Bourkes Annual Market Summary

Annual Market Summary Applecross | Como | Kensington | Manning | Rivervale | Salter Point | South Perth East Victoria Park | Victoria Park | Carlisle

2018 Suburb Snapshot

ANNUAL SUMMARY - CITY OF SOUTH PERTH

THE CURRENT MARKET (JANUARY 2019) The December 2018 median house price in Perth was $510,000 which was 5.2% higher than September 2018. The median unit price is $385,000 which is 1.3% lower than September 2018.

The home market has stabilized across Perth whilst the unit market has fallen 6.1% over the year.

We have 16,000 properties for sale which is 5% higher than September. Listings increased in Spring but weren’t sold by December. Early indications show extra strong numbers through home opens and multiple sales. Rents have been stable at $350 per week but with low vacancy rates of 2-3%.

We expect a strong first quarter in 2019 and we will see rents to start to rise.

Investors Rents will improve in 2019. With the ALP platform to reduce capital gains concessions, from 50% to 25% over 12 months, investors will probably hold properties rather than sell. Others will buy before legislation is enacted as current purchases will be grandfathered. The same rules apply to negative gaining changes under the ALP policies.

Zonings Keep an eye on “Activity Zones” with Town Planning Schemes - as many areas are anticipated to see zoning densities increase. This will increase prices for land in these areas.

Happy buying and selling.

The Outlook The WA Government budget forecasts predict growth of 3.25% over the year. This together with expected increase in employment levels (from 2018 – 2022) show that the WA economy has turned the corner. This is despite the general negative news coming out of NSW and Victoria. Consumer and business confidence are both improving in WA. This is fuel to the local real estate market. We anticipate 2019 will be a consolidating year with house values flat and stable. Unit prices will remain soft due to increasing supply of new apartments.

Opportunities will arise for people renovating homes in the $800 - $1.3 million bracket. Farmers will benefit from a good harvest and better prices. They often invest in real estate.

Alan Bourke Principal / Auctioneer

* Disclaimer - all information contained herein is designed for information purposes only

22/01/2019

2018 MARKET SNAPSHOT

Volumes

APPLECROSS Houses COMO Houses Units Land KENSINGTON Houses MANNING Houses RIVERVALE Houses SALTER POINT Houses SOUTH PERTH Houses Units EAST VICTORIA PARK Houses VICTORIA PARK Houses CARLISLE Houses

2014 2015 2016 2017 2018 115 106 82 96 98 159 126 116 154 113 261 201 152 123 190 11 16 1 9 9 76 46 53 56 42 67 54 56 54 10 131 97 97 110 75 33 42 37 36 35 106 93 83 92 75 242 201 170 178 259 154 147 141 124 156 94 75 67 74 96 109 85 98 93 101

Median Prices

% Change

2014 2015 2016 2017 2018 12 Months APPLECROSS Houses COMO Houses KENSINGTON Houses MANNING Houses RIVERVALE Houses SALTER POINT Houses SOUTH PERTH Houses EAST VICTORIA PARK Houses VICTORIA PARK Houses CARLISLE Houses

1.450 1.480 1.280 1.600 1.575 -1.6% 880 875 830 900 892 -0.9% 880 855 880 750 895 +17.6% 817 730 770 820 750 -8.9% 597 592 559 510 492 -3.6% 1.150 1.077 1.045 1.100 1.225 +10.8% 1.165 1.237 1.132 1.175 1.262 +7.1% 650 650 637 630 600 -4.9% 665 700 645 650 650

0%

562 568 530 505 480 -5.0%

* All data sourced REIWA 2017/2018 & RP Data 2018/2019

PAGE 3 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

APPLECROSS Houses Sales volumes over the last 5 years have remained constant.

Applecross remains one of the top 6 suburbs for quality home sales. Median prices have risen from $1.45m to $1.55m. This is a result of a general increase in new building in the area over the last 5 years. Applecross has huge potential for price growth in houses over the next 5 years.

Units Median prices have risen from $640 - $715,000 as a result of newer more expensive units being built and sold. We would expect to see the median price rise over the next 5 years as a result of hundreds of new apartments selling above the $715,000 median. This doesn’t mean that all unit prices will rise.

With an increase in supply, existing owners will have to be price competitive to sell theirs.

