The quarterly newsletter for Opteon

1. Outlook
Opteon Newsletter July 2011
The Victorian Perspective
Spotlight on Alexandra King Page 2
Independent valuations give buyers and sellers an edge Page 2
Regional Updates Page 3
Rural and agribusiness Page 6 Welcome to the winter
edition of Outlook.
Test your knowledge Page 7 The new financial year
is an exciting time for
An important message for investment property owners Page 8 us because it signals the
launch of the company’s
Presentation for Geelong business community Page 8 re-branding to Opteon.
Andrew Noseda
New brand, same values Chief Executive Officer
The beginning of July not only signals the start of the new financial year but also the
As we move toward a new
culmination of a process that began in 2005; the creation of Opteon Property Group
era I’d like to take this
(Opteon). Six independent valuation companies from around Australia saw the need opportunity to thank our
for a national network in order to discuss ideas, industry changes and share data. The valued clients most sincerely
member companies, including Landlink and Market Line, showed further commitment for their past support and
to the Opteon vision in 2009 by co-branding with Opteon and in doing so took another also reinforce Opteon’s
step towards the future goal. The merger of Landlink-Opteon and Market Line-Opteon commitment to delivering a
to form Opteon Victoria was paramount in creating the largest property valuation and superior range of valuation
advisory firm in Victoria and to better service our clients over a larger geographic and property advisory services
location, providing a professional balance of local expertise and national reach. In under the new banner. You
recent years the valuation industry has evolved at an increased rate and a number have my assurance that we
of clients who were significant users of valuation services started to look for larger, place enormous value on each
national service providers. These demands drove a rationalisation within the industry client relationship and will
and as a result, Opteon pursued a strategy of growing its membership. Today, Opteon leave no stone unturned to
comprises 25 of the most respected and established valuation firms in Australia, is provide even better service
wholly Australian owned and, uniquely, services all populated areas across all states. and communication in the
months and years ahead.
Continued page 2
Our national presence was
expanded in May with the
opening of the Opteon
office in Darwin headed by
experienced valuer Johanna
Baldwin who is committed
to delivering the exemplary
standard of service the
company has become
renowned for. Finally, as
we’re now heading into tax
time I’d like to remind anyone
with investment property
that Opteon can assist with
depreciation schedules
to help you obtain the
maximum legitimate taxation
advantage. Until the next
edition, good reading and
best wishes.
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

2. Outlook
Opteon Newsletter
July 2011
Page 2
New brand, same values Continued
Opteon is evolving to meet the expectations of our customers – lenders, owners and
buyers of all types of property – by providing added value through size, coverage and
market knowledge, and a partnership solution to deliver the best outcomes.
With this we are pleased to announce that, along with all the other shareholding
firms in Opteon, we have adopted the use of the single trading name; Opteon.This
is the continuation of a very exciting journey for us and our staff. The decision to
join Opteon reflects our commitment to being part of a leading National Property
Valuation and Advisory business.
“A leader in its field, Opteon will operate in a structured and well managed manner Alexandra King, joined
to deliver a range of consistently high quality property services based on local the team at Opteon
knowledge in each geographical region it operates in,” said Opteon Victoria CEO Victoria in January 2011
Andrew Noseda, “We share this vision and are committed to being a part of the as a Leading Valuer in
Opteon group. “ The new entity will bring its clients the best of both worlds; on one the Residential Division,
hand they will be the beneficiaries of superior service, extended geographic coverage was Australian Property
across Australia, shared knowledge and expertise, and state-of-the-art systems. On
Institute (Victoria)
Achiever of the Year in
the other, these expert services will still be based on local knowledge (our knowledge)
2009.
