positive property report positive property report ISSUE Tom Price: Pilbara

Transcription

1 ISSUE 11 ISSUE 11 Tom Price: Pilbara BOOM TOWN Page 1

2 Introduction Crawford Property Group Crawford Property Group is a positively geared property expert, specialising in cash flow earning property Australia-wide. Positive property is now the investment vehicle of choice and offers many benefits including; passive income and the ability to build a successful portfolio much quicker! Crawford Property Group is your positive property destination. We can assist with providing market knowledge, education, property selection and asset management of your new investment property. Explore our site and start your investment journey today. Search positive properties, find accurate market information and updates, read success stories and learn your best financial options. Page 2

3 Contents Executive Summary...4 Macro investment summary...5 The Pilbara Australia s economic powerhouse...7 Australia s largest concentration of infrastructure projects...8 Booming population...8 Highly paid workforce...9 Australia s largest property boom...9 Constraints on new housing supply has amplified the property boom...10 Mining companies historically have contributed little to increasing housing supply...10 $1.2bn Government initiative to create liveable cities in the Pilbara...11 Boom forecasted to continue...12 Lack of development will constrain new dwelling supply...14 Tom Price Rio Tinto and FMG s strategic centre...15 Investment summary...15 Tom Price township and economy...16 Thriving community, booming population...16 Undergoing major civil infrastructure upgrade...17 Low unemployment rate...18 Booming property market...18 Growth conditions look set to continue with new and expanding mining projects...19 Rio Tinto s $20bn expansion...19 Tom Price key to Rio s Pilbara operations...20 Expansion of Nammuldi mine near Tom Price to create temporary and permanent employment for 2, Fortescue Metals Group (FMG) opens Australia s largest iron ore start-up...21 Solomon Hub, Australia s largest iron ore start-up, 70 km from Tom Price...22 Major future expansion plaed at Solomon, development at Western Hub...22 Tom Price new, expanding and prospective projects...23 Effect on property market...24 Page 3

4 Executive Summary The Pilbara region in Western Australia s (WA) north-west is well known to investors for the resource towns of Port Hedland, Karratha and Newman where infrastructure projects, limited housing supply and the influx of highly paid workers have all conspired to fuel sustained property cycles. In the heart of the region, 1,100 km north of Perth is Tom Price another thriving town and the major regional centre for the Shire of Ashburton. Comprising the towns of Paawonica, Paraburdoo and Onslow, the Shire is experiencing unprecedented resource sector growth with $96 billion currently invested in future projects. Tom Price serves several of the Pilbara s largest iron ore mines and holds key infrastructure and workforces for two of the world s biggest iron ore producers, Rio Tinto and Fortescue Metals Group (FMG). Over the past six years the population has doubled in the town to around 5,400 (including FIFO). The increase in the demand for housing and the extreme lack of new development and availability of existing stock has led to an average aual growth rate in house prices in the town of 19.3% per aum over the last 10 years (REIWA). The current median house price, based on the past 12 months of sales activity, is $650,000. According to the 2011 census, 86.2% of people living in Tom Price rent their home and the rental vacancy rate is zero. Median rent is among the highest in the country surpassing other Pilbara towns at $2,300 per week. Chart 1: 10 yr Residex Median house prices and rentals Page 4

5 Macro investment summary n n By 2025, the global economy will grow by $50 trillion double its size today The urbanisation of China (and other emerging countries) is creating unprecedented demand for iron ore and LNG Commodity prices have been driven to an all-time high and while they have since moderated, the ever-growing population of China and volume of demand will keep prices stable at elevated levels for decades to come Wood Mackenzie reports (Q2 ) investment in iron ore in Australia will reach a record $22bn in, comprising 25% of the overall spending in the Australian resources industry and pushing resource sector investment in WA to record levels According to KPMG Commodity Insights Bulletin (Q3-2012), Australia is expected to account for the majority of growth in global iron ore exports $192bn in iron ore and LNG projects are plaed to be constructed in the Pilbara, including over $30bn actually under construction today Both iron ore and LNG exports from the Pilbara will nearly triple, which will see approximately 25,000 more of Australia s highest paid workers arrive in the region by 2020 The WA government s $1.2bn Pilbara Cities initiative will transform the Pilbara s communities from frontier towns to liveable cities through 160 individual projects in health, education, utilities, roads, and other public amenities The $30bn underway infrastructure projects will nearly double the number of dwellings required in the Pilbara by 2015 Residential developments proposed for the Pilbara face difficult funding environments following the global financial crisis and the recent scale back of BHPB and FMG projects, curbing new supply and maintaining pressure on housing Page 5

