Regional Snapshot: AUSTRALIAHow the Australian Property Development industry is responding to disruption and

rapidly-changing market pressures

36% 72%

Cross-Border Trade Policy will have a

NEGATIVE IMPACT

Millennial Expectationswill have a

POSITIVE IMPACT

82%42%

Public Infrastructure will have a

POSITIVE IMPACT

Transport Technology will have

NO IMPACT

The millennial generation - the largest ever born - are experience-hungry and endlessly curious. Their desire to be constantly stimulated, entertained, and locally-connected is radically changing the face of retail. As a result, I think we’ll see a move back to town centres that function as the social heart

to the community, with a mix of local retailers, fresh food markets, essential services, eateries, and entertainment, layered in with the flexibility to activate unique events and experiences that will keep

people coming back for more. We call this the ‘super-neighbourhood’ model - a place where meaningful connections with friends and lasting memories are made; not just a place where shopping is done.

— Joanna RussellGeneral Manager, Retail Development, Frasers Property Australia

Perceived Impact of

EMERGING TECHNOLOGY ON DEVELOPMENT

Getting Smarter with

DATA AND ANALYTICS

PRE-FAB58% Building Pre-fabrication will create major disruptive changes

3D PRINTING66% 3D printing will have minimal impact

CONSTRUCTION SITE ROBOTICS40% Construction site robotics will create major disruptive changes

CONNECTED JOB SITES64% Connected job sites will have minimal impact

87%

see signifcant potential to conduct more extensive benchmarking on CONSTRUCTION COSTS

82%

see significant potential to conduct more extensive benchmarking on PERFORMANCE TO BUDGET

Degree to which respondents are planning or considering traditional bank financing in the next 3-5 years

Degree to which respondents are planning or considering alternative financing in the next 3-5 years

Percentage of respondents who believe

TRADE AND LABOUR SHORTAGES will present a significant challenge over the next 5 years:

How developers see market forces

IMPACTING THEIR DEVELOPMENT PIPELINE

Development financing and the

RISE OF ALTERNATIVE LENDING

Currently Using

52%

Currently Using

87%

Considering Planning

31%

Considering Planning

13%

Not Considering

17%

Not Considering

0%

TRADITIONAL BANK LENDING ALTERNATIVE FINANCING OPTIONS

The overwhelming force impacting Australian developers at present is the continued pull-back of the major banks from new investment and construction lending. As a result, what we’re seeing in the

marketplace is a triple threat: less credit, more expensive credit and more stringent pre-conditions for credit. What is starting to emerge is a nascent ‘non-bank’ credit market, however the impacts of the retreat of the major banks is still being washed through the system, while the non-bank lenders - such as private

lenders, hedge funds and family offices, for example - are yet to pick up the slack resulting in an impact on market liquidity not seen since the GFC.

— Adam Di MarcoFounder & Publisher, The Urban Developer

of Australian Developers are considering Joint Ventures citing the top 3 drivers for JV’s and Partnerships being:

MIXED USE OPPORTUNITIES

GREATER INVESTMENT RETURNS

TEAMING OF COMPLEMENTARY SKILLS / DISCIPLINES

36%

28%

48%

25%30%

35%

23%

Latin America AsiaEuropeUKAustraliaUS Canada

Compared globally, Australian developers see the most benefit in better construction and development cost data

62%

REAL ESTATE DEVELOPMENT TRENDS REPORT

WA 48%VIC 71% QLD 67% NSW 65%

info.apac@altusgroup.comwww.altusgroup.com/global-real-estate-development-trends-report

74%of Australian Developers said

GOVERNMENT REGULATION has a high impact on their

volume of activity in market