investors in Two Bedrooms Three Bedrooms Four + Bedrooms the Sanctuary Point* property market.

VACANCY RATES 2017 RENTAL YIELD 2017

3.5% Suburb/ House Postcode/ Rental 3.0% LGA Yield 2.5% Sanctuary Point 4.4% 2.0% St George’s Basin 4.3% 1.5% 1.0% Basin View 4.3% 0.5% Shoalhaven City Council LGA 3.6%

0.0% Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

South Coast NSW 3.7%

Postcode 2540 Shoalhaven LGA Sydney Metro Sydney Metro 2.9%

KEY HOUSING DEMOGRAPHICS

Sanctuary Point Shoalhaven City Council LGA New South Wales Median weekly household income $857 $992 $1,486 Median monthly mortgage repayments $1,300 $1,517 $1,986 Unemployed 9.8% 6.7% 6.3% Professionals 10.5% 16.9% 23.6% Owned outright 44.4% 43.8% 32.2% Owned with mortgage 25.2% 26.8% 32.3% Rented 26.3% 25.0% 31.8%

*Rental performance graph represents aggregate house median rent price in the following suburbs: Sanctuary Point, St Georges Basin, Old Renowal Bay, Basin View, Erowal Bay, Tomerong. Annual change is a comparison between 2016 and 2017 median rent figures. Source: APM Pricefinder, SQM Research, ABS Census 2016. © Copyright PRDnationwide 2018.

Source: Australian Bureau of Statistics, APM PriceFinder, Cordell Database, CoreLogic RPdata, New South Wales Department of Planning and Environment, SQM Research, Housing NSW. PROJECT DEVELOPMENT MAP 1ST HALF 2018*

4.5%

12.3%

83.2%

Commercial Residential Infrastructure

Estimated Commence Location Project** Type Value*** Date**** 1 Inasmuch Retirement Village Commercial $2,493,000 12/02/2018 2 Jervis Street Tourist Facility Commercial $560,000 26/03/2018 3 Tourist Cabins Beach St Commercial $288,000 07/05/2018 4 Sussex Inlet Resort Commercial $180,000 07/01/2018 5 Moona Moona Creek Shared Path Bridge Infrastructure $500,000 02/04/2018 6 Jacobs Drive Streetscape Upgrade Infrastructure $500,000 11/03/2018 7 Mernie Street & Wool Road Roadworks Infrastructure $300,000 21/04/2018 8 Anson St Apartments (56 Units) Residential $17,607,000 01/03/2018 9 Jacobs Drive Units (8 Units) Residential $1,350,000 08/01/2018 10 Frederick Street Units (6 Units) Residential $1,200,000 14/05/2018 11 Nowra Street Residential Apartment Building (8 units) Residential $1,095,000 01/02/2018 12 Currambene Street Units (4 Units) Residential $850,000 05/02/2018 13 Jacobs Drive Units (4 Units) Residential $800,000 23/06/2018 14 Island Point Road Units (3 Units) Residential $500,000 06/02/2018 15 Macleans Point Road Units (3 Units) Residential $400,000 11/06/2018

*Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the Shoalhaven City Council area. ***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value. ****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date in which each project commences and/or is completed. Source: Cordell Database, ESRI ArcGIS, Department of Planning and Environment NSW. © Copyright PRDnationwide 2018. ABOUT PRDnationwide RESEARCH PRDnationwide’s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia Our extensive research capability and specialised approach ensures our clients can make the most informed and financially sounds decisions about residential and commercial properties. OUR KNOWLEDGE Access to accurate and objective research is the foundation of all good property decisions As the first and only truly knowledge based property services company, PRDnationwide shares experience and knowledge to deliver innovative and effective solutions to our clients.

OverviewWe have a unique approach that integrates people, experience, systems and technology to create meaningful business connections We focus on understanding new issues impacting the property industry; such as the environment and sustainability, the economy, demographic and OUROUR SERVICES SERVICES INCLUDE: INCLUDE: psychographic shifts, commercial and residential design; and forecast future implications around such issues based on historical data and fact. • Advisory and consultancy • Market Analysis including profiling OUR PEOPLE and trends Our research team is made up of highly qualified researchers who • Primary qualitative and focus solely on property analysis quantitative research

Skilled in deriving macro and micro quantitative information from multiple • Demographic and target market credible sources, we partner with clients to provide strategic advice and Analysis direction regarding property and market performance. We have the added advantage of sourcing valuable and factual qualitative market • Geographic information mapping research in order to ensure our solutions are the most well considered and financially viable. • Project Analysis including product and pricing recommendations Our experts are highly sought after consultants for both corporate and • Rental and investment return AREAgovernmentXXXXXX bodies and their advice hasAREA helped steerXXXXXX the direction of a analysis number of property developments and secured successful outcomes for our clients. Wayne Poole, Principal PRDnationwide Sanctuary Point OUR SERVICES 3/18 Paradise Beach Road Our research services span over every suburb, LGA, and state within Sanctuary Point NSW 2540 Australia; captured in a variety of standard and customized products Australia

We have the ability and systems to monitor market movements, T +61 2 4443 0519 demographic changes and property trends. We use our knowledge of M +61 408 424 138 market sizes, price structure and buyer profiles to identify opportunities E [email protected] for clients and provide market knowledge that is unbiased, thorough and reliable. PRD.com.au/sanctuarypoint Heading

PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the Information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRDnationwide 2018. Over 40 Years of Leading Property Industry Research