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SECOND EDITION 2016

RED REPORT


Contents INSIDER NEWS Looking Forward

3

Q & A with Chris Salm, hockingstuart finance

4

MELBOURNE MARKET Melbourne at a Glance

5

Suburbs with the Highest % of Stock

6

Melbourne’s Best Performing Suburbs

7

Top Sales Turnover Suburbs

8

Suburbs with Best Auction Clearance Rates 8 Expanding Suburbs

8

LOCAL FOCUS Property Market Snapshot

9

Inner City

10

Inner West

11

Inner North

12

Inner East

13

Eastern Suburbs

14

Outer Suburbs

15

Bayside

16

Greater Geelong

17

Mornington Peninsula

18

Regional Victoria

19


INSIDER NEWS

Looking Forward Sell in Spring the saying goes‌.it’s perhaps never been so true, with a combination of low interest rates and a reduction in the number of properties coming to market this Spring, making it a Vendors market. Following a 0.25% cut to the cash in August, the Reserve Bank maintained the cash rate at the record low 1.5% at their September meeting. The result of this is access to historical low lending for both home Buyers and Investors. Whilst access to cheap money is a positive for Buyers, lower stock levels across the majority of Melbourne suburbs is resulting in high clearance rates and buoyant sale prices – so discipline is required if you are in the market to buy. Changes implemented by the Foreign Investment Review Board in December 2015 has seen a dampening of foreign Buyer activity in some markets, however this has been countered by solid competition from local Buyers chasing quality property for both investment and principle place of abode. In summary, with Winter and a very long election campaign behind us, Vendors should approach the Spring and Summer markets with confidence knowing that a combination of low interest rates and low stock levels is delivering strong sales results. For Buyers, the low interest rate environment is forecast to continue into 2017, which will drive the property market - so take advantage of record low rates but remain disciplined in preparation for the rate rise, which will eventually come.

Simon Jovanovic CEO hockingstuart

This Market Report has been prepared by hockingstuart as a general guide to the historical performance of suburbs within particular areas. It is provided for information purposes only and does not constitute advice or recommendations. It does not purport to, and cannot, predict the future performance of particular suburbs or areas. It is by its nature generic and cannot be used to predict the future performance of any particular property or type of property.

RED REPORT

You should obtain independent professional advice and consider your personal circumstances before making any financial decisions. You should not rely on this Market Report when making investment decisions and hockingstuart disclaims any liability if you seek to do so. While hockingstuart has prepared this Market Report in good faith, it is based on information provided by third parties and it could contain errors,

3

be incomplete, or out of date. hockingstuart has not independently verified the information and makes no express or implied warranty as to the accuracy, adequacy or reliability of the information. hockingstuart accepts no responsibility for the accuracy or completeness of any material contained in this report.

SECOND EDITION 2016


INSIDER NEWS

Q & A with Chris Salm from hockingstuart finance TOP TIPS FOR FIRST HOME BUYERS A N D H O W T O O B TA I N F I N A N C E

Where do First Home Buyers start when looking for a loan? The best place for First Home Buyers to start is to visit a mortgage broker. The reason why I say mortgage broker and not a bank is that brokers have access to the whole market. They can see what appetite Lenders have for any type of lending but also can see what charges are involved and compare the lowest rates. hockingstuart finance have access to over 30 Lenders so we can compare the market based on the client’s needs. Has the lending criteria tightened up? If so, why? Lenders have tightened up and the reason for this is that they don’t want clients to overextend themselves especially during a time when interest rates are low. As an outside view, this is the best time to borrow funds to purchase a house because interest rates are so low. This would normally mean that a client could borrow more funds because repayments can be easily made. However, if interest rates move up, it's essential that the client sustains the new repayments. All Lenders are seeing this as a big risk not only to themselves but also more importantly to the client. They will negate this risk by assessing each deal at a higher rate, placing a buffer for any interest rate moves. Clients are then not caught out with higher monthly payments if there is a sudden move in the market. These are called assessment rates and usually sit around 7%.

What are the common mistakes First Home Buyers make when attaining a loan? The most common mistake is not looking at what all Lenders have to offer. If you head to a single Lender they can offer a small range of products, and then look to squeeze your needs into one of those. We find that this is a common mistake because the clients haven’t looked at what all Lenders are offering and therefore find they are being told what they need. In many cases the advice they get is insufficient, therefore they don’t realise that they can borrow and thus miss out on getting into the market. The analogy we use is like going to buy a car. If you were buying your first ever car would you walk into one dealership and pick a car straight from the floor and drive away? You need to review what you need a car for, what brand has that type of car and go and test drive the car at all the different dealerships. Not to mention getting a price from each dealership to compare. We ask all First Home Buyers to complete a thorough review of their needs and then let hockingstuart finance find Lenders based on their needs for a comparison.

How can you get clients across the line in this case? This purely comes down to our experienced brokers working with over 30 Lenders on behalf of the client (not the bank). We have the ability to research these Lenders and find the right product suited to the client’s needs. Do you have an example of when you've got the best deal for First Home Buyers? Our case study below shows our ability to compare the market and get the client extra funds to complete a new purchase. This was all because one Lender would offer more than the other. Client is currently with Lender A and was looking to purchase a new apartment. Lender A would only offer the client $400k loan facility due to existing debts and an investment house dropping in value. We were able to find a new Lender B who included the client’s full debt position and offered $100k extra. The client was able to purchase ‘off the plan’ property with some extra wriggle room for furniture.