6 Chart 2: McKinsey Global Institute Commodity Price Index (2000 = 100) Chart 3: Global urbanisation, billion people Source: United Nations Page 6

7 The Pilbara Australia s economic powerhouse The Pilbara has one of the largest deposits on Earth of readily accessible iron ore. The commodities boom has seen a rapid rise in the development and production of the Pilbara s iron ore assets over the past 25 years with exports increasing from approximately 150 million toes per aum (Mtpa) to over 400 Mtpa. The region is primarily known for iron ore and petroleum products and is responsible for over 90% of WA exports of these commodities and 74% of the state s total export production. In 2011 approximately 400 million toes of iron ore was exported from the Pilbara at a value of more than $50bn, a little under 40% of world production. Total export production (iron ore and other commodities) from the region was valued at $71bn representing 6% of Australia s total GDP and 30% of Australia s exports. This was achieved by just 0.2% of the nation s population. The growth of the Pilbara resources industry has seen gross regional product for the region more than double since This level of activity is set to escalate with over $100bn of committed projects and total value of minerals and petroleum production in the Pilbara set to rise to approximately $211bn by Furthermore, in 2009 the WA state government responded to the challenges of ensuring productivity and returns from the Pilbara are maximised and sustainable, by launching a $1.2bn Pilbara Cities program. The initiative is designed to increase the regional population to 140,000 by 2035, by creating vibrant regional cities and upgrading numerous regional centres and townships. Map 1: Pilbara towns Page 7

8 Australia s largest concentration of infrastructure projects Since the early 2000s, the commodities boom has seen the number of confirmed and proposed infrastructure projects in Australia grow by almost five fold. Today, these combined projects are worth a staggering $554bn. Throughout the last six years, Western Australia has enjoyed the lion s share of infrastructure projects related to the recent commodities boom principally due to the Pilbara. Indeed, out of the staggering $286bn in projects as of 2012, over $192bn is linked to iron ore and LNG projects in the Pilbara. Booming population The commodities boom has already seen some $30bn in new and expansion projects completed over the last 10 years in the Pilbara, which has created an immense population boom. The Pilbara s population has risen by more than 40% in the last decade and has been even more dramatic in the townships of Port Hedland, Karratha and Newman. Populations have surged by 46%, 83% and 50% respectively, while Tom Price has doubled its population since The ABS census 2011 reports that there were nearly 60,000 people living in the Pilbara up from less than 40,000 in Chart 4: Pilbara population Historical (Excluding FIFO and Construction Workers) Page 8

9 Highly paid workforce The Pilbara is a vast area, twice as large as Victoria but with a very sparse population and no idle workforce. The growth in people has therefore been predominantly FIFO workers (including those associated with the construction of projects). These workers are the highest paid in Australia with a recent report by Suncorp also illustrating the immense salaries FIFO workers attract. The mining industry is by far the highest paid profession in Australia (with the Pilbara having the highest paid workers in the mining industry). Commonwealth Bank research also shows that salaries in Australia s northwest are on average 62% higher than the national average and 78% higher than that of all workers. Australia s largest property boom The commodities boom and surge in the Pilbara s population over the last 10 years have seen unprecedented property growth that dwarf any other area of Australia. Over the last decade, the average compounded aual growth rate for median house values has been 14.5% in Karratha, 19.1% in Port Hedland, 30% in Newman and 19.3% in Tom Price. These growth rates are more than two to four times the national average of 6.9% and well above the strong Perth average of 10.1% Not surprisingly, the median house value of the Pilbara towns tower above capital averages. Port Hedland, Karratha, Newman and Tom Price are among the top towns in Australia with median house rents at $2,000/week, $1,350/week, $1,800/week and $2,300/week respectively according to REIWA (December 2012). Page 9

