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1 GOLD COAST APARTMENT 0 15 QUARTER ESSENTIALS

2 16 GOLD COAST AIRPORT Project LIFT AUTHORS MALCOLM AIKMAN, PAUL RIGA, LYNDA CAMPBELL National Residential Team, Urbis EDITOR MALCOLM AIKMAN Director, Urbis DESIGN LOUISE LINDGREN, KEATON FLETCHER Graphic Design, Urbis PRINTING COLOURCHIEFS PRINTING PR/ MEDIA BIG SPLASH COMMUNICATIONS COVER IMAGE SOURCED FROM SHUTTERSTOCK Disclaimer Urbis Pty Ltd 015 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, transmitted or copied in any form or by any means (graphic, electronic or mechanical, including photocopying or scanning) without prior written permission from Urbis Pty Ltd. As this publication involves data that has been supplied externally through surveys, Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions or inaccuracies which may prove to be incorrect at a later date. This study has been prepared for the sole use of Urbis and is not to be relied upon by any third party for the purposes of financial investment without specific approval. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquiries should be addressed to the publishers. SUBJECT TO COPYRIGHT NOT TO BE REPRODUCED Publications are for subscribers use only. A subscription entitles employees of the same organisation to the use of its contents for internal reporting purposes only. Only employees of your organisation may have access to the publication. Urbis publications must not be uploaded to an internet or intranet facility, nor should they be used for inter-library loans, without written authorisation to do so.

3 CONTENTS 0 04 EXECUTIVE SUMMARY A visual analysis of each of the four precincts making up the Gold Coast. GC GOLD COAST Gold Coast comprises four precincts NS NORTH SHORE Biggera Waters, Coombabah, Helensvale, Hollywell, Hope Island, Paradise Point and Runaway Bay. GCC GOLD COAST CENTRAL Broadbeach, Broadbeach Waters, Labrador, Main Beach, Southport and Surfers Paradise CF COASTAL FRINGE Arundel, Ashmore, Benowa, Bundall, Carrara, Clear Island Waters, Merrimac, Molendinar, Parkwood, Robina and Varsity Lakes. SB SOUTHERN BEACHES Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads.

4 EXECUTIVE SUMMARY NORTH SHORE $78,333 WEIGHTED AVERAGE $193,438 MORE THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR % MOST POPULAR PRODUCT 3 $650,000 WEIGHTED AVERAGE $17,33 MORE THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR % MOST POPULAR PRODUCT GC CENTRAL COASTAL FRINGE $436,950 WEIGHTED AVERAGE $9,479 LESS THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR % MOST POPULAR PRODUCT $963,46 WEIGHTED AVERAGE $494,871 LESS THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR % MOST POPULAR PRODUCT SOUTHERN BEACHES

5 LEGEND Rail Light Rail $558,838 WEIGHTED AVERAGE $54,04 LESS THAN THE WEIGHTED AVERAGE IN THE 1ST QTR % MOST POPULAR PRODUCT GOLD COAST 3

