Property Market Report · 1.5 prth- 3 Phone: +61 2 9292 7400 Fax: +61 2 9292 7404 Address: Level 14, 347 Kent Street Sydney NSW 2000 Email: [email protected] Follow us: Visit

1

1

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404

Address: Level 14, 347 Kent Street Sydney NSW 2000

Email: [email protected]

Follow us: Visit www.prpsydney.com.au

© Copyright Preston Rowe Paterson NSW Pty Limited

Property Market Report

Tasmania

March quarter 2015

About This Report

Preston Rowe Paterson prepare standard research reports covering the main markets within which we operate in each of our capital cities and major regional locations.

The markets covered in this research report include the commercial office market, industrial market, retail market, hotel and leisure market and residential market as well as economic factors impacting on the real estate markets within we operate.

We regularly undertake valuations of commercial, retail, industrial, hotel and leisure, residential and special purpose properties for many varied reasons, as set out later herein. We also provide property management services, asset and facilities management services for commercial, retail, industrial property as well as plant and machinery valuation.

To compile the research report we have considered the most recently available statistics from known sources. Given the manner in which statistics are compiled and published they are usually 3-6 months out of date at the time we analyse them. Where possible we consider short term movement in the statistics by looking at daily published data in the financial press. Where this shows notable fluctuation, when compared to the formal published numbers we have commented accordingly.

INSIDE THIS ISSUE:

Hobart Office Market 2

Retail Market 3

Industrial Market 4

Residential Market 4

Hotel & Leisure Market 6

Economic Fundamentals 7

About Preston Rowe Paterson 9

Contact Us 11

mailto:[email protected]

http://www.prpsydney.com.au

prth- 2

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





Commercial Office Market

Hobart CBD

Supply by Grade (Stock) According to the Property Council of Australia Office Market Report January 2015, the Hobart CBD office stock has increased by 3,685 sqm to a total supply of 363,082 sqm in the six months to January.

A Grade office stock dominates the Hobart CBD market with a 51.9% share of the total market. B and C Grade office stock both

recorded a similar share of the total market at 19.4% and 18.9% respectively. The D Grade stock has remained unchanged since January 2012, amounting to 9.7% of the market.

Development Sites The Property Council of Australia’s (PCA) Office Market Report January 2015 have recorded the following office developments in

the Hobart CBD office pipeline. Parliament Square

development located in the Salamanca precinct is currently in the construction

phase. The landmark redevelopment owned by Citta Property Group will

20,709 sqm of office space and 1,200 sqm of retail area over 8 storeys on an

average floorplate size of 1,941 sqm. It will include 155 car spaces. The site includes the former St Mary’s Hospital, the Red Brick Building, 34 West Davey

Street, the former Government Printing Office building and the former PABX building. The development will include open public space, an amphitheatre, restored heritage buildings, 5-star green

office building, shops and cafes. It is expected to be completed by 2017.

2

Net Absorption The Hobart CBD office market has recorded a negative net absorption in the twelve months to January 2015 of –2,303 sqm. All office grades, with the exception of A Grade which absorbed 3,814

sqm of office space, recorded a negative net absorption in the six months to January.

C Grade recorded –4,237 sqm absorption in the six months to January, followed by D Grade at –1,440 sqm and B Grade at –400 sqm.

Chart 1 – Hobart CBD Total Stock by Grade– Source PCA

51.9%

19.4%

18.9%

9.7%

Hobart CBD Office Market

A-Grade B-Grade C-Grade D-Grade

Source: PCA/Preston Rowe Paterson Research

Investment Activity Preston Rowe Paterson Research has recorded the following major sales transactions that occurred in the Hobart CBD market during the three months to March 2015;

28 Elizabeth Street, Hobart TAS 7000

The office building has been sold for $4.5 million on an estimated yield of 11.07%. The property

has a ground floor retail are of 547 sqm and a net lettable area of 1,307 sqm across level 1 and 2.

The property is fully leased on an approximate annual income of $498,000. Rear access

underground car parking is available via Trafalgar Place.

Chart 2 – Hobart CBD Office Market Net Absorption – Source PCA

-5,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

Ne

t A

bso

rptio

n (

sq

m)

Hobart CBD Office Market

Net Absorption

Net AbsorptionSource: PCA/Preston Rowe Paterson Research



prth- 3

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





Total Vacancy: The Hobart CBD office market total vacancy rate has increased by

1.6% to 8.9% in the six months to January 2015. The total office

vacancy in Hobart amounts to about 32,332 sqm. The both direct

and sub-lease vacancy increased by 0.8 to a rate of 7.2% and 1.7%

respectively.