RED REPORT

Do you recommend fixed or variable rates, considering the current conditions? For First Home Buyers, the decision between fixed and variable is really about budgeting. It is not a way to hedge against the market; it is about the comfort and security to know that your payments won’t change for a set period of time and that you can manage the first couple of years of your first loan. What are your predictions for the future? Banks will continue to tighten the lending criteria so First Home Buyers will need to do their research and be ready to move between Lenders. Interest rates will remain low in the medium term and property will continue to be the favoured wealth vehicle for Australians.

4

SECOND EDITION 2016


MELBOURNE MARKET

Melbourne at a Glance

MEDIAN VALUE OF MELBOURNE HOUSES

Median value Number of sales

$800,000

Median rent Capital growth

$700,000 $600,000

$743,000 13,956 $450/wk 2.37%

Rental yield

3.17% pa

Median value

$506,500

$500,000 $800,000 $400,000 $700,000 $300,000 $600,000 $200,000 $500,000 $100,000 $400,000 $0 $300,000 JUN 2008 $200,000

DEC 2008

JUN 2009

DEC 2009

JUN 2010

DEC 2010

JUN 2011

DEC 2011

JUN 2012

DEC 2012

JUN 2013

DEC 2013

JUN 2014

DEC 2014

JUN 2015

DEC 2015

JUN 2016

DEC 2008

JUN 2009

DEC 2009

JUN 2010

DEC 2010

JUN 2011

DEC 2011

JUN 2012

DEC 2012

JUN 2013

DEC 2013

JUN 2014

DEC 2014

JUN 2015

DEC 2015

JUN 2016

$100,000 $0 JUN 2008 $600,000

MEDIAN VALUE OF MELBOURNE UNITS $500,000

$400,000 $600,000

Number of sales Median rent

$300,000 $500,000

Capital growth Rental yield

9,480 $420/wk 2.29% 4.31% pa

$200,000 $400,000 $100,000 $300,000 $0 $200,000 JUN 2008

DEC 2008

JUN 2009

DEC 2009

JUN 2010

DEC 2010

JUN 2011

DEC 2011

JUN 2012

DEC 2012

JUN 2013

DEC 2013

JUN 2014

DEC 2014

JUN 2015

DEC 2015

JUN 2016

DEC 2008

JUN 2009

DEC 2009

JUN 2010

DEC 2010

JUN 2011

DEC 2011

JUN 2012

DEC 2012

JUN 2013

DEC 2013

JUN 2014

DEC 2014

JUN 2015

DEC 2015

JUN 2016

$100,000

$0 JUN 2008

Source: Residex

RED REPORT

5

SECOND EDITION 2016


MELBOURNE MARKET

Suburbs with the Highest % of Stock So much of the market commentary in the Victorian (and National) property industry has been focused around the shortage of stock this Spring. Major real estate portals such as domain.com.au and realestate.com.au are reporting a decrease in the number of listings available for sale, which is in excess of 20%. However, the Melbourne market has never been very linear and not all suburbs are experiencing the same market conditions. There are still pockets in Melbourne where there are high levels of stock available on the market, perhaps representing a good opportunity for Investors to compete in a more balanced marketplace. Below we show the suburbs which top their respective regions for the level of stock that's available in respect to total number of dwellings.

INNER NORTH INNER CITY HO USES

UN ITS

HOUSES

Pascoe Vale

UNITS

Rosanna

Collingwood

4.90%

5.60%

Docklands

5.60%

5.90%

INNER WEST H OUSE S

Essendon West

UNI TS

Travancore

INNER EAST HOUSES

6.80%

UNITS

9.40%

UNI TS

7.30%

Glen Huntly 5.30%

EASTERN SUBURBS

BAYSIDE H OUSE S

Balwyn North

Patterson Lakes

PORT PHILLIP BAY

HOUSES

Burwood

UNITS

Huntingdale

7.10%

Frankston South 7.00%

6.90%

12.60%

OUTER SUBURBS HOUSES

Rockbank

UNITS

Point Cook

9.60%

9.80%

Source: Residex

RED REPORT

6

SECOND EDITION 2016


MELBOURNE MARKET

Melbourne’s Best Performing Suburbs Capital Growth is one of the main indicators of how your property investment is performing.

The suburbs are broken up into four price brackets, houses vs units and ranked on percentage increase in property value in the last quarter.

HOUSES

UNITS

LOW PRICE RANGE $293,500 TO $506,500

LOW PRICE RANGE $208,000 TO $384,500

MEDIAN VALUE

Carrum Downs

$386,500

CAPITAL GROWTH

CAPITAL GROWTH

5.03%

8.47%

(LAST QUARTER)

(LAST 12 MONTHS)

MEDIAN VALUE

RENTAL YIELD (P/A)

Sunshine North

4.81%

$355,500

CAPITAL GROWTH

CAPITAL GROWTH

5.51%

6.71%

(LAST QUARTER)

(LAST 12 MONTHS)

RENTAL YIELD (P/A)

4.98%

Frankston North

$313,000

5.02%

1.40%

4.68%

Noble Park North

$384,000

5.25%

15.88%

4.75%

Doveton

$375,000

4.87%

11.19%

4.26%

Eumemmerring

$315,500

5.20%

16.04%

5.21%

Eumemmerring

$434,500

4.46%

10.33%

4.11%

Laverton

$311,500

4.79%

10.55%

5.36%

Jacana

$389,500

4.45%

5.60%

4.42%

Tecoma

$333,000

4.52%

13.23%

5.18%

LOW-MID PRICE RANGE $506,500 TO $743,000 MEDIAN VALUE

CAPITAL GROWTH (LAST QUARTER)

