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Second Quarter │2013

BURLEIGH HEADS AREA Property Watch®

BURLEIGH HEADS AREA MARKET OVERVIEW The following Property Watch report is the result of an investigation into the historic and current market trends of the Burleigh Heads Area, defined by the suburbs of Burleigh Heads, Burleigh Waters, Miami and Varsity Lakes. Sales in the Burleigh Heads Area house market have been on a steady decline since stimulus packages propped the market up through the second half of 2009 into the first half of 2010. While the back half of 2012 saw more activity in the market, the six months to January 2013 saw sales come back 11 per cent. During this period there were 190 transactions recorded. With the Gold Coast City Council attempting to facilitate construction with their Construction Kickstart st initiative (commenced 1 October 2012), it is hoped this stimulus promotes small to medium-sized businesses and creates short-term construction jobs.

MARKET INDICATORS Change from Last

Year

Half Year

HOUSE SALES HOUSE MEDIAN

The median house price over the past 12 months has strengthened in the Burleigh Heads Area with a notable nine per cent increase over the year to January 2013, rising in a similar vain to that seen from 2009 to 2010. During this time the House Price Points charts notes that there has been a notable contraction of sales activity of approximately seven per cent in the $400,000 to $499,999 price range. Concurrently, the $600,000 plus price range grew seven per cent to account for a total 28 per cent of sales. Although lower priced property still occupies the majority of the market, the expansion of the higher priced properties transacting is a likely sign of the increased mortgage affordability coupled with the development of more flexible options when it comes to mortgage products. However as sales have continued to decline it may be a sign that the latest price rise is unsustainable, with sellers needing to be realistic if they wish to sell their property in a timely manner.

BURLEIGH HEADS AREA HOUSE SALES CYCLE 500

HOUSE RENTS

$600,000

Number of sales Median

450

$505,000

$500,000

UNIT SALES

400

200 $200,000 150 100 $100,000

50

2012 JUL

2013 JAN

2011 JUL

2012 JAN

2010 JUL

2011 JAN

2009 JUL

2010 JAN

2008 JUL

2009 JAN

2007 JUL

2008 JAN

2006 JUL

2007 JAN

2005 JUL

2006 JAN

2004 JUL

$0

2005 JAN

0

2003 JUL

The price gap between houses and units represents excellent value for money opportunities on offer in the Burleigh Heads Area unit market

$300,000

2004 JAN

250

2003 JAN

The indicators depicted above are based on the year ending January 2013, except for aggregate rental indicators which reflect quarterly data up to March 2013.

Number of sales

UNIT RENTS

$400,000 300

Median sale price

350

UNIT MEDIAN

Half year period

Prepared by PRDnationwide Research. Source: PDS

www.prdresearch.com.au

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www.prdresearch.com.au Sales in the Burleigh Heads Area unit market have been steady and plateaued as median price has contracted and is beginning to stabilise. In the six month period ending January 2013, there were 242 recorded unit transactions, representing a minimal one per cent drop from the previous six months; however represents a nine per cent increase over 12 months. Over the same time the median price has come back four per cent over the 12 months (and one per cent over the previous six months) to round out the January 2013 period at $345,000. With the median price beginning to level off at its lowest point in six years, now represents a good time for buyers to enter the market. With a very limited amount of new unit supply occurring in the Burleigh Heads Area (approximately 31 units), and none of it due in 2013, median price can be expected to plateau and perhaps rise provided demand remains stable. Given the price gap between houses and units is currently at its greatest, the affordability and value for money offered in the unit market cannot be ignored.