10 Constraints on new housing supply has amplified the property boom These constraints include the presence of major industry, flood plains, native title issues, limited labour, and ineptitude by government. The hot and arid, degree centigrade year round conditions coupled with tropical cyclones also makes the Pilbara environment a very harsh region of Australia to live. This has naturally constrained the number of people travelling to the region and locals will freely acknowledge it is the very large wages the major miners offer that bring the majority of people into town. This has caused severe shortage of workers for the construction of new housing and exorbitant the labour costs are associated with the building of new houses all factors which have limited new housing supply. Mining companies historically have contributed little to increasing housing supply Page 10

11 $1.2bn Government initiative to create liveable cities in the Pilbara In addition to the lack of housing in Pilbara towns over the last decade, there has also been a lack of investment into the health, education and general public amenities that are required to support the population growth. In November 2009, the Western Australian government aounced an ambitious new Pilbara Cities blueprint. The master plan being to transform the regional cities of Port Hedland and Karratha, and the townships of Dampier, Newman, Onslow and Tom Price, into vibrant, attractive and liveable cities funded by the Royalties for Regions initiative (being approximately 25% of all state mining revenue). These funds are to provide new schools and TAFEs, hospitals and medical centres, leisure and entertainment facilities, and retail precincts to Western Australia s iron ore communities. Pilbara M&E Workforce by Type (Incremental to 2011) ( 000s) (0.8) (6.7) (7.4) (14.6) (15.2) (16.5) Total Pilbara M&E Workforce ( 000s) E.g. total Pilbara M&E employment is expected to reach 65,500 by 2014 (on a weighted basis) Construction Workers (All projects) Operations Workers (All projects) Total M&E Workforce (All projects) Total M&E Workforce (Weighted) Historic Weighted All projects addition Chart 5: Pilbara M&E workforce by type and Total Pilbara M&E workforce Page 11

12 Boom forecasted to continue While construction may be slowing, operations are now ramping up resulting in a possible doubling of iron ore exports within the four years to 2017 and an increasing operational workforce both resident and FIFO placing even more pressure on property markets. Based on forecasts from a report by the WA Chamber of Minerals and Energy (November 2012) into employment growth in the Pilbara, the region s population is expected to grow by between 12,700 and 16,300 on a weighted basis (that is, based on the probability of current proposed growth projects proceeding to completion), suggesting a total Pilbara population of between 72,700 and 76,300 by The workforce required to meet current growth plans for the resources sector in the Pilbara is expected to peak at just over 65,500 in 2014, up from around 51,000 in 2011 an increase of 28.4%. However, the construction outlook is generally limited to six to eight years, and there is potential for projects that are not currently in detailed plaing to commence construction in the later part of the decade. In contrast to the construction workforce, the operations workforce is expected to grow steadily until 2020 as a result of a succession of long-life projects moving into their operational phase over the next decade. The operational workforce in 2020 is expected to be around 51,600, an increase of 63.3% when compared to the operational workforce of 31,600 in By 2014 there will be a further 1,600 resource sector workers living in the Pilbara, totalling approximately 8,000 workers on a weighted basis. This number will continue to grow to 9,100 in 2020, compared to 6,400 in 2011, an increase of 42%. FIFO workers are expected to comprise approximately 43,000 of the 51,600 total operational workers. Total resource sector employment is anticipated to settle at around 55,000 from To meet this demand an additional 4,395 to 5,640 dwellings to 2020 are estimated to be required according to a study by PriceWaterhouseCoopers in November Projected Demand for Permanent Dwellings Incremental to Permanent Dwellings ( 000s) Housing Demand - No indirect effect of FIFO (All projects) Potential FIFO Flow-on Demand (All projects) Starting point: 20,700 in 2011 Housing Demand - No indirect effect of FIFO (Weighted) Housing Demand - Total with indirect effect of FIFO (Weighted) Chart 6: Projected Demand for Permanent Dwellings Page 12

