VALUATION REPORT

Chenming Ma
01 JULY 2021

PREPARED FOR ABC International Bank

Limited
EXECUTIVE SUMMARY

The residence is a full brick single floor, detached dwelling, within a circa 1930 built,
recently refurbished quality residence featuring three bedrooms, one bathroom,
closed kitchen, living and dining areas and a backyard deck with a lock-up one car
space garage.

Located in a quiet residential neighborhood of Kingsgrove, the property is built up

with standard building construction materials and a modern finishes, renovated
kitchen and bathrooms as well as a private deck with a sheltered patio.

The residence was undertook an interior renovation in 2019 to 2020.

Overview
Instructing Party: ABC International Bank Limited.
Prepared For: ABC International Bank Limited.
Property Address: 15 Rosemeath Avenue, Kingsgrove, NSW 2208
Date of Inspection: 01 July 2021
Date of Valuation: 01 July 2021
Interest Valued: 100% Freehold Interest on a Vacant Possession Basis
Basis of Valuation: We have been instructed to provide an assessment of the
estimated Market Value of the subject property “Current
Market Value” in its current condition and under its current
zoning All investigations have been conducted
independently and without influence from a third party in
any way
Purpose of Valuation: First Mortgage Security.
This valuation has been prepared in accordance with
ABC’s Valuation Instructions and can be relied upon by
 ABC Bank Limited ABN 12 888 888 888 for mortgage
security purposes

Property Particulars
Zoning R3: Medium Density Residential under Canterbury Local
Environmental Plan 2012
Title Details The subject property incorporates one allotment legally
identified as Lot 74 DP 15866
Area Internal Area: 118 sqm
Verandah Area: 11.5 sqm
Garage: 22.75sqm

Valuation Summary
Direct Comparison Approach: $1,485,000
Investment Method Approach: $1,475,000
Primary Valuation Methodology: Direct Comparison
Adopted Value: $1,485,000

Critical Assumptions
Our specific instructions have been to value the property with regard to the
following:

The primary reliance on the proposed saleable areas is based on contract of

sales provided by dated July 01 2021

This valuation is current at the date of valuation only. The value assessed herein
may change significantly and unexpectedly over a relatively short period (including
as a result of general market movements or factors specific to the particular
property). We do not accept liability for losses arising from such subsequent
changes in value.

In accordance with the provisions of our Professional Indemnity Insurance we

advise that all valuations are only valid for 3 months from the date of valuation, no
responsibility being accepted for client’s reliance upon reports beyond that period.
Accordingly any parties authorized to rely upon this opinion should be aware for
the need of a review if necessary.

Also note that should the assumption not occur Chen Ma Consulting reserve the
right to revisit this valuation.
 Valuation
"Current Market Value" Market Value
$1,485,000 - Exclusive of GST
(One Million Four Hundred and Eighty Five Thousand Dollars)
Valuer: Chenming Ma
Quality Assurance Chen Ma Consulting Limited
Verifier:
Director: Chenming Ma

Valuer

Chenming Ma

Chen Ma Consulting Limited

Director, Valuations and Advisory

Contact Number: 0407 941 441
[email protected]