by professional staff who live and work within the regions they service. All of our
customers will be able to contact the same people in the same way, no change for the
A Certified Practising Valuer
sake of change; just new options and enhanced services; more ‘business as usual’ but with a Bachelor of Business
better. To mark this exciting change Opteon will have a new look; the distinctive new (Property) degree from RMIT
branding of Opteon symbolises an exciting new era in national valuation and property University and an REIV Agents
advisory services which encapsulates wider resources, superior systems and processes, Representative Certificate,
reduced risk, greater transparency and improved communication, and increased focus Alexandra commenced her
on quality assurance programs. Although the Opteon branding is new to the market, career with Lethlean Property
the companies remain the same. Twenty-five Opteon member companies with 61 Consultants in 2003. After
offices and more than 350 qualified valuers around Australia have been meeting the completing her Supervised
property-related needs of thousands of clients for years and will continue to do so. Professional Practice she
Opteon has the ‘raw materials’ to lead in this new market environment, and our remained with the firm and
re-brand is a further critical step in the journey towards our vision to be ‘Australia’s gained experience in a variety
Property Advisors’ who stand for innovation, change and progress. We see that taking of specialised valuations such as
businesses, golf courses, hotels
on our new brand, Opteon, is ‘Value Made Visible’.
and motels. In 2007, Alexandra
moved to Hay Property
Independent valuations give buyers and Consultants where she worked
sellers an edge predominantly in the residential
field but was also exposed to a
Knowing the true market value of a property puts vendors and potential purchasers mix of industrial and other non-
in a much stronger position to negotiate. Vendors have a starting point on which to residential valuations including
make comparisons with the sale of other properties in the area and set their selling acquisitions. In her role with
price or auction reserve while purchasers are far less likely to pay over the market Opteon Victoria Alexandra
value for the property they have set their heart on. A valuation is vastly different specialises in residential
from a market estimate which is an opinion – provided by a real estate agent – based valuations in Melbourne’s CBD
primarily on recent sales in the area. In contrast, a valuation is an independent written and inner suburbs. “As well
assessment of a property’s current worth by a Certified Practising Valuer who takes as carrying out valuations on
many factors into consideration. Valuers assess a property by making a comparison a daily basis I manage queries
with other properties that have sold in the immediate area and making adjustments and peer review reports, attend
for size, quality, additional improvements, aesthetic appeal and location, among monthly leading valuer meetings
and ensure my team is kept
other factors. A separate calculation, which involves assessing the underlying land
fully updated on all aspects of
value and adding the value of improvements to the dwelling, is then undertaken.
market activity, company policy
Improvements such as motor vehicle accommodation, pergolas, garden setting and
and procedures.” Commenting
sheds are taken into consideration. This is normally conducted on a value per square-
on Alexandra’s appointment,
metre basis for each different improvement. Because Opteon Victoria’s valuers have Opteon Victoria CEO, Andrew
extensive experience analysing current building approvals and contracts, they have Noseda, said, “A real asset
comprehensive knowledge of cost for the different styles and quality of improvements. to our team, Alexandra is not
Opteon Victoria’s inexpensive pre-sale and pre-purchase valuations eliminate much of only a highly qualified and
the stress associated with buying and selling property, and significantly enhance the competent valuer but also
prospect of a satisfactory outcome. Valuations can also be provided for matters such as dedicated to maintaining the
family law, taxation, deceased estate and mortgage. An impartial and non-motivated exemplary standards our clients
opinion of value incorporating full disclosure in reporting helps the client to get the have come to expect from
full picture. Opteon Victoria.”
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

3. Outlook
Opteon Newsletter
July 2011
Page 3
Regional Updates
The real estate industry had been hopeful that the early months of 2011 would see an improvement to the somewhat
suppressed market conditions experienced during the second half of 2010. But while at times there have been localised
indications that the market was ready to take off, overall activity has remained weaker than hoped for.
Properties not priced correctly have remained on the market for longer periods and there have been instances of
advertised price reductions as vendors endeavour to entice buyers to act. Properties that represent the upper value
range in their market segment have been – and remain – more difficult to move. It is inevitable that the market will
improve and prospective purchasers who do not act now could find they miss out on the opportunities that are available
in what is currently a buyer’s market.
Bayside and inner suburbs
The broader market in Bayside is trending towards a slight correction in values; however, local agents report a moderate
upswing in activity over recent weeks. Demand from investors and first home buyers continues, especially in better
regarded areas. Prices in secondary residential areas, particularly those not adequately serviced by transport and/or
shopping precincts, are expected to remain unsettled. There appears to be a lack of buyer demand above $1 million.
