Good afternoon, everyone. It's great to be here for Ingenia's 2nd virtual market update. Today, we've got some really exciting speakers to join me, both internal and a couple of external speakers. So I'll get the proceedings started. Ingenia has continued to grow our portfolio and to date we've announced over $1,000,000 of new acquisitions.
Today, we're pleased to announce the acquisition of a further 6 communities and I'll touch on that very shortly. So to date, we have now fully invested the proceeds from our May 2020 capital raising and on a pro form a basis Following the acquisition and the close on the 6 acquisitions we're announcing today, our LVR will be at the lower range of our target 30% to 40% LBR. From an acquisition perspective, we're still continuing to find some really of acquisition opportunities, both existing parcels of land and also immediately accretive lifestyle and holiday park communities. Today, we're pleased to announce the acquisition of a new DA approved site up at Bagara, which is just on the coast from Bundaberg. This is an acquisition opportunity that we've been looking for around 2 years and we did hit the pause button on this site through COVID.
It's a great site. The Local market catchment, including Begara and the adjacent Bundaberg is around 100,000 people, which is actually quite larger than what we've got down the road down south at Hervey Bay. So this project is DA approved for 3 44 homes. The median house price in Bagara is $400,000 We'll be commencing work on-site in the next 6 months, and we expect it will be contributing to settlements from FY 'twenty three. I think what's really attractive about this site is it is absolute beachfront.
Our project down the road at Hervey Bay, which is about 90 minutes south, we're currently on track to settle somewhere between 70 80 new homes at that site and we think Begar is going to be even more special than that. So we're really pleased to be announcing that acquisition today. This is a photo there and you can see it is absolute waterfront. It adjoins a large residential development and it is also within walking distance to the local, Beharra township, so very exciting. Several weeks ago, we announced the acquisition of the Nature's Edge lifestyle community up in the Queensland Sunshine Coast at Budham.
This is an existing premium lifestyle community as well as vacant land for the construction of another 67 lifestyle homes, which we expect to start constructing in the coming months. And this project will be a key contributor to settlement volumes in the next 2 years. Upon completion, this will be one of the largest pure livestock communities on the East Coast of Australia. Several weeks ago, we also announced the acquisition of Big 4 Holiday Park up in Townsville. We acquired this on an ongoing yield of over 8% with significant upside.
What's particularly appealing to Ingenia about Big 4 Townsville is that around 1 third of the revenue is underwritten by longer term rental. So you're getting a great combination of high quality tourism income as well as longer term rental income. That's it for my introduction today. What I'm going to do next is hand over to Matt Young, who's our General Manager, Tourism. Matt joined the business back in March this year after a lengthy career with Agor.
So I'll now hand over to Matt.
Thanks, Simon, and good afternoon. It's great to be able to share an update with you on the tourism portfolio of Ingenia. Today, I'll drop on what makes up our business, planned, and new acquisitions that we will announce, an update on trends we're seeing within the market and also a future outlook on tourism and domestic travel within Australia. Our business comprises of tourism stock, which is cabins and sites. That represents about 80% of our inventory.
We have additional 20% of our inventory, which is that longer, as Simon referred to, that longer term business referred to in New South Wales and Victoria as annuals. The cabin and sites represent an opportunity for us to yield. It's based the demand based pricing and it's a dynamic revenue stream that we can flex with constraint in the market. And the annuals provide a stable income and cash flow to help us grow and be about the yields that we're planning to achieve. I'll move on now to the planned acquisitions.
So really Excited to announce that we'll add an additional 8 44 income sites to the portfolio. This will increase our stock in Victoria from 1 park, which is Inverlok, Big 4 Inverlok, which is trading extremely well. We'll have 3 additional parks in that Victorian market, which will increase our sites to over 1,000. We'll also add an additional site in the South Coast New South Wales and an additional site up in Queensland. Both these two sites in New South Wales and Queensland will complement our existing park portfolio.
I'm pleased to announce as well, which has been previously communicated is the acquisition of Mary Beach, which settles tomorrow. I was there on Friday. It is an absolutely exciting prospect. There's a huge amount of development opportunity through development of existing infrastructure, improved amenity and also the revitalization of the cabin stock and master planning of additional master planning of additional stock to go into that park. There's not met too many places in the world where you can sit at your site or your cabin and watch the whales go by while the kangaroos graze on the grass.
I think it will be one of our iconic parks in the not too distant future. With the acquisitions that I've just mentioned, our Holiday Park portfolio increases to 33. That will deliver us 4,000 kilometers of Australian East Coast our prime real estate from as far south as Mornington Peninsula to as far north as Cairns. Within that holiday park footprint. We've got some of Australia's most desirable locations, including the Mornington Peninsula, Sapphire Coast, Byron Bay, at Sunshine Coast, Noosa, Hervey Bay, Cairns.
And if that hasn't got you reaching for the Ingenia Holidays website, I don't know what will. The outlook for domestic tourism is strong. I know that there's Concerns around what happens when the international borders open and we're still continuing to deal with the uncertainty of shutdowns. But I think what really showed that the market is becoming more resilient was the recent lockdown in Brisbane. That occurred 4 days before the Easter long weekend.
During that period, we saw minimal cancellations. It was Quite incredible that people held and when the restrictions were lifted, the majority of our guests, 95% of our guests continued on with their holiday plans. And I think we'll see that continue. But what was most important about that, it was that Easter long weekend, which is so important to everyone. The other exciting outlook for our Holiday Park business is the caravan and camping show.
