Median house prices on the way up in all capital cities

Transcription

1 A QUARTERLY REVIEW OF MAJOR PROPERTY MARKETS IN AUSTRALIA JUNE QUARTER 29 Median house prices on the way up in all capital cities All Australian capital city property markets have recorded increases in median house prices over the June quarter. Sydney, Darwin and Canberra have reported the highest median house prices while the lowest were recorded in Hobart, Adelaide and Brisbane. This quarter has seen the Australian weighted average median house price increase by 5.1% to $458,448; this is compared with a decreased of.7% over the year. Over the June quarter, the Australian weighted average median price for other dwellings increased by 5.% to $373,676. This was an increase of 4.1% when compared to the June quarter 28. The capital cities that have shown the greatest increase in median house prices were Darwin, Melbourne and Hobart. Adelaide, Canberra and Sydney reported the lowest increase in median house prices. Darwin property prices continued to climb for another quarter with median house prices increasing by a dramatic 19.% to $537,93. Median house prices for other dwellings, however, decreased by.6%. The median price for a three bedroom house in Darwin increased 26.9% over the year, whilst the median price for other dwellings recorded an increase of 16.2% over the year. Median rents for both three bedroom homes and other dwellings have shown varied results this quarter. Median rents for three bedroom homes increased in Hobart and Darwin; remained unchanged in Sydney, Brisbane and Adelaide, and decreased in Melbourne, Perth and Canberra. Median rents for other dwellings remained unchanged in Sydney, Melbourne and Perth, however, increased in Adelaide, Hobart, Darwin and Canberra. Brisbane was the only capital city where a decrease was recorded. Darwin remains the most expensive capital city in which to rent a three bedroom home at $555 per week, while Sydney remains at the top of the rent list for other dwellings, with a median rent of $4 per week. Fast Facts June quarter 29 Quarterly Australian weighted average median house price $458,4 Median house prices up: Sydney 3.% to $544, Melbourne 9.% to $441,875 Brisbane 5.% to $419, Adelaide 1.1% to $359, Perth 4.7% to $45, Canberra 2.2% to $458, Hobart 6.7% to $336, Darwin 19.% to $537,93 Median other dwelling prices up: Sydney 2.6% to $382, Melbourne 8.3% to $39, Brisbane 3.2% to $356, Adelaide 5.3% to $292, Perth 8.9% to $38, Canberra 6.% to $394,75 Billions Chart 1: Housing Finance, Trend data $ Hobart 9.1% to $27, Median other dwelling prices down: Darwin.6% to $382,287 Vacancy rates Sydney 1.3% Melbourne 1.4% Brisbane 3.% Adelaide 1.4% 1 Perth 3.5% 5 Mar 3 Jun3 Sep 3 Dec 3 Mar 4 Jun4 Sep 4 Dec 4 Mar 5 Jun5 Sep 5 Dec 5 Mar 6 Jun6 Sep 6 Dec 6 Mar 7 Jun7 Sep 7 Dec 7 Mar 8 Jun8 Sep 8 Dec 8 Mar 9 Jun 9 Hobart 2.1% Darwin.8% Canberra 1.5% Owner Occupier (Excl. refinancing) Investor Finance

2 The Market...1 SALES MARKET AT A GLANCE...4 House Sales...4 Other Dwellings Sales...6 RENTS & VACANCY RATES AT A GLANCE...8 Rents...8 Vacancy Rates...9 STATE PROPERTY MARKETS...1 Australian Capital Territory... 1 New South Wales...12 Northern Territory...14 Queensland...16 South Australia...18 Tasmania...2 Victoria...22 Western Australia...24 RESIDENTIAL INVESTMENT PROPERTY MARKET...26 EXPLANATORY NOTES...27 ACKNOWLEDGMENTS...28 Welcome to the new look REIA Mortgage Choice Real Estate Market Facts publication. The figures recorded this quarter show evidence of an improving property market, with median prices increasing in all capital cities. Property prices have stopped falling and appear to be on the way up in capital city markets. Factors contributing to this change are increased investor activity and the revival of second and third home buyers in the market. These buyers are selling established homes in many cases to first home buyers who prefer to buy established homes in 7 out 1 cases. The median house price for Australia in the June quarter 29 has jumped to $458,4 up from $436,3 in the March quarter. A quarterly increase of this magnitude has not been recorded since the December quarter 27. Sydney and Darwin have reported the highest median house prices at $544, and $537,93 respectively, while the lowest median house prices were recorded in Hobart at $336, and Adelaide at $359,. We re traversing an exciting, evolving property and mortgage landscape and encountering a number of significant changes, especially now the consensus seems to be that the GFC is leaving the building (albeit with a dawdle). The property market is picking up in pretty much all states and territories and mortgage market growth has been on the up for several months now. ABS housing finance data for the June 29 quarter was just as encouraging as the March quarter, with June experiencing the seventh consecutive month of growth in overall dwelling commitments. Q2 also showed a rise in the number of loans for first homebuyers to 54,924, from 46,1 during Q1. However, first homebuyer numbers came off a little in June (from historically high levels, of course), which serves as a great reminder that the first homebuyer boom is unsustainable. If you haven t already, get your business strategies, resources and marketing plans prepared for the next wave of market participants refinancers, upgraders and investors. Happily, Mortgage Choice s 29 Property Investors Survey discovered over three quarters of Darwin has experienced the largest change recorded in median house prices over the last five years, increasing 19.% over the quarter. The second largest change in the past five years was experienced in 26 when Darwin median prices increased 1.%. The June quarter has shown that some Australians in rental accommodation are making the change to home ownership taking advantage of Government incentives and low interest rates. Rents are showing similar upward movements to median house prices in some capital cities, however, there are several cities showing decreases in rent due to lessening demand. I would like to once again thank Mortgage Choice for their continued support and involvement in producing this publication. David Airey President, REIA Australians (76%) planning to buy an investment property in the next two years are waiting until the First Home Owner Grant boost expires on 31 December. Our franchisees tell us that property investors are all set and ready to go once the boost has had its day and competition from first homebuyers loses the intensity we ve seen since Spring last year. A large number are calling our consultants to see how much money they can borrow from the various lenders on our panel and getting their finances in order, in preparation for hitting the ground running to purchase in 21 and 211. We are also happy, along with everyone else, to see employment figures remaining relatively steady. This is sure to improve Australians sentiment around their job security, which will have a positive effect on the property market as potential buyers become more certain that they are able to take on a purchase commitment. back into the system. Looking forward to it! Kristy Sheppard Senior Corporate Affairs Manager Mortgage Choice Limited 2 Real Estate Institute of Australia