On a year on year analysis the Hobart CBD A Grade vacancy rate

has increased by 2.6% to 5.7%. Similarly the C Grade and D Grade

vacancy rates have both grew by 2% to 4.1% to 13% and 10.5%

respectively. The only recorded tightening in vacancy was in the B

Grade office stock which fell by 1.9% to 12.7%.

Chart 3 – Hobart CBD Commercial Vacancy Rates – Source PCA

Retail Market

3

Investment Activity Preston Rowe Paterson Research has recorded the following major sales transactions that occurred in the Tasmania retail market during the three months to March 2015;

112 Argyle Street, Hobart TAS 7000 A car yard has been sold for $8.413 million, reflecting a rate of nearly $30,000 psm. The car yard is tenanted by Tilford Auto Group which retails cars. The siteretails used cars and services Chrysler Jeep Dodge, Skoda, Land Rover and Jaguar automobile brands.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

Vacan

cy R

ate

(%

)

Hobart CBD Commercial

Vacancy Rates

Direct Vacancy Sub-Lease VacancySource: PCA/Preston Rowe Paterson Research

Chart 4 – Tasmania Retail Turnover – Source ABS

Economic Statistics According to the Australian Bureau of Statistics category Retail Trade (March 2015), the retail turnover figures recorded in Tasmania produced positive results. The Tasmanian total industry retail turnover

increased by 0.4% over the month of March resulting in total turnover for the month of $476.7 million. This is a 4.4% increase when compared to March 2014.

The Tasmanian retail market had produced positive results over the month of March, except for Food retailing. The highest monthly retail

turnover growth was realised by Café, restaurants and takeaway service increasing by 2.7% ($49.6 million). Household goods retailing grew by 0.8% ($93.2 million) and Clothing, footwear and accessory

retailing increased by 0.6% ($31.9 million). Food retailing fell by –0.8% to a monthly turnover of $207.5 million.

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

300.0

325.0

350.0

375.0

400.0

425.0

450.0

475.0

500.0

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Jun

-13

Jul-

13

Au

g-1

3

Se

p-1

3

Oct

-13

No

v-1

3

De

c-1

3

Jan

-14

Fe

b-1

4

Ma

r-1

4

Ap

r-1

4

Ma

y-1

4

Jun

-14

Jul-

14

Au

g-1

4

Se

p-1

4

Oct

-14

No

v-1

4

De

c-1

4

Jan

-15

Fe

b-1

5

Ma

r-1

5

Mo

nth

ly P

erc

en

tag

e C

ha

ng

e (

%)

Re

tail

Tu

rno

ve

r $

mil

lio

n

Tasmania Retail Turnover

Retail Turnover % ChangeSource: ABS/Preston Rowe Paterson Research



prth- 4

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





4

Residential Market Economic Statistics According to the Australian Bureau of Statistics category 8731.0

Building Approvals March 2015, the total number of house dwelling approvals in the Hobart Statistical Division over the month has increased by 34% from 73 approvals to 98 approvals. In

comparison to March 2014, dwelling approvals realised a growth of 88%. The monthly total number of non-house dwelling approvals increased from 2 approvals to 67 approvals. In comparison to

March 2014 this reflected a decrease of 67%. The Hobart total dwellings market has recorded a total number of

165 dwelling approvals in the year to date 2015.

Year on year analysis recorded mixed results for Tasmanian retail.

Clothing, footwear and accessory retailing recorded the largest decline of –7.3%. Café, restaurants and takeaway service fell by –0.4% whilst Food retailing and Household goods retail both reported an annual

growth of 5.1% and 6% respectively.

Chart 5 – Tasmania Turnover % Monthly Change – Source PCA

Industrial Market Preston Rowe Paterson Research has recorded the following

significant sales transaction that occurred in the Tasmanian Industrial Market, during the three months to March 2015;

61 Boland Street, Launceston TAS 7250

A warehouse facility has been sold in vacant possession for $1.705 million. The property

features a 1,500 sqm clear span warehouse, three roller door access, 190 sqm of office and

showroom space and on-site parking. Launceston is located about 198km north of Hobart.