Super Show was held earlier this month. Attendance was exceeded 2019 levels with over 65,000 people attending, which is a 15% increase. What was really exciting is the fact that the grey nomad market were up 30% year on year. And for those that don't know, the grey nomad market travel from south to north and they tend to travel not only through the peak periods, but they fill out those shoulder periods. What else was pleasing was the fact that Caravan sales were up 10%, RV sales were up 10% And it's important to note that people are purchasing and not receiving their product until early to mid next year.
So it really does show that there's a lot more to run-in the domestic travel market. We're continuing to adapt to our customers and We quite often see a new guest come into one of our holiday parks, parking their caravan for the first time. So our team are well equipped to assist with parking that caravan and reversing it. In one park, we actually have a tractor that assists with that. Or it might be you're putting up your tent for the first time on a Friday night and the weather starts to roll in and our team are there to assist and make sure that that experience is memorable.
And what we are seeing is the feedback from our first time guests is very positive and they're talking about it on online review platform. So really making sure that we understand the new guests and what their challenges may be. We also are very proactive in terms of our pre arrival communications. We've developed a contactless check-in. We communicate guests on things that they may need to know before they stay and during their stay, we actively communicate to them.
It may be that we've got the pancakes out at Cairns Coconut on the Saturday morning or Stan, the coffee man's out the front making fresh brewed coffee. And also I'd say it's important to understand what our guests are really wanting. So we actively pursue their feedback and look to make changes within our parks. Booking demand continues to grow and we're consistently exceeding Our booking band each day, like in terms of our bookings, it takes for that day for future things. So at the moment, it's consistently above $150,000 per day.
We've seen rate occupancy grow to deliver a circa 20% increase in revenue year on year. And the acquisitions that we've acquired recently will further increase our overall revenue opportunity. We've seen our work that we've been doing in terms of our digital space, really making changes to our website. What that has done is delivered more than 47% of our bookings direct. It's the most efficient way of delivering revenue.
There's less cost associated of it. We own the guest. We will continue to use online travel agents in those lower demand periods and we'll restrict the use of those during those high peak demand periods. Cairns, which is a popular holiday park is continuing to really perform well. Last peak period during winter We're impacted by the restrictions.
We're looking very, very good for this season. Our revenue, same point in time is up for the winter period and our booking pace on a daily basis is up also. We continue to invest in this park and as you can see on the slide, We have a 3 storey playground activity center, which not only is there for the amenity for the families and the kids enjoying the park, but also be visible from the road, attracting that potential drive market that may be driving past. Some of the current initiatives that we have included increasing our cabin stock in our parks. I'd like to call out and point out the Airstream.
It's probably one of the world's most recognizable caravans. It has a real strong history within the United States. We plan to have 2 Airstreams located in Soldiers Point. It'll be your chance to stay in a part of history, will create a unique experience and entertainment area outside of the van, so it'll have its own fire pit, deck chairs where you can really unwind. We continue to promote our vacay program, which is really designed to target those off shoulder periods, which is midweek.
We're very proud of our partnership that we've created with the South Sydney Rabbit Oates and they're going exceptionally well this year. We've had access to their guests and their database. It's a target market that is aligned with ours. And not only is it a sponsorship, but we really look to activate that at the home grounds. We have, as you can see on the screen there, we have Reggy's Wagon.
We're giving unique opportunities to have a VIP experience and we were really excited about the activation that we're going to create on the Sunshine Coast at Rivershore where Souths take on the rapido's take on the Warriors. Our portfolio of holiday parks, 33, we now have An opportunity and we're creating itineraries, multi stay itineraries. And as I mentioned before, in Victoria, we'll have multi stay holiday itineraries up on the Sapphire Coast and also the North Coast of New South Wales. I'll hand back to Simon.
Thanks for that, Matt. Before we get into the next part of proceedings, which is a panel session on the outlook for the residential real estate market. I think we're going to see whether there's any questions to date for Matt on holidays or for myself on the recent positions that we've just announced. We'll also have a final question session at the end of today. Okay.
Well, I might move forward now to the panel session on the outlook for residential real estate. So joining me today, we have Three speakers, we've got Kate Melrose, who heads up residential sales at our Ingenia lifestyle business. Kate's been with the Ingenia team since I think August 2014. We've also got Eliza Owen, who's the Head of Residential Research Australia at CoreLogic and they are the largest property data and analytics company in the world. And the final member of our panel is Craig Mabemont.
Craig is the Managing Director of Easy Build Group and QMR Constructions. And QMR is one of the largest residential homebuilders that Ingenia use. They've been building homes for us at our Bethany project in Queensland and our Plantations and tube 1 projects on the New South Wales coast. So Craig will be able to give you some insights as to what's happening with construction. So from there, I will hand over to Kate.
Thank you, Simon, And thank you, Matt. And I think COVID has given both Ingenia Holidays and Ingenia Lifestyle some interesting highs and lows. Our market is defined in the Lifestyle business with a market segment that COVID Provided to them or threatened them with a lot of fear and a lot of concern. What we've seen since COVID It's an incredible renewed energy and interest in our sector. At the end of March, our sector settled 2 33 homes.
We've got an additional 324 Deposits and contracts in our pipeline, and we're on track to deliver settlements of 360 to 380 Homes in the I and A and Sunggenia portfolios. Our carry forward pipeline for FY 2022 is stronger than it's ever been. And the outlook for the business and the sector is increasingly strengthening. Our aboveground margins per home Remain stable. And as Eliza Rowan will tell you very shortly, the property market And the support for our buyers' capacity to sell their homes in a timely manner and downsize free up capital is ever stronger.