3 Real Estate Market Facts Australia s Demand for Fixed Rate Loans Levels Out Three states see a drop in popularity NSW, VIC and WA The popularity of fixed rate loans in Australia has stagnated as lenders continue to raise the interest rates on this loan type. According to July data from Mortgage Choice, Australia s largest independently-owned mortgage broker, demand for fixed stood at only 8% of all loan approvals for the second month in a row. Demand for variable loans also remained steady for the second consecutive month, at a historical high of 87%, only one percentage point below the 12 month average. Basic variable loans continued to lead in terms of popularity, with 46% of loan approvals comparing to 41% for standard variable loans (where eligible customers with a loan of over $15, can receive discounts on the interest rate plus other professional package features). Mortgage Choice senior corporate affairs manager, Kristy Sheppard said, It is completely understandable that Australians are wary of fixing their home loan term, given lenders continue to raise fixed rates to a point where they are much higher than variable rates. I m not surprised to see Australian demand for fixed remain level at 8% in July, for the second month in a row. However, this is slightly above the 12 month average of 4%. Fixed rates have been increasing for a good three months now, with our 23-lender panel average rate for three-year fixed loans the most popular term having reached 6.71%, which compares to an average of 5.49% for basic variable loans. For an average mortgage, the difference in repayments is around $2 per month. It goes a long way to explaining why variable loan demand stands historically high at 86%, notwithstanding the talk of cash rate rises within the next six to 12 months. However, with that talk picking up in the last couple of weeks we may see fixed demand pick up once again. Delving further into July loan approval data for Australia, standard variable demand rose one percentage point to 41%, which compares to a 12 month average of 45%. Basic variable demand dropped one percentage point to 46%, above its 12 month average of 43%, and continues to lead the pack in terms of popularity. Uptake of line of credit loans (generally popular with property investors) decreased slightly to 5% of all approvals, comparing to a 12 month average of 7%. National This Month Last Month 6 Month Average 12 Month Average Standard Variable 41.13% 39.18% 41.64% 44.65% Fixed Rate 7.67% 7.61% 5.21% 4.25% Basic Variable 45.64% 46.53% 47.58% 42.99% Line of Credit 5.34% 6.2% 5.35% 7.37% No Deposit.%.%.25%.44% Non Conforming.%.%.%.2% Bridging.23%.3%.23%.23% Reverse Mortgage.%.%.%.2% 5 % Standard Variable Fixed Rate Basic Variable Line of Credit Jan 7 Feb 7 Mar 7 Apr 7 May 7 Jun 7 Jul 7 Aug 7 Sep 7 Oct 7 Nov 7 Dec 7 Jan 8 Feb 8 Mar 8 Apr 8 May 8 Jun 8 Jul 8 Aug 8 Sep 8 Oct 8 Dec 8 May 9 Note: Mortgage Choice s annual loan approvals are approximately 4, nationally p.a. and therefore provide a clear insight into the product preferences of housing loan borrowers generally. 3

