My Market. Australian Residential Property Outlook. 1st Quarter, 2018

My Market Australian Residential Property Outlook 1st Quarter, 2018 Adelaide Beijing Box Hill Brisbane Burwood Chengdu Glen Waverley Melbourne Nanning North Sydney Perth Shanghai Shenzhen South Yarra 1

Australia Residential Property Market Capital City Overview The Sydney market is expected to continue to moderate throughout 2018. Whilst affordability will continue to be key, areas in close proximity to new infrastructure projects are expected to outperform the wider market. The Melbourne market is continuing to see huge population growth which will keep property in high demand but, like Sydney, addressing prevailing affordability issues will be key. With housing now largely unaffordable, it is expected that more of the market will turn to apartments. Brisbane has seen a dramatic decline in new apartment supply with a recent JLL report citing real possibilities of an undersupplied market to materialise in coming years. Brisbane continues to see surges in interstate migration which has been driven by improved employment fundamentals, lifestyle, and the relative affordability compared to Sydney and Melbourne. In Adelaide, the property market continues to show signs of positive growth. Strong median rental yields coupled with its present status as being the most affordable of the five major capital cities, means that it is likely to be an attractive option for investors seeking a blend of stable, long term growth and attractive yield. Perth continues to see signs of recovery with improving vacancy rates and declining average days to sell. The Perth market is shaping up to be an attractive option for countercyclical investors looking to get into a market prior to its next growth phase. Interest Rates The RBA maintained the cash rate at 1.50% in March 2018. The RBA noted that economic conditions for the March quarter were characterised by healthy jobs growth and strong economic performance. At the same time, wages continued to move at rather subdued rates despite strengthening business conditions. As such, it is expected that interest rates will likely remain on hold throughout 2018 and into early 2019. Housing Finance APRA s restrictions on housing credit have continued to temper growth across heated markets. With Sydney moderating, and Melbourne starting to show similar signs - APRA has recently announced plans to remove its 10% investor loan growth benchmark from 1 July 2018, for those lenders who can satisfy certain assurance provisions. This is good news for investors as the finance space is expected to become more competitive, with loans being easier to secure from certain banks, with lower interest rates expected to be introduced as major banks compete to win back market share. Building Activity Residential construction numbers have continued to decline nationally, with figures down by 5.9% over the year to December 2017. Residential cranes have fallen by significant margins, with the Q1-2018 RLB Crane index recording a net decline of 57 cranes, bringing the total to 493 cranes. Of all major capital cities, Brisbane suffered the most severe decline of 18 cranes - which represents a 30% decline compared to previous figures. Australian Economy The economy grew by 0.4% during the December 2017 quarter, and for the past year, increased by 2.8%. This is a marked improvement from the previous years result of 1.8%. While a positive result overall, the nation s 2017 GDP growth rate of 2.8% remains below the RBA s forecasts of 3.25%. Business conditions continued to improve over the quarter with nonmining business investment increasing from the previous year. In terms of consumer confidence, household consumption still remains relatively slow, a trend that has been largely driven by the aforementioned sluggish growth in wages. The Wage Price Index recorded a 2.1% rise over the year despite the national economy producing a discernible rise in jobs growth. Unemployment figures for March 2018 came in at 5.5% a welcomed improvement from the previous year s result of 5.9%. Should jobs growth continue and the unemployment rate fall further, it is expected that stronger wages growth will come in time. Australian Outlook Population growth remains strong although it is noted that an increasing number of residents are leaving New South Wales with interstate migration to Queensland accelerating. In the near term, Sydney is likely to remain flat as a whole. However, affordable pricepointed product is likely to move. The demand for affordable product is also being felt in Melbourne. Adelaide and Brisbane are expected to experience positive momentum, whilst Perth will continue to move in its recovery phase throughout 2018 and into early 2019. In summary, with an infrastructure boom happening across major capital cities, and with strong population growth coupled with limited supply, the outlook for Australian property remains positive in the medium to long term. 2

