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Research First Quarter 2011

Werribee Area Market Overview IN BRIEF ¾ The median sale price of Werribee houses has surged, closing the September 2010 six month period at $340,200, culminated from a total of 1,283 transactions. ¾ The median sale price of units closed the September 2010 six month period at $260,000, culminated from a total of 179 transactions. ¾ The median sale price of vacant land closed the September 2010 six month period at $175,000, culminated from a total of 792 transactions.

Scope This report analyses the current trends and performance of the Werribee Area’s house, unit and vacant land markets. To portray a succinct overview of the Werribee market, the direct neighbouring suburbs of Tarneit, Hoppers Crossing, Point Cook, Werribee South and Wyhdham Vale have been incorporated into the central suburbs analysis.

Area Characteristics Werribee House Sales Cycle 1 800 1,800

1,600

The Werribee Area house price points graph to the right highlights a notable trend toward the higher price brackets in recent years, as house product in the region continues to appreciate in value. The portion of house sales transacting for less than $300,000 has diminished 38% since September 2008, 2008 while higher priced product transacting for $400,000 plus has increased 19% throughout this period. Sydney Brisbane

(02) 9221 2663 (07) 3229 3344

$250,000 1,000 $200,000 800 $150,000 600 $100,000

400

$50,000

200

0 2010 SEP

2009 SEP

2010 MAR

2008 SEP

2009 MAR

2007 SEP

2008 MAR

2006 SEP

2007 MAR

2005 SEP

2006 MAR

2004 SEP

2005 MAR

2003 SEP

2004 MAR

2002 SEP

2003 MAR

2001 SEP

2002 MAR

2000 SEP

2001 MAR

$0

Half year period

Prepared by PRDnationwide Research. Source: PDS Live

Werribee House Price Points September 2008 to September 2010 100%

3%

90%

9%

3% 8%

5% 14%

8%

11%

15%

80%

20% 24%

70%

31% 31%

60%

$500,000 + 39%

50%

$400,000 to $499,999 45%

55% 30%

Less than $200,000

51% 45% 36%

20%

22%

10% 0%

$300,000 to $399,999 $200,000 to $299,999

40%

8%

7%

4%

3%

3%

2008 SEP

2009 MAR

2009 SEP

2010 MAR

2010 SEP

Half year period Prepared by PRDnationwide Research. Source: PDS Live

GPO Box 2750 Brisbane QLD 4001 Email: prdresearch@prd.com.au Annual subscription to Property Watch $220

Median sale price

$300,000

1,200

Share of total ssales

The median was culminated from a total of 1,283 house transactions throughout the six months. This level of activity remained slightly above the regions five year average of 1,249 transactions per six month period. The sales were well dispersed throughout the neighbouring suburbs, with Werribee, Point Cook and Hoppers pp Crossing g accounting g for 24%, 22.5% and 21.5% of total sales respectively. Tarneit and Wyndham Vale accounted for a further 17.5% and 14.5%, while Werribee South attracted very few sales.

$340,200 $350,000

1,400

Werribee Area House Market Werribee’s strong central position has placed the region as one of Victoria’s key performing markets over the past decade. Growth in both median sale price and the level of sales activity have continued on a strong upward trend in the most recent periods. Closing the September 2010 six months at $340,200, the median sale price for houses in Werribee recorded an annual growth of 13 4% while 13.4%, hil a robust b t ten t year growth th rate t off 9.8% 9 8% per annum was maintained.

$400 000 $400,000

Number of sales Median

Number of sales

Situated within the Local Government Area (LGA) of Wyndham, Werribee is located on the Werribee River, River approximately 32 kilometres south-west of Melbourne’s CBD. With the urban sprawl from Victoria’s two major cities, Melbourne and Geelong encroaching on the region, Werribee’s property market has performed particularly well over the past 10 years and is positioned for continuing growth. The region is well services by rail and the Princes Freeway, both providing direct access to Melbourne in the north-east and Geelong, located 45km southwest.