4 Sales Markets at a Glance House Sales The key features of the market for houses in the June quarter 29 were as follows: The Australian weighted average median house price of $458,448 was 5.1% higher compared to the March quarter 29, and.7% lower than in the June quarter 28. Median house prices increased in all of the eight capital cities over the quarter, with the largest increase evident in Darwin where the median house price increased 19.%. The lowest increase was evident in Adelaide where median house prices went up by 1.1%. Median houses prices saw growth in Darwin, Hobart and Perth. All other capital cities recorded annual decreases, with Adelaide decreasing 3.%; the highest decrease among all capital cities. Moving annual (trend) median house prices decreased in all capital cities except in Darwin, Hobart and Perth. Chart 2: Australian weighted average median house price (all capital cities) $( ) Sep 7 Jun 7 Mar 7 Dec 6 Sep 6 Jun 6 Mar 6 Dec 5 Sep 5 Jun 5 Mar 5 Dec 4 Sep 4 Jun 4 Dec 3 Sep 3 Jun 3 Quarter Australian Median House Price Mar 8 Dec 7 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Table 1: Summary of Median House Sales Prices ($ ), June Quarter 29 Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap Cit Jun quarter Mar quarter Jun quarter Quarter Change % Annual Change % Brisbane, Hobart, Darwin and Capital Cities weighted average median prices are not revised. For Sydney, Melbourne, Adelaide Canberra, and Perth where current quarter estimates are based on a high (75% -9%) sample of final sales, current quarter estimates are compared with the revised estimates in previous quarters. Canberra, Sydney, Adelaide and Perth medians are revised once and Melbourne medians are revised twice. 1. Sydney median price series adjusted for compositional change 2. Perth data excludes properties on lots larger than 1ha, which represent approximately 1.5% of sales, all above the Perth overall median. Table 2: Moving Annual Median House Sales Prices ($ ), June Quarter 29 Quarter Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 26 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Values may differ from previous publications, as the sales data is updated. 1. Sydney moving annual median price series adjusted for compositional change. 4 Real Estate Institute of Australia

5 Real Estate Market Facts Chart 3: Moving Annual Median House Prices, Capital Cities Median Prices ($') Mar 23 SYD 1 Dec Mar 24 MEL Dec Mar Dec Mar Dec Mar Quarters BRIS2 ADEL PERTH Dec Mar Dec Mar Jun CANB HOB DAR 1. Sydney moving annual median price series adjusted for compositional change. 2. Brisbane moving annual median price is based on preliminary data from September 26 onwards, causing the data to be revised slightly downwards from previous publications. 5

6 Sales Markets at a Glance Other Dwellings Sales The key features of the market for other dwellings in the June quarter 29 were as follows: The weighted average median price for other dwellings was $373,676 for the June quarter, which was 5.% higher than the March quarter 29, and 4.1% higher than the corresponding quarter last year. Median prices for other dwellings increased in all capital cities except in Darwin, where the median price declined by.6%. Median prices for other dwellings in Hobart increased by 9.1%; the largest increase over the quarter. All capital cities recorded annual growth in median prices for other dwellings except for Brisbane, where median prices remained unchanged. The largest increase was evident in Darwin; the annual growth being 16.2%. Moving annual (trend) median prices increased in all capital cities, except for Brisbane, where no change was recorded. Chart 4: Australian weighted average median other dwelling price (all capital cities) $( ) Jun 3 Sep 3 Dec 3 Table 3: Summary of Median Other Dwellings Sales Prices ($ ), June Quarter 29 Sydney 1 Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap City June quarter Mar quarter June quarter Quarterly % Annual % Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Quarter Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Weighted Average Median Other Dwelling Price Dec 8 Mar 9 Jun 9 Brisbane, Hobart, Darwin and capital city weighted average median prices are not revised. For Sydney, Canberra, Melbourne, Adelaide and Perth where current quarter estimates are based on a high (75% -9%) sample of final sales, current quarter estimates are compared with the revised estimates in previous quarters. Sydney, Canberra, Adelaide and Perth medians are revised once and Melbourne medians are revised twice. 1. Sydney median price series adjusted for compositional change. Table 4: Moving Annual Median Other Dwellings Sales Prices ($ ), June Quarter 29 Quarter Sydney 1 Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 26 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Values may differ from previous publications, as the sales data has been updated. 1. Sydney moving annual median price series adjusted for compositional change. 6 Real Estate Institute of Australia

7 Real Estate Market Facts Chart 5: Moving Annual Median Prices, Other Dwellings, Capital Cities Median Prices ($') Jun Mar Jun Mar Jun Mar Jun Mar Jun Mar Jun Mar Jun Quarters SYD1 MEL BRIS ADEL PERTH CANB HOB DAR 1. Sydney moving annual median price series adjusted for compositional change. 2. Brisbane moving annual median price is based on preliminary data from September 26 onwards, causing the data to be revised slightly tdownwards from previous publications. 7 DAR HOB CANB PERTH ADEL BRIS MEL SYD1