Housing Market Apartment Market Rental Market March 2017 - Rental Market March 2017 - Houses Rental Yield Median Rent Adelaide 4.60% $360 per week Brisbane 4.50% $415 per week Melbourne 3.10% $420 per week Perth 4.10% $360 per week Sydney 3.10% $545 per week Houses Rental Yield Median Rent Adelaide 5.10% $310 per week Brisbane 5.20% $380 per week Melbourne 4.30% $400 per week Perth 4.50% $320 per week Sydney 3.90% $530 per week Volumes March 2017 - Volumes March 2017-48,368-9.7% 55,944-10.5% 38,109-12.6% 29,367-11.5% 20,183 +1.1% 24,490-0.5% 34,027-7.0% 7,359 +5.7% 5,501 +2.8% 15,178-17.4% Adelaide Perth Brisbane Sydney Melbourne Adelaide Perth Brisbane Sydney Melbourne and Median Values March 2017 - and Median Values March 2017 - Melbourne: +15.7% $835,251 Melbourne: +7.0% $552,589 Sydney: +7.3% $1,110,212 Melbourne: Sydney: +1.69% +4.8% $774,951 Adelaide: +4.0% $465,093 Melbourne: Adelaide: $345,543 +1.69% +4.7% Brisbane: +3.3% $540,705 Brisbane: -1.3% $389,445 Perth: -3.0% $507,798 Perth: -4.9% $405,615 3

Adelaide Residential Property Market Adelaide Economy South Australia s economic growth rate is up 16.8% compared to its previous decade-annual averages. This is positive news for Australia s most affordable capital city. Innovative energy policy and concerted efforts to invest in technology, innovation and infrastructure, has positioned Adelaide for solid economic growth for the future. A highlight of South Australia s economic performance has been record levels of residential construction work done, which will help to spur jobs creation. When combined with Adelaide s significant investment in infrastructure across major projects - the economy is well positioned for the future. Adelaide s increased defence spending, business investment and noted improvements in the farming and agricultural sectors, has seen the city record its strongest year of growth since the GFC. This has been matched by improved labour market conditions. In the 12 months to March 2018 jobs growth swelled by 2.2% with a massive 91% of these jobs being full time. This growth in jobs has translated to a declining unemployment rate from a high of 7.2% for April 2017, to a much healthier 5.6% for March 2018. Adelaide Houses Adelaide house prices grew by 4.0% during the 12 months to February 2018. The median house price is now $465,093. Rental yields are comparatively high across Adelaide, with average rental yield for houses being 4.6%, with a median rent of $360 per week, an increase of $10 per week from last year. Rental demand remains strong at a tight 1.4% vacancy rate for. There were 20,183 house sales over the year to. Building approvals for houses totalled 6,743, trending 5.89% higher the same time last year. Adelaide Apartments Adelaide apartment prices grew by 4.7% during the 12 months to. The median apartment price is now $345,543. Rental yields have remained attractive over the past 12 months at 5.1%, with the median rent being $310 per week, an increase of $10 per week from last year. Adelaide recorded the second highest rental yield of the five major capital cities. Building approvals totalled 3,947 over the year, trending 17.61% higher than the same time last year but is still relatively low when compared to other capital cities. Adelaide Outlook Adelaide has continued to report strong economic growth despite subdued population growth. The city s negative net interstate migration has been a drag on population numbers, although strong net overseas migration has helped to stabilise growth. An analysis by local data company, Pernix, reported that Adelaide is in prime position to offer the world s fastest and cheapest internet service. This comes on the back of Adelaide s strategic direction in becoming Australia s own San Francisco - a city fuelled by renewable energy, cutting edge digital businesses and an effective and pragmatic cleantech society. As a result of major investment in this area, Adelaide has quickly established itself as a high-tech innovation hub and the nation s leader in green infrastructure and renewable energy adoption. To this end, Deloitte Access Economics recently forecasted South Australia to be Australia s fastest-growing economy this financial year. Adelaide s status as the most affordable capital city, in conjunction with its high rental yields and relatively tight vacancy rate of 1.4%, means that it will continue to be an attractive market for property investment. Housing Market Highlights Strong rental yield Tight vacancy rate Relative affordability to other major capital cities Apartment Market Highlights 3rd highest growth city for the 12 months to Positive support from government policy Strengthening rents, up $10 per week Market Strengths Solid growth with low volatility Strengthening economy with promising innovation agenda Increased business investment Market Challenges Addressing population growth Strengthening economic diversification 4