-0.12

-0.1

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

0.08

0.1

Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015

Mo

nth

ly %

Ch

an

ge

Food Retailing Household goods Clothing, Footwear Cafe, Restaurants

Tasmania Retail Turnover

% Monthly Change

Source: ABS/Preston Rowe Paterson Research

Chart 6 – Hobart SD Dwelling Approvals – Source ABS

HOBART Market Affordability According to the Real Estate Institute of Australia (REIA) December quarter 2014, the Hobart median house price has remains unchanged to a price of $360,000. A decline of -2.7% was recorded

over the twelve months to December. Mixed quarterly results were recorded across all cities and zones.

The highest quarterly growth in median house sales prices was Launceston which grew by 7.2% to $284,000, followed by Middle Hobart at $319,000 (3.5%). Inner Hobart houses recorded a

quarterly fall of –6% to a median price of $463,500; Outer Hobart by –3.2% to $348,500 and North-West Centres by –2.3% to $234,500.

Year on year analysis revealed predominantly negative results on Tasmanian house sales. Launceston median house prices was the only annual growth recorded of 3.3%. Inner, Middle an Outer Hobart

recorded an annual decline of –1.4% -1.8% and -0.7% respectively. North-West Centres recorded annual median sales price declines of –2.3%.

0

200

400

600

800

1,000

1,200

1,400

1,600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD 2015

An

nu

al

Ap

pro

va

ls

Hobart SD Dwelling Approvals

Houses OtherSource: ABS / Preston Rowe Paterson Research



prth- 5

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





5

Rental Market The December quarter revealed varied results in Tasmanian house

rentals. Rent in the regional cities recorded growth whereas Hobart house rents remained relatively stable. The highest quarterly growth was recorded in North-West Centres 2 bedroom house of 12.7% to

medina weekly rent of $248. The largest fall in median weekly rent was noted in Outer Hobart 4 bedroom house of –8.4% to $394.

The Inner Hobart 3 bedroom, Middle Hobart and Launceston 4 bedroom house median weekly rent remain unchanged at $400, $410 and $365 respectively.

Year on year analysis also revealed mixed results in Tasmanian median house rents. An annual growth was recorded across the

Inner Hobart, Launceston and North-West Centres house rents. The highest annual growth in median weekly rents was reported in North-West Centres 4 bedroom house which increased by 29.3% to $375.

The greatest annual decline in median weekly rent was noted in Outer Hobart 4 bedroom house of –7.3%.

Chart 7 – Median House Price by Zone – Source REIA

Similarly, the median other dwellings prices in Tasmania noted

mixed results in the Hobart zones in the December quarter 2014. The most significant quarterly fall was in Launceston decreasing by –11.1% to $200,000 median sales prices, followed by North-West

Centres at –6.4% to $201,300 and Middle Hobart at –5.5% to $225,000. Inner and Outer Hobart median prices grew by 11.6%

and 13.3% to the median sales price of $337,500 and $294,500.

Year on year analysis revealed mixed results recorded as at December 2014. The largest decline in other dwelling median sales price was Launceston which fell by –14.9%, followed by Middle

Hobart at –1.1%. The highest annual growth was recorded in Outer Hobart followed by North-West Centres and Inner Hobart

increasing at 11.3%, 3.2% and 0.7% respectively.

Chart 8 – Median Price for Other Dwellings by Zone – Source REIA

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Hobart Inner Hobart Middle Hobart Outer Launceston North-West CentresQ

ua

rte

rly

Pe

rce

nta

ge

Ch

an

ge

(%

)

Me

dia

n H

ou

se P

rice

Median House Price by Zone

Median House Price Quarterly % ChangeSource: REIA/Preston Rowe Paterson Research

-14.00

-12.00

-10.00

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

$100,000

$125,000

$150,000

$175,000

$200,000

$225,000

$250,000

$275,000

$300,000

$325,000

Hobart Inner Hobart Middle Hobart Outer Launceston North-West Centres

Qu

art

erl

y P

erc

en

tag

e C

ha

ng

e (

%)

Me

dia

n H

ou

se P

rice

Median Price for Other Dwellings by Zone

Median Unit Price Quarterly % ChangeSource: REIA/Preston Rowe Paterson Research

Chart 9 – Median Weekly Rents for Houses by Zone – Source REIA

Tasmania Other Dwellings rentals revealed predominantly positive

quarterly results. The largest growth were recorded in the Launceston, Inner Hobart and Outer Hobart 3 bedrooms other dwellings which reflected a quarterly increase of 22.3%, 13.9% and

17.9% to the median weekly rent of $340, $450 and $330 respectively .