8 Rents and Vacancy Rates at a Glance Rents Over the June quarter, rents for three bedroom houses recorded varying results with increases in Darwin and Hobart, decreases in Canberra, Perth and Melbourne and no change in Sydney, Brisbane and Adelaide. Over the year, median rents for three bedroom houses increased in all capital cities, the greatest change being in Hobart at 9.7% Rents for two bedroom other dwellings experienced similar varying results, with increases evident in Adelaide, Hobart, Darwin and Canberra, a decrease recorded in Brisbane and no change in Sydney, Melbourne and Perth. Over the year, median rents for two bedroom other dwellings increased in all capital cities, the greatest change being in Hobart at 8.% Darwin maintains the highest median rent for a three bedroom house at $555 per week; this is a 4.7% increase over the quarter and 8.8% over the year. Sydney remains the most expensive capital city in which to rent a two bedroom other dwelling at $4 per week. Although seeing no change over the quarter, this figure increased 5.3% over the year. Despite a decrease of 4.8% in median house rents, Canberra remains the second most expensive capital city for three bedroom houses at $4 per week. Adelaide remains the least expensive capital city in which to rent a home for both houses and other dwellings, despite an increase of 2.1% over the quarter for two bedroom other dwellings. Table 5: Summary of Median Weekly Rents, June Quarter 29 Capital City 3 Bedroom Houses 2 Bedroom Other Dwellings Quarterly Quarterly % Annual % Quarterly Quarterly % Annual % Median $/week Change Change Median $/week Change Change Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Vacancy Rates A comparison of the rental data in Table 5 with the corresponding vacancy rate information in Table 6 usually provides an indication of the relationship (expected to be inverse), between movements in median rental values and movements in vacancy rates. An industry benchmark vacancy rate is considered to be a value of 3.%. Vacancy rates lower than 3.% indicate strong demand for rental accommodation, whilst rates higher than 3.% are generally considered to reflect an oversupply of rental accommodation. Over the June quarter Sydney, Brisbane, Perth and Canberra 2 were the four capital cities to record an increase in vacancy rates. Sydney, Brisbane and Canberra vacancy rates increased by.1,.4 and 1. percentage points, respectively, while Perth was the only capital city where the vacancy rate was situated above the industry benchmark rate increasing by.6 percentage points to 3.5%. Melbourne and Hobart vacancy rates remained unchanged at 1.4% and 2.1% respectively. Darwin showed a significant decrease of 1. percentage points to.8%; this is the lowest rate compared to the rest of capital cities. Adelaide s vacancy rate decreased by.4 percentage points to 1.4% Values may differ from previous publications, as the sales data has been updated. 1. Sydney moving annual median price series adjusted for compositional change. 2 The data sources underlying the calculation of the vacancy rate for the June quarter 29 differs from that in previous quarters. Comparisons between the June quarter 29 and previous quarters should be made on this basis. 8 Real Estate Institute of Australia

9 Real Estate Market Facts Chart 6: Average Quarterly Vacancy Rate % Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Quarter Average Quarterly Vacancy Rate Table 6: Vacancy Rates (All Rented Dwellings), June Quarter 29 Capital City Quarterly Vacancy Rate % Quarterly Change (percentage points) Annual Change (percentage points) Moving Annual (Trend) Vacancy Rate % Quarterly Change (percentage points) Annual Change (percentage points) Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra Source: REI surveys of Real Estate Agent Property Managers. Brisbane vacancy rates are for the Brisbane Statistical Division (ie Greater Brisbane) and are sourced from the Qld Office of Economic and Statistical Research. Note: For Darwin, Adelaide, Melbourne and Canberra, vacancy rates are measured at the close of the quarter. For Hobart, Perth, Sydney and Brisbane, an average vacancy rate over the quarter is used. Vacancy rates are only broad indicators of the true vacancy rates at any particular point in time. The vacancy rates are aggregate values across all rented properties (no distinction is made between specific vacancy rates for houses and vacancy rates for other dwellings), and these very broad indicators are compared with median rents derived from large numbers of rented properties. Vacancy rates are useful indicators of the current availability of rental accommodation, but the expected inverse relationship between vacancy rates and median rents is not always apparent from the data. 1 Brisbane vacancy rates have been revised from March 24 in line with data from the Qld Office of Economic and Statistical Research. 2 The data sources underlying the calculation of the vacancy rate for the June quarter 29 differs from that in previous quarters. Comparisons between the June quarter 29 and previous quarters should be made on this basis. 9

10 AUSTRALIAN CAPITAL TERRITORY SALES Canberra Median House Prices The median house price for the Australian Capital Territory increased over the June quarter 28 to $458,, an increase of 2.2% over the quarter and a decrease of 2.1% over the year Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Qtrly Moving Annual Medians Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 The median price for other dwellings increased 6.% over the quarter, taking the figure to $394,75; this is an increase of 7.6% over the year. Property values in the Inner South and Inner Central were the major contributors to the increase in the median house price, increasing by 12.2% to $55, and 6.9% to $65,, respectively. Canberra, West and North and Outer South also saw improvements over the quarter, compared to twelve months ago when these areas experienced decreases in median house prices. Table 7: Australian Capital Territory House Sales Prices, June Quarter 29 Sample size No. Median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Canberra Inner Central Inner South West and North Outer South From the June quarter 27, preliminary medians are compared with revised medians. Table 8: Australian Capital Territory Other Dwellings Sales Prices, June Quarter 29 Sample size No. Median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Canberra Inner Central Inner South West and North Outer South From the June quarter 27, preliminary medians are compared with revised medians. LGA definitions: Inner Central is Canberra North and Canberra South. Inner South is Woden and Weston Creek. West and North is Belconnen, Gungahlin and Hall. Outer South is Tuggeranong. 1 Real Estate Institute of Australia

