The document summarizes information from various real estate markets in Australia and New Zealand from August 2012. It provides data on median home prices, sales volumes, rental rates, and buyer and seller motivations in Sydney, Melbourne, Brisbane, Auckland, and other regions. It also discusses recent commercial, industrial, and rural property transactions. Real estate auctions and innovative marketing strategies are highlighted through case studies.

1. Annual Conference - 2012
Shangri-La Hotel, Cairns
Tropical North QUEENSLAND
22nd – 26th August 2012

2. Yields, Price & Volume

3. Australia & NZ Capital Inflows
As at may 2012

4. Ray White NZ vs Aus

5. East Coast Residential Sales
Sydney, Melbourne and Brisbane median house price and house volumes
$700,000 40,000
$600,000 35,000
30,000
$500,000
25,000
$400,000
20,000
$300,000
15,000
$200,000
10,000
$100,000 5,000
$0 0
sydney house volumes melbourne house volumes
brisbane house volumes sydney median house price
melbourne median house price brisbane median house price
Source: Real Est at e Insit ut e of Qld, Nsw , Vic & LandMark
Whit e Research

6. NZ Survey
What are the main reasons people are buying?
Month Ago Average
Latest % % %
Fear of missing out/Feel time is right for prices 9.8 14.6 10.9
Trading up 10.9 13.1 14.2
Trading down 10.9 13.9 16
Shifting into town 11.4 16.6 15.3
Arriving from overseas 4 5.5 5.6
Relationship breakdown 8.4 11 12
Commuting costs 1.7 1.8 2.4
Schooling 5.3 9.2 8.2
Want closer proximity to shops 1.3 2.5 2.1
Want closer proximity to relatives 1.5 2.5 2.7
Want closer proximity to health care services 1.2 2.5 2.1
Investing 0.4 0.5 0.5
First home 15.1 2.3 2.2
Source:
Earthquake 0.2 0.9 1.5
REINZ Residential Good interest rates 16.2 0.7 1.4
Survey August 2012
Other 1.5 2.6 3.2

7. NZ Survey
What are the main factors motivating vendors to sell
Month
Latest % Ago % Average %
They think prices are going to fall 2.4 3.4 3
Need the money 14.1 16.8 18.9
Trading up 11.4 13.5 11.6
Trading down 15.6 16.9 16.4
Leaving town 10.9 14.3 13.8
Leaving the country 6.3 8.7 7.5
Relationship breakdown 13.5 13.9 15.4
Commuting costs 1.2 0.6 1.3
Schooling 2.4 3.9 3.2
Want closer proximity to shops 0.9 1.1 1.1
Want closer proximity to relatives 1.2 2 1.7
Want closer proximity to health care services 1.4 2.6 2.2
Earthquake 0.3 0.2 0.4
Bank request, job loss 0.3 0 0.1
Source:
Retirement 9.9 0.2 0.9
REINZ Residential
Survey August 2012 Estate sales 6.6 0.1 0.6
Other 1.6 1.7 1.9

8. Hong Kong Rents Fall
Source: The Wall Street Journal 13/08/12

9. American Residential Trends

10. CBD Office Market

11. Office Leasing- Mining Activity
• Groote Eylandt Mining Company
(GEMCO) recently Leased 900² in
333 Ann Street.
• GEMCO are a JV between BHP
and Anglo American Corp based in
South Africa that are expanding their
operations in Brisbane after leasing
1,200sqm in Riparian Plaza last
year.

12. Dubbo Retail
Delroy Park Shopping Centre
Dubbo
• 2,500m² Woolworths
• 15 Speciality shops
• 3 to be leased
• c. $500/m²
• 195 Car Parks
• 5 - 6 Woolworths
appointments
• More in the Pipeline

13. Perth Industrial Lease
• Annual Rental $1M p.a
Tenant: Milne Agrigroup Pty Ltd
• 20yr + 10yr + 5yr + 5yr
• Whole site - 8 h.a
• Leased Portion - 6 h.a

14. Rural Foreign Investment
Tanumbirini NT
• Sold for $32 M
• 28,000 cattle.
• 1.25 million acres
• Purchased by an English Fund making their first
Australian purchase.