01 July 2021

This document is for academic purpose only. It must not be relied on for any purpose. Chen Ma
Consulting of Limited of this asset is subject to assumptions, conditions and limitations. Those are set
out in the full valuation report prepared in relation to the asset
Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................... 1
1. INTRODUCTION .................................................................................................................................... 5
1.1. INSTRUCTIONS ......................................................................................................................................5
1.2. PURPOSE OF VALUATION ......................................................................................................................5
1.3. BASIS OF VALUATION ............................................................................................................................5
1.4. DATE OF VALUATION AND INSPECTION ................................................................................................5
1.5. SOURCES OF INFORMATION .................................................................................................................5
2. RISK ASSESSMENT ............................................................................................................................. 6
2.1. MARKET.................................................................................................................................................6
2.2. PROPERTY..............................................................................................................................................6
2.3. ENVIRONMENTAL .................................................................................................................................6
3. LAND AND TITLE ................................................................................................................................ 7
3.1. LOCATION..............................................................................................................................................7
3.2. TITLE PARTICULARS ...............................................................................................................................8
3.3. SITE DETAILS ..........................................................................................................................................9
3.4. TOWN PLANNING............................................................................................................................... 10
3.5. ENVIRONMENTAL ISSUES................................................................................................................... 11
3.6. TOPOGRAPHY ..................................................................................................................................... 11
3.7. FLOODING ISSUES .............................................................................................................................. 12
3.8. SERVICES ............................................................................................................................................ 12
3.9. HIGEST AND BEST USE ........................................................................................................................ 13
3.10. ASBESTOS ........................................................................................................................................... 13
3.11. HERITAGE ........................................................................................................................................... 13
3.12. NATIVE TITLE CLAIMS ......................................................................................................................... 13
4. EXISTING IMPROVEMENTS .............................................................................................................. 14
4.1. OVERVIEW .......................................................................................................................................... 14
4.2. CONSTRUCTION ................................................................................................................................. 14
4.3. ACCOMMODATION ............................................................................................................................ 15
4.4. OTHER IMPROVEMENTS .................................................................................................................... 16
4.5. FINISHES AND FITTINGS ..................................................................................................................... 17
4.6. PRESENTATION, CONDITION AND UTILITY ......................................................................................... 17
5. MARKET OVERVIEW ........................................................................................................................ 18
5.1. KINGSGROVE RESIDENTIAL REAL ESTATE MARKET ............................................................................ 18
5.2. SALES EVIDENCE ................................................................................................................................. 19
5.3. CURRENT MARKET VALUE .................................................................................................................. 25
6. INVESTMENT METHOD APPROACH .................................................................................................. 26
6.1. KINGSGROVE RENTAL PROFILE .......................................................................................................... 26
6.2. RENTAL EVIDENCE .............................................................................................................................. 26
6.3. YIELD ANALYSIS AND INVESTMENT METHOD .................................................................................... 29
7. VALUATION CONSIDERATION .......................................................................................................... 31
7.1. SWOT ANALYSIS ................................................................................................................................. 31
7.2. LIKELY SELLING PERIOD ...................................................................................................................... 31
7.3. MOST PROBABLE PURCHASER ........................................................................................................... 31
8. VALUATION..................................................................................................................................... 32
APPENDIX ................................................................................................................................................ 33
1. INTRODUCTION
1.1. INSTRUCTIONS

Chenming Ma has prepared this valuation in accordance with our standard Terms of
Agreement and the instructing party’s written instructions, as summarized below:

Instruction
Instructing Party: ABC International Bank Limited.
Contact: Banking Director
Date of Instruction: 24 May 2021

1.2. PURPOSE OF VALUATION

This valuation is prepared on the assumption that the lender as referred to in the
valuation report (and no other), may rely on the valuation for mortgage finance
purposes.

This valuation has been prepared in accordance with ABC’s Valuation Instructions
and can be relied upon by ABC Bank Limited ABN 12 888 888 888 for mortgage
security purposes

1.3. BASIS OF VALUATION

We have been instructed to provide an assessment of the estimated Market Value of

the subject property “Current Market Value” in its current condition and under its
current zoning All investigations have been conducted independently and without
influence from a third party in any way

1.4. DATE OF VALUATION AND INSPECTION

The date of inspection and date of valuation is 01 July 2021.

This valuation is current as at the date of valuation only. The values assessed herein
may change significantly and unexpectedly over a relatively short period (including
as a result of general market movements or factors specific to the particular
properties).

1.5. SOURCES OF INFORMATION

To assist in our assessment of value we have received the following documentation

from the instructing party:

Domain, Realstate.com.au, PriceFinder, CoreLogic, Department of Planning NSW,

Sales Agent from Ray White, Contract of sales
2. RISK ASSESSMENT
2.1. MARKET

Market factors which are likely to impact on the performance and risk profile of the
subject property as follows:

• Market demand for this type of residence appears to be strong, particularly for
three-bedroom house.

• The property is located within a middle class area with stable market demand.

• Property similar to the subject are experience short selling period and this
trend is expected to continue.

• The most likely buyers profile is fairly large.

• Current market condition is at peak for the past 12 months.

• Forecasted increasing interest rates could decrease the market demand

Market Risk Rating: Low

2.2. PROPERTY

Factors which are likely to impact on the performance and risk profile of the subject
property are summarized below:

• The property provides for good layout and floorplan with recent refurbished
interior positioned in the highly sought after suburb of Kingsgrove

• An one space garage and decent outdoor entertainment area is provided.

• Rear garden and landscape is well maintained.

• The subject was located on a rectangle block and features good privacy, and
have an easement of drainage of Sydney Waters.