11 Real Estate Market Facts AUSTRALIAN CAPITAL TERRITORY RENTS Canberra Canberra Residential Investment Property Vacancy Rates Qtrly Moving Annual Medians 2 15 % 1 5 3bdr house 2bdr other dwelling Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Annual Yield Annual Return 5 Yr Return 1 Yr Return Despite rents for three bedroom houses decreasing 4.8% over the June quarter 29, Canberra rents continue to be amongst the highest in Australia, at $4 per week for a three bedroom house and $395 per week for two bedroom other dwellings. Darwin is the only capital city to have higher rents for three bedroom houses, while both Sydney and Darwin have recorded higher rents for Other Dwellings. The vacancy rates for rental properties in the Australian Capital Territory worsened, decreasing to 1.5% during the June quarter. Table 9: Australian Capital Territory House Rents, June Quarter 29 Median $ per week Inner Central 2 b/r 3 b/r 4 b/r Lower Upper Inner South 2 b/r1 3 b/r 4 b/r n/a n/a n/a n/a n/a West and North 2 b/r 3 b/r 4 b/r n/a Outer South 2 b/r1 3 b/r 4 b/r n/a n/a..5 n/a n/a n/a n/a because sample size was too small Table 1: Australian Capital Territory Other Dwellings Rents, June Quarter 29 Median $ per week Lower Upper Inner Central 1 b/r b/r b/r Inner South 1 b/r b/r b/r West and Nrth 1 b/r b/r b/r Outer South 1 b/r n/a n/a n/a n/a n/a 2 b/r b/r n/a because sample size was too small 11

12 NEW SOUTH WALES SALES Sydney Median House Prices Qtrly Moving Annual Medians Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Sydney house prices are showing signs of life with a 3.% increase in the median price, taking the figure to $544, over the June quarter. Despite this increase, median prices over the year have shown a slight decline of.4%. Units and other dwellings in Sydney have increased to $382,, a 2.6% gain over the quarter. Median house prices for regional New South Wales have shown varying results. In Newcastle, the median house price continued upwards to $32,, a 1.3% increase over the quarter, however, no change in the twelve months since June 28. Units and other dwellings in Newcastle experienced a decline of 4.5%, taking the median price down to $295,, a decrease of 1.6% over the year. Wollongong median house prices saw a slight decline of.1% over the quarter, taking the median price to $368,; this is a 1.5% increase over the year. Wollongong s median price for units and other dwellings increased by 3.4% to $299, an increase of 5.1% over the year. Table 11: New South Wales House Sales Prices, June Quarter 29 Sample size No. Median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Sydney 18, Inner 2, ,23. Middle 4, Outer 11, Wollongong 1, Newcastle 3, Table 12: New South Wales Other Dwellings Sales Prices, June Quarter 29 Sample size No. Median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Sydney 13, Inner 5, Middle 4, Outer 3, Wollongong Newcastle This is a compositional adjusted series. Median prices have been stratified by market segment to adjust for compositional changes that can occur from one period to the next. LGA Definitions: Inner is Ashfield, Botany, Drummoyne, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, South Sydney, Sydney, Waverley, Willoughby, Woollahra. Middle is Auburn, Bankstown, Burwood, Canterbury, Concord, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield. Outer is Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly, Wyong.. 12 Real Estate Institute of Australia

13 Real Estate Market Facts NEW SOUTH WALES RENTS Sydney Sydney Residential Investment Property 5 4 Qtrly Moving Annual Medians 1 8 3bdr house 2bdr other dwelling Vacancy Rates Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 % Annual Yield Annual Return 5 Yr Return 1 Yr Return Vacancy rates across Sydney continue at extremely low levels, with rates at 1.3% at the end of the June quarter; the rate has not been above 2% since August 26. Newcastle recorded a vacancy rate of 1.6% over the June quarter, down from 2.2% in the March quarter 29. Wollongong s vacancy rate also sits at 1.6%, a figure that has shown no change over the quarter. The ongoing low vacancy rates continue to put upward pressure on rental values in some areas. Over the past 12 months, rents have typically increased 5-6% across all listed categories of property, apart from two bedroom houses in inner Sydney; this part of the market has shown a decline of 2% over the quarter. Table 13: New South Wales House Rents, June Quarter 29 Median Lower Upper Sydney Inner 2 b/r b/r Sydney Middle 2 b/r b/r Sydney Outer 2 b/r b/r Wollongong 2 b/r b/r Newcastle 2 b/r b/r Table 14: New South Wales Other Dwellings Rents, June Quarter 29 Median Lower Upper Sydney Inner 1 b/r b/r Sydney Middle 1 b/r b/r Sydney Outer 1 b/r b/r Wollongong 1 b/r b/r Newcastle 1 b/r b/r

