Property Metrics Median Days on Market 120

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1 Property Prices Median Sale Price (Log Scale) $45, Property Metrics Median Days on 12 Median Vendor Discount 8% May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 $32, 9 6% $23, 6 4% $165, Vacant Land 3 2% $12, Apr-8 Apr-9 Apr-1 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Oct-8 Oct-9 Oct-1 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 * All sales are classified to date of contract (not date of settlement) ** Recent months are provisional and subject to revision Source: HTW Analysis of RPData Source: CoreLogic % Although median price trends have technically declined over the last six months, we regard these movements as illusory due to the predominance of property sales shifting from more expensive areas such as the Northern Beaches to less expensive areas such as the Southern Corridor. Our inmarket perception is that like-for-like property prices have remained static. The latest trend median prices, for properties sold in the month of April 218, technically came in at $45, for a house, $27, for a unit, and $172, for a block of land. N.B. The median property price is the actual sale price of the middle-priced property from the list of properties sold each month. Movements in median prices do not necessarily equate to movements in individual property values. In the face of relatively flat market conditions in terms of volumes and prices, market metrics have remained stable for house sales in the latest quarter, but shown some improvement for units. The median time taken for units to reach a sale has decreased from 7 days for units sold in the twelve months to November 217, to 65 days for units sold in the twelve months to February 218. The median time taken to sell a house remained unchanged at 56 days over the same period. The median vendor discount the difference between the asking price first advertised on a property and its ultimate selling price also reduced for units but remained stable for houses. CairnsWatch May 218 6

2 Rental Vacancies Percentage Vacancy 8% Total Herron Todd White does Tax Depreciation Schedules 6% 4% 2% 'Balanced ' Range Do you have an up-to-date tax depreciation schedule? You could be missing out on thousands of dollars each year in allowable depreciation for your investment property. Depreciation is an important part of maximising your investment returns from an income generating property. Contact us on for an obligation-free quote. % Apr-8 Apr-9 Apr-1 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Oct-8 Oct-9 Oct-1 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Source: HTW Rentroll Survey Though rental vacancy trends have been somewhat wobbly over the last year, rental vacancy rates remain extremely low and continue to indicate tight verging on stressed market conditions. Our latest survey results show that the trend rental vacancy rates for April 218 stood at 2.1% for houses, 1.8% for units and 1.9% overall. Coupled with the low level of new rental supply being created due to relatively low levels of new housing construction and reduced levels of investor housing activity, rental market conditions are expected to stay tight and/or stressed for some time. CairnsWatch May 218 7

3 Building Approvals Number of New Dwellings Approved in Cairns Urban Area Total (Actual Trend) Herron Todd White does Rural Valuations Selling the farm? Herron Todd White has valuers specialising in agribusiness from cane farms to cattle properties and banana plantations. 5 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Source: Derived from ABS data Upward revisions to the building approval figures for the Cairns urban area made last month have not been maintained, with the latest figures now showing that building approval levels have been consistently reducing in trend terms since mid 217. Approval figures for March 218 are indicating a trend average of around 45 houses and 1 unit being approved per month. In trend terms the March 218 approvals are now 19.8% below the (previously revised) levels recorded in March 217. CairnsWatch May 218 8

4 SPECIAL TOPIC Economic Growth Gross Regional Product ($ million per annum at constant prices) 1, 8, 6, 4, Herron Todd White does Socio-Economic Research Herron Todd White Cairns carries out specialist project consulting assignments in all areas of socio-economic research, including demographic studies, statistical surveys, market research, strategy planning, cost benefit studies, and socio-economic impact assessment. Contact us today to discuss your requirements. 2, Source: NIEIR The Cairns Regional Council area had an economic size (in terms of Gross Regional Product) of $8.415 billion in , equating to 2.71% of the total Queensland economy, and.5% of the national economy. During the halcyon days from 2-1 to 27-8, the Cairns economy grew at an average rate of 5.5% per annum. However, growth since then through to has averaged only.5% per annum. Growth remained lacklustre in the , still at a slow.5% and well behind population growth for the year of 1.3%. Indeed over the period from 27-8 to , population has cumulatively increased by 16.4%. However the economy has only grown by 4.9% over the same period, which implies that economic value per capita has reduced by a cumulative 9.8%. That is the extent of the slump we need to recover from in future years. CairnsWatch May 218 9

5 National Property Clock Bathurst Gold Coast NSW Central West Orange Sunshine Coast Coffs Harbour Melbourne Newcastle NSW Central Coast NSW Mid Nth Coast Approaching Peak of Peak of Starting to Decline Bendigo Canberra South East NSW Herron Todd White does Townsville Information Herron Todd White produces a quarterly publication of Townsville Information entitled Townsville in Focus. Like CairnsWatch, it is free of charge. Adelaide Adelaide Hills Albury Ballarat Barossa Valley Brisbane Burnie-Devonport Dubbo Echuca Gippsland Hobart Launceston Lismore Mildura Mount Gambier SA Iron Triangle Tamworth Rising Declining Sydney For further enquiries or to subscribe, contact townsville@htw.com.au or call (7) Steady State/ Start of Recovery Approaching Bottom of Cairns Emerald Gladstone Hervey Bay Horsham Ipswich Mackay South West WA Townsville Warnnambool Whitsunday Bottom of Lismore Alice Springs Bundaberg Darwin Perth Rockhampton Entries coloured dark blue indicate positional change from last month Toowoomba Source: Residential Property Ratings Compiled by Herron Todd White, April 218 Herron Todd White s National Property Clock is prepared each month based on the local market perceptions of its Australia-wide network of offices. Though we have been expecting the Cairns market to experience greater impetus during 218, current conditions mean we continue to regard Cairns as maintaining a Steady State. CairnsWatch May 218 1