Buyers seem prepared to pay market price for a property that meets their requirements in most respects but those that
don’t are attracting little interest. Agents report healthy supply, but slower numbers of sales in the family home and
prestige brackets. Off-the-plan projects appear to be well subscribed, however, there are fewer projects commencing
than two years ago, indicating a possible future shortage in new property. The overall expectation is for prices to remain
static for some months with the rider that softening demand in lesser areas will likely see continued minor correction.
Eastern suburbs
The 2011 residential market has experienced a very subdued start in comparison with last year. Auction clearance
rates have generally reduced to between 60 and 70 percent compared with between 80 and 90 percent in 2010. There
has been a significant swing in consumer sentiment and buyer behaviour with purchasers becoming more cautious in
their decision-making, consequently vendors need to adjust their price expectations. The situation provides a further
indication of the more subdued market conditions this year. Entry-level properties – suitable for investors, those down-
sizing, the elderly and first home buyers – in prime locations close to services are in demand while the medium to upper
price brackets have stabilised. Overall, expectations are for a subdued market, which favours purchasers rather than
vendors, but affordability remains an issue.
Mornington Peninsula
House values on the Peninsula are expected to remain flat over the next twelve months but keenly priced quality
properties are expected to continue to attract interest. The lower end of the market has cooled as a result of the
reduction in the number of first home buyers although summer saw good prices and volumes, including the lower end.
Upper end properties continue to be selectively traded, however, quality homes with extensive views of the coast, the
bay and city skyline have been bringing good prices. The Peninsula Link project, which is due for completion in 2013,
will significantly reduce travel times and is expected to be a driver of property values on the Peninsula. Frankston and
Carrum Downs continue to be dominated by sales of new units with developers on the lookout for larger established
properties suitable for subdivision and redevelopment. The final stages of the Sandhurst Estate, a lifestyle precinct with
community and golfing facilities, have been released with small allotments starting at $300,000 and larger ones with golf
course views priced up to $480,000.
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

4. Outlook
Opteon Newsletter
July 2011
Page 4
Regional Updates Continued
Northern suburbs
Agents have continued to report mixed results and say “properties that tick all the boxes” are still selling well although
if a property is not finished, lacks presentation, or has an unusual feature buyers are showing resistance. Evidence
suggests there is still healthy competition among buyers but there appears to be a balance between supply and demand.
In general, the outer metropolitan suburbs remain steady. The established dwelling market appears consistent at present
with agents reporting a cooling in the top end of the market. Vacant land continues to be buoyant with good demand
reported in outer northern areas such as Wallan and Kilmore where land prices are continuing to rise. Sales results are
mixed in the Macedon Ranges. Established townships such as Gisborne, Woodend and Kyneton, which have witnessed
strong growth over the previous 12 months, are exhibiting signs of slowing enquiry at the upper end. Conversely, vacant
land prices continue to escalate with selling agents reporting good demand and limited supply in these areas.
South-eastern suburbs
The median price of an established home in Cranbourne Central decreased during December, rose slightly in February
then declined to a 12 month-low of $289,500 (rpdata.com). Allotments of 400m² are selling for around $195,000 in The
Grove, a new estate located off the C404 motorway. Prices in Cranbourne North increased in December, before declining
the following month. Eve, a highly regarded estate, has seen a rise in values with 600m² lots selling for as much as
$295,500. Cranbourne East continues to be popular with home buyers in the area. Vacant land in the final stages of the
Hunt Club appears to be selling well while blocks in Cascades on Clyde are also in demand. Land in Lyndhurst with water
views is bringing top prices while activity in Clyde North has been limited mainly to Selandra. Prices in Officer have risen
significantly: one lot of approximately 535m² sold for $173,950 in November and another of 519m² brought $218,000 in
January. In Caversham Waters vacant land sold in May last year for around $165,000 but slightly larger allotments have
since been selling for close to $228,000.