6 GOLD COAST ESSENTIALS The Gold Coast is a summary of all four precincts, consisting of North Shore, GC Central, Coastal Fringe and Southern Beaches / Northern NSW. ND QTR SURVEYS 44 MONITORED EQUATING TO 314 SALES IN ND QTR 015 $558,838 WEIGHTED AVERAGE $54,04 LESS THAN THE WEIGHTED AVERAGE SALE PRICE IN 1ST QTR 015 PROJECT NAME SUBURB DEVELOPER STATUS UNITS SOLD TO DATE SOLD nd QTR 015 FOR SALE WEIGHTED AV. $ SALE APPROX. GROSS $QTR PRICE HIGH RISE 8 On Norman Southport Zormer Pty Ltd Presales 51 N/A N/A N/A N/A N/A Brighton on Broadwater - Sundale Southport Meriton Construction $635,56 $1,075,000 Coast South Tower Labrador Heran Group Construction 85 N/A N/A N/A N/A N/A Coast West Tower Labrador Heran Group Completed $355,769 $4,65,000 East Quay Two Biggera Waters Emandar Group Construction N/A 1 N/A N/A Eclipse Broadbeach Amalgamated Property Group Completed $1,50,000 $,500,000 Eden Coolangatta Triplett Completed N/A N/A Lanikai Southport Lanikai Developments Presales $550,000 $6,600,000 Maili Coolangatta Worthvista Pty Ltd Completed N/A N/A One One Six Surfers Paradise Guy Zumbo P/L Presales N/A N/A Outlook Apartments Southport Andrews Projects Construction N/A 6 N/A N/A Pure Kirra Pikos Completed $883,333 $5,300,000 Qube Broadbeach Amalgamated Property Group Presales $613,889 $11,050,000 Rhapsody Surfers Paradise Ho Bee Investment Construction $563,636 $1,400,000 Sanbano Coolangatta Coolangatta Sanbano Completed $1,050,000 $,100,000 Sapphire at the Broadwater Stage Labrador Raptis Group Completed 89 N/A N/A N/A N/A N/A Soul Surfers Paradise Juniper Completed $1,637,500 $16,375,000 SpenDeLove Southport Gembira Management P/L Presales 37 N/A N/A N/A N/A N/A Synergy Apartments Broadbeach Amalgamated Property Group Construction $55,000 $,100,000 The Beach Apartments Broadbeach Anthony Moreton Group & Pryde Group Presales 19 N/A N/A N/A N/A N/A The Garland Coolangatta SPAHS Construction $,000,000 $4,000,000 The Oracle Tower One Broadbeach Niecon Completed $800,000 $1,600,000 The Oracle Tower Two Broadbeach Niecon Completed $1,05,000 $3,075,000 Tweed Ultima North Tweed Heads Majeed Tabrizi Completed $375,000 $1,15,000 Ultima Harbourside Tweed Heads Majeed Tabrizi Construction 16 N/A N/A N/A N/A N/A Vantage Stage 1 Ashmore Rayjon Group Presales $850,000 $850,000 Victoria Towers Southport City Plan Partners Completed $59,545 $5,85,000 DEVELOPMENTS -7 3,4 1, $699,37 $91,600,000 MID RISE Ascent Southport Rawcorp Construction 30 N/A N/A N/A N/A N/A Atmosphere Stage 1 Ashmore Howard Group Presales $397, $3,575,000 Aura Stage 1 Varsity Lakes Alder Constructions Pty Ltd Construction 56 N/A N/A N/A N/A N/A Boheme Stage 1 Robina Robina Group Presales $480,63 $9,15,000 Brighton Grand Southport Reinisch Completed 6 N/A N/A N/A N/A N/A Brooklyn Apartments Varsity Lakes Howard Group & Alceon Presales $430,10 $1,075,000 Cambridge Residences Robina Shino Development Group & SPG Investment Holding Ltd Presales $410,507 $8,35,000 Frangipani on Palm Beach Palm Beach Vicpas Pty Ltd Completed N/A N/A Oceans Apartments Southport Concept Investments Construction $400,000 $3,00,000 One33 Scarborough Southport Andrews Projects Construction 4 40 N/A N/A N/A Rise Southport Rawcorp Completed $375,000 $1,15,000 Royal Pines - Marina Residences Benowa Sunland Group Completed $593,18 $6,55,000 Salacia Waters Stage 1 Paradise Point Lotte Engineering & Construction Completed $78,333 $10,95,000 South Hamptons Southport Andrews Projects Construction N/A 4 N/A N/A Sundeck Apartments Tweed Heads Golden Blue Developments Presales 6 N/A N/A N/A N/A N/A Waterford Apartments Stage Bundall Matthews Property Group Presales 155 N/A N/A N/A N/A N/A DEVELOPMENTS , $458,333 $83,875,000 LOW RISE Waterford Apartments Stage 1 Bundall Matthews Property Group Completed 68 N/A N/A N/A N/A N/A DEVELOPMENTS N/A N/A DEVELOPMENTS ,530, ,98 $558,838 $175,475,000 N/A represents projects that have not been surveyed or information is not certain Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials 4

