For personal use only FY25 Results AGENDA 01 Results Highlights 02 Results Overview 03 Operating Performance 04 Outlook 05 Q&A For personal use only Peet acknowledges Aboriginal and Torres Strait Islander Peoples as the Traditional Owners of the lands and waters of Australia, and we pay our respect to their Elders past and present. We recognise Aboriginal and Torres Strait Islander Peoples continued connection and relationship with Country and value the rich cultural contribution they make to the communitie ...

Core Viewpoint - Despite a sluggish economic recovery in Victoria, Melbourne has seen house prices rise by at least AUD 10,000 in 150 suburbs since the central bank's interest rate cut in February, with some high-demand areas experiencing remarkable increases, thereby pushing the median price upward [1][4]. Group 1: Price Increases - The suburb of Canterbury has experienced the largest price increase, with the median price soaring by AUD 385,000 to AUD 3.5 million over five months [4]. - Bittern, located on the Mornington Peninsula, saw a price increase of 21.65%, rising from AUD 970,000 to AUD 1.18 million [4]. - Gembrook has officially entered the million-dollar club, with prices rising from AUD 910,000 to AUD 1.0498 million [4]. - Notable increases were also observed in the apartment and townhouse markets, such as Sunshine, where the median price rose by AUD 54,500 to AUD 458,000, and Hampton East, where the median price increased by AUD 112,500 to AUD 975,000 [4]. Group 2: Market Response and Economic Factors - There are still 32 suburbs where prices have remained unchanged, and 162 suburbs have experienced declines [6]. - AMP Capital's chief economist Shane Oliver noted that the delayed response to interest rate cuts is surprising, attributing it to Victoria's weaker economic standing, additional property taxes, and a lack of "fear of missing out" among buyers [6]. - PropTrack's senior economist Anne Flaherty emphasized that the slow response in a state with leading population growth serves as a significant warning regarding the state government's property tax policies [6]. - Flaherty anticipates a strong recovery in most suburbs, with further interest rate cuts expected to be a key driver, especially given Victoria's unemployment rate is higher than the national average [6]. Group 3: Buyer Sentiment - Buyers in Melbourne generally lack a "fear of missing out" mentality, often waiting for more signals of interest rate cuts before making purchases, even after viewing properties for six months [8]. - The acting CEO of the Real Estate Institute of Victoria, Jacob Caine, indicated that many buyers are waiting for more substantial signs of interest rate cuts, suggesting that the two cuts this year have not been sufficient to drive widespread growth across Melbourne [8].

Core Insights - The Australian housing market remains resilient despite mixed economic signals, with national property prices holding steady [1] - The Reserve Bank of Australia (RBA) decided to maintain the official interest rate at 3.85%, disappointing borrowers under pressure [1] - Strong buyer demand and limited housing supply contribute to the stability of property prices across most regions in Australia [1] Interest Rates and Borrowing Power - The average annual salary for full-time workers in Australia has just surpassed AUD 100,000, impacting borrowing capacity [3] - A single individual earning AUD 100,000 can borrow an additional AUD 21,000 compared to earlier this year, under current interest rates of 5.75% [3][4] - A potential rate cut to 5.50% could further increase borrowing capacity, allowing a single income of AUD 100,000 to borrow up to AUD 512,000 [6][7] Impact of Rate Cuts - If a 0.25% rate cut occurs, a single individual earning AUD 100,000 could see an increase in borrowing power by AUD 12,000, allowing for a total borrowing capacity of AUD 512,000 [6][9] - The overall increase in borrowing capacity since the beginning of the year for potential buyers is up to AUD 33,000, opening new purchasing opportunities in various regions [9] Market Dynamics - Borrowers are encouraged to negotiate with banks or switch to lower-rate lenders rather than waiting for official rate cuts [8] - Currently, 35 lending institutions offer at least one loan product with rates below 5.50%, unaffected by the RBA's decision [5]