Western suburbs
The frenetic buying that characterised the land market from mid-2009 through to late 2010 has softened slightly and
values appear to have peaked. Developers seem less keen to test the market, however, values are holding firm as a result
of demand for vacant land. Compared with the greater metropolitan area, land in the west remains relatively affordable.
Demand for homes under $450,000 is firm although agents report that buyers are more selective and selling periods
extended. There is interest from first home buyers and investors in this range as well as owner-occupiers but homes
above this range are susceptible to fluctuating demand. Properties priced at more than $1 million are thinly traded and
are showing signs of easing. There is no indication of a correction at present: some sectors are under pressure but overall
levels appear to be holding due to reasonable demand. Developer activity appears to be gaining momentum in the urban
growth corridor but holdings of less than 20 hectares are difficult to move.
Ballarat
The Ballarat market was slow but steady in the first quarter. Demand is easing across all sectors, reducing activity.
Market sentiment is echoed in the overall economy but has not affected prices which are firming albeit at a steadier
rate than previously. Supply of land remains an issue, as does the shortage of rental properties, both of which continue
to support underlying values. Rural lifestyle and township sales have remained steady with demand in the popular tourist
towns easing as increased fuel prices have started to impact. Overall, the outlook for the region appears sound with
steady but slower growth expected.
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

5. Outlook
Opteon Newsletter
July 2011
Page 5
Regional Updates Continued
Bendigo
The Bendigo market has plateaued over the last three months consolidating the strong growth of previous quarters. The
main increase in the Central Victorian area has been in the townships Bendigo
The Bendigo market has plateaued over the last three months consolidating the strong growth of previous quarters.
The main increase in the Central Victorian area has been in the townships along the Calder rail and freeway corridors.
Kyneton and Castlemaine are appreciating strongly in value with growth of up to 20 per cent in the last six months.
Sales volume has also remained strong as demand from Melbourne and interstate buyers continues to drive the market.
Commercial markets are emerging from hibernation with good quality stock becoming available and yields remaining
strong
Geelong
There appear to be no dark clouds on the horizon and activity around the region is expected to sustain the market during
the cooler months. The Armstrong Creek development between Geelong and Torquay, which contains 10 years of regional
land supply, has now commenced with substantial infrastructure works currently underway and in excess of 300 blocks
sold. Construction of the first homes will commence within six months and the area is expected to develop quickly. At
around $200,000 a block land is affordable. Along with other regional centres, Geelong is performing well with greater
affordability and a more relaxed lifestyle continuing to attract Melburnians. With a steady market and healthy but
moderate growth, Colac, the Surfcoast and Bellarine Peninsula are likely to experience continuing activity.
Mildura
Supply and demand have remained steady with the residential market relatively static. Rental returns have increased in
the past 12 months and higher yields are attracting investors. Since the first home buyers grant was reduced the volume
of valuations for construction loans has decreased dramatically. Market conditions can be attributed to the ongoing
difficulties the horticultural industry is experiencing in the Sunraysia region. The surrounding agricultural sectors of
dry land and pastoral farming have had a relatively good 12 months and the outlook appears positive. Last year’s grain
harvest produced above average yields of low grade cereal while the livestock market – particularly sheep – has produced
record prices.
Warrnambool
Demand from first and second home buyers for homes under $350,000 continues to be solid but there has been minimal
increase in value. Sales of suburban stock above $350,000 decreased during the last quarter of 2010 with no improvement
so far this year although values appear to be holding. This sector has moved little over the past couple of years. Several
sales of coastal properties during the past six months have set new value levels for this category. Central property has
been tightly held with the few properties offered producing solid results. Vacant allotments continue to trade strongly
with increased values for popular estates in the mid to low price range. Estates priced at a higher-than-average level in
relation to location continue to trade moderately.
