Page 1

A QUARTERLY REVIEW OF MAJOR PROPERTY MARKETS IN AUSTRALIA DECEMBER QUARTER 2010

House price growth at 10 year average Weighted average capital city median prices for the Australian residential property market increased over the December 2010 quarter. Both house and other dwelling median prices increased by 2.4% to $545,873 and 0.8% to $430,043 respectively.

Darwin recorded the highest increase in other dwelling prices over the quarter, increasing 6.4% to $438,000 while Canberra recorded a decrease of 2.3% - the largest decrease compared to other capital cities.

With the exception of Perth and Canberra, all Australian capital cities recorded median house price increases over the quarter. Sydney, Melbourne and Darwin recorded the highest median house prices while the lowest were recorded in Hobart, Adelaide and Brisbane.

Melbourne house prices recorded the largest increase over the quarter, up 6.9% to $601,500. The largest decrease in median prices was evident in Perth, down 1.8% to $480,000. Over the year, with the exception of Brisbane and Perth, all Australian capital cities recorded increases in median house prices. In the last quarter of 2010, median prices for other dwellings recorded: no change in Sydney and Hobart; increases in Melbourne, Brisbane and Darwin, and; decreases in Adelaide, Perth and Canberra.

With the exception of Brisbane, Perth and Hobart, all Australian capital cities recorded increases in other dwellings median prices over the year.

With the exception of Sydney, Darwin and Canberra, rents for three bedroom houses showed no change in all capital cities over the December quarter. Except for Perth, Hobart and Darwin, rents for three bedroom houses reported increases over the year. Over the quarter, other dwelling rents showed increases in all capital cities with the exception of Melbourne, Brisbane and Adelaide. Over the year, other dwelling rents increased in all capital cities except Darwin. Darwin remains the most expensive capital city in which to rent a three bedroom house at $545 per week. Sydney is the most expensive city in which to rent a two bedroom other dwelling, with a median rent of $435 per week.

Fast Facts December quarter 2010 Quarterly Australian weighted average median house price $545,873 Median house prices up: Sydney 1.0% to $637,000 Melbourne 6.9% to $601,500 Brisbane 0.6% to $450,000 Adelaide 1.4% to $407,500 Hobart 0.7% to $382,500 Darwin 1.3% to $559,500 Median house prices down: Perth 1.8% to $480,000 Canberra 1.0% to $510,000 Median other dwelling prices up: Melbourne 2.6% to $480,000 Brisbane 1.3% to $380,000 Darwin 6.4% to $438,000 Median other dwelling prices down: Adelaide 0.5% to $317,500 Perth 1.0% to $405,000

Chart 1: Housing Finance, Trend data

Canberra 2.3% to $420,000 Vacancy rates

$ 40

Sydney 1.4%

35

Melbourne 2.4% Brisbane 3.4% Adelaide 0.9%

25

Perth 3.2%

20

Hobart 2.2%

15

Darwin 2.3%

Owner Occupier (Excl. refinancing) Investor Finance

Sep 10

Dec 10

Jun 10

Dec 09

Mar 10

Sep 09

Jun 09

Dec 08

Mar 09

Sep 08

Jun 08

Dec 07

Mar 08

Jun 07

Sep 07

Mar 07

Dec 06

Jun 06

Sep 06

Dec 05

Mar 06

Sep 05

Jun 05

Canberra 1.7% Dec 04

10

Mar 05

Billions

30


REIA President’s Message Welcome to REIA Mortgage Choice Real Estate Market Facts for the December quarter 2010.

The Market................................. 1 REIA President’s Message........2

House prices have shown an increase in most Australian capital cities, with the exception of Perth, Melbourne, and Canberra where median house prices declined. The weighted average quarterly national average median house price increased 2.4%.

EXPLANATORY NOTES .......... 3 SALES MARKET AT A GLANCE................................. 5 House Sales............................... 5 Other Dwellings Sales................ 6

This quarter, the largest increase was evident in Melbourne where median house prices grew 6.9%. Property markets in Perth and Canberra slowed down with house median prices declining 1.8% and 1.0% respectively.

RENTS & VACANCY RATES AT A GLANCE.............. 8 Rents.......................................... 8 Vacancy Rates........................... 9 STATE PROPERTY MARKETS................................ 10 Australian Capital Territory...... 10 New South Wales.................... 12 Northern Territory..................... 14 Queensland.............................. 16 South Australia......................... 18 Tasmania ................................ 20 Victoria..................................... 22 Western Australia..................... 24 RESIDENTIAL INVESTMENT PROPERTY MARKET ............ 26 ACKNOWLEDGMENTS........... 27

The rate of house price growth slowed down over the year and is approaching the ten year annual average of 6.1%. Compared to the same quarter of the previous year, house prices increased 6.1% nationally; increases were evident across most of Australian capital cities, except for Brisbane and Perth, where annual median house prices decreased 0.2% and 1.0%. Weighted average other dwelling median prices also showed an increase compared to the previous quarter. Over the December quarter, other dwelling median prices increased 0.8%; decreases were evident in Adelaide, Perth and Canberra, where other dwelling median prices declined 0.5%, 1.0% and 2.3%, respectively. During the quarter we also saw a growth in the total number of housing loans (excl. refinancing) and loans allocated to first home buyers, which increased 6.5% and 6.7%, respectively. Similarly, the value of owner occupation and investment loans increased 6.4% and 1.2% during the December quarter. These increases are in contrast to the negative growth rates observed in the September quarter, when the value of owner occupation and investment loans decreased 0.8% and 11.7%, respectively. Cash rates rose during the December quarter by 0.25 percentage points and further increases are expected after May 2011 by the financial markets. This would bring some relief in loan holder’s finances during the first half of the year, although we should bear in mind housing affordability is at a critical level, with the proportion of income to meet home loan repayments above 35.0%.