14 NORTHERN TERRITORY SALES Darwin Median House Prices Median house prices increased in all areas of the Northern Territory over the June quarter, except for Inner Darwin Qtrly Moving Annual Medians Over the quarter, Darwin Overall increased by a dramatic 19.%, while the Northern Suburbs increased by 2.4%. Median house prices in Alice Springs increased by 2.2% over the quarter, and 2.4% over the year. Median prices for the Inner Darwin house market decreased by 4.2% over the quarter. 1 Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Median prices for units increased in all areas in the Northern Territory, except for Darwin Overall and the Northern Suburbs. These two areas recorded decreases of.6% and 3.% respectively. Unit prices recorded significant increases over the past 12 months with Inner Darwin, Palmerston and Alice Springs all reporting increases of over 2%. Table 15: Northern Territory House Sales Prices, June Quarter 29 Sample size No. Median Price Lower Upper Darwin n/a n/a Inner n/a n/a Northern Suburbs n/a n/a Palmerston n/a n/a Alice Springs n/a n/a Table 16: Northern Territory Other Dwellings Sales Prices, June Quarter 29 Sample size No. Median Price Upper Upper Darwin n/a n/a Inner n/a n/a Northern Suburbs n/a n/a Palmerston n/a n/a Alice Springs n/a n/a Darwin property prices are not revised. It is not possible to identify exchange dates on property sales records that are processed by the Australian Valuation Office, Darwin Region. REINT calculates median property prices from quarterly sales data supplied by the AVO. LGA Definitions: Inner is City(inner), Fannie Bay, Larrakeyah, Ludmilla, Narrows, Parap, Stuart Park, The Gardens, City(remainder). Northern Suburbs is Alawa, Anula, Brinkin, Coconut Grove, Jingili, Karama, Leanyer, Lee Point, Malak, Marrara, Millner, Moil, Nakara, Nightcliff, Rapid Creek, Tiwi, Wagaman, Wanguri,Winnellie, Wulagi,. Palmerston is Driver, Gray, Moulden, Woodroffe, Palmerston(T) Bal. Alice Springs is Charles, Heavitree, Larapinta, Ross, Stuart. 14 Real Estate Institute of Australia

15 Real Estate Market Facts NORTHERN TERRITORY RENTS Darwin Vacancy Rates Qtrly Moving Annual Medians Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 The Darwin rental market has once again tightened during the June quarter with vacancy rates in Darwin Overall decreasing 1. percentage points over the quarter and.5 percentage points over the year. The median weekly rent increased for houses in all areas of the Northern Territory. The median weekly rent for a three bedroom house for Darwin Overall increased slightly by 4.7% to $555 per week; this represents an 8.8% increase over the year. Inner Darwin rents for three and four bedroom houses increased by 9.4% and 7.9% respectively, over the quarter. Darwin Residential Investment Property % bdr house Annual Yield Annual Return 2bdr other dwelling 5 Yr Return 1 Yr Return Northern Suburbs median weekly rent for a four bedroom house increased again over the quarter. The median weekly rent for a three bedroom house in Palmerston increased by 4.3%, however there was no change for four bedroom houses over the quarter. The median weekly rent of a two, three and four bedroom houses in Alice Springs increased over the quarter by 2.7%, 2.4% and 5.1% respectively. Other dwelling rents recorded increases across the territory, except for one bedroom dwellings in Alice Springs, which saw no change. The largest increase over the quarter was evident in the Northern Suburbs, with rents for a one bedroom dwelling increasing 18.4%. Table 17: Northern Territory House Rents, June Quarter 29 Median Lower Upper Darwin Inner 3 b/r b/r Nthn Suburbs 3 b/r b/r Palmerston 3 b/r b/r Alice Springs 2 b/r b/r b/r Table 18: Northern Territory Other Dwellings Rents, June Quarter 29 Median Lower Upper Darwin Inner 1 b/r b/r b/r Nthn Suburbs 1 b/r b/r b/r Palmerston 2 b/r b/r Alice Springs 1 b/r b/r b/r