Rents (per week) 2014 2018 Houses $800 $550 Units $490 $380

22/01/2019

2018 MARKET SNAPSHOT

Applecross - Houses

Houses

NO. SALES

TOTAL

AVERAGE

79

$143.3m

$1.814m

PAGE 5 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Applecross - Units

Units

22/01/2019

NO. SALES

TOTAL

AVERAGE

103

$58.6m

$569,000

2018 MARKET SNAPSHOT

COMO The interesting graph is the median price graph showing the roller coaster ride that home prices have encountered (over).

The result, after 4 years, is that house prices are back where they were in 2014 (and also the same as 2008). We anticipate stability in 2019.

Como Units Sales volumes are off by 20% since 2014 and the median has dropped from $520,000 to $460,000. There is still a soft outlook for units in 2019.

Rents (per week) Rents 2014 2018 Houses $600 $450 Units $450 $350 Vacancy rates are approaching 2-3% so rents will slowly rise in 2019.

PAGE 7 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Como - Houses

Houses Land

22/01/2019

NO. SALES

TOTAL

AVERAGE

113

$110.1m

$974,600

9

$7.1m

$793,300

2018 MARKET SNAPSHOT

Como - Units

Units

NO. SALES

TOTAL

AVERAGE

190

$93.8m

$493,800

PAGE 9 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

KENSINGTON Housing Median price has returned to late $800,000’s after dipping in 2017 to mid $700,000’s. This reflected a number of sales of Homeswest homes that sold less than the median in 2018.

The high percentage of owner occupied housing has always attracted other owner occupiers.

Units Prices have moved within the $450,000 - $500,000 band over the last 4 years reflecting the age of units sold. As newer units sell in the suburb we expect the median to rise to reflect this.

22/01/2019

2018 MARKET SNAPSHOT

Kensington - Houses

Houses

NO. SALES

TOTAL

AVERAGE

42

$34.5m

$822,000

PAGE 11 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Kensington - Units

Units

22/01/2019

NO. SALES

TOTAL

AVERAGE

11

$8.476m

$770,500

2018 MARKET SNAPSHOT

MANNING Housing The reduction in median price in 2014 at $570,000 to $485,000 in 2018 doesn’t show a reduction of home prices but reflects the subdivision of the 1012m² sites into more 500m² blocks.

The end sale price is therefore less and this is reflected in the median price.

Units Medians have returned to where they were in 2014.

PAGE 13 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Manning - Houses

NO. SALES

TOTAL

AVERAGE

Houses

10

$6.9m

$690,500

Land

11

$6.9m

$690,500

22/01/2019

2018 MARKET SNAPSHOT

Manning - Units

Units

SALES

TOTAL

AVERAGE

12

$6.4m

$581,727

PAGE 15 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

RIVERVALE Housing Rivervale has seen a surge in population – growing 23.5% over 5 years. As the main demographic of this growth has been 2029 year olds, many will seek cheaper accommodation and look to take advantage of the no stamp duty policy up to $430k (and reduced stamp upto $525k) - as a first home buyer. Hence this larger buyer pool at the lower end of the market is why the median has moved from $590,000 to $502,000.

Units The median price for units has dropped from $430,000 to $350,000. This reflects that previously first home buyers received a $10,000 grant to buy new. Buyers targeted the new 2 x 2 bed/ bath units. This moved the median up to $430,000. Now most of these have gone and buyers can buy new 2 x 1’s or not use the grant and buy second hand units. The median has dropped as a result to $370,000.

Now the units are typically resales or the 2 bedroom 1 bathroom units that were left over after the mini boom in 2014. Both resales and 2 bed 1 bath apartments are selling for less which has brought the median price of units down.

Land There have been 5 land sales averaging $867,000.

22/01/2019

2018 MARKET SNAPSHOT

Rivervale - Houses

NO. SALES

TOTAL

AVERAGE

Houses

75

$38.8m

$517,100

Land

3

$1.8m

$867,400

PAGE 17 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Rivervale - Units

Units

22/01/2019

NO. SALES

TOTAL

AVERAGE

156

$63.6m

$408,000

2018 MARKET SNAPSHOT

SALTER POINT Houses After a 15% surge in the median house price in Salter Point in 2017, 2018 saw the median price flatten out at $1,150,000.

There was a higher volume of sales in 2018, however Salter Point remains to be a tightly held area that is always highly sought after.

Units Salter Point has a small number of units and there was only one sold in the 2018 period.