So demand is underpinned by long term really positive demographics in aging, thematic And a sector that's got very low penetration rates. We've got an increasing market awareness. Our sector provides It's a really transparent and simple model to a retirement sector that's been looking for a real innovation. And post COVID, our buyers are really looking for social connection. We're the antithesis of social isolation.
And as our buyers emerge from lockdown, they've seen a lot of their barriers to entry and a lot of their prepurchase Concerns deflecting to downsize have really been opened up. February, we've seen record sales. March, we also saw record sales. And April has also continued to deliver incredibly strong sales for the business. You can see on the graph on the bottom there, we continue to deliver increased momentum.
FY 2020 was only marginally below given the massive impact of COVID. As a result of the team really leaning in, really engaging with a Customer who was isolated, concerned and at home. And as we've emerged out of COVID, we've seen incredible resistance from the marketplace. The customer awareness of this sector is really underpinned by 4 major themes. They're taking advantage of the current housing market.
They're moving into a supportive and connected community. Our buyers through COVID who were isolated often had friends within our communities who were celebrating through social isolation. They were dancing on their front lawns. They're in their streets connected, although socially isolated, in a caring and connected community. And the gap between our Prospective buyers and our residents was enormous.
They've got an opportunity to boost their retirement and the shift to escaping the city to Safety that comes with regional isolation has never been so great. On the bottom there, you'll see our lead indicator of leads. Leads emerging from capital cities has significantly grown. It's doubled quarter on quarter with same time last year. The interesting fact, if you have a look at that graph at the bottom there, is actually just how much of our market segment we draw from our local and immediate catchments And our lack of penetration into capital cities at this stage, which suggests the potential depth of market as Buyers who are downsizing from Capital Cities, who over the last few years have really had a little bit of concern.
They've wanted to make sure that they're capitalizing on their principal place and have deferred that downsized decision. And as we emerge and as this market growth continues, we'll continue to see much Greater penetration into capital cities. The growing awareness of the sector, the simplicity of the land lease model is absolutely underpinning the growth. We're increasing our market appeal not only in price diversity, but also significantly shifting From our product now starting at sub-two 100 and increasing up to $1,000,000 is to buy pensioners and our pensioners to their self funded retiree market for Insignity. Interestingly, through COVID, the sector's done a really large piece of research, some 4,500 surveys into retirees into their intent to downsize Their capacity to pay and what's really important, what's driving the decision amongst downsizers.
And Interestingly, what we've seen is the need for care and support, the need for social connection, safety have really raised up that Demand chart. Certainly, post COVID, as more baby boomers look to downsize, we will see a return to home designs And a real focus on maintaining an active social life will come into greater focus, which really gives support for the core Pillars and the core value proposition that underpins Ingenia proposition. I thought I'd stop for a moment and pause on just 2 case studies. A very quick wrap on Latitude 1. Latitude 1 was our very first master plan community.
And it's been a project that Through its life, and it's been a short life. We've just sold out of Latitude 1 and in record time. We sold 270 homes. And We've seen that, that particular community has had incredible price escalation. When we started the average prices, We're in the mid-5s.
We're finishing up with those prices well over $600,000 and we've sold homes in that community up to $1,000,000 But what's been fundamental is the impact that soft infrastructure, the impact that living in a community that people have planted long term and And just how important that is to our price growth. We're excited to say that that project's now sold out. It's time to The other end of the spectrum, we've seen this shift to sea change, tree change And how that's driving massive sales volumes in Hervey Bay. Hervey Bay is a project that I think the day we opened the borders, we sold 11 homes to Melbourneites who had Been down wanting to downsize but socially isolated with barrier constraints. You can see on the screen there, Firstly, the unique elements of this location, the value proposition of the homes, private open spaces, really strong lifestyle proposition.
And that home that community launched in early 2019. The first time settled in December 2019. And what we're seeing since then is a significant shift in our buyer market. In the early days, we catered only to a local market. And that buying capacity had a spend ratio of almost up to 90%.
What we've seen since we've increased our penetration into capital cities and into 60%, really reflecting the increased capacity to pay of our buyers. Our price banding there, you can see sub $260,000,000 to the $670,000,000 price band. We're sitting with a really strong pricing proposition compared to our competitors. Future prices are compelled to grow as we start to take advantage of the price uplift in the deeper wallets that will come, Not only from the increased capacity of our buyers to sell their homes, but also their appetite for sea change, free change. With that, I'd like to introduce Eliza Rowan.
Okay. Thank you, everyone. Hopefully, you can hear me all right. I apologize, I'm not Actually able to see the slides on the webcast, but I've been told that they're locked and loaded. So Great.
So I'm not sure if they've been locked and loaded, sorry, but I'll just go through as I have them in my PowerPoint and trust that they're being scrolled through. If anyone wants to yell out and tell me if I'm Talking to the wrong slide, that would be helpful. But otherwise, We'll just hop on to Slide 2, which has our summary of residential real estate underpinning Australia's wealth. And thank you to Ingenia for having me. So I'm going to take about 15 minutes to go through this deck.
Just looking at what's happened to the property market, what's happened to values through COVID and the start of this year, Transaction activity and how regional market performance in particular has been tracking. As Kate mentioned in the wake of COVID, there has been a lot of regional demand. So a very positive story there. So taking a moment on this slide to just provide some perspective On the size of residential real estate in Australia and its importance, CoreLogic valued the Total value of residential real estate stock in Australia at $8,100,000,000,000 at the end of April. So housing is Several times the size of GDP, it's also greater than the value of superannuation, the ASX and commercial real estate combined.