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

6. Outlook
Opteon Newsletter
July 2011
Page 6
Rural and agribusiness
The rural market has experienced a 360-degree change in some areas due to the devastating unseasonal weather conditions
over summer. This has caused significant crop losses after what was promising to be a major recovery year for so many
primary producers. As a result, demand for rural holdings remains subdued despite most agricultural commodities achieving
record prices, particularly in the livestock sector. There are still some major hurdles for the agricultural sector to resolve
as a result of the extended drought including high debt levels, the strong Australian dollar, market manipulation by the
supermarket duopoly, low cost imports and tight lending. However, the outlook appears more positive with strong returns in
the livestock sector, recovering markets for wool and dairy sector are healthy – although volatile – prices for cereal. Water
storages are at an all time high and soil moisture is indicating the best start to a season in 15 years. Recent developments
in the main property markets covered by the Opteon Victoria Rural Agribusiness Division have been:
Irrigation Water
Mitchell Rowe FAPI AAPI CPV API Accredited Specialist Water Valuer
Market Outlook: volatile Most irrigators are expecting 100 per cent allocation as all systems have experienced strong
inflows. In the northern part of the state – particularly the deliverable irrigation districts – as the rain has fallen, so too
has the price of both permanent transferable water and temporary water. The volatility of water as an asset illustrates
why lenders are cautious when using water assets as a security. In the southern part of the state where the majority of
the irrigation water comes from groundwater, the price is still around the $1,000 to $1,500 per mega litre of an irrigation
“take and use” water licence. This is an interesting trend as the authority actually owns the water, not the farmer, and this
water asset cannot be mortgaged. We recommend that, if you have an irrigation water issue, you contact one of Opteon
Victoria’s Australian Property Institute Accredited Specialist Water Valuers for advice.
Agro Forestry
Andrew Bray AAPI CPV API Accredited Specialist Water Valuer
Market Outlook: over supplied News in the agro forestry industry still centres around the Bluegum industry despite the
market offering of South Australian Government-owned softwood plantations as the now defunct Managed Investment
Schemes are being progressively wound up. Large-scale sell downs of the Environinvest and Great Southern estates have
attracted private consortium investment. In essence, this sector has two markets with large scale estates selling to mainly
overseas private forestry interests while smaller plantations are offered to the market. The results are much the same
with a significant discount to grazing and arable farm values. There remains the sale of many smaller hardwood forestry
assets in Victoria by overseas interests and receivers which continue to cause much conjecture in the marketplace with few
interested parties prepared to reclaim the land and a slight oversupply emerging in some districts. Recent sales activity
is showing some volatility and is dependent on the value of the standing timber, if any. Demand fluctuations are caused
by demand for pulp timber, mainly by the Japanese market, export capabilities and recent announcements regarding the
carbon market. This market is still emerging and will remain volatile until the demand for pulp timber firms, all the MIS
structures are liquidated and government policy on carbon trading and sequestration is finalised.
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

7. Outlook
Opteon Newsletter
July 2011
Page 7
Rural and agribusiness Continued
Sunraysia Horticultural / Viticultural Market
Nigel Gibbins AAPI CPV API Accredited Specialist Water Valuer
Market Outlook: weak In recent years Sunraysia’s horticultural and viticultural
industries have experienced issues with water allocation plus a continuing easing in
prices. Unseasonal rainfall in early 2011 has caused downy mildew problems with
the wine grape harvest, culminating in major losses. In contrast, the table grape
industry has had varying results but could be described as receiving average prices.
The citrus sector experienced relatively good prices last season but yields were Test
reduced. Next season is expected to see an improvement for citrus yields; however,
returns are expected to be subdued due to a fruit fly problem, the strong Australian Your
dollar impacting on the large US export market and competition from other large
markets such as Chile. Of significant importance in this market is the pricing effect Knowledge
of irrigation water. As allocations return to maximum levels the trading of water has
eased significantly with prices substantially reduced. Recent trades of high security 1. What do the letters SBS
water are in the vicinity of $1,600 per mega litre with little interest for water on the in the TV channel’s call
temporary market. sign stand for?