Property Risk Rating: Medium

2.3. ENVIRONMENTAL

Environmental factors of the subject property are provided below:

• The subject property was under policy restriction of flooding, more research
needs to be conducted.

Environmental Risk Rating: Low

3. LAND AND TITLE
3.1. LOCATION

The subject property is located on the western side of Rosemeath Avenue at

Kingsgrove, a highly sought after residential suburb of southern Sydney. The subject
property is located approximately fifteen(15) kilometres south of Sydney CBD.

Immediately surrounding context consists of a combination of residential dwellings

and medium density residential apartment complexes. The residences include
Victorian and federation era, freestanding and semi-attached dwellings.

Surrounding amenities include local parks Junee Reserve and the larger Beaumont
Park, Clemton Park Public School, and three child care centres within 400-metre
radius. The subject property is served by local bus route 412, 423, 446, as well as
Kingsgrove and Bexley North Stations, located approximately 1.5 kilometres from the
site.

The following map identify the approximate location of the Property.

Subject

Source: GoogleMap – 01 July 2021

3.2. TITLE PARTICULARS

Item Description
Title Description:
Local Government Area: Canterbury-Bankstown, Parish of St George, County of
Cumberland
Tenure: Freehold
Registered Proprietor:
Encumbrances: In addition to transfer and typical Rights and Interest
reserved to the Crown, the Certificate of Title details the
following encumbrances:

• B775864 Easement for drainage affecting the

land above described shown so burdened in VOL
5002 FOL 148
• Covenant C730027
• AN452139 Mortgage to ING Bank (Australia)
Limited
Unregistered Dealings: Nil
Comments: Easement for drainage of Sydney Water was found on
the rear and northern side of the property boundary.
Any future development or extension project above the
main sewer(225 SGW)was restricted, thus might
negatively impact the market value.

No other notifications on the title that would impact

value was found.
Source: InfoTrack – 09 Jun 2021

Our valuation takes into account the effect, if any, on the value of the interest valued
of any easements, encumbrances, covenants or other notations on the Title.
However, the valuation specifically excludes any impact on the value of the property
through any unregistered encumbrances or dealings not disclosed by our Title
search and Urbis accepts no responsibility for the impact on value from any such
instrument.

Accordingly, we recommend that the instructing and reliant parties make legal
enquiry and satisfy themselves in this regard. Should such legal advice identify a
potential material impact to our valuation this report should be returned to us for
comment and/or adjustment and we reserve our rights in this context.
3.3. SITE DETAILS

Item Description
Land Size: 467.92 square metres
Land Shape: Rectangle
Street Frontage: 12.192 metres
Side Boundary: 38.441 metres
Rear Boundary: 12.192 metres
Source: InfoTrack – 09 Jun 2021

A copy of the Deposited Plan is annexed to our report.

Subject

Source: InfoTrack – 09 Jun 2021

An Aerial Map of the subject property follows:

Subject

Source: Valuer General of NSW – Accessed 01 July 2021

3.4. TOWN PLANNING

Item Description
Planning Instrument Canterbury Local Environmental Plan 2012
Last Updated 1 January 2013
Zoning Zone R3 Medium Density Residential
Heritage Not a Heritage Item

The zoning information has been obtained from the NSW Planning Portal website
and is assumed to be correct. We reserve the right to review our valuation if this is
found to not be the case.

An extract of the zoning map identifying the subject property is provided below:
Source: Department of Planning NSW – 01 July 2021

Zoning Map Legend ••• R3 Medium Density Residential

••• B1 Neighbourhood Centre
••• Public Recreation

3.5. ENVIRONMENTAL ISSUES

During our site inspection, we did not observe any obvious signs of land
contamination or environmental risks, however, we are unaware of the complete
history of the site.

We have not been provided with an environmental site assessment and/or an

environmental audit relating to the subject property, nor an asbestos audit. We have
not been provided with a Site Contamination report and reserve the right to review
our valuation should one be made available.

Our search on the NSW Environmental Protection Authority website does not list the
subject property on the Significantly Contaminated Land register

3.6. TOPOGRAPHY

The subject landholding has a moderate downward slope from the rear boundary to
the street frontage of Rosemeath Avenue. The site is regular in shape.
3.7. FLOODING ISSUES

We have not been provided with a formal property specific flooding report. As
indicated in the Planning Certificate attached to the contract of sales, any
development on the subject property is subject to flood related development controls
due to possible flooding from overland flow. However, Canterbury Local
Environmental Plan 2012 indicates that subject property is not located in a high
hazard floodplain area.