CAPITAL GROWTH (LAST 12 MONTHS)

LOW-MID PRICE RANGE $384,500 TO $506,500 MEDIAN VALUE

RENTAL YIELD (P/A)

CAPITAL GROWTH (LAST QUARTER)

CAPITAL GROWTH (LAST 12 MONTHS)

RENTAL YIELD (P/A)

Braybrook

$584,000

7.57%

20.53%

3.12%

Seddon

$456,500

6.55%

12.79%

4.48%

Brooklyn

$623,500

7.15%

15.84%

3.04%

Bayswater

$471,500

6.07%

15.40%

4.46%

Carrum

$680,000

6.37%

20.28%

3.38%

Bayswater North

$393,000

6.05%

12.02%

4.68%

Chelsea Heights

$593,000

5.88%

13.32%

3.74%

Notting Hill

$414,500

5.79%

8.02%

4.75%

Maidstone

$686,500

5.77%

12.08%

3.11%

Ferntree Gully

$456,500

5.62%

15.57%

4.40%

MID-HIGH PRICE RANGE $737,000 TO $1,090,500 MEDIAN VALUE

Seddon

$933,000

CAPITAL GROWTH

CAPITAL GROWTH

10.69%

16.22%

(LAST QUARTER)

(LAST 12 MONTHS)

MID-HIGH PRICE RANGE $506,500 TO $668,500 MEDIAN VALUE

RENTAL YIELD (P/A)

Carnegie

2.98%

$527,000

CAPITAL GROWTH

CAPITAL GROWTH

6.80%

8.05%

(LAST QUARTER)

(LAST 12 MONTHS)

RENTAL YIELD (P/A)

4.15%

Williamstown North

$922,000

9.98%

14.27%

3.15%

Clayton

$529,500

6.60%

11.64%

4.32%

South Kingsville

$828,500

9.38%

21.52%

3.24%

Caulfield North

$629,000

5.76%

12.66%

3.78%

Altona

$823,500

9.34%

21.86%

2.90%

Scoresby

$594,500

5.16%

16.64%

4.01%

Newport

$922,000

7.91%

19.02%

3.16%

Strathmore

$547,500

4.90%

8.71%

4.08%

HIGH PRICE RANGE $1,103,500 TO $2,776,500

Williamstown

MEDIAN VALUE

CAPITAL GROWTH

CAPITAL GROWTH

$1,183,000

9.60%

13.99%

(LAST QUARTER)

(LAST 12 MONTHS)

HIGH PRICE RANGE $668,500 TO $1,405,500 MEDIAN VALUE

RENTAL YIELD (P/A)

Toorak

2.92%

$872,500

CAPITAL GROWTH

CAPITAL GROWTH

6.66%

10.50%

(LAST QUARTER)

(LAST 12 MONTHS)

RENTAL YIELD (P/A)

3.57%

St Kilda East

$1,449,000

8.09%

24.99%

2.93%

Kooyong

$994,500

6.56%

1.70%

3.38%

Richmond

$1,213,000

7.59%

11.67%

3.01%

Ashburton

$812,000

6.30%

10.02%

3.72%

Tottenham

$1,438,000

7.54%

22.88%

1.50%

Mount Waverley

$763,000

6.20%

13.22%

3.58%

East Melbourne

$2,484,500

7.49%

4.30%

2.17%

Lysterfield

$771,500

5.91%

17.15%

3.71%

Source: Residex

RED REPORT

All data is based on information from Q4 Apr - Jun 16

7

SECOND EDITION 2016


MELBOURNE MARKET

SUBURBS WITH HIGHEST SALE TURNOVER

Top Sales Turnover Suburbs Suburbs with the highest sales turnover are those that have had more properties on the market in the past 12 months than any other suburbs. This information is vital for identifying areas that may potentially be a Buyers' market.

Clyde North

14.40%

Eynesbury

13.50%

Wollert

13.20%

Rockbank

12.80%

Mickelham

12.10%

SUBURBS WITH HIGHEST SALE TURNOVER

Source: Residex

HOUSES

UNITS

Kennington

10.80%

Tyabb

10.30%

Wallan

10.10%

Rosebud West

9.80%

Chirnside Park

9.50%

CLEARANCE RATES

Suburbs with the Best Auction Clearance Rates* Auction clearance rates are the percentage of properties sold, usually calculated weekly. A high Auction clearance rate indicates a Sellers' market or a hot market. The hottest markets in Melbourne are shown here. (Includes suburbs with minimum 40 Auctions per half year.) * Source: REIV - Results are based on data from February 16 - July 16

East Melbourne

90.70%

Ashburton

90.40%

Dingley Village

90.00%

Burwood East

88.60%

Elsternwick

88.30%

Parkdale

88.00%

Collingwood

87.20%

Caulfield South

87.00%

Mentone

85.40%

Balaclava

85.00%

PERCENTAGE INCREASE

Expanding Suburbs Supply and demand affect the price Buyers are willing to pay. It is important to be aware of new dwellings in your area and whether Buyers are spoilt for choice.