13 Town Current unmet demand (dwellings) Apparent demand Latest demand Total unmet demand Future demand (dwellings) Additional future demand Low growth High growth Total future demand Low growth High growth Karratha Port Hedland Newman Onslow Tom Price Roebourne Total Chart 7: Short-term Future Housing Demand in Pilbara Towns ( ) (Source: Pilbara Plaing and Infrastructure Framework) $2200 $2000 $1800 $1600 $1400 $1200 $1000 $800 $600 $400 $200 Average rental cost Number of rentals available $ Chart 8: Average residential property rental and availability in Port Hedland Page 13

14 Lack of development will constrain new dwelling supply Historically, land releases have been few and obtaining plaing approvals for new dwellings has been a relatively lengthy process (full plaing approvals can take developers two years to obtain), thus delaying the delivery of new supply to the market. The Pilbara Cities program also aims to address the housing issue through the proactive action by Landcorp (the government land authority) to make land available for development to increase residential supply and normalise the market. There are several challenges to the release of land. Approvals are proving lengthy as the environmental, heritage and native title approvals required for rezoning can be onerous and councils are facing significant growth in development applications, leading to a backlog. Housing construction costs are also a significant issue. The cost of new housing construction in the Pilbara is around twice the cost of an equivalent dwelling built in Perth (excluding land costs). Current and forecast demand for construction are significantly higher than historical rates. Construction plans rely on small local labour forces, which will have to grow significantly in size. In some areas, the wet season presents a meaningful challenge to delivery of materials and an ability to progress construction projects. Developers are also faced with numerous challenges throughout the development of a project such as raising debt, obtaining equity investors and securing presales before construction can commence. These current approaches to land release, development and housing construction appear unlikely to resolve critical constraints in the short term. Page 14

15 Tom Price Rio Tinto and FMG s strategic centre Investment summary Tom Price is the major regional centre of the Shire of Ashburton which is set to receive $96bn in resource sector investment equating to an additional 7,500 workers It is located in the Hamersley Range, one of the world s major iron ore provinces estimated to contain about 80% of all identified iron ore reserves in Australia The town services local mines owned or operated by a multitude of companies, the largest of these being Rio Tinto and Fortescue Metals Group (FMG) both undertaking multibillion dollar expansion projects Government and local industry have contributed more than $20m to upgrade existing civil infrastructure Population has doubled to 5,400 in past six years House prices have increased an average of 19.3% per aum over the last 10 years 86.2% of Tom Price residents rent their home, current vacancy rates are zero 92% ownership of residential housing by Rio Tinto and lack of new development has historically restricted investor access 2011 saw the first private and industrial land released in 40 years providing investors with the opportunity to take advantage of zero vacancy rates, higher than average rental returns and strong capital growth Page 15

16 Tom Price township and economy Thriving community, booming population Located in the heart of the Pilbara 1,100km north of Perth, Tom Price is a thriving town and the major regional centre for the Shire of Ashburton. Also comprising the towns of Paawonica, Paraburdoo and Onslow, the Shire is experiencing unprecedented resource sector growth with $96bn invested in approved and plaed development projects. These projects are likely to attract workforces in excess of 7,500. Tom Price sits at the edge of the Hamersley Range between the Karijini and Millstream/Chichester National Parks and unlike many regional towns in the Pilbara is picturesque with a vibrant family community. There are numerous facilities including a major supermarket, bank, doctor, hospital, library, two primary schools, a secondary school, TAFE and several motels and restaurants. Tom Price has doubled its population in the last six years and is now home to around 4,500 permanent residents and more than 1,000 FIFO workers. A variety of sports are on offer with three large ovals, teis, netball, basketball and squash courts as well as a lawn bowls green, an indoor cricket centre, an eighteen hole golf course and an Olympic size swimming pool. Page 16