There were limited median weekly rent declines recorded in the December quarter. Inner Hobart 1 bedroom, Middle Hobart 2 bedroom and North-West Centres 1 bedroom other dwelling rents

fell by –8.7%, -4% and –6.3% respectively to $210, $240 and $150. No rental results were recorded for Outer Hobart 1 bedroom other

dwellings in the December quarter 2014. Year on year analysis of Tasmanian other dwellings rentals has

revealed growth, except for Outer Hobart 2 bedroom which declined by –6.7% to $280. The highest rental growth was recorded in the North-West Centres 3 bedroom other dwelling that increased by

33.3% to a median weekly rent of $300.

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550


We

ek

ly M

ed

ian

Re

nt

Median Weekly Rents for Houses by Zone

2 Bed House 3 Bed House 4 Bed HouseSource: REIA/Preston Rowe Paterson Research



prth- 6

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





6

Hotel & Leisure Market

Preston Rowe Paterson Research recorded the following significant sales transactions that occurred in the Hobart Hotel Market, during

the three months to March 2015;

St John Street, Launceston, TAS 7250

The Richman family has purchased The Sebel Launceston hotel from Tasmanian Boutique Hotels Pty Ltd

for $10 million. The 4.5 stars hotel features 49 rooms of one and two bedders across 8 storeys,

conference room, fitness centre, restaurant and bar. The average occupancy rate at the Sebel in 2013-14 was 79.3%, which is better than the Tasmanian average of

58.5%. The sale reflects a rate of $204,081.65 per room. 139 Wilson Street, Burnie TAS

7320 The Comfort Hotel Burnie was sold for $1.5 million. The 3 star

hotel features 55 rooms across 4 levels, restaurant, bar and lounge, business centre, and a function

room for up to 350 seatings. The sale reflects a rate of $27,272.70 per room. Burnie is located approximately 47km east of Devonport and 296km northeast of

Hobart.

Chart 10 – Median Weekly Rents for Other Dwellings by Zone – Source REIA

$100

$150

$200

$250

$300

$350

$400

$450

$500


We

ek

ly M

ed

ian

Re

nt

Median Weekly Rents for Other Dwellings by Zone

1 Bed Unit 2 Bed Unit 3 Bed UnitSource: REIA/Preston Rowe Paterson Research



prth- 7

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





Chart 11 – Gross Domestic Product (GDP) – Source ABS

Chart 12 – Unemployment – Source ABS

Economic Fundamentals

Chart 13 – Cash Rate—Source RBA

7

Labour force

Over the month to March 2015, the number of unemployed people decreased by 1,530 from 766,038 in February to 759,156 in March which is a 0.20% decrease. In comparison to March 2014, the

number of unemployed people has increased by 42,327 which reflected an annual increase of 5.90%. The unemployment rate as at March 2015 is 6.2%.

The number of unemployed seeking full time employment recorded an increase over the month of March by 700 to 546,800 persons,

reflecting a growth of 0.13%. The number of unemployed seeking part time employment recorded a decreased over the month by 2,200 to 217,700 persons, reflecting a decrease of 1.05%.

Tasmania experienced an absolute decrease over the quarter in seasonally adjusted employment by 2,023 persons to 239,354

persons. The unemployment status in Tasmania has remain unchanged at 6.6% in the March quarter.

Interest Rates

As at the date of publishing, the official Cash Rate over the March quarter 2015 has decreased by 25 basis points to 2.25%. The Reserve Bank of Australia’s Media Release for March 2014, released

3rd March 2014 explained that; “In Australia the available information suggests that growth is

continuing at a below-trend pace, with domestic demand growth overall quite weak. As a result, the unemployment rate has gradually moved higher over the past year. The economy is likely to be

operating with a degree of spare capacity for quite some time yet...Credit is recording moderate growth overall, with stronger growth in lending to investors in housing assets...The Bank is

working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for equities and commercial property have risen, in part as a result of

declining long-term interest rates.”

GDP

GDP figures for the March quarter 2015 are not available until the

3rd June 2015, however, over the December 2014 quarter revealed

that the Australian economy recorded growth of 0.55% seasonally

adjusted which reflected growth of 2.47% seasonally adjusted over

the twelve months to December 2013.