7 GC TRANSACTION ANALYSIS GC 314 SALES 3 SURVEYS 44 MONITORED Gold Coast new apartment sales figures have increased for the fourth consecutive quarter. Over the last 1 months, sales volumes have more than doubled across the new apartment market. Q 015 has recorded 314 unconditional sales across the Gold Coast and Northern NSW, compared to 154 during Q 014. Three projects sold out during Q 015 and six new projects were added to the survey bringing an additional 548 new apartments to the market while taking the number of new apartment projects to 44. The mid-rise sector registered the highest sales rate with a total of 183 during Q 015. This is the first time the mid-rise sector has recorded a higher sales rate than the high-rise sector since Urbis began monitoring the Gold Coast new apartment market during Q The mid-rise sector was followed by the high-rise sector which recorded 131 sales during the quarter. Only one project is contained within the low-rise sector and sales figures are unavailable for this project. Urbis estimates that approximately new apartment projects could enter the market over the next six months. This would add around,500 apartments to the current supply level. With the Gold Coast on the radar of foreign buyers, and the affordability of the City in comparison to capital citys of Sydney, Melbourne and Brisbane, it is anticipated that new apartment stock will be well received. SALES TREND BY PRECINCT Coastal Fringe Precinct records highest number of sales for second time. The Coastal Fringe Precinct has out-performed the traditional Gold Coast new apartment precincts for the second time in six months. The precinct has recorded its highest sales rate on record with 159, 33 more than previous high during Q New projects introduced to the precinct over the last six months have recorded strong sales rates with two projects within the Coastal Fringe Precinct recording the highest individual project performance during Q 015. During Q 015, the GC Central Precinct recorded a sales rate of 17, equal to previous quarter performance. North Shore and Southern Beaches and Northern NSW Precincts recorded softer results during the quarter with 15 and 13 respectively. NUMBER OF APARTMENT SALES Q1 014 Q 014 Q3 014 Q4 015 Q1 015 Q NS GCC CF SB PRECINCTS Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials Q 015 NUMBER OF APARTMENT SALES S Studio Q1 3 PRODUCT TYPE Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials Q Q 014 Q3 014 Q4 015 Q1 015 Q Penthouse SALES TREND BY PRODUCT TYPE Two-bedroom two-bathroom product continues to dominate new apartment market. Two-bedroom product continues to dominate demand and take-up of new apartment product across the Gold Coast. Two-bedroom product also is dominating future new apartment supply figures. Sales of two-bedroom product during Q 015 equated to 187 apartments, or 60 per cent of total sales. One-bedroom product is recording a continued increase in sales volumes, as the chart on the left indicates. The level of sales of one-bedroom product in the capital cities of Sydney, Melbourne and Brisbane are strong. While the Gold Coast is yet to see this product type in large volumes, it is noted that it is gaining momentum. A total of 93 one-bedroom apartments transacted during Q 015, which compares to only six sales during Q 014. One-bedroom product accounted for 30 per cent of total sales during Q 015. Three-bedroom product recorded 9 sales, well below the 58 sales recorded during the previous quarter. WEIGHTED AVERAGE BY PRECINCT Wide range of price points between Precincts. $1,600,000 The weighted average sale price of the surveyed sample of projects was $558,838 across the Gold Coast during Q 015. This is a reduction from the previous quarter of $54,04. The Southern Beaches & Northern NSW Precinct has consistently recorded the highest weighted average sale price each quarter. Q 015 is no exception with a figure of $963,46, well above all other precincts. While the southern suburbs are attracting the highest price points, the Coastal Fringe Precinct was the most affordable place to purchase a new apartment during Q 015 with a weighted average sale price of $436,950. This figure is less than half that of the Southern Beaches & Northern NSW Precinct and as such attracted the highest number of sales. WEIGHTED AVERAGE $1,400,000 $1,00,000 $1,000,000 $800,000 $600,000 $400,000 $00,000 $0 $78,333 NS $650,000 GCC PRECINCTS $436,950 CF $963,46 SB NS GCC CF NORTH SHORE GC CENTRAL COASTAL FRINGE SOUTHERN SB BEACHES Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials Q 015 5

8 GOLD COAST PENDING & FUTURE SUPPLY GC 3 PENDING,69 POTENTIAL NEW APARTMENTS Twenty-three pending projects are expected to launch before the end of the year, bringing approximately,600 new apartments to the Gold Coast and northern NSW market. Of the 3 pending project launches, around 70 per cent are anticipated to occur during Q3 015 and the remainder during Q4. The Gold Coast new apartment market continues to produce an increase in the number of launches and a continued increase in Development Applications being lodged with Council. During Q 015 the number of apartments with Development Applications and Approvals being monitored increased from 1,94 to 35,946. This increase of approximately 14,000 apartments was led by two significant preliminary applications containing around 7,500 apartments within the Coastal Fringe Precinct. These are yet to be approved. Other notable applications occurred in Surfers Paradise where Development Applications were lodged for approximately,000 new apartments, and Labrador which accounted for a possible 680 new apartments. 164 MONITORED 9,16 APPROVALS 16,685 APPLICATIONS 8,163 APPROVALS DEFERRED 54% OF FUTURE SUPPLY ARE 5,901 APARTMENTS IN APPROVAL AND APPLICATION* *not including apartments approved or under application that are in presales or deferred. FUTURE SUPPLY BY DEVELOPMENT STATUS At the end of June 015, 46 per cent of future supply was contained within projects that have lodged a Development Application with council which is yet to be approved. Of the potential future projects that Urbis is monitoring, 6 per cent have Development Approval. This proportion decreased from 36 per cent during the previous quarter. A further 3 per cent of future supply has Development Approval but is deferred, on hold, or the site is for sale. The remaining future supply is contained within Development Approval Presale phase. These projects are selling off-the-plan and, until construction begins, are monitored in both the active and future segments of the Urbis Apartment Essentials. FUTURE SUPPLY STATUS BY PRECINCT GC Central Precinct continues to hold the largest amount of future supply, but Coastal Fringe Precinct is beginning to catch up. As the chart on the right illustrates, the Coastal Fringe Precinct has the largest future supply of new apartments with Development Applications in council. It has eclipsed the traditional high rise suburbs of Surfers Paradise, Broadbeach and Southport. An influx of new applications lodged for large projects has resulted in the sudden escalation of future supply within the Coastal Fringe Precinct. The GC Central Precinct has a much more even spread of future supply across all stages of application, approval and projects on hold or for sale. During Q several developers moved forward with projects that had previously been on hold within the GC Central Precinct, reducing the number of projects recorded as deferred. It should be noted that a Development Application in council does not necessarily result in an approval and new apartment project. FUTURE SUPPLY BY PRODUCT TYPE Two-bedroom product continues to dominate future supply and sales activity across the Gold Coast. Where possible, Urbis has identified future supply by product type. During Q 015 several large preliminary Development Applications were lodged which did not state product breakdown, hence the difference in numbers between the chart on the right and the one above it. Of the projects where product type has been identified, two-bedroom apartments are dominating. The GC Central Precinct is recording the largest amount of future supply across all product types from studio to four-bedroom. PROPORTION OF FUTURE SUPPLY 50% 45% 40% 35% 30% 5% 0% 15% 10% 5% 0% 4% 3% STATUS 6% 46% Presales Deferred Approval Application Prepared by Urbis Source: City of Gold Coast, Cordells NUMBER OF APARTMENTS 1,000 10,000 8,000 6,000 4,000, Development Approval - Presales 68 5, Development Approval - Deferred STATUS 1,967 Prepared by Urbis Source: City of Gold Coast, Cordells NUMBER OF APARTMENTS 16,000 14,000 1,000 10,000 8,000 6,000 4,000,000 0 NS GCC CF 4,099 NS GCC CF 1,053,097 Development Approval NORTH SHORE GC CENTRAL COASTAL FRINGE SOUTHERN SB BEACHES SB 4, , Development Application 3 1 S PRECINCTS Prepared by Urbis Source: City of Gold Coast, Cordells. 6