RED REPORT

Werribee South

85.00%

North Warrandyte

62.00%

Plumpton

41.00%

Officer

39.00%

Narre Warren North

38.00%

PERCENTAGE INCREASE

Source: Residex

8

HOUSES

UNITS

Seabrook

15.00%

Werribee South

12.74%

Greenvale

12.43%

Sorrento

12.40%

North Melbourne

9.23%

SECOND EDITION 2016


LOCAL FOCUS

Property Market Snapshot REGIONAL PAGE 19

INNER CITY PAGE 10

Capital Growth

HOUSES

UNITS

8.46%

-0.14%

Clearance Rate

71.78%

Median Rent

$601

71.78%

HOUSES

UNITS

Capital Growth

4.08%

3.69%

Median Value

$370,028

Clearance Rate

N/A

N/A

Median Rent

$312

$248

5.33%

Rental Yield

5.27%

$427

2.84%

Rental Yield

PAGE 12

$272,232

$1,124,774 $534,477

Median Value

INNER NORTH

4.24%

HOUSES

UNITS

Capital Growth

15.39%

Median Value

$938,083

5.58%

Clearance Rate

77.71%

77.71%

Median Rent

$462

$353

2.67%

Rental Yield

INNER WEST

$514,401

3.64%

INNER EAST

PAGE 11

PAGE 13

HOUSES

UNITS

HOUSES

UNITS

Capital Growth

12.04%

3.52%

Capital Growth

19.23%

5.60%

Median Value

$827,184

$477,799

Median Value

$1,824,238 $693,009

Clearance

74.39%

Median Rent

$430

2.76%

Rental Yield

74.39%

$346

Clearance Rate

76.23%

76.23%

Median Rent

$657

$409

1.88%

Rental Yield

3.83%

PORT PHILLIP BAY

GREATER GEELONG

EASTERN SUBURBS

PAGE 17

PAGE 14

HOUSES

UNITS

4.96%

-0.51%

Capital Growth Clearance Rate

72.00%

Median Rent

$343

$453,000

Median Value

4.19%

Rental Yield

72.00%

$336,240

$283

4.71%

HOUSES

UNITS

Capital Growth

19.08%

10.11%

Median Value

$962,402

Clearance Rate

73.54%

73.54%

Median Rent

$441

$387

UNITS

15.08%

7.26%

Median Rent

$571

Rental Yield

77.65%

$1,115,934 $584,090

2.89%

3.27%

PAGE 15

HOUSES

77.65%

Median Value

$621,895

OUTER SUBURBS

PAGE 16

Clearance Rate

2.46%

Rental Yield

BAYSIDE

Capital Growth

3.15%

MORNINGTON PEN.

$389

PAGE 18

3.62%

HOUSES

UNITS

Capital Growth

11.17%

1.67%

Median Value

$703,172

Clearance Rate

74.00%

74.00%

Median Rent

$421

$328

Rental Yield

3.86%

HOUSES

UNITS

Capital Growth

11.85%

7.12%

Median Value

$543,327

Clearance Rate

74.91%

74.91%

Median Rent

$375

$323

Rental Yield

3.75%

$382,765

4.51%

$421,750

5.21%

Source: RP Data and REIV

RED REPORT

9

SECOND EDITION 2016


LOCAL FOCUS

INNER CITY

Top Three Trends Two bedroom apartments are hot property • Entry point of a small two bedroom house in Richmond or South Yarra is around $1 million, so it makes sense that two bedroom apartments are seeing a dramatic rise in price, between $800,000 - $900,000

Local offices Independent Youths

Oversupply

• The Inner City still represents an attractive location for young Buyers and Renters who are studying and working in the CBD

• Inner City suburbs such as South Bank and Docklands have an oversupply of apartments

Albert Park Armadale Commercial Melbourne Richmond South Yarra

9690 5366 9509 0411 9690 6000 9600 2192 9421 7100 9868 5444

• Investors may have to drop rental prices to draw in Tenants in these oversupplied areas

• 64% of residents in the suburb of Melbourne are 'Independent Youths' singles, couples and home sharers under the age of 35

Predictions Despite an over supply of apartments in some Inner City suburbs, there is still high demand for property in and around the CBD. This is reflected in the median sold property price increasing by an average of 5.1% across our Inner City offices in the past financial year. This is predicted to increase again in 2017.

Property Value Increase IN THE LAST 12 MONTHS

UNITS

H O U S ES

CAPITAL GROWTH

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

COLLINGWOOD

1

23.4%

COLLINGWOOD

$917,500

CAPITAL GROWTH

1 EAST MELBOURNE

CAPITAL GROWTH

MEDIAN PRICE

2 Fitzroy North

21.1%

$1,222,750

MEDIAN PRICE

3 Windsor

20.4%

$1,122,500

4 Abbotsford

18.7%

$917,500

5 East Melbourne

18.3%

$2,100,000

CAPITAL GROWTH

MEDIAN PRICE

2 Burnley

20.0%

$447,000

MEDIAN PRICE

1

21.7%

EAST MELBOURNE

$700,000

3 South Melbourne

8.7%

$685,000

4 Flemington

6.9%

$393,000

5 Kensington

6.5%

$452,500

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Burnley

3.6%

$650

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 WEST MELBOURNE RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

MEDIAN WEEKLY RENT

1 WEST MELBOURNE

3.7%

$540

RENTAL YIELD

MEDIAN WEEKLY RENT

CARLTON

1

5.6% RED REPORT

CARLTON

$400

10

3 Cremorne

3.3%

$630

4 Abbotsford

3.2%

$570

5 Carlton

3.2%

$580

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Melbourne

5.4%

$470

3 Southbank

4.8%

$530

4 Docklands

4.8%

$540

5 West Melbourne

4.8%

$460

SECOND EDITION 2016


LOCAL FOCUS

INNER WEST

Top Three Trends

Local offices

Supply and demand

The revival continues

Prices on the rise

• Stock is low – Vendors are reluctant to put their property on the market for fear that they won’t be able to buy at the other end

• New residential developments in Williamstown for example are creating opportunities for Investors and bringing new Buyers to the area

• Across all our offices in the Inner West, we have recorded an average increase in median sold property price by 15.25% compared to the previous financial year

• Demand is high – the Inner West has been a hot spot for a while now. Proximity to the city and distinct community feels are attracting young families and independents

Altona Commercial Williamstown Yarraville

9398 8044 9690 6000 9393 0000 8387 0555

• Infrastructure and local amenities are continually improving to cater to demand

Predictions With no reason for demand to decline, we expect the market to continue to be strong.