In seasonally adjusted terms, the main industry gross value added

contributors to GDP were Mining (+0.5%), Financial and insurance

services (+0.5%) and Healthcare and social assistance (+0.3%). In

trend terms, the largest detractor was the Professional, scientific and

technical services (-0.5%).

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0

Jun

-06

Se

p-0

6

De

c-0

6

Ma

r-0

7

Jun

-07

Se

p-0

7

De

c-0

7

Ma

r-0

8

Jun

-08

Se

p-0

8

De

c-0

8

Ma

r-0

9

Jun

-09

Se

p-0

9

De

c-0

9

Ma

r-1

0

Jun

-10

Se

p-1

0

De

c-1

0

Ma

r-1

1

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-1

2

Jun

-12

Se

p-1

2

De

c-1

2

Ma

r-1

3

Jun

-13

Se

p-1

3

De

c-1

3

Ma

r-1

4

Jun

-14

Se

p-1

4

De

c-1

4

Pe

rce

nta

ge

(%

)

GD

P M

illi

on

s

Gross Domestic Product

Gross Domestic Product Seasonally Adjusted % Change Seasonally AdjustedSource: RBA /Preston Rowe Paterson Research

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

425,000

475,000

525,000

575,000

625,000

675,000

725,000

775,000

825,000

875,000

Ma

r-0

8

Se

p-0

8

Ma

r-0

9

Se

p-0

9

Ma

r-1

0

Se

p-1

0

Ma

r-1

1

Se

p-1

1

Ma

r-1

2

Se

p-1

2

Ma

r-1

3

Se

p-1

3

Ma

r-1

4

Se

p-1

4

Ma

r-1

5

Un

em

plo

ym

en

t ra

te (

%)

Un

em

plo

ye

d p

ers

on

s '0

00

Unemployment (Rate and Persons)

Unemployed Persons Unemployment RateSource: ABS/Preston Rowe Paterson Research

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

De

c-1

0

Ma

r-1

1

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-1

2

Jun

-12

Se

p-1

2

De

c-1

2

Ma

r-1

3

Jun

-13

Se

p-1

3

De

c-1

3

Ma

r-1

4

Jun

-14

Se

p-1

4

De

c-1

4

Ma

r-1

5

Pe

rce

nta

ge

(%

)

Interest Rate Movements

Cash RateSource: RBA /Preston Rowe Paterson Research



prth- 8

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





Chart 14 – Consumer Price Index – Source RBA

Chart 15—Consumer Sentiment Index—Source Westpac Melbourne

Institute

8

Chart 16 –Movement in Exchange Rates – Source RBA

CPI According to the Australian Bureau of Statistics (March 2015), the Australia’s All Groups CPI increased by 0.2% over the March quarter from 106.6 to 106.8. The annual CPI change to March 2015

recorded a growth of 1.3%. The most significant price rises over the March quarter were for

Domestic holiday travel and accommodation (+3.5%), Tertiary education (+5.7%) and Medical and hospital services (+2.2%). The greatest price fall over the March quarter was attributed to

Automotive fuel (-12.2%) and Fruit (-8%). The Housing Group increased by 0.8% over the March quarter. The

main contributors to the price rise were in new dwelling purchase by Owner-occupiers and Electricity recording a growth of 0.9% and 1.9% respectively. Over the twelve months to March 2015, the

housing group recorded growth of 2.7% which was backed by the 4.8% annual growth in new dwelling purchases by Owner-occupiers and a 2.1% rise in Rents.

Consumer Sentiment The Westpac Melbourne Institute of Consumer Sentiment Index fell

by 1.2% in March from 100.7 index points in February to 99.5 index points in March. Over the quarter the index has increased by 8.4 points, a 9.22% growth. Over the twelve months to March 2015 the

index recorded no annual change. The Index is returning to its pre-budget level in May 2014. Westpac’s Senior Economist, Matthew Hassan commented; “Some softening in sentiment was always likely in March given the big lift (in February) following the RBA’s surprise 25bp rate cut… The overall message

seems to be that while consumers remain very concerned about the outlook for the economy and job security, they are less concerned than they were in December and acknowledge the more positive

situation around interest rates.”

Exchange Rates & Equity Markets

Australian Exchange Rates

Over March quarter 2015, the Australian Dollar fell significantly

against the US Dollar, decreasing from $0.8202 in December to

$0.7634 in March. Over the twelve months to March, the Australian

dollar has decreased by 17.21% from $0.9221 USD.