Housing Market Median House Value $465,093 +4.0% 20,183 6,743 Annual Change +5.89% 1 year ago it was $449,177 1.4% 1 year ago it was 1.9% Annual Change +1.1% 4.6% Median rent: $360 p.w. (+$10 from last year) 20 Years of Growth March 1998 - February 2008 (Residex), March 2008 - (CoreLogic) $800,000 $700,000 $600,000 $465,093 $500,000 $400,000 $353,125 $300,000 $345,543 $200,000 $100,000 $125,260 $268,136 $000,000 $91,413 $90,642 1998 2002 2007 2012 2018 +10.92% p.a. +11.36% p.a. +2.79% p.a. +2.57% p.a. Apartment Market Median Apartment Value $345,543 +4.7% 7,359 3,947 Annual Change +17.61% 1 year ago it was $327,606 1.4% 1 year ago it was 1.9% Annual Change +5.7% 5.1% Median rent: $310 p.w. (+$10 from last year) 5

Brisbane Residential Property Market Brisbane Economy For the 12 months to April 2018, Queensland recorded economic growth rates roughly 20% above previous decade-annual averages, according to the latest CommSec State of the States report. Strengthening commodity prices as well as increased demand for international education and tourism related services have each contributed to this positive outcome. This is evidenced by recent figures showing that annual export receipts recorded an increase of 26% from the previous year. In addition, the population exceeded 5 million - a major milestone which was accelerated by significant increases in interstate migration. According to the recent regional population figures, interstate migration to the Sunshine state is up by a whopping 163% for September 2017, when compared to September 2015. This upswing is likely to have been driven by housing affordability, lifestyle appeal and the state s improving employment prospects with Queensland gaining 100,000 new jobs in 2017 alone. On top of this, Brisbane s four-year infrastructure pipeline which is currently valued at $45 billion, will serve to strengthen jobs growth and demand for property. With landmark projects such as the $3 billion Queen s Wharf Project, the $5.4 billion Cross River Rail, and the $350 million Herston Quarter, Brisbane s economic future is looking bright. Brisbane Houses Brisbane house prices grew by 3.3% during the 12 months ending February 2018. The median house price is now $540,705. Rental yields are comparatively high across Brisbane, with the average rental yield for houses being 4.5% with rent of $415 per week, an increase of $5 per week from last year. For the year ended February 2018, there were 34,027 house sales. Building approvals for houses totalled 13,903 over the year, trending 15.13% higher the same time last year. Brisbane Apartments Brisbane apartment prices softened slightly by -1.3% during the 12 months ending. The median apartment price is now $389,445. Rental yields are comparatively high across Brisbane, with the average rental yield for apartments being 5.2% with the median rent being $380 per week, a decrease of $10 per week from last year. Although rents have softened over the past 12 months, it is expected that they will not drop further, and in time, start to strengthen. This is a result of continued population growth which is driving demand, and a significant reduction in the supply of new apartment completions in 2018 and 2019, compared to 2017. For the year ended, there were 15,178 apartment sales. Building approvals for apartments totalled 11,802 over the year, trending 11.62% lower the same time last year. Brisbane Outlook Concerns of a Brisbane apartment oversupply are fading away in the face of falling supply and strong population growth. This is likely to place pressure on prices, with current forecasts estimating that Greater Brisbane will grow by roughly 62,500 people per year over the next decade. On the supply side of the market, Brisbane is seeing dramatic declines in construction activity with the commencement numbers declining severely. Latest construction forecasts indicate that 2019 completions will come in at 10 year lows. These forces have translated to Brisbane vacancy rates tightening to 3.4% for compared to the previous year (3.6%). In light of these trends, a recent report by JLL noted that the Brisbane market is likely to move into a position of undersupply over the next few years. With demand increasing from growing interstate migration and supply figures continuing to fall, the outlook for Brisbane is positive. Housing Market Highlights Strong demand due to population growth with significant increase in interstate migration Tightening vacancy rate with attractive rental yield Relative affordability compared to Sydney and Melbourne Apartment Market Highlights Attractive rental yield Apartment market likely to move into undersupply in coming years Well positioned apartments to benefit from massive infrastructure pipeline Market Strengths Strong demand fundamentals driven by jobs and population growth Strengthening economy with large infrastructure investment Market remains undervalued given historical averages Market Challenges Accelerating the push towards diversification in the state economy Overcoming media narrative of oversupply, although concerns are now reducing 6