Research Werribee Unit Sales Cycle 350

$300,000

Number of sales Median

$260,000

300

$250,000

250 $200,000 200 $150,000 150 $100,000

Me edian sale price

As the population of the Wyndham LGA continued to grow at a rapid pace, the demand and value of well located unit type dwellings has continued to increase. The median sale price for units in the Werribee Area closed the September 2010 six month period at $260,000. This median figure resulted in an annual growth of 5.6% or in dollar terms, a substantial appreciation of $14,000. Looking at the longer term growth rate, unit product has almost matched the house market appreciating at a rate of 9.3% per annum over the past decade. decade

Number of sales

Werribee Area Unit Market

100

Similar to house market, the price points graph to the right shows an emerging trend toward the higher price points for Werribee units. The portion of unit sales transacting for less than $200,000 has declined 26% since the September period of 2008, while the higher g priced p p product transacting g for $300,000 , plus has increased p 16%. A new $400,000 plus price bracket has also newly emerged only in the past 18 months. While this shifting price trend can largely be attributed to the general appreciating value of Werribee units, specific economic factors have also resulted in a change in the typical buyer most predominant in the market. The 2009 market was heavily characterised as an incentive driven market, with substantial Government grants to First Home Buyers and record low interest rates. rates Throughout 2010 however, however Government grants had been retracted and a number of consecutive interest rate rises had made the cost of attaining finance far less affordable. This change has resulted in the withdrawal of first home buyers from the market, while at the same time creating a re-emerging contingency of wealthier investors and home-buyers. In the present market, those who are capable of absorbing the additional costs are generally more wealthy y and can g generally y consider spending p g a little more in order to acquire a higher quality product at a competitive price.

$50,000

50

$0

2010 SEP

2009 SEP

2010 MAR

2008 SEP

2009 MAR

2007 SEP

2008 MAR

2006 SEP

2007 MAR

2005 SEP

2006 MAR

2004 SEP

2005 MAR

2003 SEP

2004 MAR

2002 SEP

2003 MAR

2001 SEP

2002 MAR

2000 SEP

2001 MAR

0

Half year period

Prepared by PRDnationwide Research Research. Source: PDS Live

Werribee Unit Price Points September 2008 to September 2010 100%

2%

8%

11%

90%

17%

4%

6%

20%

18%

80%

Share of total sales

The September 2010 six month median was achieved from a total of 179 unit transactions. While this level of activity reflected a significant softening in comparison to the previous few periods, it remains well aligned with the regions five year average of 183 unit sales per six months. The central suburb of Werribee accounted for a lion share 46% of total sales, followed by Hoppers Crossing, recording a further 21%. The remaining sales were well dispersed throughout Point Cook, Tarneit and Wyndham Vale accounted for 13%, 11% and 8% of sales respectively.

70% $400,000 +

55%

60%

$300,000 to $399,999

65%

50%

$200,000 to $299,999

57%

68%

66%

40%

$100,000 to $199,999 Less than $100,000

30% 20%

34% 23%

10%

18%

11% 2%

1%

2008 SEP

2009 MAR

0%

10%

1%

1%

2009 SEP

2010 MAR

2010 SEP

Half year period Prepared by PRDnationwide Research. Source: PDS Live

Werribee Vacant Land Sales Cycle 3,000

$200,000 Number of sales Median

$174 950 $180,000 $174,950 $180 000

2,500 $160,000

Werribee Area Vacant Land Market 2,000

$120,000 1,500

$100,000 $80,000

Median sale price

$140,000

Number of sales

The Werribee unit market has also performed well throughout the September 2010 period. Closing the six months at $175,000, the median sale price achieved an annual growth of 15.1% while maintaining a strong ten year growth rate of 11.4% per annum.

1,000 $60,000 $40,000 500 $20,000 $0

2010 SEP

2009 SEP

2010 MAR

2008 SEP

2009 MAR

2007 SEP

2008 MAR

2006 SEP

2007 MAR

2005 SEP

2006 MAR

2005 MAR

2004 SEP

2003 SEP

2004 MAR

2003 MAR

2002 SEP

2001 SEP

2002 MAR

2000 SEP

0

2001 MAR

The level of vacant land sales has softened significantly over the past twelve months to just 792 sales. This tightening of land sales suggests a possible decline in the number of well located quality land blocks in the Werribee market. This would also explain the recent surge in the value of land in the Werribee Area.

Half year period

Prepared by PRDnationwide Research. Source: PDS Live

Prepared by PRDnationwide Research. Research Source: PDS Live, Live RP Data and ABS. ABS For further details contact: Dan O O’Halloran Halloran, Franchise Research Analyst Ph: (07) 3026 3383 or danohalloran@prd.com.au, PRD Jens Gaunt Werribee on (03) 9742 7557, or visit our website at www.prdnationwide.com.au/research.

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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. © 2011

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