The Australian Dollar also recorded a quarterly decline against the

British Pound and the Japanese Yen. The Australian Dollar

exchange rates against the Pound and Yen fell by 2% and 6.4%

respectively. The Australian Dollar rose against the Euro by 4.80%.

Year on year analysis saw the Australian Dollar decline against the

British Pound by 6.85% to £0.5164 and 3.28% in the Yen to ¥91.72.

The Australian Dollar experienced an annual increase against the

Euro of 5.41% €0.7070.

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

5.5

6

6.5

7

7.5

8

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Ma

r-0

6

Se

p-0

6

Ma

r-0

7

Se

p-0

7

Ma

r-0

8

Se

p-0

8

Ma

r-0

9

Se

p-0

9

Ma

r-1

0

Se

p-1

0

Ma

r-1

1

Se

p-1

1

Ma

r-1

2

Se

p-1

2

Ma

r-1

3

Se

p-1

3

Ma

r-1

4

Se

p-1

4

Ma

r-1

5

An

nu

al

% C

ha

ng

e

Au

s A

ll G

rou

ps

Consumer Price Index

All Groups CPI - Australia Annual % ChangeSource: PCA/Preston Rowe Paterson Research

60

70

80

90

100

110

120

130

Ma

r-0

5

Se

p-0

5

Ma

r-0

6

Se

p-0

6

Ma

r-0

7

Se

p-0

7

Ma

r-0

8

Se

p-0

8

Ma

r-0

9

Se

p-0

9

Ma

r-1

0

Se

p-1

0

Ma

r-1

1

Se

p-1

1

Ma

r-1

2

Se

p-1

2

Ma

r-1

3

Se

p-1

3

Ma

r-1

4

Se

p-1

4

Ma

r-1

5

Co

nsu

me

r S

en

tim

en

t

Consumer Sentiment Index

Consumer Sentiment IndexSource: RBA /Preston Rowe Paterson Research

20

30

40

50

60

70

80

90

100

110

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

Ma

r-0

6

Jun

-06

Se

p-0

6

De

c-0

6

Ma

r-0

7

Jun

-07

Se

p-0

7

De

c-0

7

Ma

r-0

8

Jun

-08

Se

p-0

8

De

c-0

8

Ma

r-0

9

Jun

-09

Se

p-0

9

De

c-0

9

Ma

r-1

0

Jun

-10

Se

p-1

0

De

c-1

0

Ma

r-1

1

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-1

2

Jun

-12

Se

p-1

2

De

c-1

2

Ma

r-1

3

Jun

-13

Se

p-1

3

De

c-1

3

Ma

r-1

4

Jun

-14

Se

p-1

4

De

c-1

4

Ma

r-1

5

1 $

AU

D b

uy

s (Y

en

)

1 $

AU

D b

uy

s (U

S,

UK

, E

uro

)

Movement in Exchange Rates

US $ UK Pound Euro YenSource: RBA /Preston Rowe Paterson Research



prth- 9

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





9

Our Research At Preston Rowe Paterson, we pride ourselves on the research which we prepare in the market sectors within which we operate. These include Commercial, Retail, Industrial, Hotel & Leisure and Residential property mar-kets as well as infrastructure, capital and plant and ma-chinery markets

We have property covered · Investment · Development · Asset · Corporate Real Estate · Mortgage · Government · Insurance · Occupancy · Sustainability · Research · Real Estate Investment Valuation · Real Estate Development Valuation · Property Consultancy and Advisory · Transaction Advisory · Property and Asset Management · Listed Fund, Property Trust, Super Fund · and Syndicate Advisors · Plant & Machinery Valuation · General and Insurance Valuation · Economic and Property Market Research

We have all real estate types covered

We regularly provide valuation, property and asset man-agement, consultancy and leasing services for all types of Real Estate including: · CBD and Metropolitan commercial office buildings · Retail shopping centres and shops · Industrial, office/warehouses and factories · Business parks · Hotels (accommodation) and resorts · Hotels (pubs), motels and caravan parks · Residential development projects · Residential dwellings (individual houses and apart-

ments/units) · Rural properties · Special purpose properties such as: nursing homes;

private hospitals, service stations, oil terminals and refineries, theatre complexes; etc.