Property Value Increase IN THE LAST 12 MONTHS

H O U S ES UNITS

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

ABERFELDIE

26.5%

1

KINGSVILLE

ABERFELDIE

$1,277,500

MEDIAN PRICE

2 Spotswood

23.1%

$831,000

3 Essendon

22.3%

$1,150,044

4 Strathmore

21.8%

$1,035,000

5 Brooklyn

18.7%

$650,000

CAPITAL GROWTH

MEDIAN PRICE

2 Seddon

16.4%

$483,000

MEDIAN PRICE

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

CAPITAL GROWTH

1

20.2%

KINGSVILLE

$380,000

3 Niddrie

14.9%

$568,750

4 Ascot Vale

14.8%

$545,125

5 Brooklyn

11.9%

$470,000

RENTAL YIELD

MEDIAN WEEKLY RENT

3.1%

$390

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Altona North

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

MAIDSTONE

1

3.2%

$390

RENTAL YIELD

MEDIAN WEEKLY RENT

TRAVANCORE

1

5.3% RED REPORT

MAIDSTONE

TRAVANCORE

$380

11

3 Kingsville

3.1%

$460

4 Strathmore Heights

3.1%

$420

5 West Footscray

3.0%

$400

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Aberfeldie

4.7%

$300

3 South Kingsville

4.6%

$360

4 Footscray

4.4%

$315

5 Brooklyn

4.1%

$375

SECOND EDITION 2016


LOCAL FOCUS

INNER NORTH

Top Three Trends

Local offices

Pushing North

Renovators dream

Location, location, location

• Suburbs on the Inner City fringe such as Reservoir and Fawkner are growing in popularity and demand due to affordability

• Renovated or newer homes have been scarce and competitive bidding has resulted in high prices for Vendors

• The Inner North will always be an attractive location to Buyers and Renters. The café culture and plethora of shops reflects the ideal Melbourne lifestyle

• Buyers are therefore seeing value in purchasing the ‘renovators dream’ and investing in new fixtures and fittings, redecorating and landscaping

Coburg Commercial Ivanhoe Pascoe Vale Preston Reservoir

9350 5333 9690 6000 9499 5611 9350 5333 9471 1100 9470 2525

Predictions It’s predicted that the medium house price will continue to increase, not only in the inner suburbs of Brunswick and North Melbourne, but also further out to Reservoir and Coburg.

Property Value Increase IN THE LAST 12 MONTHS

UNITS

H O U S ES

CAPITAL GROWTH

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

FAIRFIELD

34.5%

1

ROSANNA

FAIRFIELD

$1,208,000

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

2 Brunswick East

30.3%

$945,000

MEDIAN PRICE

3 Heidelberg West

26.3%

$596,000

4 Heidelberg

22.1%

$1,065,000

5 Ivanhoe East

17.2%

$1,699,000

CAPITAL GROWTH

MEDIAN PRICE

2 Ivanhoe East

23.1%

$692,000

MEDIAN PRICE

1

29.2%

ROSANNA

$620,000

3 Coburg North

23.1%

$492,500

4 Viewbank

18.3%

$550,000

5 Fairfield

18.1%

$555,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Brunswick

3.1%

$520

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

KINGSBURY

MEDIAN WEEKLY RENT

1

3.2%

$360

RENTAL YIELD

MEDIAN WEEKLY RENT

1 HEIDELBERG WEST

1 HEIDELBERG WEST

4.6% RED REPORT

KINGSBURY

$350

12

3 Coburg North

3.1%

$395

4 Coburg

3.1%

$460

5 Brunswick East

3.0%

$550

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Kingsbury

4.6%

$340

3 Reservoir

4.2%

$320

4 Preston

4.2%

$360

5 Brunswick

4.1%

$380

SECOND EDITION 2016


LOCAL FOCUS

INNER EAST

Top Three Trends Withdrawal of International Buyers • Due to the Government’s stamp duty increase for Foreign Buyers and other lending and regulatory changes, there has been a decline in the number of International Buyers

Local offices Rental yields vs capital growth

Upsizing

• Whilst the Inner Eastern suburbs achieve the highest average median rent for homes and units, the rental yield is sacrificed due to the high property values

• Low interest rates are prompting families to upsize their homes or buy into more desirable areas, in particular those with in demand school zones such as Hawthorn, Kew and Glen Iris

• Investors will trade rental yield for long term capital growth

Armadale Balwyn Bentleigh Carnegie Caulfield Commercial Glen Iris South Yarra

9509 0411 9830 7000 9557 7733 9569 3666 8532 5200 9690 6000 9818 1888 9868 5444

Predictions Post-election and warmer months ahead will see a steady increase in Buyer confidence. Numbers at Open For Inspections are up and are expected to increase as Buyers flock to auctions in numbers.