9 GC 3 PENDING APPROX 18 LAUNCHING DURING 3RD QTR 015 PENDING LEGEND Rail Light Rail 7

10 NORTH SHORE ESSENTIALS The North Shore Precinct comprises Biggera Waters, Coombabah, Helensvale, Hollywell, Hope Island, Paradise Point and Runaway Bay. ND QTR 015 SURVEYS MONITORED EQUATING TO 15 SALES IN ND QTR 015 $78,333 WEIGHTED AVERAGE $193,438 MORE THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR 015 PROJECT NAME SUBURB DEVELOPER STATUS UNITS SOLD TO DATE SOLD nd QTR 015 FOR SALE WEIGHTED AV. $ 1 East Quay Two Biggera Waters Emandar Group Construction N/A 1 N/A N/A APPROX. GROSS $ QTR Salacia Waters Stage 1 Paradise Point Lotte Engineering & Construction Completed $78,333 $10,95,000 HIGH MID DEVELOPMENTS $78,333 $10,95,000 N/A represents projects that have not been surveyed or information is not certain Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials nd Qtr 015 8

11 NS GOLD COAST APARTMENT ESSENTIALS / 0 QTR 015 FUTURE SUPPLY 13 MONITORED 1,967 APPROVALS 68 APPROVALS DEFERRED 58% OF FUTURE SUPPLY ARE,131 APARTMENTS IN APPROVAL AND APPLICATION* *not including apartments approved or under application that are in presales or deferred. 1 LEGEND Rail PENDING 3 PENDING LAUNCHING DURING 3RD QTR POTENTIAL NEW APARTMENTS PENDING PROJECT DEVELOPER UNITS LAUNCH QTR Anchorage Apartments Richope Pty Ltd 8 Q3 015 WaterPoint Residences Raptis Group 108 Q3 015 East Quay Future Stages Emandar Group 13 Q4 015 APARTMENTS 549 9