· Infrastructure

We have all types of plant & machinery covered

We regularly undertake valuations of all forms of plant, machinery, furniture, fittings and equipment including: · Mining & earth moving equipment/road plant · Office fit outs, equipment & furniture · Agricultural machinery & equipment · Heavy, light commercial & passenger vehicles · Industrial manufacturing equipment · Wineries and processing plants · Special purpose plant, machinery & equipment · Extractive industries, land fills and resource based

enterprises · Hotel furniture, fittings & equipment

We have all client profiles covered Preston Rowe Paterson acts for an array of clients with all types of real estate, plant, machinery and equipment interests such as: · Accountants · Banks, finance companies and lending

institutions · Commercial and Residential non bank lenders · Co-operatives · Developers · Finance and mortgage brokers · Hotel owners and operators · Institutional investors · Insurance brokers and companies · Investment advisors · Lessors and lessees · Listed and private companies corporations · Listed Property Trusts · Local, State and Federal Government Depart-

ments and Agencies · Mining companies · Mortgage trusts · Overseas clients · Private investors · Property Syndication Managers · Rural landholders · Self managed super funds · Solicitors and barristers · Sovereign wealth funds · Stock brokers · Trustee and Custodial companies



prth- 10

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





10

We have all locations covered

From our capital city and regional office locations we serve our client’s needs throughout Australia. Globally, we operate directly or via our relationship offices for special purpose real estate asset classes, infrastructure and plant & machinery.

We have your needs covered Our clients seek our property (real estate, infrastructure, plant and machinery) services for a multitude of reasons including: · Acquisitions & Disposals · Alternative use & highest and best use analysis · Asset Management · Asset Valuations for financial reporting to meet ASIC,

AASB, IFRS & IVSC guidelines · Compulsory acquisition and resumption · Corporate merger & acquisition real estate due diligence · Due Diligence management for acquisitions and sales · Facilities management · Feasibility studies · Funds management advice & portfolio analysis · Income and outgoings projections and analysis · Insurance valuations (replacement & reinstatement

costs) · Leasing vacant space within managed properties · Listed property trust & investment fund valuations & re-

valuations · Litigation support · Marketing & development strategies · Mortgage valuations · Property Management · Property syndicate valuations and re-valuations · Rating and taxing objections · Receivership, Insolvency and liquidation valuations and

support/advice · Relocation advice, strategies and consultancy · Rental assessments and determinations · Sensitivity analysis · Strategic property planning



prth- 11

Phone: +61 2 9292 7400

Fax: +61 2 9292 7404





11

Sydney (Head Office)

Level 14, 347 Kent Street

Sydney NSW 2000

PO BOX 4120, Sydney NSW 2001

P: 02 9292 7400

F: 02 9292 7404

E: [email protected]

W: www.prpsydney.com.au

Follow us:

Directors

Gregory Preston

M: 0408 622 400


Gregory Rowe

M: 0411 191 179


Associate Directors

Elizabeth Duncan

M: 0448 656 103


Michael Goran

M: 0448 757 134


Erika Minnaard

M: 0448 886 335


Neal Smith

M: 0448 656 647


New Zealand Offices

Dunedin

Greymouth

Hamilton & Morrinsville

New Plymouth

Tauranga

Wellington

Preston Rowe Paterson NSW Pty Ltd

ABN: 61 003 139 188

The information provided within this publication

should be regarded solely as a general guide.

We believe that the information herein is accu-

rate however no warranty of accuracy or reliabil-

ity is given in relation to any information con-

tained in this publication. Nor is any responsibility

for any loss or damage whatsoever arising in any

way for any representation, act or omission,

whether expressed or implied (including responsi-

bility to any person or entity by reason of negli-

gence) accepted by Preston Rowe Paterson

NSW Pty Ltd or any of its associated offices or any

officer, agent or employee of Preston Rowe

Paterson NSW Pty Limited.

Capital City Offices

Adelaide

Brisbane

Hobart

Melbourne

Sydney

Regional Offices

Albury Wodonga

Ballarat

Bendigo

Central Coast/Gosford

Geelong

Gold Coast

Gippsland

Griffith

Horsham

Mornington

Newcastle

Wagga Wagga

Warrnambool

Relationship Offices

Canberra

Darwin

Perth

Other regional areas



Documents

Property Market Report · 1.5 prth- 3 Phone: +61 2 9292 7400 Fax: +61 2 9292 7404 Address: Level 14, 347 Kent Street Sydney NSW 2000 Email: [email protected] Follow us: Visit