Urbis Market Outlook Docklands Nov 2021

1 Bed $600 2 Bed $780 3 Bed $1,200 Thispublication ispreparedbyUrbisPtyLtdonthe instructionsofLendleaseand isforthesoleuseofLendleaseandthoseofLendlease'scustomersorprospectivecustomerstowhom Lendleasedisclosethispublication.Thepublication isnotsuitableforusebyanyotherpartyandmaynotbeprovidedtoanyotherpartywithoutthespecificapprovalofLendleaseandUrbis.The publicationcontainsforecasts,projectionsandassumptions(Content)whichmaybeaffectedbyanumberofunforeseenvariables.WhilstUrbishasmadereasonableeffortstoensurethatthe forecasts,projectionsandassumptionsarebasedonreliable informationandarereasonable,theymaybeaffectedbycircumstancesthatdonotnecessarilyeventuateorbyknownorunknown risksanduncertainties. Itshouldbenotedthatpastperformance isnotnecessarilyareliable indicationoffutureperformance.TheCOVID-19pandemic isassumednottohavematerially impactedtheContent(unlessotherwisestated).Youmustcarefullyconsiderthe impactoftheCOVID-19pandemic(includingontheContent)whenmakinganydecisionsregardingtheassets orbusinessactivitiestowhichthispublicationrelates.AnyContentaddressingthe impactoftheCOVID-19pandemicontheasset(s)andanybusinessoperationstowhichthepublication relates is(unlessotherwisespecificallystated inthepublication)unsupportedbyspecificandreliabledataand informationandmustnotbereliedon.The information inthispublicationdoes notrepresentfinancialadviceandshouldnotberegardedassuch. Ithasbeenpreparedwithouttaking intoaccountyourfinancialsituationor investmentobjectives.Youshould,beforeactingon any information inthispublication,fullyconsidertheappropriatenessofthe information,havingregardtoyourobjectivesandcurrentfinancialortaxationsituationandneedsand, ifnecessary, seekappropriateprofessionaladvice.The information issubjecttochangewithoutnoticeandUrbis isundernoobligationtoupdatethe informationorcorrectanyassumptionswhichmay changeovertime.Thispublication issubjecttocopyright.ExceptaspermittedundertheCopyrightAct1968,nopartof itmay, inanyformorbyanymeans(electronic,mechanical,photocopying, recordingorotherwise),bereproduced,stored inretrievalssystemortransmittedwithoutpriorwrittenpermissionofUrbis.Enquiriesshouldbeaddressedtothepublishers. P0029722 RESIDENTIAL MARKET Of the 2,730 apartment sales in Docklands that transacted over the last five years, 41 of these sales transacted over $2,000,000. Of these premium sales, 71% sold for over $2,500,000, with a higher sale price of $5,000,000 achieved in the year to September 2021. This is indicative of the proportion of premium and quality apartments and townhomes with water views in Docklands. RENTAL MARKET There is a sizeable investment market within Docklands, reflected by 63% of the population renting, compared with 29% across Greater Melbourne. Docklands apartments achieved a gross rental yield of 4.0% in July 2021, compared to 3.7% across the City of Melbourne. New product apartments in Docklands achieved a weekly rent of $790 in the 95th percentile, over the three years to July 2021. One, two and three bed apartments achieved weekly rents of $600, $780 and $1,200 respectively, with two-bedrooms being the most popular bed type. Coupled with high rental yield and a lower vacancy rate when compared to Melbourne CBD and Southbank, Docklands' rental market is attractive for investors and primed for growth. DOCKLANDS PREMIUMMARKET Docklands apartments achieve a 10% premium over Southbank apartments and a 4% premium over Melbourne CBD apartments, when comparing median prices. Similarly, Docklands houses achieve a price premiummore than double that of houses in the wider City of Melbourne. Several factors drive this premium: Waterside location and water and city views Newer apartment stock Tranquil atmosphere Proximity to lifestyle and entertainment amenity Features such as waterside location and being adjacent to the CBD are in limited supply, and the scarcity of such sites is increasing. Across the City of Melbourne, Urbis estimates that only 7% of residential properties are within 20 metres of water, which is indicative of this short supply. DOCKLANDS NEW PRODUCT APARTMENTS RENTS 95.P% - 2018-2021 Source: Urbis - Rental Intelligence Dashboard PREMIUM APARTMENT SALES 2016-2021 Source: PriceFinder, Urbis Source: PriceFinder, Urbis. *In year to Sept 2021 DOCKLANDS PRICE PREMIUM September 2021 INDICATIVE GROSS RENTAL YIELD July 2021 4.0% Docklands 3.7% City of Melbourne Source: PriceFinder, Urbis VACANCY RATES July 2021 Source: SQM Research 8.2% Melbourne CBD 6.6% Southbank 6.4% Docklands $2,667,500 Docklands $1,325,500 City of Melbourne +101% premium or 2x higher 41 sales over $2M 71% over $2.5M Highest sale $5M*