2. What is Big Ben?
Market Garden Industry in the South East
Wayne Walden AAPI CPV API Accredited Specialist Water Valuer 3. Which country is ranked
number two in terms of
Market Outlook: good The market garden industry south east of Melbourne, centred its land content?
around Cranbourne South, Clyde, Pearcedale, Devon Meadows and Boneo, has been
growing strongly in recent years. There has been some expansion onto the Koo-Wee- 4. What is the surgical term
Rup Swamp but this has been somewhat limited due to the heavy soils restricting crop used in Australia for
types and the growing season. Expansion has been driven by the increasing popularity removal of the appendix?
of salad vegetables and the increasing availability of “A” class recycled water with
access to the main Melbourne markets also a key factor. Urban development around 5. In which year was
Cranbourne South and Clyde is reducing the land available. Values vary considerably Facebook launched?
with undeveloped land with sandy soils making $50-$70,000 per ha and fully developed
land (drained and with sprinklers) with a source of water making in the vicinity of 6. What was the name of
$70,000 per ha. A large sale at Boneo of fully developed land with water made about the USA space shuttle
$120,000 per ha. On the Koo-Wee-Rup Swamp values are generally between $20- that lifted-off on 16 May
$30,000 per ha with prime asparagus land with water bringing up to $45,000 per ha. 2011 on its final flight?
7. What is the name of the
island situated in
Western Port Bay?
8. Which grape varieties are
used in the manufacture
of Penfolds Grange?
9. What is the name
of Melbourne’s largest
reservoir?
10. Australia is home to the
most venomous snakes in
the world, what is its
name?
T: 1300 786 022 F: +61 3 5223 2309 E: valuers@opteonvictoria.com.au W: www.opteonproperty.com.au Value made visible

8. Outlook
Opteon Newsletter
July 2011
Page 8
An important message for investment
property owners
Experience has revealed that 70 per cent of property investors are paying more tax
than they need to. If you are one of thousands of investors who has not yet received
the benefits associated with a depreciation schedule, or have valued clients in this
position; read on. Owners of income-earning investment property are permitted to
offset some of the tax they pay through the depreciation of assets. Opteon Victoria’s
tax depreciation schedules, which are prepared by fully qualified quantity surveyors
who are registered tax agents, provide investors with up to 20 years of claims.
(Quantity surveyors are the only people approved by the Australian Taxation Office to Answers -
complete depreciation schedules).
You will be pleasantly surprised at the size of the first year’s benefit: it will certainly
Test your
be significantly greater than our fully tax
deductible fee. Call 1300 786 022 or email depreciation@opteonvictoria.com.au to
knowledge
arrange an obligation-free quote.
1. Special Broadcasting Service
2. The hour bell of the clock in
the British
Houses of Parliament, not
the clock itself
3. Canada
4. Appendicectomy, not
appendectomy as
commonly thought
5. 2004
6. Endeavour
7. French Island
Presentation for Geelong business 8. Shiraz and Cabernet
community Sauvignon
9. The Thomson
10. The Inland Taipan or Fierce
Snake
Opteon Victoria’s Research Manager Richard Jenkins and Director of Commercial
Services Todd Devine were official guest presenters at the Geelong Chamber of
Commerce President’s luncheon held at The Pier on the waterfront on Friday 15 Opteon (Victoria) Pty Ltd
April. The purpose of the event, which was attended by state and local government trading as Opteon
representatives, industry groups, developers, landlords, tenants, consultants and ACN 140 547 600
Opteon Victoria’s major banking clients, was to provide an independent assessment 222a/757 Bourke st,
of the status of the Geelong CBD in the wake of intense media scrutiny. In his
Docklands, Vic 3008
presentation Richard Jenkins provided an overview of the economic conditions in
T 1300 786 022
Australia and then followed with an analysis of the tenancy mix in the Geelong CBD,
vacancy statistics and rents and yields as well as the outlook for the remainder of F 03 5223 2309
2011 and beyond. If you’d like a complimentary copy of Richard’s report please email: E valuers@opteonvictoria.com.au
richard.jenkins@opteonvictoria.com.au W www.opteonproperty.com.au
Disclaimer: The information contained in this report is provided in good faith and has been derived from sources believed to be
reliable and accurate. However, the report is not intended to be comprehensive or render advice and therefore Opteon Pty Ltd Value made visible
does not accept liability for its contents.