For the purposes of this valuation we have assumed that the market value applied to
the property would not reflect any significant discount for flood affectation. Should
further information suggest otherwise, we reserve the right to review our valuation.
More detailed information can be obtained from Council’s Operations Division.

Subject

Source: Canterbury Local Environmental Plan 2012 Flood Planning Map - Sheet
FLD_006

3.8. SERVICES

Our assessment has been provided on the basis that all services suitable for urban
development including electricity, water, sewerage, gas and telephone have been
extended to the subject property.
3.9. HIGEST AND BEST USE

This valuation has been undertaken adopting the Property’s Highest and Best Use,
as defined by the IVSC and endorsed by the Australian Property Institute. Taking
into consideration the Property’s land size, built improvement and classification, we
believe that the Highest and Best Use for the Property, as at the date of valuation, is
as its current use.

3.10. ASBESTOS

We have not taken any formal researches regarding the existence of asbestos. In
the abscence of a report pertaining to the presence of asbestos fibre within the
property, our valuation is made on the assumption that there is no health risk. If any
asbestos related health risk is found to exist on the Property, we reserve the right to
review our valuation.

3.11. HERITAGE

We have viewed the Heritage Conservation Map on councils website and note the
Section 149 Certificate to confirm that the subject is not a heritage item. If any
heritage issues are found to related to the Property, we reserve the right to review
our valuation.

3.12. NATIVE TITLE CLAIMS

We have not taken any formal Native Title Claim searches on the subject property,
and therefore our valuation has been made on the assumption that there is no Native
Title Claim on the property. If any Native Title Claim issues are found on the
property, we reserve the right to review our valuation.
4. EXISTING IMPROVEMENTS
4.1. OVERVIEW

The subject property is a full brick single floor, detached dwelling, within a circa 1930
built, recently refurbished quality residence featuring three bedrooms, one bathroom,
closed kitchen, living and dining areas and a backyard deck with a lock-up one car
space garage.

Comprising approximately 128 square metres of internal area, the subject property is
sitting in a 467 square metres land. The residence is built up with standard building
construction materials and a modern finishes including timber floors, renovated
kitchen and bathrooms as well as a private deck with a sheltered patio.

Additional features includes functional fireplace, stainless steel appliances, air

conditioning, and a veggie patch rear yard.

Source: Realestate.com.au – 01 July 2021

Accommodation Approx. Area(sqm)

Internal Area 118
Outdoor Deck/Patio 12
Garage 23
Total 153

The above areas where calculated based on information sources that were provided,
we have relied on these areas as being correct.

4.2. CONSTRUCTION

Footing -
Floors Timber floor
External Walls Full brick
Internal Walls Plasterboard
Ceilings Plasterboard
Window Frames Aluminum and timber
Roof Colour bond
Rear Deck Timber

4.3. ACCOMMODATION

• Entry porch from front yard;

• Bedroom 1 with built in robe;
• Bedroom 2 with built in robe;
• Bathroom comprising tub/shower, hand basin;
• Living room with fireplace opening onto dining room with rear deck access
• Bedroom 3
• Closed kitchen with refurbished benchtop and stainless steel appliances
• Laundry room and WC

Bedroom 1 & Bedroom 2

Kitchen & Dining Room

Living room and fireplace & Bathroom

4.4. OTHER IMPROVEMENTS

• Rear garden with veggie patches

• Timber deck with sheltered entertainment patio
• Lock up garage and storage
• Rear Laundry room and WC

Rear Deck & Garden

Patio
4.5. FINISHES AND FITTINGS

Living area & dining room Timer floor to living and dining room;
Functional fireplace;
Glass entry door;
Kitchen Timber floor;
Renewed benchtop;
Stainless steel appliances;
Gas cooktop;
Built in oven;
Exhaust fan;
Bathroom Ceramic floor and wall tiles;
Glass shower screen;
Bath tub;
Floating sink shelf;
Laundry Washing machine;
Timber dryer;
General Aluminum and timber

4.6. PRESENTATION, CONDITION AND UTILITY

Based upon inspection and information provided, the following observations have
been made with respect to the presentation, condition and functional utility of the
improvements.

The subject property provides for substantial accommodation well suited to family
living.

The internal configuration provides for a good separation between the

living/entertaining areas and bedrooms.

This valuation report does not purport to be a site or structural survey of the
improvements, nor was any such survey undertaken.

