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Third Quarter │2012

MARSDEN/ CRESTMEAD Property WatchÂŽ

MARSDEN/ CRESTMEAD MARKET OVERVIEW The following Property Watch report is the result of an investigation into the historic and current market trends of the Marsden and Crestmead suburbs, hereon referred to as the Marsden Area. During the six months to April 2012, the Marsden Area house market registered a total of 120 transactions, representing a 17.2 per cent decrease in activity from the April 2011 half year period. Observing the Marsden Area House Sales Cycle chart, the house market has demonstrated a gradual decrease in sales activity since the stimulus driven market of 2009, where government incentives and low interest rates combined to underprop the market from the collapse experienced in 2008 following the Global Financial Crisis (GFC). Developer activity has since revised back to a lesser extent; however there are still several subdivision projects currently underway in the area which will look to bring new stock to the market during 2012.

PRDnationwide Marsden, Marsden Park

MARKET INDICATORS Change from Last

Year

Half Year

HOUSE SALES

The median house price continues to soften in the Marsden Area, with a modest 5.8 per cent correction over the year to April 2012 resulting in a median price of $295,000. The long term the median price trend has performed comparatively against other markets in the South East Queensland region, recording a 2.9 per cent average annual growth over the past five years. The rather buoyed median price can be attributed largely to the affordability of the market, with very little movement for values to correct any further. The House Price Points chart indicates a considerable increase in activity within the sub $300,000 market over the past three years, with softened property values shifting activity downward from the once dominant $300,000 to $349,999 price range. Furthermore, consecutive interest rate cuts since November 2011 (on hold at 3.5 per cent as at August 2012) appears to have made little impact on current sales volumes.

HOUSE MEDIAN

MARSDEN AREA HOUSE SALES CYCLE HOUSE RENTS 700

$350,000

Number of sales

LAND SALES

Median 600

$300,000

The indicators depicted above are based on the year ending April 2012, except for aggregate rental indicators which reflect quarterly data up to June 2012.

Number of sales

LAND MEDIAN

500

$250,000

400

$200,000

300

$150,000

200

$100,000

100

$50,000

2012 APR

2011 APR

2011 OCT

2010 APR

2010 OCT

2009 APR

2009 OCT

2008 APR

2008 OCT

2007 APR

2007 OCT

2006 APR

2006 OCT

2005 APR

2005 OCT

2004 APR

2004 OCT

2003 APR

2003 OCT

2002 APR

$0

2002 OCT

0

Median sale price

$295,000

Half year period

Prepared by PRDnationwide Research. Source: PDS

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increase in buyer enquiry since July 2012, with wellpriced property quick to move.

Sales activity across the Marsden Area land market has diluted during the year to April 2012 as the availability of land tightens and developer activity subsides. Further residential growth in the immediate area is likely to be facilitated via the Park Ridge/ Logan Reserve urban growth corridor which is earmarked to bring to market new residential estates in the coming years. The prevailing median land price of $198,000 indicates sustained demand for a product which is running low in supply. Whilst there are still several small subdivision prospects in the area, most large scale sites have already been exploited and brought to market.

MARSDEN AREA LAND SALES CYCLE 180

$250,000

Number of sales Median

160

$200,000

140

$198,000

HOUSE PRICE POINTS 2010 APR At least $450,000

2011 APR

4%

2011 OCT

5%

1%

2012 APR

3%

1%

$150,000 100 80 $100,000 60 40

$400,000 to $449,999

6%

7%

10%

7%

$50,000

11%

20 $350,000 to $399,999

17%

14%

16%

15%

13%

$250,000 to $299,999

21%

20%

21%

42%

2012 APR

2011 APR

2011 OCT

2010 APR

2010 OCT

2009 APR

2009 OCT

2008 APR

2008 OCT

2007 APR

2007 OCT

2006 APR

2006 OCT

2005 APR

2005 OCT

20%

2004 APR

22%

2004 OCT

32%

2003 APR

43%

2003 OCT

49%

$0

2002 APR

0

$300,000 to $349,999

2002 OCT

Price points

2010 OCT

Number of sales

120

Median sale price

Anecdotal evidence highlights an

Half year period

38%

Prepared by PRDnationwide Research. Source: PDS Less than $250,000

4%

11%

0%

19%

20%

10%

40%

17%

60%

80%

100%

Portion of total sales

Prepared by PRDnationwide Research. Source: PDS

MEDIAN RENTS – 4132 PC 2010 JUN

2011 JUN

2012 JUN

Investor activity across the Marsden Area property market remains low, with little to no movement in rental price growth over the past three years and rather modest capital appreciation as indicated by the Average Capital Growth chart, placing a cloud over the short term growth prospects of the market. With that being said, the availability of competitively priced property in the current market affords many would-be property investors with an opportunity to secure a solid entry level property to kick start their property portfolio, with sound rental yields available to those who purchase well-presented property at the right price.

MARSDEN AREA HOUSE AVERAGE CAPITAL GROWTH

$310

25%

3 Bed

Average annual capital growth rate

$310

House type

$320

$360

4 Bed

$370

20%

15%

10%

5%

$365

Median rent

2012 APR

2011 APR

2011 OCT

2010 OCT

2010 APR

2009 APR

2009 OCT

2008 APR

2008 OCT

2007 APR

2007 OCT

2006 OCT

2006 APR

2005 OCT

2005 APR

2004 OCT

2004 APR

2003 OCT

2003 APR

2002 OCT

2002 APR

$400

$350

$300

$250

$200

$150

$100

$50

$-

0%

Half year period

Prepared by PRDnationwide Research. Source: PDS

Prepared by PRDnationwide Research. Source: RTA

Research Analyst │Robert Matta P (07) 3026 3357 F (07) 3166 0457 E robertmatta@prd.com.au PRDnationwide Marsden │Principal Ronn Nielsen P (07) 3805 3322 F (07) 3805 2112 E marsden@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. © 2012

Marsden Area Property Watch Q3 2012  

Sales activity across the Marsden Area property market remains flat despite modest price corrections in an already affordable market.

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