12 GOLD COAST CENTRAL ESSENTIALS The Gold Coast Central Precinct comprises Broadbeach, Broadbeach Waters, Labrador, Main Beach, Southport and Surfers Paradise. ND QTR SURVEYS 4 MONITORED EQUATING TO 17 SALES OVER THE ND QTR 015 $650,000 WEIGHTED AVERAGE $17,33 MORE THAN THE WEIGHTED AVERAGE SALE PRICE IN THE 1ST QTR 015 PROJECT NAME SUBURB DEVELOPER STATUS UNITS SOLD TO DATE SOLD nd QTR 015 FOR SALE WEIGHTED AV. $ 1 8 On Norman Southport Zormer Pty Ltd PRESALES 51 N/A N/A N/A N/A N/A APPROX. GROSS $ QTR Brighton on Broadwater - Sundale Southport Meriton CONSTRUCTION $635,56 $1,075,000 3 Coast South Tower Labrador Heran Group CONSTRUCTION 85 N/A N/A N/A N/A N/A 4 Coast West Tower Labrador Heran Group COMPLETED $355,769 $4,65,000 5 Eclipse Broadbeach Amalgamated Property Group COMPLETED $1,50,000 $,500,000 6 Lanikai Southport Lanikai Developments PRESALES $550,000 $6,600,000 7 One One Six Surfers Paradise Guy Zumbo P/L PRESALES N/A N/A 8 Outlook Apartments Southport Andrews Projects CONSTRUCTION N/A 6 N/A N/A 9 Qube Broadbeach Amalgamated Property Group PRESALES $613,889 $11,050, Rhapsody Surfers Paradise Ho Bee Investment CONSTRUCTION $563,636 $1,400, Sapphire at the Broadwater Stage Labrador Raptis Group COMPLETED 89 N/A N/A N/A N/A N/A 1 Soul Surfers Paradise Juniper COMPLETED $1,637,500 $16,375, SpenDeLove Southport Gembira Management P/L PRESALES 37 N/A N/A N/A N/A N/A 14 Synergy Apartments Broadbeach Amalgamated Property Group CONSTRUCTION $55,000 $,100, The Beach Apartments Broadbeach Anthony Moreton Group & Pryde Group PRESALES 19 N/A N/A N/A N/A N/A 16 The Oracle Tower One Broadbeach Niecon COMPLETED $800,000 $1,600, The Oracle Tower Two Broadbeach Niecon COMPLETED $1,05,000 $3,075, Victoria Towers Southport City Plan Partners COMPLETED $59,545 $5,85, Ascent Southport Rawcorp CONSTRUCTION 30 N/A N/A N/A N/A N/A 0 Brighton Grand Southport Reinisch COMPLETED 6 N/A N/A N/A N/A N/A 1 Oceans Apartments Southport Concept Investments CONSTRUCTION $400,000 $3,00,000 One33 Scarborough Southport Andrews Projects CONSTRUCTION 4 40 N/A N/A N/A 3 Rise Southport Rawcorp COMPLETED $375,000 $1,15,000 4 South Hamptons Southport Andrews Projects CONSTRUCTION N/A 4 N/A N/A DEVELOPMENTS - 4,89 1, $650,000 $8,550,000 N/A represents projects that have not been surveyed or information is not certain Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials nd Qtr 015 HIGH RISE MID RISE 10

13 GCC GOLD COAST APARTMENT ESSENTIALS / 0 QTR 015 FUTURE SUPPLY 91 MONITORED 4 3 4,099 APPROVALS 11 4,996 APPLICATIONS 558 APPROVALS IN PRESALES 61% OF FUTURE SUPPLY ARE ,095 APARTMENTS IN APPROVAL AND APPLICATION* 7 1 *not including apartments approved or under application that are in presales or deferred. LEGEND Rail Light Rail PENDING PROJECT DEVELOPER UNITS LAUNCH QTR Allegra Andrews Projects 114 Q3 015 Coast Stage 3 Heran Group 70 Q3 015 Essence Morris Property Group 183 Q3 015 PENDING 10 PENDING APPROX. 8 NEW LAUNCHING DURING 3RD QTR 015 1,134 POTENTIAL NEW APARTMENTS Jewel Tower 1 Wanda & Ridong 3 Q3 015 M3565 Main Beach Parade Katie Page 7 Q3 015 Markwell Citimark Properties 06 Q3 015 Niche Weldev Group 54 Q3 015 Spice Ferro Property Group 57 Q3 015 The Beacon Grand Southport P/L 177 Q4 015 Vi Residences Kennedy 34 Q4 015 APARTMENTS 1,134 11

14 COASTAL FRINGE ESSENTIALS The Coastal Fringe Precinct comprises Arundel, Ashmore, Benowa, Bundall, Carrara, Clear Island Waters, Merrimac, Molendinar, Parkwood, Robina and Varsity Lakes. ND QTR SURVEYS 9 MONITORED EQUATING TO 159 SALES OVER THE ND QTR 015 $436,950 WEIGHTED AVERAGE $9,479 LESS THAN THE WEIGHTED AVERAGE IN THE 1ST QUARTER 015 PROJECT NAME SUBURB DEVELOPER STATUS UNITS SOLD TO DATE SOLD nd QTR 015 FOR SALE WEIGHTED AV. $ APPROX. GROSS $ QTR 1 Vantage Stage 1 Ashmore Rayjon Group PRESALES $850,000 $850,000 Atmosphere Stage 1 Ashmore Howard Group PRESALES $397, $3,575,000 3 Aura Stage 1 Varsity Lakes Alder Constructions Pty Ltd CONSTRUCTION 56 N/A N/A N/A N/A N/A 4 Boheme Stage 1 Robina Robina Group PRESALES $480,63 $9,15,000 HIGH 5 Brooklyn Apartments Varsity Lakes Howard Group & Alceon PRESALES $430,10 $1,075,000 6 Cambridge Residences Robina Shino Development Group & SPG Investment Holding Ltd PRESALES $410,507 $8,35,000 MID RISE 7 Royal Pines - Marina Residences Benowa Sunland Group COMPLETED $593,18 $6,55,000 8 Waterford Apartments Stage Bundall Matthews Property Group PRESALES 155 N/A N/A N/A N/A N/A 9 Waterford Apartments Stage 1 Bundall Matthews Property Group COMPLETED 68 N/A N/A N/A N/A N/A LOW DEVELOPMENTS - 9 1, $436,950 $69,475,000 N/A represents projects that have not been surveyed or information is not certain Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials nd Qtr 015 1