Property Value Increase IN THE LAST 12 MONTHS

H O U S ES UNITS

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

HUGHESDALE

31.9%

1

CAULFIELD

HUGHESDALE

$1,187,500

MEDIAN PRICE

2 Hawthorn East

31.5%

$1,865,000

3 Caulfield

27.2%

$1,685,000

4 Murrumbeena

27.2%

$1,250,000

5 Kew East

26.7%

$1,695,000

CAPITAL GROWTH

MEDIAN PRICE

2 Hughesdale

20.6%

$627,000

MEDIAN PRICE

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

CAPITAL GROWTH

1

23.8%

CAULFIELD

$755,000

3 Canterbury

14.5%

$986,000

4 Glen Huntly

14.1%

$492,250

5 Toorak

12.4%

$890,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Carnegie

2.2%

$530

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

ORMOND

MEDIAN WEEKLY RENT

1

2.2%

$580

RENTAL YIELD

MEDIAN WEEKLY RENT

KOOYONG

1

3.9% RED REPORT

ORMOND

KOOYONG

$615

13

3 Caulfield South

2.1%

$570

4 Malvern

2.1%

$800

5 Glen Iris

2.1%

$713

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Glen Huntly

3.9%

$370

3 Glen Iris

3.7%

$385

4 Ormond

3.7%

$350

5 Carnegie

3.6%

$360

SECOND EDITION 2016


LOCAL FOCUS

EASTERN SUBURBS

Top Three Trends Location & lifestyle • Young Buyers are seeing value in what the Outer Eastern suburbs have to offer – schools, transport and shopping • Nunawading for example is only 18kms from the CBD and still represents great value for money

Local offices Baby boomers are selling down

Current sentiment in the market

• Baby boomers are making up a high proportion of Vendors. They are seeking to scale down from larger family homes to single storey units and homes

• Buyers are tired of missing out on properties due to the fierce competition at Auctions • Sellers are constantly finding new ways to get a better deal

Balwyn Blackburn Commercial Doncaster Glen Iris Glen Waverley Mooroolbark Mount Waverley Ringwood

9830 7000 9894 8788 9690 6000 9842 1188 9818 1888 9886 6900 9727 7888 9807 9522 9876 9001

Predictions Spring has sprung and Buyers and Renters are out and about. As a result, days on market are expected to decrease and vacancy rates will also drop.

Property Value Increase IN THE LAST 12 MONTHS

UNITS

H O U S ES

CAPITAL GROWTH

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

ASHWOOD

29.7%

1

ASHWOOD

$1,180,000

CAPITAL GROWTH

1 VERMONT SOUTH

CAPITAL GROWTH

MEDIAN PRICE

2 Mount Waverley

26.7%

$1,280,000

MEDIAN PRICE

3 Doncaster East

25.7%

$1,150,000

4 Doncaster

25.0%

$1,260,000

5 Burwood

24.3%

$1,199,100

CAPITAL GROWTH

MEDIAN PRICE

2 Bulleen

29.7%

$720,000

MEDIAN PRICE

1

34.1%

VERMONT SOUTH

$772,500

3 Blackburn South

27.9%

$767,500

4 Ringwood East

25.2%

$541,000

5 Croydon North

18.5%

$490,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Croydon Hills

3.4%

$470

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

WONGA PARK

MEDIAN WEEKLY RENT

1

3.5%

$495

RENTAL YIELD

MEDIAN WEEKLY RENT

NOTTING HILL

1

4.7% RED REPORT

WONGA PARK

NOTTING HILL

$350

14

3 Croydon South

3.4%

$395

4 Warranwood

3.4%

$528

5 Croydon

3.2%

$395

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Moorabbin

4.2%

$400

3 Croydon

4.0%

$350

4 Croydon North

3.8%

$360

5 Doncaster

3.6%

$420

SECOND EDITION 2016


LOCAL FOCUS

OUTER SUBURBS

Top Three Trends New hot spots • As demand for the Great Australian Dream grows, so does the demand for new suburbs on the fringes of Melbourne • Cranbourne East, Plumpton and Epping are booming, while 15,000 lots have been released in Wollert next year

Local offices Where the Buyers are coming from

Investor market • With interest rates so low, most properties are positively geared as soon as they are leased

• There has been an incline in the number of purchasers from Sydney, driven south due to the rising property market • First Home Buyers are moving out of their family homes to purchase in affordable outer suburbs

Berwick Caroline Springs Commercial Cranbourne Epping Frankston Greensborough Melton Mooroolbark Point Cook Ringwood Sunshine Werribee

8768 3800 9999 9888 9690 6000 5995 1888 8468 9900 9781 3366 9432 1988 9746 6888 9727 7888 9395 6888 9876 9001 9311 4550 9731 7022

Predictions Current trends are expected to continue with new builds and house and land packages becoming available in new suburbs in Melbourne. First Home Buyers will always see value in a new home, rather than a renovator as long as the Government invests in transport links and infrastructure.