HOUSE PRICE POINTS 2011 JAN At least $700,000

Price points

2012 JAN

15%

13%

17%

$650,000 to $699,999

6%

$600,000 to $649,999

4%

8%

$550,000 to $599,999

16%

$450,000 to $499,999

21%

$400,000 to $449,999

4%

9%

7%

14%

20%

17%

20%

18%

23%

17%

20%

4%

10%

8%

26%

8%

0%

4%

9%

18%

14%

7%

10%

19%

2013 JAN

10%

5%

18%

14%

2012 JUL

2%

9%

14%

$500,000 to $549,999

Less than $400,000

2011 JUL

18%

13%

40%

11%

60%

80%

100%

Percentage of total sales

The Unit Price Points chart represents the appetite of buyers for more affordable property, with the $300,000 to $349,999 accounting for 24 per cent of transactions, while the sub $350,000 market accounted for 51 per cent of all transactions for the period. The $550,000 plus market contracted three per cent over the 12 months to January 2013.

Prepared by PRDnationwide Research. Source: PDS

UNIT PRICE POINTS 2011 JAN 18%

2011 JUL

2012 JAN

17%

2012 JUL

17%

2013 JAN

12%

14%

BURLEIGH HEADS AREA UNIT SALES CYCLE

$500,000 to $549,999

4%

$450,000 to $499,999

5%

7%

4%

8%

5%

6%

6%

6%

800

4%

$500,000

Number of sales Median

$400,000 to $449,999

16%

$350,000 to $399,999

20%

$300,000 to $349,999

23%

15%

9%

20%

10%

17%

10%

18%

$450,000

700

$400,000

15%

600

7%

Less than $250,000

6%

0%

8%

20%

23%

15%

7%

12%

12%

20%

13%

14%

40%

$350,000

24%

14%

60%

80%

100%

Percentage of total sales

$345,000

500

$300,000

400

$250,000 $200,000

300

$150,000

200

Prepared by PRDnationwide Research. Source: PDS

$100,000

100

MEDIAN RENTS – 4220 PC

2012 JUL

2013 JAN

2011 JUL

2012 JAN

2010 JUL

2011 JAN

2009 JUL

2010 JAN

2008 JUL

2009 JAN

2007 JUL

2008 JAN

2006 JUL

2007 JAN

2005 JUL

2006 JAN

2004 JUL

Mar-13

2005 JAN

$0

2003 JUL

0

2004 JAN

Mar-12

$50,000

2003 JAN

Mar-11

Median sale price

$250,000 to $299,999

19%

Number of sales

Price points

At least $550,000

Half year period

$270 1 Bed Units

Prepared by PRDnationwide Research. Source: PDS

$280 $270

The rental market in the Burleigh Heads Area has been slow over the past three years, with the average three year growth rate across all dwelling types sitting at a very modest 0.49 per cent. For interested investors intent on buying in the Burleigh Heads Area, three bedroom houses represent the most solid investment vehicle, with the category receiving a five per cent growth in bonds over three years, and a one per cent growth in weekly median rent.

$350

2 Bed Units

$350 $360

Dwelling type

$410 3 Bed Units

$420 $420 $435

3 Bed House

$440

MOST ACTIVE SUBURBS FOR THE JANUARY 2013 HALF YEAR

$450

House market

$530 4 Bed Houses

HY Jan-13

Annual Change

Burleigh Waters

85

-8%

Varsity Lakes

55

-13%

Burleigh Heads

29

4%

Miami

21

11%

$500

Median rent

$600

$500

$400

$300

$200

$100

$-

$540

No. House Sales

Unit Market

No. Unit Sales HY Jan-13

Annual Change

Burleigh Heads

103

16%

Varsity Lakes

67

8%

Miami

43

5%

Burleigh Waters

29

-6%

Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS

Research Analyst │Matt Ballam P (07) 3026 3356 F (07) 3166 0456 E mattballam@prd.com.au PRDnationwide Burleigh Heads │ P (07) 5535 4544 F (07) 5576 1382 E burleigh@prd.com.au Prepared by PRDnationwide Research. Source: PDS, ABS, Residential Tenancy Authority. PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2013

Burleigh Heads Area Property Watch 2013 Q2  

Burleigh Heads Area Property Watch 2013 Q2

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