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CapLand Real Estate Advisors Development Site Update


UPDATE

CapLand’s transactions team has negotiated a further five development site transactions totalling $35.86million over the third quarter of 2012. Over the course of 2012 we have identified an increase in the number of inter state and offshore purchasers sourcing acquisition opportunities in QLD, compared to 2011. This can be partially attributed to the softening Victorian market, which is experiencing increasing levels of supply and declining sale volumes. Following is a chart that demonstrates the origin of enquiry received during marketing campaigns we conducted on residential development sites in 2011 compared to 2012:

MARKETING CAMPAIGNS 2011–2012 Source of Enquiry

LEGEND 2011

80%

60%

2012

74%

54%

40% 29% 18%

20%

17% 6% 1%

0%

Local

Interstate

Off Shore

0% Unknown


Many of these developers and investors are identifying QLD, particularly SEQ, as being well placed in the national property cycle to experience an improvement in market conditions ahead of other states. This perception is understandable when comparing the selling price of a 400+m2 lot in new housing estates 35km north or north west of capital city CBD’s around Australia:

PRICE COMPARISONS Capital City

Suburb circa 35km North or North West

Approx. Price of 400+m2 lot

Perth

Clarkson

$250,000

Economy backed by mining & resources.

Sydney

Rouse Hill

$400,000

Limited supply of registered lots available for sale.

Melbourne

Sunbury

$180,000

Market trending downward, with significant supply increasing and sales volumes declining.

Brisbane

Burpengary

$170,000

Limited supply of registered lots available for sale.

Comments


FEATURE PROJECT

ADDRESS 31 Bank St, West End, Qld

SITE AREA 1,012m2

SALE PRICE $1,600,000 Sold by CapLand ‘off-market’ prior to campaign

YIELD 30 x 2 Bed Apartments (66m2 – 71m2 internally + balcony)

$ PER UNIT $53,333 exc GST $ per m2 of land: $1,581

PURCHASER Melbourne based private developer

Comments This site is well located in the heart of West End, opposite Coles anchored Shopping Centre and Boundary St Cafe & dining precinct. Two bedroom apartments designed by Noel Robinson Architects priced below $600,000. Several other projects nearby are achieving strong sales rates at these price levels.


SITE AREA

SALE PRICE

YIELD

$ PER UNIT

Site C & E, Centrus, Miles Platting Rd, Eight Mile Plains, QLD 11,558 (Site C: 3,214m2 + Site E: 8,344m2) $10million + GST (Site C - $2.5m + Site E - $7.5m) 312 units (Site C: 45 units + 717m2 of retail - Site E: 267 units)

$31,446 per unit (adopting 717m2 of retail = 6 units)

$ PER m2 OF LAND

$865

PURCHASER

Chinese developer

FEATURE TRANSACTION

ADDRESS


FEATURE TRANSACTION

Harbour Close Lammermoor Heights

Ocean Ridge

Keppel Bay

SUBJECT

Curlew Grove

ADDRESS

McBean St, Yeppoon, QLD

SITE AREA

31.74 Ha

SALE PRICE

$3.2million + GST

YIELD

DA Approved for 216 residential lots – avg. 970m2

$ PER LOT

$14,814

$ PER m2 OF LAND

$10.1

$ PER HA OF LAND

$100,819

PURCHASER

Local developer


D L O S

D L O S

D

SOL

RECENT RESULTS

OTHER Q3 2012 RESULTS BY CAPLAND INCLUDE:


MARKET MONITOR

Market Emerald, QLD

Population 31,784 (LGA as at 30 June 2011)

EMERALD

Location 656km North West of the Brisbane CBD, 317km inland from Gladstone

Product Type

Indicative Pricing

New 4 Bed 2 Bath house & land package

$460,000 – $490,000

Residential Lots (600+m2) Economic Drivers > A  gricultural and Horticultural hub of Central Queensland > 1 3 existing mines, 5 mine expansions and 16 proposed new mines in the Emerald LGA > C  ommunity & Education – Existing Agricultural College & New Central QLD University announced > Building & Construction – inc. Masters, Harvey Norman, Woolworths and Big W all with recent construction and planning activity

$160,000 – $190,000 Residential Developers & Builders currently active in the City include: >

Mal Pratt

>

Portfolio Projects

>

Villaworld

>

Citimark Properties

>

Rivergum Homes


656.65km

QUEENSLAND Market Outlook

BRISBANE

New Dwelling Approvals

Year ending December

Houses

Other

Total

2005

174

13

187

2006

249

72

321

2007

208

128

336

2008

100

41

141

2009

229

40

269

2010

278

77

355

2011

137

98

235

The outlook for Emerald is positive, with a diversified economy backed by the strong combination of agriculture, education, construction and resources growth. Recent declines in thermal coal prices may delay future thermal coal projects, although Emerald is backed by a significant number of coking coal projects. Coking coal prices remain significantly higher with similar production costs to thermal therefore the coking coal mine expansions and future projects are more viable. With existing coking coal mine life spans remaining of 30 – 80 years they continue to support Emerald’s economy for decades to come. Also, to the West of Emerald is the largest sapphire-producing area in the Southern Hemisphere.

is one of the under-supplied major regional centres in Queensland. With only two land estates currently under construction and only a further two pending release, the strong supply and demand fundamentals of Emerald help insulate the property market should the market soften.