15. Queensland New Households &
Approvals
queensland new house sales & approvals
9,000
8,000
7,000
no. of sales and approvals
6,000
5,000
4,000
3,000
2,000
1,000
0
quarter ending
Source: HIA , A BS & LandMark Whit e Research new house sales private house approvals
* approvals t o March only

16. First Home Buyers
• First-home buyer activity is rising - 30% rise in
sales to first-timers in June, compared to June
last year.
• The number of first home owners grants in the
June Quarter rose to 5,413, up from 4,005 same
time last year.
Source: Australian Bureau of Statistics and Office of State Revenue

17. Mackay - Residential
19 Chapman Court,
Eimeo
Rent from:
$480/wk in 2011
$550/wk in 2012

18. Mackay - Residential
33 Kohuna Sands Resort,
Bucasia
Rent from:
$320/wk in 2011
$350/wk in 2012

19. Gladstone - Residential
1/12 Kent Street,
Regency Heights
Rent from:
$305/wk in Jul 2011
$480/wk in Jan 2012

20. Mount Isa - Residential
13 Delacour Drive
Rent from:
$340/wk in April 2007
$800/wk in July 2012

21. Port Douglas - Residential
51 Nautilus Street
Sale Price:
$720,000 in July 2006
$450,000 in Aug 2012

22. Cairns - Residential
19 Waterfall Close
Sale Price:
$750,000 in March 2007
$750,000 in April 2012

23. Cairns - Residential
11 Pascoe Close
Sale Price:
$450,000 in March 2008
$375,000 in Mach 2012

24. Hervey Bay - Residential
Unit 402 Allegra
Sale Price:
$606,000 in Sept 2005
$360,000 in Feb 2011

25. Airlie Beach - Residential
237 Shute Harbour Road
Sale Price:
$800,000 in December 2009
$470,000 in Aug 2012

26. Airlie Beach - Residential
Cumberland court Airlie Summit Estate
Sale Price:
Lot 25 - $330,000 in 2006
Lot 24 - $312,500 in 2007
Lot 26 - $335,000 in 2007
Lot 23 - $75,000 in 2012

27. Airlie Beach – Residential Development Site
Plantation Lot A
Sale Price:
$1,733,000 in August 2003
$770,000 in July 2012

28. Residential Development Sites
Transaction Idiosyncrasies
2012 Pre-GFC
• High level investigation and Due • Sale was about buyer management
Diligence • Multiple offers above price
• Competition is rare expectation
• Limited quantum of offers • Unprecedented competition
• No fear of losing a deal • Fear of loss / missing a deal was
• Prevalence of Buyer “Remorse” paramount

29. Buyer Behaviour
Current Market Pre-GFC
• Commitment to acquisitions • Limited investigation
overly cautious • Aggressive pricing often based on
future price escalation
• Buyers well organised
• Debt funding post acquisition
• Debt funding either
• Little equity invested into
- pre-arranged
developments
- not relied upon
• Site acquisitions often made from
100% equity

30. Funding
Current Pre-GFC
• Challenging environment for acquisition • 2007 approx. 42 Lenders in the
funding market
• Lenders repositioning their requirements • No problem arranging Debt funding
since 2008 both for site acquisition and
• Non-income producing asset a burden development
• Shaping what the market is looking for • Land considered a strong asset in
• Focus on funding recycling equity – portfolio
faster turn around of developments

31. What the market is looking for
• Approved / De-risked sites
• Rate of Sale is the key
• Little interest in price maximisation of
“product”
• Fast turnaround of developments
• Affordable end of the market

32. Auctions

33. Innovative Solutions for
Realising Property

34. The Challenge
• Lower enthusiasm in the market – “Wait and
See”
• The amount of Mortgagee / Receiver property on
the market “is it still a point of difference?”
• A belief in many purchasers minds that the ball is
in their court and they can decide when to
purchase and for how much – “Buyers Market”

35. Case Study - Southport Central 3

36. Case Study - Southport Central 3
• Southport Central 3 –
third and final tower of a
$700 million development,
started by Raptis
• 1 level of retail
• 11 levels of commercial office
accommodation
• Topped by 258 residential units
• 4 Sales in the past 2 years

37. Gold Coast Net Absorption (6 monthly)

38. Southport Central 3 Target Market & Needs
Target Market: Local Owner Occupiers & Investors
NEEDS:
Settlement Terms: Approximately 12 Months Settlement
Occupation: Occupation for Owner Occupiers and
. Tenants upon Deposit Release
(buyer pays outgoings)
.
Fit Out Contribution: $300/m²

39. Southport Central 3 Offering
Process: Expression of Interest and Registration
. of Interest on Terms offered and
. specific Lot
Set Date Price Release
Marketing Period Prior 2 Weeks Whisper Campaign
to Price Release: 3.5 Weeks High Impact
Price Release May 20 2010
Marketing Budget: $284,000

40. Owner Occupiers v Investors
23%
Investor
77%
Owner Occupier

41. Case Study - Southport Central 3
• 141 strata offices have now settled or
had unconditional contracts placed on
them
• $31,028,500 Gross Realisation