And at 53% of household wealth, it's an incredibly important asset to ensure stability around. Not only does it make up around 60% of the bank loan books, so being very important to financial stability, But making up most of household wealth, the residential real estate segment is an implicit pillar of retirement as well. And that's one of the reasons that we do see, despite negative economic shocks, a lot of attention focused on How we keep stability in the housing market during those times. So a good example of this would be the mortgage repayment deferrals that were Put in place at the onset of COVID-nineteen to ensure that those who did have mortgage repayment obligations didn't immediately Take that stock to market. It sort of ensures some stability.
Outstanding debt in the real estate market is about 23% of the value of the asset And price increases have meant that the incidence of negative equity in the real estate market has fallen substantially over the year. It's estimated about 1.3% of mortgages currently have a loan size that is greater than the value of the property. So very low incidence there. Moving on to the next slide, which has Historic downturns in the national housing market going back 30 years. So each of these different lines represents a peak to trough in the housing market at the national level.
Along the bottom axis, you can see the length of these declines in terms of months. And the reason I like to show this slide is because it really puts into perspective just how little of an impact COVID-nineteen has actually had on national property values. You can see the different downturns there. The dark blue line shows one of the larger downturns we saw between 2017 2019, which was actually induced by Changes to mortgage lending. The COVID dip is that dotted line piece on the end.
So the COVID dip was 2.1% peak to trough decline. It happened over 5 months And as such, was one of the smallest downturns in the past 30 years. In fact, because of the monetary policy response to COVID and record low interest rates, We've since seen national home values as of the end of April rise about 8% above their pre COVID high, so their previous peak, which was back in 2017. So a lot of momentum in the market. And I think this graph is good as well because you can see that even in some of the worst National housing market downturns, the peak to trough decline has been around 9%.
And while substantial for the housing market, it does Speak to the relative stability of this asset compared to say the share market, we can see declines of around 30% in a single day. Moving on to the next slide, where we have a summary of rolling quarterly growth rates, a line graph on the left hand side And on the right hand side, a summary of the change in dwelling values across Australia and different submarkets. In the past 3 months, home values across Australia increased 6.8%, which to put that in perspective, It suggests an increase in the typical dwelling value across Australia from around $585,000 in January to about $624,000 by April. So a substantial increase in the year to date. The combined capital cities value has increased 6.8%, taking the median to 705,000 across the combined regional markets combined capital market, sorry, while the combined regional market was up 6.6% in the past 3 months and is sitting at about $457,000 So despite very strong increases in values Cross regional Australia, there is still a big price premium in the capital cities, sitting at about 245,000 at median level.
Another trend we've seen is that houses are a preferred stock. So over the year to date, house Values have risen almost 9% compared to a 4.3% uplift in units. Moving on to the next slide. So we're on Page 5 of our slide deck. This is the rolling 28 day growth rate in the home value index for the combined capital city market versus the combined regional market of Australia.
Now CoreLogic produces a daily home value index for these markets to look at how the Entire value of the dwelling market is changing over time. It's a bit volatile when you look at it in terms of the daily change. So we choose to take this kind of rolling monthly view of dwelling values to get a sense of what the trend is looking like. In the 28 days To May 2, we saw that the combined capital cities market was up 1.7% compared to a 1.8% lift in regional markets. Now the importance of getting this high frequency trend As you can see that that rolling monthly growth rate is already starting to soften from what we've seen through March.
And this corroborates a trend that's been talked about in recent weeks, which is that we saw this explosive Growth in the housing market through the March quarter, that has started to ease a little through April And we're starting to see that trend continue into May. Now interestingly, you can see from this line graph that The downturn is almost where the regional market really starts to shine because it is a more traditionally stable market Then the volatility that we see in the combined capital cities. So the combined capital cities market will have higher highs during an up Swing in terms of its peak growth rate, but it also has lower lows. And already we can see as growth rates start to soften a little through to the start of May that the combined regional market is once again holding more firm than across the capital cities. Moving on to Slide 6, we can see sales volume estimates.
We estimate the most recent months of sales based on Some internal modeling due to the fact that the most recent transactions that are happening in the market have a bit of a lag in terms of their collection. So these more recent figures will revise over time. But we estimate that sort of really corroborating I think Ingenia's Experience that the Q1 of 2021 was very strong in terms of sales volumes. April quite strong as well, did ease a little, which we would expect Seasonally, overall, there were about 511,000 property transactions across Australia in the year to April. And that's just extraordinary given that most of June Australia was in lockdown And social distancing restrictions really suppressed a lot of transaction activity.
As restrictions have eased, I think we've definitely seen a kind of revenge consumption And take place in housing stock, as well as what we've seen in other sectors of the economy as that started to open up as well. Now what's so interesting about this uplift in sales volumes is that a lot of it came from the regional parts of New South Wales In Queensland, these 2 sort of rest of state markets saw an additional 40,000 sales over the year to April. The highest volume of sales was across the Gold Coast market, so about 18,000 sales took place, followed by the Sunshine Coast at 12,000. I'm now moving on to Slide 7, which is looking at our listings volume. So we've got Two graphs showing the new listings that are being added to the market over time.