16 QUEENSLAND SALES Brisbane Median House Prices Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Qtrly Moving Annual Medians Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Confidence returned to Queensland s residential property market over the June quarter, with many areas of the state recording median house price growth of a few per cent over the period. The median house price for Brisbane increased by 5.% to $419,; however, over the year it decreased by.3%. Demand from first home buyers and renewed interest from investors has resulted in an upswing in sales numbers for units and townhouses in Brisbane and surrounds, increasing 37.5% over the period. Median prices in this region are up 3 to 4.4% over the quarter. Increased demand for units has also been experienced on the Gold and Sunshine coasts, Townsville and Cairns with prices up between 1 and 7.2%. Table 19: Queensland House Sales Prices, June Quarter 29 Sample Size Median Price Lower Upper No. Brisbane 6, Inner Middle 2, Outer 3, Gold Coast 1, Sunshine Coast Townsville Cairns Table 2: Queensland Other Dwellings Sales Prices, June Quarter 29 Sample Size Median Price Lower Upper No. Brisbane 2, Inner Middle Outer Gold Coast 1, Sunshine Coast Townsville Cairns The REIQ calculates all Queensland median residential prices from contract date sales. The series are median prices for Brisbane city as geographically defined within the Brisbane Statistical Division. The calculations of quarterly and annual percentage changes in median prices for Brisbane compare preliminary estimates in the current quarter with preliminary estimates in previous quarters. LGA Definitions: Inner is the -5km radius from the CBD. Middle is the 5-2km radius from the CBD. Outer is between 2km from the CBD and the boundary of the Brisbane SD. 16 Real Estate Institute of Australia

17 Real Estate Market Facts QUEENSLAND RENTS Brisbane Brisbane Residential Investment Property Vacancy Rates 3. Qtrly Moving Annual Medians % 6 3bdr house 2bdr other dwelling.5 3 Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Annual Yield Annual Return 5 Yr Return 1 Yr Return Queenslanders have taken advantage of historically low interest rates and government first home buyer incentives to move out of the rental market into their own home. This has alleviated some of the pent-up demand that has been burdening Queensland s rental market for more than four years, which put upward pressure on rents. Vacancy rates have begun to ease with Brisbane presently having a more balanced rental market. Table 21: Queensland House Rents, June Quarter 29 Median Lower Upper Brisbane Inner 2 b/r b/r b/r Brisbane Middle 2 b/r b/r b/r Brisbane Outer 2 b/r b/r b/r Gold Coast 2 b/r b/r b/r Townsville 2 b/r b/r b/r Cairns 2 b/r b/r b/r Table 22: Queensland Other Dwellings Rents, June Quarter 29 Median Lower Upper Brisbane Inner 1 b/r b/r b/r Brisbane Middle 1 b/r b/r b/r Brisbane Outer 1 b/r b/r b/r Gold Coast 1 b/r b/r b/r Townsville 1 b/r b/r b/r Cairns 1 b/r b/r b/r

18 SOUTH AUSTRALIA SALES Adelaide Median House Prices Qtrly Moving Annual Medians Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 The South Australian property market is showing signs of a recovering market, driven by first home buyer activity. Sales volume increased by 1% when compared to the previous quarter. The median house price in metropolitan Adelaide went up to $359,, an increase of 1.1% over the quarter. Suburbs that recorded the greatest growth in the June quarter were predominantly in the more affordable outer western and northern suburbs. Rose Park, Allenby Gardens and Tea Tree Gully experienced growth of 27.97%, 26.71% and 26.26% respectively. Prices for other dwellings in metropolitan Adelaide experienced an increase of 5.3% over the quarter to $292,. The regional property market has followed state-wide trends with increased sales volumes and prices remaining stable. Table 23: South Australia House Sales Prices, June Quarter 29 Sample size No. Preliminary median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Adelaide 5, Inner Middle 1, Outer 2, Mount Gambier Port Lincoln Riverland Table 24: South Australia Other Dwellings Sales Prices, June Quarter 29 Sample size No. Preliminary median price Current preliminary median compared with revised medians in earlier quarters Lower Upper Adelaide 1, Inner Middle Outer Mount Gambier Port Lincoln Riverland 5 n/a n/a n/a n/a n/a 1. n/a because sample sizes were too small LGA Definitions: Inner is Adelaide, Burnside, Norwood/ Payneham/St Peters portion (former LGAs Kensington/Norwood, St Peters), Prospect, Unley, Walkerville, West Torrens. Middle is Campbelltown, Charles Sturt, Holdfast Bay, Marion, Mitcham, Norwood/ Payneham/ St Peters portion (former LGA Payneham), Port Adelaide/ Enfield. Outer is Adelaide Hills portion (former LGAs East Torrens, Stirling), Gawler, Onkaparinga, Playford, Salisbury, Tea Tree Gully. Riverland is Berri/Barmera, Loxton, Waikerie (former LGAs Loxton, Waikerie). 18 Real Estate Institute of Australia