Housing Market Median House Value $540,705 +3.3% 34,027 13,903 Annual Change +15.13% 1 year ago it was $525,901 3.4% 1 year ago it was 3.6% Annual Change -7.0% 4.5% Median rent: $415 p.w. (+$5 from last year) 20 Years of Growth March 1998 - February 2008 (Residex), March 2008 - (CoreLogic) $800,000 $700,000 $540,705 $600,000 $432,403 $500,000 $400,000 $300,000 $323,568 $389,445 $141,826 $200,000 $100,000 $129,474 $000,000 1998 2002 2007 2012 2018 +11.79% p.a. +9.59% p.a. +2.26% p.a. +1.87% p.a. Apartment Market Median Apartment Value $389,445-1.3% 15,178 11,802 Annual Change -11.62% 1 year ago it was $392,769 3.4% 1 year ago it was 3.6% Annual Change -17.4% 5.2% Median rent: $380 p.w. (-$10 from last year) 7

Melbourne Residential Property Market Melbourne Economy For the 12 months to April 2018, Victoria experienced an economic growth rate 26.4% higher than its decade-annual average level of output, according to the latest CommSec State of the States report. This level of productivity has come from a variety of sectors including finance, transport, healthcare, education and tourism. The Victorian government noted the historically huge numbers of people moving to the state, particularly in Melbourne, which expanded by more than 125,000 residents between 2016 and 2017, leading all major capital cities for population growth. To coincide with Melbourne s surging population growth, the Victorian government announced that it will spend $13.7 billion on roads, railways and other infrastructure ahead of this year s upcoming election. This translates into positive news for the Melbourne economy, which is set to benefit from a combination of strong population growth and infrastructure investment. Melbourne Houses Melbourne house prices grew by 15.7% during the 12 months ending. The median house price is now $835,251. Rental yields have remained steady across Melbourne, with the average rental yield for houses being 3.1% with a median rent of $420 per week, an increase of $21 per week from last year. Rental demand remains strong with a tight 1.4% vacancy rate for. For the year ended, there were 55,944 house sales. Building approvals for houses totalled 28,019 over the year, trending 5.94% higher the same time last year. Melbourne Apartments Melbourne apartment prices grew by 7.0% during the 12 months ending. The median apartment price is now $552,589. Rental yields are comparatively high across Melbourne, with the average rental yield for apartments being 4.3% with the median rent being $400 per week, an increase of $10 per week from last year. Rental demand remains strong with a tight 1.4% vacancy rate for. For the year ended, there were 29,367 apartment sales. Building approvals for apartments totalled 33,158 over the year, trending 6.01% higher the same time last year. Melbourne Outlook As a result of strong capital growth, affordability is becoming an issue within the Melbourne market. House and land packages, particularly those on the fringe, are becoming more unaffordable, and harder to come by. With affordability pressures building, there is likely to be an increased demand for more affordable product such as apartments. This has been evidenced in recent data which has shown the Melbourne market recording the highest capital growth rate across all five major capital cities for apartments. In light of the evidence, concerns of a new apartment oversupply in certain pockets of Melbourne have not eventuated. In reviewing key indicators for the market, typical measures of an oversupply situation would include falling rents and higher vacancies however, the opposite has been the case. Well respected social commentator and demographer Bernard Salt forecasted that Melbourne s population would surge past five million by 2021 and past eight million by 2050. Remarkably, at current rates, Melbourne is set to eclipse Sydney as Australia s most populated capital by as early as 2030. As a result, it is likely that the city s rising population will underpin demand for apartments in coming years. This will be further driven by the increased unaffordability of higher price-pointed property - which is starting to show signs of slowing down. As a result, it is expected that more affordable property will be in high demand over the short term. Housing Market Highlights Strong capital growth Supply continues to struggle to keep up with demand House and land at affordable pricing becoming more limited Apartment Market Highlights Well positioned apartments set to benefit from strong infrastructure investment Relative affordability compared to housing and shifting living preferences to benefit apartments Incredibly tight vacancy rates of 1.4% with attractive yields especially in inner city areas Market Strengths Continued strong population growth Massive infrastructure investment Strong jobs growth Market Challenges Limited supply is likely to place further pressure on pricing The affordability issue will impact potential growth of higher pricepointed product 8