PAGE 19 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Salter Point - Houses

NO.SALES

TOTAL

AVERAGE

Houses

35

$43.6m

$1,924,700

Land

5

$4.34m

$867,400

22/01/2019

2018 MARKET SNAPSHOT

Salter Point - Units

PAGE 21 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

SOUTH PERTH The population has remained relatively stable with 0.6% growth over 5 years. With the number of new apartments being built, we would expect population to increase.

Housing The median has improved from $1.2m in 2014 to $1.28m in 2018.

This reflects the new home builds and extensions to existing housing stock. The top end of the market struggled in 2017/2018 but as confidence improves, we are seeing more sales above $2m.

This will push up the median in 2019 but house prices are expected to be flat.

Units With high vacancy rates over the last 2 years and rents falling 20% many investors left the market and few sales were made to investors. This has affected the median price. Vacancy rates have returned to 2-3%. Rents will improve and investors will return. This will improve the median. We expect a slight reduction in prices due to increasing supply.

22/01/2019

2018 MARKET SNAPSHOT

South Perth - Houses

Houses

NO. SALES

TOTAL

AVERAGE

75

$89.7m

$1,195,500

PAGE 23 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

South Perth - Units

Units

22/01/2019

NO. SALES

TOTAL

AVERAGE

259

$223.3m

$862,100

2018 MARKET SNAPSHOT

PAGE 25 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

22/01/2019

2018 MARKET SNAPSHOT

EAST VICTORIA PARK Housing The median price in East Victoria Park hasn’t moved much at all over the last 5 years and ended at $610,000 in 2018 with the highest in that period at $660,000 in 2015. Equally the number of sales didn’t change much over the last 5 years but were up from 12 months ago by 20%.

Demand for Character homes, on cottage lots up to 700m², are still very strong and buyers looking for development sites.

Land started off strong with strata lots selling up to nearly $1500/m² which is record prices for the area but softened in the later part of the year and still remain slow.

Apartments too have come off with some Albany Highway units selling for 10-15% less than what they did from brand new.

PAGE 27 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

East Victoria Park - Houses

Houses Land

22/01/2019

NO. SALES

TOTAL

AVERAGE

130

$83.7m

$643,700

$4.6m

$513,500

2018 MARKET SNAPSHOT

East Victoria Park - Units

Units

NO. SALES

TOTAL

AVERAGE

51

$21m

$411,300

PAGE 29 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

VICTORIA PARK Housing The last year has seen the median price bounce around from $640,000-$660,000. The most interesting year was 2016, where we saw the highest and lowest median all within that 12 month period.

2018 was a busy year with just over 100 sales (highest sale year in the 5 years).

Population growth continues to fuel Victoria Park.

Units Unit/apartment prices saw a significant drop in median in 12 months from $446,500 to $362,000 based on the supply of units and the amount of investors liquidating their properties.

2019 is anticipated to be stable with the demand for homes still being strong. Land continually seems to hold its value through the suburb.

22/01/2019

2018 MARKET SNAPSHOT

Victoria Park - Houses

Houses

NO. SALES

TOTAL

AVERAGE

67

$43m

$642,000

PAGE 31 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Victoria Park - Units

Units

22/01/2019

NO. SALES

TOTAL

AVERAGE

105

$45.3

$431,100

2018 MARKET SNAPSHOT

CARLISLE Housing The reduction in median price in 2014 at $570,000 to $485,000 in 2018 doesn’t show a reduction of home prices but reflects the subdivision of the 1012m2 sites into more 500m2 blocks.

The end sales price is therefore less and this is reflected in the median price.

We have seen good population growth here over the last 5 years.

Units Medians have returned to where they were in 2014.

PAGE 33 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

Carlisle - Houses

NO. SALES

TOTAL

AVERAGE

Houses

75

$36.6m

$488,200

Land

7

$4m

$580,900

22/01/2019

2018 MARKET SNAPSHOT

Carlisle - Units

Units

NO. SALES

TOTAL

AVERAGE

42

$21.6m

$514,300

PAGE 35 OF 36

ANNUAL SUMMARY - CITY OF SOUTH PERTH

sales | property management | auctions | projects 272 Canning Highway COMO WA 6152 PO BOX 403 COMO WA 6952 T 08 9474 2000 F 08 9474 2549 bourkes.com.au

22/01/2019