Property Value Increase IN THE LAST 12 MONTHS

H O U S ES UNITS

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

PLUMPTON

1

49.0%

PLUMPTON

$372,500

MEDIAN PRICE

2 Dandenong South

38.6%

$823,482

3 Attwood

27.5%

$650,000

4 Clayton

26.4%

$995,673

5 Keysborough

26.4%

$606,500

CAPITAL GROWTH

MEDIAN PRICE

2 Albion

20.5%

$251,500

MEDIAN PRICE

CAPITAL GROWTH

1 MOOROOLBARK

CAPITAL GROWTH

MEDIAN PRICE

CAPITAL GROWTH

1

24.2%

MOOROOLBARK

$478,000

3 Campbellfield

20.4%

$359,250

4 Bayswater

19.9%

$455,750

5 Endeavour Hills

17.8%

$397,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Melton

5.5%

$270

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

MELTON SOUTH

MEDIAN WEEKLY RENT

1

5.5%

$275

RENTAL YIELD

MEDIAN WEEKLY RENT

MELTON SOUTH

1

6.2% RED REPORT

MELTON SOUTH

MELTON SOUTH

$250

15

3 Coolaroo

5.2%

$318

4 Kurunjang

5.1%

$280

5 Campbellfield

5.0%

$360

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Melton

6.1%

$270

3 Meadow Heights

5.9%

$320

4 Kurunjang

5.9%

$265

5 Melton West

5.7%

$275

SECOND EDITION 2016


LOCAL FOCUS

B AY S I D E

Top Three Trends

Local offices

Hot Auctions

Shortage of stock

• Consumers are experienced in the Auction process, so we are seeing an increase in bidders on Auction day, from four to six compared to two to three in previous years

• Distractions in the market such as the election, Olympics and an early Easter have seen Sellers holding back for a clear run at a marketing campaign

• As a result, days on market are remaining consistent at about four weeks

• There is a shortage in detached homes in Elwood and St Kilda, causing Buyers to look at larger apartments

Buyers coming from Inner Melbourne • Buyers are moving away from the inner suburbs and along the bay towards suburbs such as Mentone and Frankston for larger, family living • These Buyers are the main drivers of pricing, high demand and quick turnover

Albert Park Bentleigh Brighton Caulfield Chelsea Commercial Frankston Mentone Sandringham St Kilda

9690 5366 9557 7733 9596 7055 8532 5200 9772 7222 9690 6000 9781 3366 9583 3246 9521 9800 9593 8733

Predictions Growth will likely plateau as more stock comes onto the market. Prices are already high - there seems to be less and less competition at the record price levels. We also expect that the apartment market may also show a little more strength as the attention moves from overheated home prices to smaller town homes and larger apartments.

Property Value Increase IN THE LAST 12 MONTHS

UNITS

H O U S ES

CAPITAL GROWTH

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

ST KILDA EAST

45.3%

1

HAMPTON EAST

ST KILDA EAST

$1,480,000

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

2 Hampton

30.2%

$1,725,000

MEDIAN PRICE

3 Port Melbourne

28.7%

$1,300,000

4 Chelsea

26.5%

$740,000

5 Hampton East

25.4%

$1,087,500

CAPITAL GROWTH

MEDIAN PRICE

2 Balaclava

26.5%

$556,500

MEDIAN PRICE

1

27.4%

HAMPTON EAST

$662,000

3 Ripponlea

25.9%

$525,000

4 Beaumaris

22.9%

$1,000,000

5 Sandringham

20.0%

$702,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Carrum Downs

4.8%

$350

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 FRANKSTON NTH RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

RED REPORT

MEDIAN WEEKLY RENT

1 FRANKSTON NTH

4.8%

$280

RENTAL YIELD

MEDIAN WEEKLY RENT

1 CARRUM DOWNS

1 CARRUM DOWNS

5.2%

$323

16

3 Frankston

4.1%

$340

4 Seaford

3.7%

$360

5 Chelsea Heights

3.6%

$420

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Gardenvale

4.9%

$295

3 Frankston

4.6%

$275

4 St Kilda

4.2%

$390

5 Frankston South

4.2%

$350

SECOND EDITION 2016


LOCAL FOCUS

G R E AT E R G E E L O N G

Top Three Trends

Local offices

Location, location, location

Appealing for Investors

New land

• The Inner City suburbs continue to perform best with high demand in areas like Geelong West, East Geelong, Manifold Height, Belmont, Newtown and Highton

• Rental returns are in the region of 6% to 7%, which is attractive to Investors, especially in areas such as Corio, Norlane, Whittington, Newcomb and St Albans, which are at the lower end of the market

• New land releases around Torquay have caused a price drop in land. This is attracting young families to the area who are happy to make the commute to Melbourne

• Days on market remain strong at between 30-45 days for those inner suburbs

Geelong Torquay

5223 2525 5261 8888

Predictions Property prices are expected to increase steadily. Torquay for example are expecting a 10% rise in the average median property price. This will be especially evident in the coming months leading up to Summer.

Property Value Increase IN THE LAST 12 MONTHS

H O U S ES UNITS

1 NORTH GEELONG CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

1 NORTH GEELONG

19.8%

$347,500

GEELONG WEST

MEDIAN PRICE

2 Geelong

17.8%

$605,000

3 Torquay

10.8%

$645,000

4 East Geelong

10.6%

$470,000

5 St Leonards

9.2%

$387,500

CAPITAL GROWTH

MEDIAN PRICE

2 Portarlington

14.3%

$348,500

MEDIAN PRICE

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

CAPITAL GROWTH

1

16.8%

GEELONG WEST

$375,000

3 Highton

13.9%

$347,500

4 Point Lonsdale

10.3%

$480,000

5 Manifold Heights

7.8%

$277,500

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Breakwater

5.5%

$285

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

WHITTINGTON

MEDIAN WEEKLY RENT

1

5.8%

$290

RENTAL YIELD

MEDIAN WEEKLY RENT

WHITTINGTON

1

6.5% RED REPORT

WHITTINGTON

WHITTINGTON

$240

17

3 Norlane

5.4%

$230

4 Corio

5.4%

$250

5 Newcomb

5.3%

$295

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Grovedale

5.8%

$290

3 Norlane

5.7%

$248

4 Corio

5.7%

$228

5 St Albans Park

5.6%

$273

SECOND EDITION 2016


LOCAL FOCUS

MORNINGTON PENINSULA

Top Three Trends

Local offices

Seasonal changes

Lifestyle attraction

Hot Auctions

• As the warmer months approach, properties will hit the market and demand will naturally increase