Housing Market Median House Value $835,251 +15.7% 55,944 28,019 Annual Change +5.94% 1 year ago it was $732,732 1.4% 1 year ago it was 1.7% Annual Change -10.5% 3.1% Median rent: $420 p.w. (+$21 from last year) 20 Years of Growth March 1998 - February 2008 (Residex), March 2008 - (CoreLogic) $1,200,000 $1,050,000 $900,000 $835,251 $750,000 $600,000 $479,760 $450,000 $552,589 $300,000 $150,000 $163,953 $355,712 $126,946 $000,000 1998 2002 2007 2012 +11.33% p.a. +10.85% p.a. +5.70% p.a. +4.50% p.a. 2018 Apartment Market Median Apartment Value $552,589 +7.0% 29,367 33,158 Annual Change +6.01% 1 year ago it was $517,231 1.4% 1 year ago it was 1.7% Annual Change -11.5% 4.3% Median rent: $400 p.w. (+$10 from last year) 9

Perth Residential Property Market Perth Economy The recent WA Super CCI Survey revealed that business optimism levels for Perth are at their highest levels since 2011. With global growth picking up for key foreign trade and investment partners, international demand for WA commodities and resources is set to strengthen. Current figures are already showing positive signs, with exports growing at a strong 5% over the past year. In the short term, the state economy is set grow by a healthy 3.25% 2019-2020, a welcome sign for the economy. According to WA Budget Papers, this upswing in economic growth, will be primarily driven by exports in LNG, iron ore, gold and lithium. At the same time, the WA Government as well as the Federal Government have continued to pour billions of dollars into transport infrastructure. The recent WA Budget injected an additional investment of $1.1 billion towards the METRONET project. With rising exports and a solid infrastructure pipeline in place, the Perth economy is set to strengthen throughout 2018 and into 2019. Perth Houses Perth house prices declined by 3.0% during the 12 months ending. The median house price is now $507,798. Rental yields are comparatively high across Perth, with average rental yield for houses being 4.1% with the median rent being $360 per week, which is consistent with last quarter s result. For the year ended, there were 24,490 house sales. Building approvals for houses totalled 11,140 over the year, trending 12.34% lower than the same time last year. Perth Apartments Perth apartment prices declined by 4.9% during the 12 months ending. The median apartment price is now $405,615. Rental yields are comparatively high across Perth, with the average rental yield for apartments being 4.5% and the median rent being $320 per week, which is consistent with last quarter s result. For the year ended, there were 5,501 apartment sales. Building approvals for apartments totalled 4,776 over the year, trending 10.51% lower the same time last year. Perth Outlook Recent data suggests that the market is building on the momentum seen in the latter half of 2017, with March quarter results showing improved figures across major indicators such as vacancy rates, average selling days, and vendor discounting. The market s acceleration through its recovery is expected to be aided by increased investor activity, with local investors looking to time the market, and interstate investors seeing opportunities outside the relatively unaffordable markets of Sydney and Melbourne. Perth has also seen a significant upswing in first home buyers, with the March 2018 quarter recording a 5.7% increase in house sales in the sub- $500,000 price range. Vacancy rate continues to decline for the past 3 months with December 2017 recording 4.6% vacancy, January 2018 recording 4.4%, and 4.1% recorded for. Looking ahead, property market conditions are expected to steadily strengthen throughout 2018. Housing Market Highlights Market remains affordable Increased first home buyer activity in March 2018 quarter, with the market recording a 5.7% increase in house sales in the sub-$500,000 price range Positive signs that the market is past its bottom and moving into recovery Apartment Market Highlights Attractive rental yields Supply is dropping significantly Well positioned apartments will benefit from infrastructure investment Market Strengths FIRB stamp duty charges have been deferred unlike other states Market remains affordable Opportunities exist for countercyclical investors Market Challenges Sustaining economic growth Maintaining momentum into recovery phase 10