42. Case Study – Belle Grove Estate

43. Case Study – Belle Grove Estate

44. Case Study – Fig Tree Pocket
• Lots Available: 34 Lots
• Lot Range: 702m2 to 1,784m2
• Average Size: 921m2
• Vendor: Cerebral Palsy League
Queensland
• Sales History: 2 Sales in last 12 months

45. 3½ Weeks Later

46. Auction

47. Press Coverage

48. Auction Statistics
Bidders registered: 83 bidders
Total bids: 225
Contracts signed on auction date: 22 Contracts
Total realisation on auction date: $10.067m
Marketing budget: $220k
(10K per lot)

49. Auction Day – Helmsman Auction

50. Bidder Cards

51. Example

52. Example

53. Auction Boards

54. Auction Venue

55. Example – Helmsman Auction

56. Auction – 48% Bid on more than 1 Lot

57. Sales to Date
• In the 12 months prior to the Auction,
33 vacant lots sold for over $400,000 in
the entire Western Suburbs of Brisbane.
• We have now sold 31 Lots for over
$14 million

58. Case Study – Aspire Apartments

59. Aspire Apartments
• Ipswich’s first Residential High-Rise
• Remaining 44 of 106 Apartments in Receivership
• 44 Residential Apartments
•11 Dual Key
•15 One Bed Apartments
•4 Two Bed Apartments
•12 Two Bed + MPR Apartments
•2 Penthouses
• 3 Retail Stratas

60. Survey of Buying Intentions
• 300 Current Market Participants (100 Enquirers, 100 Vendors
and 100 Land Lords)
• Survey Undertaken by Ray White Concierge (Ray White’s
telemarketing arm)
• 21 of the survey participants (7%) expressed interest in
purchasing in the next 12 months
• The 6 local offices we were teaming up with identified 2,750
land lords, vendors and enquirers. We anticipated a 7% rate
of interest totalling 192 enquiries.

61. Survey of Buying Intentions

62. Survey of Buying Intentions

63. Aspire Apartments - Research

64. Millennium Apartments
Case Study

65. Millennium Apartments
Auction Day

66. Millennium Apartments
Auction Day

67. Auction Statistics
Bidders registered: 68 (27 active)
Total bids: 131
Contracts signed on auction date: 10 Contracts
Total realisation on auction date: $8.6m
Marketing budget: $90,547k
(9K per lot)

68. Millennium Apartments

69. Millennium Apartments
Property Website
Page Views: 18,000 Views
Total Visits: 4,094
Unique Visitors: 2,930
Subscribers: 142

70. Case Study – Falls Creek Snow Sale

71. Case Study – Falls Creek Snow Sale
• 4 Complexes
• 77 Residential Apartments
•26 Studio Apartments
•10 One Bed Apartments
•20 Two Bed Apartments
•18 Three Bed Apartments
•3 Apartments in Old-Style Complex
• 3 Retail Stratas
• 49 Year Leasehold

72. Falls Creek Snow Sale - Market Status
• In the 12 months prior there had been no sales in the complexes
• In the 12 months prior there had been a total of only 18 unit sales in
Falls Creek
• 601 apartment or unit listings in Australian Ski Field Areas

73. Falls Creek Snow Sale - Strategy

74. Falls Creek Snow Sale - Website
• All Marketing directed buyers to online website

75. Falls Creek Snow Sale - Website

76. Falls Creek Snow Sale - Website

77. Virtual Inspections
Physical Inspections
12%
Virtual Inspections
88%

78. First Contact: Online v Agent Registration
119 parties only contacted Agent
244 parties contacted Agent 852 Parties Registered Online
then Registered Online then had Agent Contact

79. Data Collation
• 1,096 Parties Registered online at
www.fallscreeksnowsale.com
• 619 Parties took Virtual Inspections
• 12,361 Virtual Inspections undertaken
• 76% of Buyers undertook virtual inspections
• 343 Parties agreed to Bidding Terms Online
• 67% of Buyers agreed to Bidding Terms Online

80. Ray White eMarketing
11% of Sales Originated from RW eDatabase

81. Falls Creek Snow Sale – Auction Day

82. Falls Creek Snow Sale – Auction Day

83. Falls Creek Snow Sale – Auction Day
• 80 Lots Sold at Auction
• 3 Hour Auction
Bidders Who Bid for Mulitple Lots
• 147 Registered Bidders
• 1,183 Bids
• Average of 15 Bids Per Lot
• 83% of Bidders bid for Multiple
Lots
• Sale Prices from $30,000 to
$410,000