• On average 66% of Buyers are coming from out of area, proving the lifestyle attraction remains strong and is drawing in new Purchasers from around Victoria and beyond

• As the weather warms up, Auctions become the preferred method of sale. From Spring to Summer, our offices have recorded a steady increase in Auctions by about 50%

• Average weekly rental income has increased by 4.3% compared to last year. This would expect to climb as holiday makers descend on the area during Summer

Blairgowrie Dromana Mornington Rosebud

5988 9095 5987 1999 5973 5444 5986 5777

Predictions It is expected the market will remain strong for the rest of the financial year, with Auction clearance rates holding steady at 70-85%. The early Easter this year may bring on the Winter lull earlier than normal. Apartment prices will remain steady and we will see some higher than average house prices due to the lack of options.

Property Value Increase IN THE LAST 12 MONTHS

UNITS

H O U S ES

CAPITAL GROWTH

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

PORTSEA

36.0%

1

SAFETY BEACH

PORTSEA

$1,775,000

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

2 Dromana

17.2%

$565,000

MEDIAN PRICE

3 St Andrews Beach

16.9%

$605,000

4 Fingal

14.1%

$867,500

5 Blairgowrie

12.9%

$700,000

CAPITAL GROWTH

MEDIAN PRICE

2 Mount Martha

8.7%

$500,000

MEDIAN PRICE

1

11.4%

SAFETY BEACH

$440,000

3 Rosebud West

6.8%

$405,000

4 Mornington

5.4%

$477,500

5 Tyabb

3.3%

$315,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Rosebud

4.0%

$320

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

ROSEBUD WEST

MEDIAN WEEKLY RENT

1

4.2%

$330

RENTAL YIELD

MEDIAN WEEKLY RENT

SAFETY BEACH

1

4.5% RED REPORT

ROSEBUD WEST

SAFETY BEACH

$380

18

3 Tootgarook

3.9%

$328

4 McCrae

3.7%

$420

5 Safety Beach

3.6%

$395

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Rosebud

4.4%

$300

3 Mount Martha

4.2%

$405

4 Rye

4.2%

$280

5 Dromana

4.1%

$300

SECOND EDITION 2016


LOCAL FOCUS

REGIONAL VICTORIA

Top Three Trends

Local offices

Central locations are desirable

Improved transport links

Steady rental market

• There is strong demand for properties located in the centre of Ballarat for example. Outer suburbs are slower to turnover as they are competing with the large volume of blocks available in new suburbs such as Lucas

• Talk of a fast train around regional Victoria is a positive initiative for the market

• The rental market in Daylesford is very steady and does not fluctuate with the seasons like many other holiday spots. Daylesford is a holiday escape all year round for Melbournians with world class restaurants and luxury spas and accommodation

• There has been a 10% price growth in the central Lake precinct over the past 24 months

Ballarat Daylesford

5329 2500 5348 1700

Predictions The market will continue to be strong as less stock becomes available. It is expected that days on market will continue to decrease as Buyers snap up affordable homes and holiday accommodation.

Property Value Increase IN THE LAST 12 MONTHS

H O U S ES UNITS

1 CAPITAL GROWTH for Investors looking to benefit from long term property price increase.

HEPBURN

1

31.2%

ALFREDTON

HEPBURN

$435,000

MEDIAN PRICE

2 Hepburn Springs

15.8%

$440,000

3 Ballarat North

14.0%

$333,000

4 Clunes

14.0%

$245,000

5 Ballarat Central

13.0%

$375,500

CAPITAL GROWTH

MEDIAN PRICE

2 Ballarat Central

21.5%

$257,500

MEDIAN PRICE

CAPITAL GROWTH

1

CAPITAL GROWTH

MEDIAN PRICE

CAPITAL GROWTH

1

24.4%

ALFREDTON

$282,500

3 Sebastopol

2.3%

$211,750

4 Ballarat East

1.5%

$264,975

5 Daylesford

0.0%

$320,000

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Wendouree

5.5%

$260

Return On Your Investment IN THE LAST 12 MONTHS

U NI TS

HO U SE S

RENTAL YIELD

1 RENTAL YIELD for Investors wanting the most out of rental income and to minimise mortgage repayments.

1

SEBASTOPOL

MEDIAN WEEKLY RENT

1

5.5%

$255

RENTAL YIELD

MEDIAN WEEKLY RENT

MOUNT CLEAR

1

6.4% RED REPORT

SEBASTOPOL

MOUNT CLEAR

$250

19

3 Clunes

5.4%

$255

4 Miners Rest

5.3%

$340

5 Mount Helen

5.3%

$350

RENTAL YIELD

MEDIAN WEEKLY RENT

2 Redan

5.7%

$230

3 Sebastopol

5.6%

$230

4 Daylesford

5.3%

$325

5 Ballarat North

5.2%

$225

SECOND EDITION 2016


Real estate is our world

H O C K I N G S T U A R T. C O M . A U


Red Report - second edition 2016