And on the right hand side, we've got a line graph of total listings being added. So the new listings is what some the start of listing campaigns that have been counted in the past 28 days, so that the fresh stock being added to market. And I think what you can see in historic years, particularly that yellow line over 2020, is that People were very hesitant to actually list their property through COVID, particularly with more restrictive periods. And that's one of the pieces of the public explains why dwelling values have accelerated so quickly. Is that at Time of record low cash rate targets, low mortgage rates and increased buyer demand, it just hasn't been the same Supply coming to market in terms of that listing phase.
Now through the start of 2021, we are actually seeing new listing steps to track closer to what we've seen previous years. And over April, the volume of new listings added to the market is finally starting to tick up a little bit. On the right hand side, a similar graph, but for Total listings, so everything that's available on the market, total listings volumes are still very, very low, sitting about 25% below A 5 year average that we would usually see at this time of year. And that we think is a function of just how strong sales volumes have been. There's essentially more than one sale occurring across Australia for every new property that's being advertised for sale.
And that's why we've got that kind of deficit in the total listing base. Moving on to the next chart, In the interest of time, I won't spend too long on this. It is the monthly value of secured finance for the purchase of property. This is data from the ABS and we like it and we utilize it because it breaks up the owner occupier and investor trends. So in that first line graph on the left hand side, the monthly value of owner occupied versus investor housing finance, You can see that 2020 was an extraordinary year for housing finance and purchases.
Most of it was driven by owner occupiers. Investors did come back a little bit from the start of May in 2020, but ultimately the most Recent upswing has definitely been owner occupier driven. The majority of the market has actually been the changeover buyer, although first time buyers did see increased participation. In the month of February, however, we did see for the first time since May last year, A decline in 1st home buyer secured finance and that makes sense. House prices are rising, they're becoming more unaffordable and first home price sensitive.
So we expect them to sort of fall out of the market a bit through 2021. The next slide, Slide 9, which shows the portion of investor participation and 1st term buyer participation in the housing market, You can really see that investors have just come back off very low levels. The portion of housing finance going To investors is sitting at about 24%. This is excluding refinancing. So it's well below the decade average, but it is just starting to come back a little through February.
And similarly, 1st home buyer as a portion of the owner occupier group is sitting very high relative to the decade average, But we do expect that to fall away this year off the back of affordability constraints. And finally, just flicking over to the last Of our presentation, lifestyle markets across Australia, both in capital cities and regional markets, Have seen a very strong uplift through 2020 and that trend appears to be continuing through to 2021. In the past year, combined regional dwelling values across Australia, so the combined regionals market, Values were up 13% and twice the growth rate that we saw in the combined capital cities slide over the past 12 months, which was an uplift of 6.5%. If we move forward to Slide 11, where we've got some migration data, the graph on the left hand side shows the Net internal migration levels to regional Australia. So in other words, this is a time series of the volume of people that have gone to the regions minus the people that have left the regions.
And this provisional data from the ABS has been really helpful. It does indeed that there has been an uplift in migration to the regions. In fact, through the September 2020 quarter, we saw over 11,000 Additional people moving to the regions than those left. This is a record high for this series and it supports the idea that people really did Try and leave some of the capital cities in order to sort of escape to the country through COVID. We did see a lot of Tree change and sea change through this period, much of that was driven by movements to regional New South Wales and regional Victoria, where interstate migration to these regionals are well above what they were in the September 2019 quarter.
Now the thing that's interesting about that time series data is that the previous high you can see around early 2018 was happening just as capital city markets across Sydney and Melbourne had reached Their previous peak. In other words, this is a persistent trend, people moving to lifestyle markets, people moving to regional Australia. It is advanced when there are affordability constraints in the capital cities. We know that this trend has been accelerated through COVID For obvious reasons, escaping density, relative affordability. But now that values are rising again in the capital cities, I think it's fair to say that there will be this kind of ongoing demand for regional Australia.
The next slide, Slide 12, Won't go through in too much detail, but it just shows some of the more popular regions for internal migration Through the year to June 2020 with the Gold Coast and the Sunshine Coast topping the list, that is Not unusual. That pretty much happens in the migration data every year. What was different in the year to June 2020 was Just that the numbers were amplified essentially and even more movement to the Gold Coast and the Sunshine Coast was observed over that year. Moving on to Slide 13, we have a map of SA4 submarkets broken out on the left hand side. So you get a sense visually of how different markets have performed.
The most important thing I think to note about the current upswing is that it is very broad Virtually all markets of Australia in terms of dwelling values are seeing an increase in value. It's just that some seem to be growing more strongly than others. And in the case of New South Wales, you can see fairly consistently there is strength in a lot of those coastal markets. I've also highlighted some key regions for Ingenia as well, where we can see on the annual basis double digit growth across those submarkets of New South Wales. Moving on to Slide 14, similarly for subregions of Victoria, each of these markets are in upswing With some of those regional markets outperforming the metropolitan regions, Ballarat and Geelong had among the highest of the regional market performance in the past 3 months.
And then finally, looking at the submarkets of Queensland, we can see again that broad based uplift with the Southeast Queensland region, in particular, Showing very strong growth rates in the past 3 months. So I will wrap it up there, so we can move on to our panel And everyone is welcome to have a copy of this slide deck as well where we've got some contact details with CoreLogic on the back if you have any questions we don't get to today.
Hi, Eliza. That was great. I'm now going to hand over to Craig Maven, who's one of our major builders and Craig, that stock photo there, I don't think I've ever seen you in a suit and tie. So I'll hand over to you, Craig.
It's a very it's a one off, very rare photo, Simon. Thanks very much for that. Eliza, that's very informative. And Kate, thank you very much. Basically, in the construction side since 2021, we've had a number of different Objects thrown at us, I suppose.