Overall, we have assumed that detailed reports with respect to the structure and
service installations of the improvements would not reveal any defects or
inadequacies requiring significant capital expenditure.
5. MARKET OVERVIEW
5.1. KINGSGROVE RESIDENTIAL REAL ESTATE MARKET

Kingsgrove is southern Sydney suburb located approximately fifteen(15) kilometres

south of Sydney CBD. The suburb generally comprises established and developing
low to medium density residential development, strip-retail shops and light industrial
areas. The suburb benefits from a train station and M5 Motorway

Updated in Jun 25th 2021, the median house price in Kingsgrove records
$1,440,000, and the median house rent is $600 per week. In the past 12 months,
there were 101 houses sold and 140 house listed for rent in Kingsgrove. Houses with
three bedroom was counted for the majority of the houses sold and rented.

Trend of Median Property Price, Source: Realestate.com.au

Median Property Price, Source: Realestate.com.au

As for July 1st 2021, Kingsgrove has 21 properties for sale and 42 properties
available for rent. Based on the evidence, demand for three bedroom houses is fairly
stable in the area.

Kingsgrove Demographics, Source: Domain.com.au

5.2. SALES EVIDENCE

We have examined recent sales within Kingsgrove over the last 4 months and have
had particular regard to the following sales evidence, which we consider set the
parameters by which the valuer of the subject property may be determined.

In assessing the Market Value of the subject property, we have had consideration to
the following comparable sales located in the immediate and surrounding areas:

37 Tasker Avenue Clemton Park, NSW, 2206

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 1 NA 506sqm

Sold price $1,475,000 This is a rectangle allotment comprising a

similar style residence with three bedrooms,
Sold date 10/04/2021
one bathroom, living room, open plan kitchen
$/m2 $2,915 and dining area, a tool shed and a one space
garage.
Location Equal
Structural Inferior Comparison: This sale provides for an
outdated residence set on a larger lot having a
Distance from 400m smaller internal area. As such a similar value
subject for the subject is expected.
28 Oatley Street Kingsgrove, NSW, 2208

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 1 109sqm 487sqm

Sold price $1,500,000 This property was built circa 1950, comprising
three bedroom, one bathroom, open plan
Sold date 10/05/2021
kitchen, living and dining area, an spacious
$/m2 $3,080 outdoor undercover entertaining area, BBQ area,
and one lock-up garage with one parking space.
$/m2 internal $13,761 The residence is recently renovated and
Location Slightly positioned on a rectangle land parcel with a
similar lot size. The outdoor area and
superior landscaping are well designed and maintained.
Structural Slightly
Comparison: The sale provides for an similar
superior style residence and lot size, slightly better
Distance from 700m location as it is closer to train station and shops,
subject similar renovated interior but a better outdoor
area. As such a lower value in comparison to this
sale is expected for the subject.
41 Alfred Street Clemton Park, NSW, 2206

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 - 118sqm 519sqm

Sold price $1,410,000 The residence was set on an irregular shape,

bigger parcel of land. This property was built
Sold date 06/03/2021
circa 1950, comprising three bedroom, one
$/m2 $2,717 bathroom, closed kitchen, living and dining
area, and a tool shed. No garage or outdoor
$/m2 internal $11,949 improvement was found in this property.
Location Equal
Comparison: This sale is located in a similar
Structural Inferior location, comprises inferior accommodation.
Distance from 300m As such, a higher value in comparison to this
subject sale is expected for the subject.
20 Bobadah Street, Kingsgrove, NSW 2208

Bedroom Bathroom Carpark Internal Area Lot Size

3 2 2 119sqm 460sqm

Sold price $1,400,000 This property was built circa 1940,

comprising three bedroom, two bathroom,
Sold date 22/05/2021
closed kitchen, living and dining area,
$/m2 $3,043 carport with two parking spaces, a tool shed
in the rear yard.
$/m2 internal $11,764
Location Superior Comparison: This sales is located in a
better location with closer access to two
Structural Inferior train stations, motorway and local shops.
Distance from 500m The sale provides for an well maintained
subject similar era style residence set on a
downward slope land. As such a similar
value in comparison to this sale is expected
for the subject.
10 Bobadah Street Kingsgrove, NSW, 2208