15 CF GOLD COAST APARTMENT ESSENTIALS / 0 QTR 015 FUTURE SUPPLY 19 MONITORED ,053 APPROVALS 10,757 APPLICATIONS 908 APPROVALS IN PRESALES 590 APPROVAL DEFERRED 43% OF FUTURE SUPPLY ARE 11,810 APARTMENTS IN APPROVAL AND APPLICATION* *not including apartments approved or under application that are in presales or deferred. 6 5 LEGEND Rail 4 3 Light Rail PENDING PROJECT DEVELOPER UNITS LAUNCH QTR Atmosphere future stages Howard Group 11 Q3 015 Aura Stage Alder Constructions Pty Ltd 64 Q3 015 PENDING 7 PENDING APPROX. 5 NEW LAUNCHING DURING 3RD QTR POTENTIAL NEW APARTMENTS Boheme Stage Robina Group 77 Q3 015 Sage Apartments Stage Minamarc Pty Ltd 4 Q3 015 Varsity Waters Kennedy 113 Q3 015 Sage Apartments Stage 3 Minamarc P/L 4 Q4 015 Vantage future stages Rayjon Group 98 Q4 015 APARTMENTS 71 13

16 SOUTHERN BEACHES ESSENTIALS The Southern Beaches / Northern NSW Precinct comprises Bilinga, Burleigh Heads, Burleigh Waters, Casuarina, Coolangatta, Currumbin, Kingscliff, Kirra, Mermaid Beach, Mermaid Waters, Miami, Palm Beach, Tugun and Tweed Heads. ND QTR SURVEYS 9 MONITORED EQUATING TO 13 SALES OVER THE ND QTR 015 $963,46 WEIGHTED AVERAGE $494,871 LESS THAN THE WEIGHTED AVERAGE SALE PRICE IN 1ST QTR 015 PROJECT NAME SUBURB DEVELOPER STATUS UNITS SOLD TO DATE SOLD nd QTR 015 FOR SALE WEIGHTED AV. $ 1 Eden Coolangatta Triplett COMPLETED N/A N/A Maili Coolangatta Worthvista Pty Ltd COMPLETED N/A N/A APPROX. GROSS $ QTR 3 Pure Kirra Pikos COMPLETED $883,333 $5,300,000 4 Sanbano Coolangatta Coolangatta Sanbano COMPLETED $1,050,000 $,100,000 5 The Garland Coolangatta SPAHS CONSTRUCTION $,000,000 $4,000,000 6 Tweed Ultima North Tweed Heads Majeed Tabrizi COMPLETED $375,000 $1,15,000 7 Ultima Harbourside Tweed Heads Majeed Tabrizi CONSTRUCTION 16 N/A N/A N/A N/A N/A 8 Frangipani on Palm Beach Palm Beach Vicpas Pty Ltd COMPLETED N/A N/A 9 Sundeck Apartments Tweed Heads Golden Blue Developments PRESALES 6 N/A N/A N/A N/A N/A DEVELOPMENTS $963,46 $1,55,000 N/A represents projects that have not been surveyed or information is not certain Prepared by Urbis Source: Urbis Gold Coast Apartment Essentials nd Qtr 015 HIGH RISE MID 14

17 SB GOLD COAST APARTMENT ESSENTIALS / 0 QTR 015 FUTURE SUPPLY 8 41 MONITORED,097 APPROVALS 768 APPLICATIONS 6 APPROVALS IN PRESALES 941 APPROVALS DEFERRED % OF FUTURE SUPPLY ARE,865 APARTMENTS IN APPROVAL AND APPLICATION* *not including apartments approved or under application that are in presales or deferred. PENDING 3 PENDING 3 NEW LAUNCHING DURING 3RD QTR POTENTIAL NEW APARTMENTS PENDING PROJECT DEVELOPER UNITS LAUNCH QTR Boardwalk Morris Property Group 18 Q3 015 Nautica Apartments Century No 6 Pty Ltd 6 Q3 015 Pavillions on 5th Stage APGF 100 Q3 015 APARTMENTS 34 15

18 GOLD COAST AIRPORT Gold Coast Airport is Australia s fastest growing airport and is the fifth busiest international airport in Australia. It welcomes more than 5.8 million passengers per year and as such is undergoing expansion. 5.8M PASSENGERS South East Queensland and Northern New South Wales will benefit from a proposed multimillion dollar investment in the Gold Coast Airport under a plan which will address current peak hour capacity issues and meet forecast demand up to 03. The proposed redevelopment, named Project LIFT (Lets Invest for Tomorrow), comprises redevelopment in the southern portion of the airport and will meet future demand and deliver better services, while creating jobs and other economic opportunities for the future. More information on Project LIFT is contained in the following pages. GOLD COAST AIRPORT JAN DEC 014 / Qantas / Jetstar / Tigerair AIRLINES OPERATING FROM GOLD COAST AIRPORT ARE: / Virgin Australia / Scoot / Air New Zealand / AirAsia X 16