We've had some natural disasters. There were the fires in early 2020, which were, as we know, catastrophic. And basically, We had some storms, typical storms, a lot of hail damage in the end of 2020 in Queensland, which has caused a number of issues in the construction realms. The COVID effects on the construction industry have been quite varied. Australia being very isolated from and managed the COVID situation quite well here.
We haven't had a lot of Downturn in our labor force or our manufacturing internally. What has happened is there's been the external factors, the importing of raw materials has been affected Fairly dramatically. The probably the biggest Issue we've had and current issue is timber and steel. Timber has been increasing quite rapidly every month Due to the combined fact that there was the place burn a lot of stock in Australia, a lot of people importing Sort of backed off and stopped importing. Then the stimulus was put in place, which actually turned around the demand and we were Caught fairly short on a lot of items.
Fails, white goods, plumbing supplies and lighting, those incidentals have all had their minutes, but generally we've got Through the phases. The steel issue, there's a current steel issue in Australia. There's a current recycling of steel issue over Seas in sort of India and Brazil, which are the 2 biggest Recyclers. So we have had limited stock coming into Australia due to their the COVID effects in their countries. But basically, it should have been with the materials.
The labor side of it has not Being is dramatically affected. The demand for the labor has been, but the pricing has been fairly consistent from that respect. We have had increases in materials, as I said, but the labor has been had less of an impact in the increase. So we anticipate that This year, as we take it down from stimulus packages that our government's put in place here, the demand will Decrease somewhat. We also have, for example, in Queensland, there's 30,000 homes that were affected in a massive event In Southeast Queensland, all those homes have to have reroofs.
So that's put a very strong demand in the roofing sector. So overall, we'll get through this 2021 and it should take it down for the demand and Yes, the imports should start to ease up of products and so on. So other than that, I can hand it back For Q and A.
Craig, thanks very much for those comments. Got a few quite a few questions have come through, but I might start this one off first for Eliza, if you're still there. Do you think the attractiveness of regional markets will continue or will a return to normal result in desire to reconnect back with the cities?
So thank you. Great question. I think it's important to note, I did point out on one of those slides as well, the trend of more people moving to the regions than leaving has Being persistent for at least the past decade. So I don't think that trend of migration to desirable regional areas Is going away anytime soon. If anything, I think the normalization of remote work through COVID-nineteen has Made that more of a reality for a lot of people.
Potentially, it has brought forward some of the demand through the COVID period. But again, I think demand for regional property, which tends to be more affordable, Could potentially be compounded amid the current price upswing in capital cities as well. This is a long term trend and I think it is set to hang around for quite some time.
And Kate, I might also direct that question to yourself about whether you think the We've seen some longer term structural changes to the attractiveness of regional markets.
Yes. I think COVID, Simon, for our downsizers, COVID certainly really shifted their mindset. I think it's broken a lot of their habits. It's broken the golf club they went to every week. It's broken a lot of the Connections that keep them connected and anchored in their existing communities.
So I think COVID has given them an opportunity. They've been at home, Looking around at their home, it's absolutely falling down. I've got a lot of maintenance. And I think it's been an opportunity for them to recurate what the next chapter looks like. They've significantly escalated their skills and their digital skills.
They're now connecting with grandchildren and family By Zoom and other means. So I think they've realized and we've got buyers coming in every single day saying, hey, we didn't think we could move away from home, but COVID, We haven't seen anyone for 6 months. So, it's all about us. So I think there has been a structural shift in the way our buyers are seeing The opportunity to curate the next chapter.
That's great. And then a follow-up question for you, Kate. Is Ingenia seeing any opportunity to increase home prices? And what is the relationship between your pricing and that in the surrounding residential market?
Yes, Simon, thank you. We very closely map and monitor spend ratio. Spend ratio being the percentage of money spent on their new home is a proportion of the home that they're selling And the proportion of the median house price in the immediate catchment. We very closely measure the bucket of buyers That are purchasing on any given project because not all of those buyers come from the immediate area. And one example, if we take Hervey Bay, when we were targeting the local catchment, It had a spend ratio of upward of 90%.
They were spending almost 90% and capping some other Super and some other funds to fund their new home. As we've broadened our market appeal and we're seeing a doubling of capital city buyers buying at Hervey Bay, That's fallen to 60%, 62% in which is giving us great headroom opportunity. And We've got quite a strategic release strategy. Our 1st Choice Company IP release strategy enables us to have a bucket of buyers ahead of every release. We analyze the spend ratios of each one of those buyers before we set the pricing of the release at that stage.
So It's worked particularly well. It means that we're able to when we've got quarter on quarter growth at the moment in some of our catchments of almost double digits, We're really able to capture that price uplift with HLA and also rent uplift opportunities.
That's great. Another question for Eliza and Kate. Do you see there'll be any permanent structural change in real estate demand and a preference for houses over units and for space and moving into regional markets? Or Do we think there'll be a period of reversion back to pre COVID structural conditions over time?
I think that the current data we're seeing is showing a distinct preference for houses, Whether you're looking at approvals in commencement data, which has been very reactive to the introduction of a scheme like HomeBuilder, which really lent itself to the house segment, Whether you're looking at value increases, over the year to date, house values have risen over 8 Percent compared to a 3% lift in units nationally. All sales volumes, the house Sales volumes nationally are currently trending about 14% below sorry, above the decade average, Whereas unit sales are tracking a little below what their decade average would typically be. So all signs are pointing to a preference for house stock. However, I think affordability constraints may see demand pivoted back to the unit segment. In terms of The city segment and inner city apartments in particular, that is largely consumed by Rental demand that comes from overseas migration.