Housing Market Median House Value $507,798-3.0% 24,490 11,140 Annual Change -12.34% 1 year ago it was $522,803 4.1% 1 year ago it was 4.4% Annual Change -0.5% 4.1% Median rent: $360 p.w. (-$19 from last year) 20 Years of Growth March 1998 - February 2008 (Residex), March 2008 - (CoreLogic) $800,000 $700,000 $600,000 $507,798 $501,775 $500,000 $400,000 $300,000 $382,449 $405,615 $200,000 $100,000 $135,399 $118,515 $000,000 1998 2002 2007 2012 +14.0% p.a. +12.43% p.a. +0.12% p.a. +0.59% p.a. 2018 Apartment Market Median Apartment Value $405,615-4.9% 5,501 4,776 Annual Change -10.51% 1 year ago it was $423,815 4.1% 1 year ago it was 4.4% Annual Change +2.8% 4.5% Median rent: $320 p.w. (-$23 from last year) 11

Sydney Residential Property Market Sydney Economy Sydney continues to be the economic powerhouse of the nation. In the latest Commsec State of the States report, NSW again achieved first place, recording top marks across major economic indicators. NSW reported an annual economic growth rate of 6.7% last year, significantly above the national average of 5.6%. On a per capita basis, NSW has been the fastest growing state economy over the past three years. Further, positive growth across global and national economies is expected to boost exports, increase business investment, and stimulate further jobs growth. The Western Parklands City: Sydney s surging population growth, economic performance, and strong employment fundamentals have placed increased demand on existing infrastructure and transport corridors for the Sydney CBD and Parramatta CBD. As such, the NSW government recently announced a $20 billion commitment into transport, health and education infrastructure into a new Western Parklands City. This forms part of the wider Three Cities Strategy envisioned by the Greater Sydney Commission. Progress in this area has been rapid, with the federal government and state government, along with eight Western Sydney councils, signing a landmark Western Sydney City Deal, which seeks to deliver long-term economic growth for the region. Sydney Houses Sydney house prices grew by 7.3% during the 12 months ending February 2018. The median house price is now $1,110,212. The average rental yield for houses is 3.1% and the median rent is $545 per week, an increase of $26 per week from last year. Rental demand remains strong with 2.3% vacancy rate for. For the year ended, there were 48,368 house sales. Building approvals for houses totalled 18,007 over the year, trending 0.92% lower than the same time last year. Sydney Apartments Sydney apartment prices grew by 4.8% during the 12 months ending February 2018. The median apartment price is now $774,951. The average rental yield for apartments is 3.9% and the median rent is $530 per week, an increase of $10 per week from last year. Rental demand remains strong at 2.3% vacancy rate for. For the year ended, there were 38,109 apartment sales. Building approvals for apartments totalled 35,902 over the year, trending 13.52% lower the same time last year. Sydney Outlook Sydney achieved record population growth in 2017 with 100,000 people moving into the city. This marks the first ever time that Sydney has experienced growth in excess of 100,000. Some of the leading destinations have been North West and South West Sydney regions. As a whole, the Sydney property market softened in the March quarter, recording slightly negative growth. The decline has been most pronounced at the more expensive end of the market with the top 30% of the prices recording an average decline of -5.8%. This pullback at the more expensive end, dragged the overall performance of the market. However, a closer look at the data, reveals a vastly different picture with approximately 60% of Sydney dwelling values actually recording a slight uptick in dwelling prices, when averaged out for the year. The fact remains that Sydney is still Australia s number one economic city, and with strong population growth, massive infrastructure investment and an easing credit environment, the long term outlook for Sydney remains positive. In the short term, Sydney is expected to experience some softening at higher price points, whilst most affordable product is expected to continue to be in solid demand. Housing Market Highlights Solid demand fundamentals with population and jobs growth Market remains undersupplied in many areas Expensive end of the market is softening Apartment Market Highlights Surge in first home buyer activity likely to support apartment price growth Supply reducing due to planning and lending constraints Relative affordability compared to housing and living preference set to fuel increased demand Market Strengths Vacancy rates remain low Medium to long term outlook remains positive Sydney continues to be the nation s number one economy Market Challenges Affordability is still a key concern Lending restrictions have slowed investor growth, although these restrictions have begun to unwind 12