Bedroom Bathroom Carpark Internal Area Lot Size

2 1 1 NA 435sqm

Sold price $1,329,000 This property was built circa 1960,

comprising two bedroom, one study, one
Sold date 17/04/2021
bathroom, closed kitchen, living and dining
$/m2 $3,055 area, lower level one-car garage, and under
house storage area.
$/m2 internal NA
Location Superior The residence was set on a downward
slope land and features upper level living
Structural Equal area and a lower level garage and spacious
Distance from 500m storage area.
subject
Comparison: This sales is located in a
better location with closer access to two
train stations, motorway and local shops
with smaller livable area. As such a similar
value in comparison to this sale is expected
for the subject.
23 Arinya Street Kingsgrove NSW 2208

Bedroom Bathroom Carpark Internal Area Lot Size

3 2 2 160sqm 518sqm

Sold price $1,600,000* This property was built circa 1940 and
renovated in 2009, comprising three
Sold date 19/06/2021
bedroom, dining and living area, family
$/m2 $3088 room, two bathroom and a lock-up
oversized garage for one car.
$/m2 internal $10,000
Location Slightly superior The residence was set on a downward
slope land and featuring an older style
Structural Inferior interior in deed of updating however have
Distance from 520m been well maintained.
subject
Comparison: This sales is located in a
slightly better location with closer access to
two train stations, motorway and local
shops with a larger site area as well as
*Advised by agent livable area. As such a similar value in
comparison to this sale is expected for the
subject.
5.3. CURRENT MARKET VALUE

In comparing the subject property against the above sales, it is obvious that there is
a sufficient amount of similar dwellings that sold over the last four months in
Kingsgrove and immediately surrounding areas of 15 Rosemeath Avenue,
Kingsgrove. We have considered on top of the refurbished kitchen, bedrooms,
bathrooms, and living area, as well as additional improvement upon the land, but
also analysed the properties based on location, quality of accommodation, age of the
property in justifying the current market value of the subject property.

The property was listed on the market for 26 days and sold for $1.32 million on
Auction on May 12th 2018.

The sales evidence analysed herein suggests a current market value of above
$1,475,000 however less than $1,600,000. The sale of the subject at $1,485,000 is
noted to be within this range.

This sale price is considered to be within the realms of market value and as such as
been adopted within this assessment as follows:

10 Bobadah Street Kingsgrove $1,329,000

41 Alfred Street Clemton Park $1,410,000

20 Bobadah Street, Kingsgrove $1,400,000

37 Tasker Avenue Clemton Park $1,475,000

Ro me Av e $1,485,000

28 Oatley Street Kingsgrove $1,500,000

23 Arinya Street Kingsgrove $1,600,000

Current Market Value

Market Value Adopted Market Value $/m2 Market Value $/m2 Floor Area

$ 1,485,000 $3,173 $12,585

6. INVESTMENT METHOD APPROACH
6.1. KINGSGROVE RENTAL PROFILE

Based on 140 house listing from the last 12 month, the trend of 3 bedroom house
rental is stable and strong comparing to rental of 2 or 4 bedroom house in
Kingsgrove. With average rent of Kingsgrove siting at $620 per week, the average
gross rental yield is 2.44%.

Source: RPdata – July 01 2021

6.2. RENTAL EVIDENCE

In assessing the market rental profile for the subject residence, we have had regard
to the following rental evidence of three to four bedroom houses in the immediate
area.

37 Tasker Avenue Clemton Park, NSW, 2206

Bedroom Bathroom Carpark Internal Area Lot Size
3 1 1 NA 506sqm

Listed Price $735/week

Listed Date May 2021
Sold price $1,475,000
Sold date 10/04/2021
Yield 2.69%
Gross Face Market Rental(/m2) -

16 Moorefields Road Kingsgrove NSW 2208

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 3 121sqm 504sqm

Listed Price $750/week

Listed Date June 2021
Gross Face Market Rental $335/sqm
53 Turton Avenue Clemton Park NSW 2206

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 2 117sqm 500sqm

Listed Price $750/week

Listed Date June 2021
Gross Face Market Rental $346/sqm

174 Bexley Road Earlwood NSW 2206

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 2 128sqm 585sqm

Listed Price $700/week

Listed Date June 2021
Gross Face Market Rental $295/sqm
 7 Frost Street, Earlwood NSW 2206

Bedroom Bathroom Carpark Internal Area Lot Size

3 1 3 113sqm 474sqm

Listed Price $700/week

Listed Date June 2021
Gross Face Market Rental $334/sqm

We have considered the recent renovated interior, location, and accommodation

quality in comparing the rental of the subject property against the above rental
evidence. The estimated rental price is considered to be within the range of market
value and as such has been adopted within this valuation as follows:

Estimated Rental Amount

Estimated Rent Range Adopted Rent Gross Face Market Rental

$680 - $780/week $750/week $343/sqm

6.3. YIELD ANALYSIS AND INVESTMENT METHOD

Sales Analysis - 37 Tasker Avenue @ $735/week

Gross Lease Part Net Lease Net Lease
Sale Price $ 1,475,000 $ 1,475,000 $ 1,475,000
Income $ 39,690 $ 39,690 $ 39,690
(Less)
General Outgoings 10% $ 3,969 $ - $ -
 Statutory Outgoings 8% $ 3,175 $ 3,175 $ -
Total 18% $ 7,144 $ 3,175 $ -

Net Income $ 32,546 $ 36,515 $ 39,690

Net Yield 2.21% 2.48% 2.69%

Subject Property - 15 Rosemeath Ave Kingsgrove

Gross Lease Part Net Lease Net Lease

Income $ 40,500 $ 40,500 $ 40,500
(Less)
General Outgoings 10% $ 4,050 $ - $ -
Statutory Outgoings 10% $ 4,050 $ 4,050 $ -
Total 20% $ 8,100 $ 4,050 $ -

Net Income $ 32,400 $ 36,450 $ 40,500

2.21% $ 1,468,392
2.48% $ 1,472,382
2.69% $ 1,505,102

Cap Rate Capital Value Capital Value Capital Value

2.21% $ 1,468,392 $ 1,651,941 $ 1,835,490
2.48% $ 1,308,784 $ 1,472,382 $ 1,635,980
2.69% $ 1,204,082 $ 1,354,592 $ 1,505,102
The rental evidence analysed herein suggested a current capital value of above
$1,468,392 however less than $1,505,102. The capital value of the subject at
$1,475,000 is noted to be within this range.

This capital value is considered to be within the realms of market value and as such
has been adopted within this assessment as follows:

Estimated Capital Value

Capital Value Range Adopted Value

$1,468,392 - $1,505,102 $1,475,000
7. VALUATION CONSIDERATION
7.1. SWOT ANALYSIS

Strengths Weaknesses
• Refurbished interior and fitout • Easement of drainage
• Quite neighborhood with good
privacy
• Quality of construction and floorplan
Opportunities Threats
• Potential to upgrade the driveway to • Uncertain COVID impacts to
provide for greater appeal housing market
• Potential for alternation/extension for • Uncertain bank policies to
larger livable area interest rate

7.2. LIKELY SELLING PERIOD

Property Listing Date Sale Date Days on

Market
37 Tasker Avenue 16 Mar 2021 10 Apr 2021 26
28 Oatley Street 16 Feb 2021 10 Mar 2021 23
41 Alfred Street 09 Feb 2021 06 Mar 2021 26
20 Bobadah Street 21 Apr 2021 22 May 2021 32
10 Bobadah Street 22 Mar 2021 17 Apr 2021 27
23 Arinya Street 24 May 2021 19 Jun 2021 27
Source: CoreLogic

We are of the opinion that the likely selling period is on average to be in the vicinity
of 23 to 32 days. The local housing market has presented a stable demand of similar
properties. Therefore we believe this selling period is considered to be within the
realms of market condition.

This is an estimate of time it might take for the property to sell if it were marketed at
the ascribed market value. Naturally, this is not a guarantee, and the actual time it
may take to sell the subject will be impacted by numerous factors.

7.3. MOST PROBABLE PURCHASER

The most probable purchaser for the subject would be middle class family or
investors.
8. VALUATION
Our valuation approach has been prepared under instructions from the client ABC
International Bank on the following basis:

• Current Market Value

The method to assess the value comprises the Direct Comparison method as the
primary valuation method, and endorse Investment method as a reference for the
valuation.

The core assumptions made when determining the value as at the date of valuation
are set out at the start of this report.

Our valuation is subject to the comments, qualification and financial data contained
within our report. On that basis, and assuming the property is free of encumbrances
or other impediments of an onerous nature which would affect value.

The Direct Comparison Method estimates a market value of $1,485,000 based on

directly comparable sales within the past 3 months in immediate area of the subject
property. The Investment Method which was supported by five rental evidence
suggests a capital value of $1,475,000.