19 3.4M 870, M GOLD COAST VISITORS DOMESTIC OVERNIGHT INTERNATIONAL OVERNIGHT DOMESTIC DAY TRIPPERS Wuhan Tokyo Osaka Kuala Lumpur Singapore Cairns Nadi Gold Coast Airport, in collaboration with City of Gold Coast, Gold Coast Tourism and Tourism and Events Queensland, confirmed earlier this year that direct services to Wuhan in China will commence at the end of September. Jetstar will operate this service on a B787 aircraft with 335 seats on board twice-weekly. LEGEND Commencing 30 September 015 Perth AUSTRALIA Newcastle Adelaide Sydney Canberra Melbourne Gold Coast Airport Auckland Wellington Christchurch Queenstown 17

20 GOLD COAST :LIFT AIRPORT PROJECT Let s invest for tomorrow WHAT IS PROJECT LIFT? As one of Australia s busiest airports, Gold Coast Airport Pty Ltd (GCAPL) is proposing to redevelop existing terminal and apron facilities to meet current and future demand and deliver better services, while creating jobs and other economic opportunities for the community. The proposed redevelopment has been named Project LIFT. WHY IS THE REDEVELOPMENT REQUIRED? A redevelopment of the Airport s facilities is required as: In recent years, Gold Coast Airport has experienced high rates of growth due to increases in low cost and full service carrier airlines, both domestically and internationally within the Southeast Asia and Pacific regions. Recent experience has found the capacity of aircraft parking stands is currently exceeded. If no action is taken to provide additional aircraft parking by 018, up to 374,000 passengers could be impacted annually. This could significantly limit the Airport s ability to service future domestic and international passenger demand. The existing terminal is experiencing capacity issues during peak hour in the areas of check-in, international arrivals, domestic and international departure lounges, baggage handling, and domestic baggage reclaim. If approved, the terminal and apron redevelopment will increase the Airport s capacity to meet forecast demand up to 03. WHAT ARE THE BENEFITS? Redevelopment of the terminal and apron will allow the Airport to function more efficiently and effectively. Project LIFT also will create significant economic benefits for the Gold Coast region, by creating additional employment, generating further economic activities, and providing capacity for future growth. JOBS Direct employment opportunities will be created throughout construction and development, in addition to the ongoing operation of the facilities into the future. Construction phase (016-18) approximately 30 construction jobs are expected to be created. Ongoing operation approximately 180 full-time workers are expected to be employed. TOURISM The Gold Coast region will benefit through an increase in tourism, as the redeveloped Airport will be able to accommodate additional flights and passengers. This will make a significant contribution to the region s economy generating tourism expenditure of more than $6 million per year. More than 400 jobs are expected to be created in construction and ongoing operation phases. 18

21 KEY FACTS Key aspects of Project LIFT include: Redevelopment of the existing terminal building, with the ability to accommodate four aerobridges. Five additional aircraft parking stands with associated taxiways. Site preparation, including earthworks, clearing and drainage. Works requiring approval via the Major Development Plan (MDP) process will be completed in two stages: Stage one will commence in early 016 and includes site preparation, vegetation clearing, drainage. realignment, three new aircraft parking stands, and terminal redevelopment. It is due for completion in 017. Stage two will commence in late 00, and includes two additional aircraft parking stands, due for completion early 01. Additional work not requiring approval via the MDP process includes the refurbishment of the existing departure lounges in the terminal. Once completed in late 018, the refurbished departure lounges will provide improved passenger processing, additional seating and an expanded range of retail outlets. During construction of Project LIFT, normal airport operations will continue. WORK UNDERTAKEN TO DATE As part of comprehensive planning for Project LIFT, a series of detailed technical studies has been undertaken in a number of specialist areas to: Understand existing environmental conditions within and surrounding the project footprint. Identify potential environmental and heritage impacts as a result of the proposed redevelopment. Recommend appropriate measures to mitigate and manage any potential impacts associated with the project s construction and operations. These studies are presented in the Preliminary Draft Major Development Plan (MDP) for Project LIFT, a copy of which is available on the Gold Coast Airport website Stakeholder consultation also has commenced, and discussions have been held with a range of regulatory bodies, members of the local, state and federal government, and community groups. If you would like more information on Project LIFT, please visit 19