So until we see more pre COVID levels of international travel, I don't anticipate as much Recovery in inner city apartment markets. In fact, they probably pose more of a risk for Some of the financial institutions at the moment, as it is, I imagine that Peripheral metropolitan markets and regional markets, that demand will remain fairly robust.
I think to add to that, Martha, firstly, just how resilient our market's been. I think for years people have said our market is underpinned by Net overseas migration, and I think that's we've seen just how resilient it is. I think it's also understanding the buyer psyche post COVID. Buyers are in a unit. They're in a common lift.
There was a real fear around that Post contagion around the peak of COVID. What we're also seeing is as affordability issues in capital cities escalate, parents, Our target market are wanting to cash out downsize to help kids out. So that affordability crisis has got a 2 edged sword to our market and it's really driving Help the kids and cash out now. There's also the fear of how long will this market run. And we've got Sort of almost a bit of a panic amongst some of our buyers, not wanting to miss out the FOMO, not wanting to miss out on the peak of the market And definitely wanting to.
So we're getting a lot of parents and children moving to regional areas together.
The next question is for Eliza and it's from Scott Noble, our CFO. Scott was wondering, Eliza, are there any particular regional housing markets that you think are attractive for the purchase of an investment property?
I think the migration statistics Don't lie. And year after year, the top internal migration destinations for Australia have been the Gold Coast and the Sunshine Coast. So it seems that those lifestyle markets have, just ongoing demand and They've long been top performers in that market in terms of capital growth as well. And certainly, when The affordability constraints would be emerging locally, but for cashed up Sydney, Melbourne buyers, I think it's quite appealing, particularly after what we've been through in 2020. For me personally, I'm also I feel similarly about Even though it's not as much of a focus, and people may be wary of Tasmania just because it's had such Strong growth recently and that run might soon come to an end.
I think long, long term, the Supply constraints are quite obvious across Tasmania. It is a very popular Date and international tourism destination. We've seen a real tightening of the rental market, for example, through the introduction of Airbnb into that market. And the other thing is that looking long term at some of the risks that have been highlighted, for example, by the Australian Prudential Regulation Authority, Climate is an ongoing risk. And I think Tasmania has been cited by migrants to the state as a climate refuge as parts of the mainland have become too hot or weather conditions have become too extreme.
That's great. Scott's studiously taking some notes there. I'm just going to hand over to Donna, who heads up Investor Relations and Donna's got some questions, some New questions that have come in from some of our investors and brokers.
The first question is from Shane Solly. Shane asks, what features are the key elements that attract a downsizer to a village? And further, given the strong demand for regional and lifestyle locations, How does the Ingenia team convert this to economic outcomes? Are you accelerating growth and or increasing prices?
Shane, I think that's about 5 questions. I'll hand that over to Kate.
Shane, thanks for your question. It's a constant dilemma of volume versus price growth, And we monitor both very, very closely. In terms of what's driving consumer demand, The lifestyle downsize decision has been exacerbated even further by COVID. A market who I think the number one thing they want to do with their money once they cash out is travel, often an international Trip, fortunately, we're going to be directing a lot of their travel budget internally within our Ingenia holidays, and you're going to start to see a lot More cross fertilization between the Holidays and the Lifestyle business. But what they're fundamentally looking for It's that sense of belonging.
Our clubhouses and the elements that are in our clubhouses tick all the boxes that the customer is looking for. But at the end of the day, it's what their life is like and how is that a more connected, happier community than the social isolation experience they've been having. And fundamentally, social connection is the key aspiration that is opening wallets for us at the moment. Giving them a really tangible experience of that in the prepurchase period is fundamental for price growth and volume escalation.
The next question is from Michael Peete. What inflation are you seeing in building materials and labor? How much is timber and steel up? And what has this done to house build costs and civils? Have you moved house prices sufficiently to offset this?
Craig, if you're there, if you want to just Comment on what you're seeing in terms of inflation in materials and labor and how that translates through to what you're telling your clients? And then I'll also answer that from what Ingenia is saying.
Okay. The general increase It's probably around that 5% to under sort of 8% across the board of the houses. It's varied across steel, timber, aluminum, most material most supplies and materials, doors, concrete, Everything's had some sort of a price rise recently, more specifically this year. This year's been Quite a firm increase across the board. Letter wise, Yes.
As I said before, it's probably nothing as sharp arise as Materials, but generally across the board, you're looking at about that 5% to 8% depending on where we are. Can you answer that
question? Certainly from Ingenia's perspective, we are currently experiencing low to mid single digit cost inflation, particularly in some of our materials. We only used timber in Queensland for erecting the frames and we're looking at moving across to steel. But the price growth, The sales revenue that we're able to achieve through selling into a tightly constrained rising market more than offsets the cost inflation. So I do think on a same store basis, we are looking at some further margin expansion over the next 6 to 12 months.
Next question, Dawn.
There's a question now on the acquisitions From Michael Peete, what is the EPS benefit on an annualized pro form a basis from these acquisitions? And what were the cap rates like on the holiday acquisitions?
Well, in terms of the cap rates, Michael, on the acquisition, so the 5 holiday parks that we announced today. The ingoing cap rate was between 10% 12.5%. They are leasehold parks, so we don't own the freehold land, but they're typically underpinned by 20 year leases. And so they are strongly and immediately accretive to earnings. In terms of Bagara, that is DA approved.