17 Undergoing major civil infrastructure upgrade Through the government s Pilbara Cities initiative and further contributions from state and local government and industry, the community has benefited from more than $20m in investment in recent times to upgrade existing infrastructure. The Shire of Ashburton is coordinating this investment to attract and retain people wanting to live and work in Tom Price. Current projects include the $10m Clem Thomson Oval and Sports Pavilion redevelopment and the now completed $10m Tom Price town centre revitalisation which included: Upgrades to the shopping mall shade structures, landscaping, paving, etc New commercial and retail facilities Modifications to the road system and car parks New street scaping and public open spaces amphitheatre Improved community facilities children s playground, stadium, cultural and commercial centres, walking and cycle paths Facilities and amenities for tourists new tourist centre, bus shelter, RV Parking, public toilets and vending machines New council administration building More trees and shading within the town centre Improved coection between shopping mall and swimming pool Design and construction of a new sports pavilion, oval and surrounds The local community is in discussion with the shire and local government about the construction of a RFDS airstrip close to Tom Price. At present the nearest local airport is Paraburdoo 71km from town offering up to six direct jet services a day to and from Perth. Page 17

18 Low unemployment rate 76.8% of the people living in Tom Price are employed full time, 11.6% are working on a part-time basis. Tom Price has an unemployment rate of 1.6%. (National average is 59.7% employed full time, 28.7% part time basis and an unemployment rate of 5.6%.) Booming property market 86.2% of Tom Price residents rent their home. Current vacancy rates are zero highlighting a desperate need for additional rental properties. Short term accommodation is limited and very basic rooms at the Tom Price Hotel/Motel range in price from $164 to $270 per night when there is a vacancy. With a 10 year growth rate of 19.3% per aum, the performance of the real estate market has been consistent with other regional towns in the Pilbara without garnering the same level of attention largely due to extremely low private home ownership. In 2007, 92% of residential property in Tom Price was owned by Rio Tinto and occupied by their own staff or contractors. The expansion of several Rio Tinto mines in close proximity to town, the arrival of FMG and a host of other companies has resulted in an acute shortage of all accommodation types and confirmed Tom Price as an exciting investment opportunity saw the first private and industrial land released in 40 years, finally providing an opportunity for local residents to build their own home and for local businesses to expand and offer suitable accommodation to their staff. It also opened the door to investors wishing to establish a presence in the town and take advantage of zero vacancy rates, higher than average rental returns and strong capital growth. Of occupied private dwellings in Tom Price (state suburbs), 8.4% were owned outright, 3% were owned with a mortgage and 86.2% were rented. The majority (84%) of rental properties in Tom Price are operated by other landlord types which comprise of dwellings being rented through a Residential park (includes caravan parks and marinas), Employer Government (includes Defence Housing Authority) and Employer other employers. 4% are rented by Real Estate agents. Page 18

19 Growth conditions look set to continue with new and expanding mining projects Rio Tinto s $20bn expansion Rio Tinto s Pilbara operations make up the major part of their global iron ore activities Rio Tinto will expand its iron ore operations in the Pilbara investing about US$20 billion in the next five years (requiring over 6,000 employees) The current expansion project will facilitate ramp up of production to 360 million toes per aum (Mtpa), an increase of more than 50 per cent of its current capacity, and represents the largest integrated mining project in Australian history The expansion includes a major investment in mine infrastructure at Rio s Nammuldi mine, 60km north-west of Tom Price, which will increase production limit from eight to 23 million toes a year The Nammuldi expansion will create almost 1,500 construction jobs and secure ongoing employment for more than 700 people The town of Tom Price remains an integral part of Rio Tinto s current operation and expansion plans Page 19