In conclusion, our opinion of the current market value of the subject development site
as at 1 July 2021 is:-

$1,485,000

(One Million Four Hundred and Eighty Five Thousand Dollars)

Finally, in accordance with our normal practice, we confirm that this report is of
confidential intellectual property to our client ABC International Bank.

No responsibilities will be accepted to any third party, and the whole of the report,
any part, or reference to it may not be published in any document, statement, or in
any communication with third parties without prior approval in written format.
Yours faithfully

Chenming Ma

Director, Valuations and Advisory

Contact Number: 0407 941 441
[email protected]

01 July 2021
APPENDIX
Sales Comparison Grid

Valuation Date 01-Jul-21

Subject
Property Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6
15 20 10
Rosemeath 37 Tasker 28 Oatley 41 Alfred Bobadah Bobadah 23 Arinya
ADDRESS Ave Avenue Street Street Street Street Street
SOURCE OF Advised
INFORMATION Corelogic Corelogic Corelogic Pricefinder Corelogic by agent
$1,500,00 $1,410,00 $1,600,00
SALE PRICE $1,475,000 0 0 $1,400,000 $1,329,000 0

SALE DATE 10-Apr-21 10-May-21 06-Mar-21 22-May-21 17-Apr-21 19-Jun-21

MARKET
MOVEMENT 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
ADJUSTED SALE $1,500,00 $1,410,00 $1,600,00
PRICE $1,475,000 0 0 $1,400,000 $1,329,000 0
VALUE
ADJUSTMENTS +/- $ +/- $ +/- $ +/- $ +/- $ +/- $ +/- $
Sale
Circumstances Standard $0 $0 $0 $0 $0 $0
Easement of
Title Restrictions drainage -$20,000 -$20,000 -$20,000 -$20,000 -$20,000 -$20,000

Planning R3 $24,000 $0 $24,000 $0 $0 $0

Location Good $0 -$10,000 $0 -$12,000 -$12,000 -$12,000

2
Land Area 468m -$28,000 $0 -$30,000 $17,500 $32,000 -$92,000

Shape Rectangular $0 $0 $21,000 $0 $10,000 $0

Topography Level $0 $0 $0 -$10,000 $10,000 $0

View Nil $0 $0 $0 $0 $0 $0

Site Access Good $0 $0 $0 $0 $0 $0

Building Appeal Good $0 $0 $0 $0 $0 $0

Style / Age Modern $0 $0 $0 $0 $0 $0

2
Equivelant Area 118m $0 $8,000 $0 $0 $28,500 $0

Construction Type Cavity Brick $0 $0 $0 $0 $0 $0

External Condition Average $0 $0 $0 $0 $0 $0

Internal Condition Good $30,000 -$12,000 $32,000 $33,000 $32,000 $85,000

Floor Plans Standard $0 $0 $0 $0 $0 $0

Bedrooms 3 $0 $0 $0 $0 $75,000 $0

Bathrooms 1 $0 $0 $0 -$20,000 $0 -$35,000

Kitchen 1 $0 $0 $0 $0 $0 $0

Living Rooms 1 $0 $0 $0 $0 $0 $0

Laundry 1 $0 $0 $0 $0 $0 $0

Fit Out Good $0 $0 $0 $0 $0 $0

Floor Coverings Good $10,000 $0 $0 $0 $0 $0

Air Conditioning Yes $0 -$5,000 $5,000 $0 $0 $0

Room Heating No $0 $0 $0 $0 $0 $0

Other Nil $0 $0 $0 $0 $0 $0

Garage Single $0 $0 $25,000 $10,000 $0 $0

Sheds Yes $0 $0 $0 $0 $0 $0

Pool No $0 $0 $0 $0 $0 $0
BBQ/ Entertaining
Areas Yes $0 -$5,000 $0 $8,000 $9,000 $9,000

Garden Good $0 $0 $0 $0 $9,000 $0

Fences Average $0 $0 $0 $0 $0 $0

Paving/Driveway Average $0 $0 $0 $0 $0 $0

Other Nil $0 $0 $0 $0 $0 $0

ADJUSTMENTS $16,000 -$44,000 $57,000 $6,500 $173,500 -$65,000

ADJUSTED $1,456,00 $1,467,00 $1,535,00
VALUE $1,491,000 0 0 $1,406,500 $1,502,500 0

VALUE RANGE

Minimum $1,406,500

Maximum $1,535,000

The sales comparison grid template was provided by Dr

Rotimi Boluwatife Abidoye from UNSW