We will start construction certainly in this current calendar year and I would expect that we'd be looking at settlements in late 2021 or sorry, late 2022 or certainly in the FY 'twenty three financial year. So that will take a little bit longer to play through into earnings. But from an internal rate of return perspective, the purchase price of Bagara works out to be around $30,000 $35,000 a home site. So we do expect it to be strongly accretive to earnings once we commence construction.
There's another question from Michael regarding the Greenfield site. Can you talk to the vendors' interest in the development and also whether or not the JV looked at this acquisition?
So we have a longer term ongoing relationship with the vendor who has been, I guess, working with Ingenia on and off over the last 3 years. They have a very small interest in the development profitability of the project. And then once it's fully sold down, it will be 100% an Ingenia asset. This community was shown to some communities back in February or late February or early March last year and just as COVID was beginning to become prevalent. And so at that point in time, given global uncertainty, Sun declined to proceed.
Ingenia did actually hit the pause button as we were navigating our way through COVID, but then we recommenced negotiations enclosed on the transaction once we could see a clear pathway out from COVID.
The next question is from James Drews. How many contracts and deposits do you have left to settle this financial year? And what are the risks around the leasehold in the acquisitions you've made?
Sure. So as of the end of March, We're currently sitting on 324 deposits or contracts on hand. Our guidance for the current financial year hasn't changed in terms of settlements. So we are still looking at between 360 and 380 settlements for this financial year. On the downside and what could push it towards 360 or potentially even below that would be we have had some severe weather delays, especially on the New South Wales Central Coast, where we presently have 2 expansion communities under construction at Sunny Lake Shores and Bebbington.
We are also, as Craig was alluding to, we have experienced some very minor supply chain challenges, which may mean that in projects like Hervey Bay, there's possibly a dozen homes that may not be the buyers are ready to go. They've all their homes are staying in our holiday parks. They're ready to settle in May or June, but we can't guarantee their home is going to be ready in early June or early July. And then on the upside, which would take home settlements to 380 or potentially slightly above that. Momentum is clearly building.
We're strongly leveraged, as Eliza was talking about, to the regional tree change and sea change residential markets. In some of our communities, there's almost a FOMO, a sense of fear of missing out and demand is incredibly strong. So our forward order books have never been stronger than where they sit at the moment. But At this point in time, it's difficult to determine whether some of these settlements are going to fall into the last quarter of this financial year or the Q1 of next financial year. In terms of the risks implicit in the leasehold nature of these parks, the majority of the 5 parks on a 20 year lease.
So 3 of the parks are with private leasehold, the private land owners and we've just entered into a new 20 year lease. So I would think that we've got very strong visibility on the tenure of those sites for the next 20 years. And Ingenia has also negotiated a first right of refusal such that if the underlying land owners look to sell the land and we have the ability to buy the freehold for the site. The other 2 sites, parks, The underlying leases are with local Crown Lands and one of those is, I think, 17.5 years and the other is close to 20 years. So Again, we have great long term visibility.
The in going yields are in that low double digits. We do think there's some significant opportunity to put in some new CATM stock and get those sort of returned into the 14%, 15% within a couple of years. So these are really compelling coastal holiday parks, high barriers to entry, and we're very excited with the immediate accretion that these 5 holiday parks offer.
Two questions from Gavin Peacock. Is there any update on the strategy evolution for debt funding for residents to lifestyle communities? And secondly, do you have any thoughts on the suitability of the Halcyon portfolio to Ingenia?
Yes, so certainly, in terms of I'll deal with the second question first in terms of the housing portfolio, Ingenia as a policy doesn't comment on market speculation. So I don't have policy doesn't comment on market speculation, so I don't have anything to add there. In terms of resident finance, We are very close to finalizing an Australian first resident finance product that would see Ingenia potentially owning a small piece of that business. So I would think Gavin in the coming Weeks, if not months, then we'll be in a position to update the market on the ability to provide very low LVR loans to younger incoming residents.
And the final question I have is on tourism. As we move out of the peak season, what sort of occupancy and booking trends are you seeing? And in Can you give a bit more color around Cairns as it's moving into its peak?
Yes, I might hand that question over to Matt. And I know Matt was certainly up in Cairns only a couple of weeks ago. Thanks, Simon.
What we're seeing within the market at the moment is that They're taking advantage of shorter breaks, so that's really supporting that shoulder season, whereas predominantly Parks have been had a longer lead time, so we're seeing that shorten up a little bit. And what we're also seeing is that business market that They finish work on a Thursday afternoon and start a long weekend because in our parks, in a cabin, they can actually set up their Office away from home, it allows the family to disconnect to reconnect. And in Cairns in particular, we're seeing people flying in to Cairns as a destination and holidaying the park for multiple days. The winter period in Cairns is very positive when we look at booking trends compared to 2019 and it looks to be a very promising season.
That's great. If there's no further questions, Donna, with that, I'll end today. I'd really like to thank Eliza and Craig, our external speakers for some really insightful comments and analysis on the residential property market and also our building supply chain and also to Matt and Kate. Ingenia at this stage is not making any change to our previously articulated guidance. There is both some short term pressure on the downside and there's also some short term pressure on the upside and we're just trying to work out where that lies at the moment.
But one thing is abundantly clear and as pointed out by Eliza is that A number of Australians who are looking to move out of the capital cities, both at a working age and in retirement and move to sea change and tree change locations where the vast majority of Ingenia's development pipeline is located is extremely strong for Ingenia in the medium to long term. So we think the outlook for our business is continuing to improve. So thank you very much for your attendance today.