20 Tom Price key to Rio s Pilbara operations Rio intends to utilise the existing infrastructure at Tom Price to maintain and support its residentially based workforce as it develops satellite mines in the region. Iron ore is the cornerstone of Rio Tinto s global enterprise accounting for almost 70% of its gross revenue in the year to June 2012 and up to 80% of its global profit. With a network of fourteen mines, three shipping terminals and the largest privately owned heavy freight rail network in Australia, Rio Tinto s Pilbara operations make up the major part of its global iron ore activities. In February Rio assured the future of its Pilbara iron ore operations by securing a long term land use agreement with a local indigenous group. Already the world s second largest exporter of seaborne iron ore, Rio is in the midst of a significant expansion having invested US$20 billion in plans to increase capacity of their Pilbara operation to 360 Mtpa by This is an increase of more than 50% on top of their existing capacity and represents the largest integrated mining project in Australian history. At a rate of 353 Mtpa, Rio s Australian mines would supply nearly a third of the world trade in iron ore. Although the present intention is to maintain production capacity when the current expansion project is complete, feasibility studies have been initiated to further extend their capacity to 450 Mtpa. Expansion of Nammuldi mine near Tom Price to create temporary and permanent employment for 2,000+ The expansion includes a major investment in mine infrastructure at Rio s Nammuldi mine, 60km north-west of Tom Price, which will see iron ore mined below the water table and increase the mine s production limit from eight to 23 Mtpa. Production of ore from below the water table is expected to begin in the third quarter of The expansion will create almost 1,500 construction jobs and secure ongoing employment for more than 700 people. The $1.8 billion extension of Rio s Yandicoogina mine, 93km from Newman, will provide continued employment for about 1,000 people. Page 20

21 Fortescue Metals Group (FMG) opens Australia s largest iron ore start-up FMG is the fourth largest iron ore producer in the world The company has holdings of more than 87,000 km2 in the Pilbara region of Western Australia making it the largest tenement holder in the state Located 70 km north of Tom Price, the Solomon Hub is FMG s next major project and the largest iron ore start-up in Australia with projected production of 60 Mtpa from stage 1 Expansion of Solomon could see production increase to 100 Mtpa Estimated cost to develop FMG s Western hub resource and the required infrastructure including port and rail is in the region of $7 bn and would create approximately 4,800 construction and 2,650 operational jobs Page 21

22 Solomon Hub, Australia s largest iron ore start-up, 70 km from Tom Price FMG has two main areas of operation located within the Pilbara; the Chichester Hub and the Solomon Hub. Plans to develop a third, the Western Hub, are currently at a developmental stage as is the construction of a new 250 km railway and second port at Anketell Point with a joint user capacity of 350 Mtpa. The estimated cost of this project is in the region of $7bn and would create approximately 4,800 construction and 2,650 operational jobs. Located to the north of Newman, the Chichester Hub is made up of FMG s flagship minesite Cloudbreak and the second minesite Christmas Creek. Together, the two minesites currently produce 55 Mtpa and will ramp up to a combined 95 Mtpa when the plaed expansion is complete. Located 70km north of Tom Price, the Solomon Hub is FMG s next major project and the largest iron ore start-up in Australia. The Firetail and Kings deposits are the first stage of the Solomon project and are currently under construction. When complete, together they will produce 60 Mtpa of ore each year. The Solomon Hub has almost twice the resource and less than half the strip ratio of the Chichester Hub making it the lowest cost operation in FMG s business. FMG s exploration team has already delineated more than 3 billion toes of iron ore and there are identified exploration prospects targeting up to 5 billion toes. Major future expansion plaed at Solomon, development at Western Hub To date, 1.1 billion toes of resource have been identified in the area slated for the second stage of development at the Solomon Hub. This resource base is expected to increase substantially over time as exploration drilling targets key areas. The feasibility study for this stage focuses on targeted production of 100 Mtpa. A maiden resource of 625 Mtpa has been declared at the Western Hub, 50 km west of the Solomon Hub. This resource base will grow over time as more drilling is conducted and will underwrite FMG s plans to proceed with the rail expansions and construction of the new Pilbara Port at Anketell Point. Page 22