19 Real Estate Market Facts SOUTH AUSTRALIA RENTS Adelaide Adelaide Residential Investment Property Vacancy Rates 2.5 Qtrly Moving Annual Medians Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun % 1 5 3bdr house Annual Yield Annual Return 5 Yr Return 2bdr other dwelling 1 Yr Return Adelaide s residential rental market tightened over the June quarter with the vacancy rate dropping to 1.4%. Tenant demand varied across the market with price dictating the demand. Anecdotal evidence from property managers suggests properties under $25 per week are in high demand, whilst generally properties priced in excess of $35 per week are attracting minimal enquiry. Median weekly rents experienced varied results across Adelaide. The most dramatic increase was recorded for a two bedroom in Mount Gambier, increasing 12.5%; the largest decreases were evident for a four bedroom in Adelaide Inner, a two bedroom in Port Lincoln and a four bedroom in Riverland, decreasing 12.2%, 16.7% and 1.6% respectively. Table 25: South Australia House Rents, June Quarter 29 Median Lower Upper Adelaide Inner 2 b/r b/r b/r Adelaide Middle 2 b/r b/r b/r Adelaide Outer 2 b/r b/r b/r Mt Gambier 2 b/r b/r b/r Pt Lincoln 2 b/r Riverland 3 b/r b/r b/r b/r b/r Table 26: South Australia Other Dwellings Rents, June Quarter 29 Median Lower Upper Adelaide Inner 1 b/r b/r b/r Adelaide Middle 1 b/r b/r b/r Outer Adelaide 1 b/r b/r b/r Mt Gambier 1 b/r b/r b/r Pt Lincoln 1 b/r b/r b/r Riverland 1 b/r b/r b/r

20 TASMANIA SALES Hobart Median House Prices Mar 4 Jun 4 Sep 4 Dec 4 Qtrly Moving Annual Medians Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 Tasmania continued to improve upon its strong sales earlier in the year, with a 3.5% increase for the quarter and 34.2% increase over the year. This is the highest number of sales for Tasmania in the last five years. The median price followed a similar result with a 5.4 % increase over the quarter. The number of house sales in Hobart were up 4.7 % over the quarter, an increase of 47.4% over the year. This is the highest number of recorded house sales in Hobart for the last two years. The median house price reached a record high of $336,, with the previous record being in the March quarter 28, at $335,. Whilst Launceston recorded an increase of 5.4% in its median house price over the quarter, a decrease of 4.1% was evident over the year. Other dwellings sales were down across the state, with Middle Hobart recording the only increase in sales for the quarter. Sales in Middle Hobart were primarily driven by strong sales in Glenorchy, Howrah and Claremont. Median prices for other dwellings increased for the quarter across the state with the exception of the North West Centres. Table 27: Tasmania House Sales Prices, June Quarter 29 Sample size No. Median Price Lower Upper Hobart Inner Middle Outer Launceston North-West Centres Table 28: Tasmania Other Dwellings Sales Prices, June Quarter 29 Sample size No. Median Price Lower Upper Hobart Inner Middle Outer Launceston North-West Centres The REIT collects its Tasmanian sales data through its members, using monthly survey forms. Prices are recorded at the date of exchange and sales collected from members account for 88% of all sales in the reference period. This direct collection method provides the most timely and accurate sales information for each reference period and median prices calculated from the data do not need to be revised. LGA Definitions: Inner is Hobart-Inner, Hobart-Remainder. Middle is Clarence, Glenorchy. Outer is Kingborough, Derwent Valley Pt A. Launceston is Launceston-Inner, Launceston Pt B, Launceston Pt C. North-West Centres is Burnie Pt A, Central Coast Pt A, Devonport. 2 Real Estate Institute of Australia

21 Real Estate Market Facts TASMANIA RENTS Hobart Hobart Residential Investment Property Vacancy Rates 3. Qtrly Moving Annual Medians Mar 4 Jun 4 Sep 4 Dec 4 Mar 5 Jun 5 Sep 5 Dec 5 Mar 6 Jun 6 Sep 6 Dec 6 Mar 7 Jun 7 Sep 7 Dec 7 Mar 8 Jun 8 Sep 8 Dec 8 Mar 9 Jun 9 The vacancy rate for Hobart remained steady over the quarter, down.3 percentage points from the same time last year. The Launceston vacancy rate fell.1 percentage points, whilst the North-West Centres rose.4 percentage points, to the level of two years ago. Table 29: Tasmania House Rents, June Quarter 29 The median rent for a three bedroom house and two bedroom units increased across the state over the quarter, except for the North West Centres which remained steady for both. Launceston recorded the most consistent results for the quarter with two, three, and four bedroom home rents increasing 4.5%, 4.2% and 3.1% respectively. Median Lower Upper Hobart Inner 2 b/r b/r b/r Hobart Middle 2 b/r b/r b/r Hobart Outer 2 b/r b/r b/r Launceston 2 b/r b/r b/r North-West 2 b/r Centres 3 b/r b/r Table 3: Tasmania Other Dwellings Rents, June Quarter 29 Median Lower Upper Hobart Inner 1 b/r b/r b/r Hobart Middle 1 b/r b/r b/r Hobart Outer 1 b/r b/r b/r Launceston 1 b/r b/r b/r North-West 1 b/r Centres 2 b/r % 1 5 3bdr house Annual Yield Annual Return 2bdr other dwelling 5 Yr Return 1 Yr Return 3 b/r