WHY INVEST IN QUEENSLAND URBIS MARKET OUTLOOK

WHY INVEST IN QUEENSLAND URBIS MARKET OUTLOOK

WHO IS URBIS? PERTH AUSTRALIA ADELAIDE BRISBANE GOLD COAST SYDNEY MELBOURNE Urbis is an integrated multi-disciplinary consulting firm with a unique and comprehensive service offering. We are able to bring together project teams that utilise the skills of our researchers, planners, economists, designers and social planners to provide clients with comprehensive and implementable advice. Committed to providing practical solutions, fresh ideas and creating measurable value, we will bring an informed contribution that preserves your vision and balances your needs. With Urbis, you tap into a trusted resource that complements and partners your own capabilities.

BRISBANE POPULATION OF GREATER BRISBANE (2013) 2,238,394 Source: ABS 3218.0, Regional Population Growth, Australia, 2012-13 TOP TEN INDUSTRIES BY EMPLOYMENT INDUSTRY % Health care and social assistance 12% 10% 9% 8% 8% 8% 7% 6% 6% Retail trade Manufacturing Professional, scientific and technical services Construction Education and training Public administration and safety Accommodation and food services Transport, postal and warehousing ABS, Census of Population and Housing, 2011, Basic Community Profile - B43 (usual residence) BRISBANE SYDNEY MELBOURNE

BRISBANE AS A TOURISM & LIFESTYLE DESTINATION

BRISBANE IS PROMOTED AS AUSTRALIA S NEW WORLD CITY By 2031, Brisbane has a vision to be regarded as a top ten lifestyle city and global hub for resource and related service industry businesses, with strong business and cultural links with Asia. CURRENT JOBS: 1M JOBS IN 2031: 1.5M 50% of FORECAST EMPLOYMENT GROWTH BY 2031

BRISBANE INFRASTRUCTURE & INVESTMENT INFRASTRUCTURE & INVESTMENT BRISBANE AIRPORT ($1.3 BILLION) BRISBANE RACING CLUB MASTER PLAN KURILPA RIVERFRONT RENEWAL SOUTH BANK CULTURAL PRECINCT REDEVELOPMENT HOWARD SMITH WHARVES REVITILISATION KANGAROO POINT BRIDGE ($80 MILLION) BRISBANE BAT PROJECT ($5 BILLION) QUEENS WHARF ($4 BILLION) SOUTH EAST QUEENSLAND INFRASTRUCTURE SPENDING BY 2031 Largest Public Infrastructure Spending Initiative in Australian History

Major Infrastructure Inner Brisbane The Queensland Infrastructure Plan, the nation s first state-wide infrastructure plan, provides a blueprint for the state s infrastructure delivery over the next 20 years. Over $134.2 billion in infrastructure spending has been planned for South East Queensland by 2031, with Brisbane as the centre of this region. Alongside Brisbane City Council s further commitment to infrastructure delivery, the planned infrastructure represents the largest public infrastructure spending initiative in Australia s history. Queens Wharf Precinct - $4 Billion Howard Smith Wharves - $100+ Million TransApex Masterplan - $10 Billion

Infrastructure and Economic Growth

Employment 增长 Employment Growth Inner Brisbane Over 201,000 new employees forecast within Inner Brisbane s key employment nodes by 2031

Established Infrastructure - Health

BRISBANE POPULATION GROWTH One of Australia s fastest growing regions equating to an increase of 20,859 new residents over the 12/13 financial year and on average 20,000 new residents per annum over the past ten years Population growth components changing less domestic migration and greater proportion of international migration

MAJOR SHIFTING DEMOGRAPHICS It is critical to understand how this growth will be satisfied, as the Brisbane LGA is geographically constrained to see greater urban sprawl and as such will see much of this resident growth accommodated into infill and higher density dwellings. This style of development will also be justified on the back of proposed infrastructure investment, with much of this expenditure predicted to be provided within a 10 km radius of the CBD

MAJOR SHIFTING DEMOGRAPHICS It is critical to understand how this growth will be satisfied, as the Brisbane LGA is geographically constrained to see greater urban sprawl and as such will see much of this resident growth accommodated into infill and higher density dwellings. This style of development will also be justified on the back of proposed infrastructure investment, with much of this expenditure predicted to be provided within a 10 km radius of the CBD Number of Residents (Moving Annual Average) 35,000 Net Overseas Migration QLD Natural Increase QLD Net Interstate Migration QLD Change Over Previous Quarter QLD 30,000 25,000 20,000 15,000 10,000 5,000 0 Jun-1983 Mar-1984 Dec-1984 Sep-1985 Jun-1986 Mar-1987 Dec-1987 Sep-1988 Jun-1989 Mar-1990 Dec-1990 Sep-1991 Jun-1992 Mar-1993 Dec-1993 Sep-1994 Jun-1995 Mar-1996 Dec-1996 Sep-1997 Jun-1998 Mar-1999 Dec-1999 Sep-2000 Jun-2001 Mar-2002 Dec-2002 Sep-2003 Jun-2004 Mar-2005 Dec-2005 Sep-2006 Jun-2007 Mar-2008 Dec-2008 Sep-2009 Jun-2010 Mar-2011 Dec-2011 Sep-2012 Jun-2013 Period (Quarterly)

AUSTRALIA OVERSEAS MIGRATION ARRIVALS BY AGE Greatest overseas migrants are those aged 20 to 34 yrs 20% 18% 19% FUELLING OUR RENTAL MARKET 16% 13% Percentage of Arrivals 12% 8% 7% 8% 8% 6% 4% 5% 4% 4% 3% 2% 2% 2% 0% 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ Age Bracket

BRISBANE RESIDENTIAL RENTAL RATES Weekly rental rates have not softened over the past five years based on the March Qtr. figures provided by the RTA. Changing demographic and projected affordability constraints linked to further rental demand in the near future which will look to absorb new stock to enter the market and promote potential softening in rental figures as supply and demand find a equilibrium.

BRISBANE RESIDENTIAL RENTAL VACANCY RATES 3.0% is considered to be an industry benchmark of supply and demand imbalances. Brisbane set to register vacancy rate fluctuations across outer precincts with inner fringe set to experience the greatest rental demand on the back of infrastructure, amenity and residential upgrades

URBIS APARTMENT INSIGHTS DATA Independent survey of apartments that are off-theplan or recently completed new apartments every quarter. Monitors future supply by tracking project application and approvals. Largest sample of projects than any other report. Urbis invests over $500,000 each year to obtain and maintain the Brisbane and Gold Coast apartment data and is looking to increase the investment, adding Sydney, Melbourne and Perth.

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