23 Tom Price new, expanding and prospective projects Project Proposal Location Status CapEx Peak Workforce Operational Workforce Brockman 4 (B4) expansion Rio Tinto 60km NW Tom Price Expansion completed $1.24b (incl B4) Marandoo (15yr increase mine life) Rio Tinto 45km E Tom Price Underway, due for completion Q3 $1b 5,000 Nammuldi expansion Rio Tinto 60km S Tom Price Approved $2.2b Western Turner Syncline expansion Rio Tinto 20 km NW Tom Price Underway $1.24b (incl B4) Solomon Hub and Chichester Expansion FMG 70km N Tom Price Underway $8.3b (total Pilbara expansion, Solomon $3.1b) 7,000 6,000 Western Hub FMG 50km W Solomon Feasibility Blacksmith & Anvil tenements Flinders Pilbara Iron Ore Project 60km NW Tom Price Approved, seeking JV partners $1.1b Hamersley Iron Ore Project Winmar Resources, Cazaly Resources 50km NW Tom Price Inferred resource, exploring development options Pilbara Iron Project Dragon Energy 10km 33km from Tom Price JORC resource, Progressing to feasibility West Pilbara Iron Ore Project Aquila Resources 50km SW Tom Price Final approval stage (on hold) $7.4b (incl Anketell port & rail project) 3,500a 1,000 Hamersley Project Legacy Iron 60km W Tom Price Exploration Page 23

24 Effect on property market With its proximity to some of the Pilbara s largest mining projects, an increasing population, impressive historical house price growth, large rental market and zero vacancy rates, Tom Price has all the elements of a Pilbara boom town. Now, with new housing supply coming to market, investors have an entry point to what has been a difficult market to access in the past. The limited development of new housing, as a result of restricted land releases, and the projected continued population growth, ensure that an oversupply of accommodation is unlikely. According to a report by Regional Development Australia, Tom Price had a dwelling shortfall of 259 homes in 2012 and will require a total of between 271 and 471 new homes by Only 37 residential lots were released in 2011 with no indication of further releases. Furthermore, the market is highly prospective for future growth. The fact that Rio s Pilbara operations are the lowest cost in the region s iron ore industry indicates the mining giant is well positioned to deliver on its additional expansion plans to ramp up to 360 Mtpa. Similarly, FMG s Solomon Hub is the lowest cost operation of FMG s projects, increasing the likelihood of significant expansion. A commitment from Rio, a Solomon expansion and the development of the Western Hub, another FMG project just 20km from Tom price, would see thousands of additional construction and operational workers brought to the town. This is all encouraging news for investors seeking to build and diversify their positively geared property portfolios. Page 24

25 Biographies Crawford Property Group Ryan Crawford has been involved in the property investment industry for over 10 years, making the transition from successful investor to real estate professional. Developed in 2008 Crawford Property Group was created to provide an iovative solution to real estate investing in the Pilbara and Australia-wide. With their core focus on positive investment property and wealth creation, Crawford Property Group has fast become the network of choice when choosing to invest in positive property. From the dynamic website to their smart investor list, Crawford Property Group are dedicated to providing the most up to date information and properties in positively geared hotspots Australia-wide. Ryan is a firm believer in the positive power of real estate investing and offers his service and advice as a seasoned investor, with a sizable portfolio in the Pilbara and throughout the state. Ryan is the CEO of the Crawford Property Group. Katryn Fremlin Communications Consultant. Katryn is a corporate communications professional with 10 years experience in the resources, and finance and investment sectors.she has delivered numerous highly successful multiple stakeholder communications campaigns and research projects for a range of listed and unlisted clients spaing mining, oil & gas, property and clean technology. Page 25

26 Recent News Articles Resources: Pilbara 2012 Investment Prospectus (Regional Development Australia Pilbara) WEB_single.pdf Community Strategic Plan (Shire of Ashburton) -%20SoA%20Community%20Strategic%20Plan.pdf People for the Pilbara (CMEWA) Summary%20Document443.pdf UDIWA Presentation Pilbara Study Study%20-%20Final%20Report%20-%20vFINAL444.pdf Page 26

27 ISSUE 11 Visit us at: