Sherpa's Market Statement September 2026

Our Position

Sherpa Group’s position in the current marketplace remains the same as it has always been: make considered decisions, be guided by solid research and the fundamentals of the real estate market and the broader economy.

Markets move in cycles, and uncertainty is inevitable. Our approach is not to react to short-term sentiment, but to look carefully at the underlying fundamentals and make decisions that we believe are right for our customers, our communities and our business over the long term.

Having carefully considered the current market since the Federal Budget, we have decided to continue delivering our existing development pipeline and commence our planned projects. This includes approximately 300 apartments currently under construction across Flourish Amargo, Flourish Oasis, Flourish Symphony and Flourish Soleira Stage One, with Flourish Vivere to follow in early 2027, our second Brisbane site on Cordelia Street in mid-2027, and Stage Two of Flourish Soleira in Palm Beach. We are comfortable continuing to invest and deliver because we believe the underlying fundamentals remain sound.

Value Matters

A fundamental part of our decision is our commitment to our customers.

We are committed to selling our stock at approximately 5% below market value, ensuring our buyers receive tremendous value at settlement.

We believe this is particularly important in a market where construction costs continue to rise. Many industry experts are forecasting construction costs to increase by approximately 8% per annum. In practical terms, this creates significant upward pressure on the cost of delivering new property. Our view is that this provides an important underlying support to property values over the medium term.

We are not suggesting that property prices cannot fall. They can, and markets will always fluctuate. But we believe that when you combine construction-cost inflation with population growth, increasing life expectancy, limited housing supply and the enduring appeal of exceptional locations, the fundamentals remain supportive of continuing to deliver first-grade real estate.

We Believe in the Gold Coast

The Gold Coast is one of Australia's great lifestyle and tourism destinations.

It is a world-class place to live, visit and invest, attracting people from across Australia and around the world.

Our buildings are designed around this unique environment and, where appropriate, incorporate the flexibility to accommodate the short-stay holiday component that is such an important part of the Gold Coast market.

We believe exceptional locations matter. And we believe that combining these locations with  exceptional buildings, amenities and design creates lasting value.

People Want to Live Better Together

We also believe there is a growing trend towards community and connection.

People increasingly want more from where they live.

They want places where they can meet people, connect with their neighbours, enjoy exceptional shared amenities and feel apart of something.

We believe this is particularly powerful when it is combined with a world-class location and world-class amenities.

For Sherpa, community isn't an afterthought - it is fundamental to how we think about residential development.

What Will Our Customers Always Want?

Jeff Bezos has spoken about the things Amazon customers will always want: lower prices, faster delivery and greater selection.

At Sherpa, we believe our customers will always want four things:

• Extraordinary value.
• Lower body corporate fees.
• A higher sense of community.
• Innovative and evolving design.

These principles guide the way we approach our projects.

We want to create buildings that are not only exceptional on the day they open, but that continue to evolve and deliver value for the people who live in them.

Creating Opportunity

Our commitment to delivering value extends beyond our purchasers. We will continue to work extraordinarily hard to make up to 15% of our apartments available to first-time buyers at cost - with no profit to Sherpa.

We believe home ownership should be an opportunity that more people can access, and we are committed to doing what we can to help first-time buyers take that important first step.

Giving Back

We also believe that a successful business has a responsibility to contribute to the communities in which it operates.

Through the Sherpa Foundation, we commit 10% of our profits to helping our immediate communities.

In the 2025–2026 financial year, this commitment resulted in approximately $2 million being contributed to our communities.

We intend to continue that commitment.

Looking Forward

We don't know exactly what the property market will do over the next twelve months. Nor do we believe anyone can predict it with certainty.

What we can do is control how we respond.

We can remain calm, resting in the market fundamentals.

We can research carefully.

We can deliver exceptional real estate.

We can provide extraordinary value.

We can create stronger communities.

And we can continue to give back.

That is our position today, and it is the philosophy that will continue to guide Sherpa into the future.

Because ultimately, we simply believe people live better together.