Housing Market Median House Value $1,110,212 +7.3% 48,368 18,007 Annual Change -0.92% 1 year ago it was $1,045,253 2.3% 1 year ago it was 1.8% Annual Change -9.7% 3.1% Median rent: $545 p.w. (+$26 from last year) 20 Years of Growth March 1998 - February 2008 (Residex), March 2008 - (CoreLogic) $1,200,000 $1,110,212 $1,050,000 $900,000 $750,000 $600,000 $584,641 $774,951 $450,000 $300,000 $150,000 $273,833 $400,667 $206,958 $000,000 1998 2002 2007 2012 +7.88% p.a. +6.83% p.a. +6.62% p.a. +6.82% p.a. 2018 Apartment Market Median Apartment Value $774,951 +4.8% 38,109 35,902 Annual Change -13.52% 1 year ago it was $743,435 2.3% 1 year ago it was 1.8% Annual Change -12.6% 3.9% Median rent: $530 p.w. (+$10 from last year) 13

Sources Residential Property Market Australian Broadcasting Corporation http://www.abc.net.au/ Australian Bureau of Statistics http://stat.abs.gov.au Australian Prudential Regulation Authority https://www.apra.gov.au Australian Financial Review https://www.afr.com/ Australian Government https://www.australia.gov.au/ Business Insider https://www.businessinsider.com. au/ CommSec https://www.commsec.com.au/ stateofstates CoreLogic https://www.corelogic.com.au/ Daily Telegraph https://www.dailytelegraph.com. au/ Deloitte Access Economics https://www2.deloitte.com/au/ en/services/economics.html Domain https://www.domain.com.au/ Focus Economics https://www.focus-economics. com/ Greater Sydney Commission https://www.greater.sydney/ Investopedia https://www.investopedia.com/ Jones Lang LaSalle http://www.jll.com.au/australia/enau Reserve Bank of Australia https://www.rba.gov.au/ Roads Online http://roadsonline.com.au/ Smart Company https://www.smartcompany.com. au/ Sydney Morning Herald https://www.smh.com.au/ The Age https://www.theage.com.au/ The Australian https://www.theaustralian.com.au/ The Conversation http://theconversation.com/au The Urban Developer https://theurbandeveloper.com/ The West https://thewest.com.au/ Transport NSW https://thewest.com.au/ Urbis https://urbis.com.au/ WA Today https://www.watoday.com.au/ Disclaimer The information contained in this document has been collected by Ironfish from various government, public and private sources, which may include property developers, builders and other industry participants. Neither Ironfish nor any representative of Ironfish gives any warranty as to the accuracy of the information contained in this document and expressly disclaims any liability for loss or damage which may arise from any person acting or deciding not to act on the basis of any of the information contained in this document. This document is intended to provide Ironfish investors with general information only and does not constitute an offer, contract or inducement to buy. Investors are expressly recommended to do their own due diligence in relation to any residential property investment decision they make. 14

Resources Residential Property Market My City Reports Our My City reports are an annual series of educational, magazine style publications that are an essential guide for investors to understand each major capital city, their unique qualities and fundamental property market drivers. My Market Reports Our Research team monitors Australia s 5 capital city property markets and publishes a quarterly review that incorporates the latest property data, market commentary and fundamental analysis of issues impacting each market. My Property Reports Extensive due diligence and research is done by Ironfish s Property and Research division on the merits of each approved property, with key project information, demographics and market research presented in a Property Report for investors. Portfolio Approach Our Portfolio Approach to investing is a simple yet powerful strategic approach to build step by step a diverse portfolio of different types and locations and hold onto it over a 10-15 year period. Ironfish Seminars Ironfish provides regular investor educational seminars in English and Chinese around Australia. They provide up to date property market information and effective investment strategies presented by many of Australia s astute property experts. PPA Software Our educational Ironfish PPA Portfolio software tool has been customised to ensure our professional Strategists can help investors understand firsthand how to cash flow an investment property and build equity over time. 15

RESEARCH Knowledge is power when you invest in residential property. NEGOTIATION Group buying will always be more powerful than acting alone. TIME-SAVING In a busy world, it pays to have professionals working for you. It s not what you buy now, but what you own in 10 or 20 years that will make you wealthy. Joseph Chou residential property research At Ironfish, it s our mission to help our customers achieve long-term financial security through smart portfolio investing. As an industry leader, with offices in 10 cities across Australia and China, we support our investors in acquiring a diversified property portfolio, backed by the confidence of the latest research, personalised strategies and quality investment opportunities. Website www.ironfish.com.au Facebook https://www.facebook.com/theironfishgroup 16