Compared to other major regional centres like Rockhampton, Gladstone and Mackay; Emerald

Lake Maraboon is located only 18km south of the city and is the second largest lake in Queensland,

offering residents a range of fishing and water sports activities. With a village feel, established city centre and range of shopping and amenity; the City of Emerald is well placed to benefit from the Bowen Basin for both permanent residents and contractors .

MARKET MONITOR

EMERALD


Need to sell a development site..?

E L A S FOR Currently we are experiencing a strong demand for development sites with the following criteria: 50 – 2000 Lot Residential Subdivision Sites in the following locations

30 – 100 Unit Residential Apartment Development Sites in the following locations

> Greater Springfield

> > > > > > > > > >

> Redland City Council Area > Logan City Council Area > Brisbane City Council Area > Southern Moreton Bay Regional Council Area (old Pine Rivers Shire) > Emerald > Mackay > Rockhampton

Jeff Dolan M 0412 433 377 E jd@caplandre.com.au

South Brisbane West End Woolloongabba Highgate Hill Dutton Park Bulimba Morningside Coorparoo Kangaroo Point New Farm

James Walsh M 0431 712 211 E jw@caplandre.com.au

> > > > > > > > > >

Newstead Teneriffe Fortitude Valley Spring Hill Milton Auchenflower Indooroopilly Windsor Newmarket St Lucia


Kinross Road, Thornlands QLD

SITE AREA 12.26 Hectares

STATUS Offers to Purchase Closing 15 November 2012

D

SOL

APPROVED 98 LOT RESIDENTIAL SUBDIVISION SITE – BRISBANE’S BAYSIDE Details > Development Approval in place for 98 residential lots, avg. 535m2 > Located within SEQ’s most under-supplied market > Approx. 3 minutes to public & private schools, hospitals, major bus interchange, cinemas, cafe’s, restaurants and three major shopping centres including several major retailers and over 200 specialty stores > Approx. 5 minutes to Cleveland Train Station & 30 minutes to Brisbane CBD

FEATURE LISTING

ADDRESS

OTHER CAPLAND LISTINGS INCLUDE :: > 5,314m2 Hotel Development Site – Port Hedland (under negotiation) > Approved 2,500+ lot master planned community site – Jimboomba > 840 lot residential subdivision site – Emerald (under negotiation) > 5,882m2 Mixed-Use Development Site – Newstead > Retail Convenience Centre – Aspley (under negotiation)


NEWS

> C  apLand’s Project Management Division has recently been appointed by one of the major LNG producers to oversee the construction and delivery and several properties throughout the Surat Basin. > C  apLand’s Real Estate Advisory and Transactions Divisions have been appointed to assist a major offshore developer to identify and acquire a number of development site in SEQ. > C  apLand welcomes Cameron Chatwood as its new Director of Real Estate Advisory Division.

CAMERON CHATWOOD

WELCOME

Director, Real Estate Advisory

Mr Chatwood is the Director of CapLand’s Real

in providing real estate consultancy services

Estate Advisory division. Cameron has in excess

and worked in conjunction with various other

of 20 years experience in the property industry

divisions including investment sales, project

in Australia, working predominantly in property

finance advisory, economic advisory, corporate

valuation and real estate consultancy across

restructuring, business advisory and valuation

a broad range of property sectors including

and business modelling on various high profile

residential, commercial, retail, industrial, rural,

projects within Australia.

special purpose and mixed use. Cameron has worked for both the public and private sectors throughout Queensland, New South Wales and Victoria and has been engaged on overseas assignments in Papua New Guinea, New Caledonia and Vanuatu.

Cameron holds a Bachelor of Business (Real Property Valuation & Administration) from the University of Queensland, a Master of Planning from the University of Technology Sydney and a Graduate Diploma of Applied Finance & Investment from the Financial Services Institute of

Cameron’s areas of specialisation include real

Australia (FINSIA). He is an Associate member

estate valuation, feasibility analysis, transaction

of the Australian Property Institute (AAPI) with

management, options analysis, highest & best use

Certified Practising Valuer (CPV) accreditation,

analysis and distressed asset work out strategy.

a Member of the Royal Institute of Charted

Cameron has held Senior positions with Ernst

Surveyors (MRICS), a member of the Planning

& Young’s Real Estate Advisory Services

Institute of Australia (MPIA) and a Fellow of the

Team (REAS) in Brisbane and Melbourne &

Financial Services Institute of Australasia (F Fin).

Jones Lang LeSalle’s Brisbane Advisory team.

Cameron is also a Registered Valuer with the

Within these organisations he was involved

Valuers Registration Board of Queensland.

Cameron Chatwood M 0417 778 573 E cc@caplandre.com.au


MINING & RESOURCES

DEVELOPMENT MANAGEMENT

REAL ESTATE TRANSACTIONS

OVERVIEW OF CAPLAND DIVISIONS CapLand Real Estate Advisors has changed the way in which real estate services are provided in today’s market. CapLand Real Estate Advisors combines a property consultancy practice, a development management platform and a commercial real estate together to provide a full service for our clients at every stage throughout the property lifecycle. This integrated solution delivers significant value for our clients, maximises the value of each asset as well as generate realistic results in a timely manner. CapLand is based in QLD, although has advised on assets in NSW, VIC, NT and WA.

ABOUT CAPLAND

REAL ESTATE ADVISORY


Phone 07 3102 4600 Level 5 26 Wharf Street Brisbane Qld 4000 PO Box 10765 Brisbane Qld 4000

www.caplandre.com.au

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