22 URBIS CAPABILITY For more than 50 years, Urbis has been the first call for developers, financial institutions, public sector entities, private investors, anchor institutions, and publicly listed companies seeking strategic and tactical advice regarding property investment, design, planning, and development. As the leading independent advisory firm in Australia with experience in multiple domestic and international markets, we provide endto-end advisory and implementation solutions at an entity, portfolio, or project level. Our multidisciplinary team combines real world experience with the analytical underpinnings of the firm s thousands of consulting engagements to develop and implement strategic plans that strengthen our client s position in a market or sector, add value to a property or portfolio, mitigate risks, and strengthen a client s position in the case of an acquisition, disposition or development. Every day, our consultants apply the knowledge gained from our body of work, along with the insights from our proprietary research, which includes trends analysis, consumer research, project/portfolio performance surveying, and market monitoring and forecasts. Our foremost goal is to add value to our clients activities at every point in the market cycle. We constantly refine our concepts and methods in order to identify the best means for helping our clients gain a competitive advantage in the marketplace. NATIONAL RESIDENTIAL TEAM QUEENSLAND RESIDENTIAL TEAM MALCOLM AIKMAN PAUL RIGA LYNDA CAMPBELL JUDE MANNIX ANGUS MCLEAN Director Associate Director Senior Consultant Senior Consultant Senior Consultant ANNA GOLKOWSKI MONIQUE FENN RENE TONNA HAILEY WILLIAMS National Residential Administrator Consultant Research Analyst Research Analyst GRAPHIC DESIGN & GIS TEAM LOUISE LINDGREN JENNA HOOPER KEATON FLETCHER CURTIS GOODE Senior Graphic Designer Graphic Designer Graphic Designer GIS Analyst 0

23 METHODOLOGY METHODOLOGY»» Identifies and analyses apartment developments that have more than, or equal to, 5 apartments in total.»» Surveys are sent to those identified apartment projects that are classified as active and have transacted unconditional contracts within the survey time frame.»» Surveys are sent to the consenting participant (developer) at the end of every quarter with the participant responsible for completing the survey with the unconditional sales achieved for the study period by product type, price point and gross sqm range.»» Information is then collated and reviewed individually in order to identify corrections or errors in survey completion. Should errors be identified, Urbis will work with the participant to clarify the results to ensure correct information is collected and reported.»» Data is analysed and reported based on the sample of data collected at the time of the study period. The following list of terminologies provides further detail in regards to the analysis and methodologies employed to represent the study s sample:»» The glossary further defines the dimensions of the analysis method used to represent the study sample. GLOSSARY Sample In statistics and quantitative research methodology, a data sample is a set of data collected from a statistical population by a defined procedure. Urbis refers to the results collected and analysed within this report in order for one to make inferences from the number of sales surveyed (sample) from the majority of projects monitored (population). Active Projects that are currently, or within the survey period, selling apartment product. Active projects can be categorised in various stages: off-the-plan, under construction or completed. In regards to completed active apartments, Urbis will only survey and monitor apartments that are new and have never been lived in prior to sale. Monitored Monitored refers to all apartment projects that are currently being watched and analysed in various stages and formats. Urbis monitors projects that may not participate in the survey and will not report any sales information from such projects. Sold out projects are no longer monitored in regards to current active supply but are still monitored in regards to settlement supply figures. Presales Presales refers to projects that are selling apartments off-theplan and are not classified as being under construction or as completed. Under Construction Projects that are under construction and are still active or have apartments remaining for sale. Completed Completed projects refer to developments that have finished construction and have new apartments remaining for sale. Settlement Apartment projects that are classified as completed and ready to be occupied and ownership of the property is transferred to the buyer. Pending Urbis defines pending projects as projects that will be launching or actively selling in the near future (within 1 months). This assessment is based on primary information supplied by the development fraternity as to when a project will be launched to the market. Future Supply Future supply refers to pipeline apartment stock considered as non-tangible at the time of writing or reporting period. Future supply monitors projects in development application and approval phases along with those classified as active or selling apartment stock off-the-plan. Only when apartments enter construction are they removed from the future supply database as they are considered to have greater certainty for completion and are tangible. Urbis does split the future supply database into those projects that are in presales, or classified as deferred, for greater transparency of the project s status. Development Application Presales Development application presales are projects that have a formal application for development with the local authority yet have started actively selling apartment stock. Development Approval Presales Development approval presales are projects that have a formal approval and consent to proceed with the development with the local authority and have started actively selling apartment stock. This is most commonly when a project is in presales or selling apartment stock off-the-plan. Development Approval Deferred A development application has, or had, approval and that is currently classified as deferred or currently not progressing due to various reasons. Low Rise Low rise apartment developments are regarded as developments that have up to three storeys from the ground level. Mid Rise Mid-rise apartment developments are regarded as developments that are between four and eight storeys from the ground level. High Rise High-rise apartment developments are regarded as developments that have more than nine storeys from the ground level. 1

24 BRISBANE Level 7, 13 Albert Street Brisbane QLD GOLD COAST 45 Nerang Street Southport QLD SYDNEY Level 3, Darling Park Tower 01 Sussex Street Sydney NSW MELBOURNE Level 1, 10 Collins Street Melbourne VIC PERTH Level 1, 55 Georges Terrace Perth WA info@urbis.com.au