David Airey President, REIA

2 Real Estate Institute of Australia


Real Estate Market Facts

Explanatory Notes Geographical Statistical Areas

2. Statistical Terms

The geographical statistical areas from which the residential sales and rental data have been obtained for this report are based on the same geographical classification structures as defined and used by the Australian Bureau of Statistics (ABS).

The terms “median, lower quartile and upper quartile” prices used in this publication are defined with reference to the sample of house prices shown below. The house prices are listed from lowest to highest.

The basic area is the Statistical Local Area (SLA). In states where Local Government Areas (LGAs) exist, the boundary of an SLA is either equal to, or less than LGA. In many instances, particularly in metropolitan areas, the boundary of an SLA coincides with the boundary of a city suburb.

Price per House

Sales and rental statistics are shown for “inner, middle and outer” zones for each capital city. They are designed to demonstrate the house price and rental differentials that occur as a function of distance from the Central Business District in a city. Within this broad concept, each state and territory Real Estate Institute (REI) identified the “inner, middle and outer” zones considered to best demonstrate the price differentials in their capital city.

than the lower quartile price

Further information on the LGAs, SLAs and/or suburbs located within the “inner”, “middle” and “outer” city zones is available at: www.reia.com.au/documents/LGA_SGA-definitions.pdf

$86,200 $87,300 $88,000 (lower quartile price) 25% of the prices are less $92,300 $95,100 $97,000 (median price) The middle price of the series, i.e. the same number of prices are recorded below and above the median. $97,100 $99,000 $102,000 (upper quartile price) 25% of the prices are higher than the upper quartile price $103,500 $105,000

Definitions 1. Dwelling Sales The sales and rental data in this publication are provided for two broad classes of residential dwellings only, namely “Houses” and “Other Dwellings”. REIA adopted the ABS definitions of “Houses” and “Other Dwellings”. A “house” is a single self-contained place of residence detached from other buildings. An “other dwelling” is a single selfcontained place of residence other than a house. Examples of other dwellings are individual flats, home units, town houses, terrace house etc. It should be noted, however, that for Sydney, the definition of “Houses” includes houses, cottages, terraces, semi-detached dwellings, townhouses and villas, and “Units” include units, studios and duplexes. The definitions for Sydney are those adopted by Australian Property Monitors (APM).

$1,052,000 Total Total, divided by 11 (the number of prices in the series), = $95,682 = average (mean) price.

3. Moving Annual Median The moving annual median is an average of the quarterly figures for the past year. When a new quarterly figure is obtained, it is added to the figures for the preceding three quarters. To arrive at the new moving annual median, divide the total for the last four consecutive quarters by four. The moving annual median is used to illustrate trends and to make comparisons between series over time.

3


Explanatory Notes

4. Weights for Calculating an Australian Median Price

New South Wales prices

The weighted average median prices are derived from the quarterly median prices for all capital cities weighted according to the number of houses and other dwellings for each corresponding city. These numbers are sourced from the ABS 2006 Census.

The New South Wales prices information published in REMF is based on contract date sales data published by REINSW in its quarterly ‘Property Focus.’ A new series of median prices for Sydney, where prices have been adjusted for compositional change sourced from APM, was introduced in the September quarter 2005. The new series estimates are not comparable with earlier estimates of Sydney median prices. The changes introduced for Sydney median prices do not apply to the estimates for Wollongong and Newcastle.

Timing of publication Timing of the release date of Real Estate Market Facts each quarter is governed by the timing of the receipt of data at REIA from the various sources within the states and territories. The aim of REIA is to have all the preliminary price data and the rental data to hand for analysis by the end of the fourth week after the close of the reference period. Real Estate Market Facts will be released no later than four weeks after the receipt of all information. Revisions of median prices The reporting of sales information based on sales at the date of contract exchange commenced in the September quarter 2004 edition of Real Estate Market Facts. Prices are revised as follows: Sydney medians are revised once. Percentage changes in median prices compare the current quarter with revised estimates in earlier quarters. Moving annual medians from the September quarter 2005 are based on new series data dating from March 1995. Canberra (contract date) is revised once. In June 2007, revisions were made to the series back to December 2004. Adelaide (settlement date) and Perth (contract date) prices are revised once and percentage changes compare current quarter preliminary estimates with revised estimates in previous quarters. Melbourne (contract date) prices are revised twice. Percentage changes compare current quarter preliminary estimate with revised estimates for previous quarters. Hobart, Brisbane (contract date) and Darwin (settlement date) prices are not revised.

Queensland prices Brisbane median prices published in REMF are derived from sales and rents in the Brisbane Statistical Division (SD) so that they are comparable with the median prices and rents published for other capital cities. The Real Estate Institute of Queensland (REIQ) publishes median prices for both the Brisbane LGA and the Brisbane SD.

South Australia prices Median prices for Adelaide shown in Tables 23 and 24 are different from those published by the Real Estate Institute of South Australia (REISA) in its quarterly publication Property News. REISA publishes median prices separately for two types of dwellings, namely “houses” that include houses, maisonettes and town houses, and “home units” that include flats, units and apartments. REISA also publishes median prices for Local Government Areas. For comparative purposes with other States, REIA publishes South Australian median prices based on combined houses/maisonettes prices for “houses,” and “other dwellings”. REIA median prices are published for metropolitan Adelaide and inner, middle and outer zones of the city. The source of the South Australian price data used by the REIA and REISA is the South Australian Land Services Group.

Tasmania prices The Real Estate Institute of Tasmania (REIT) collects sales data through its members, using monthlysurvey forms. Prices are recorded at the date of exchange and sales collected from members account for 88% of all sales in the reference period. This direct collection method provides the most timely and accurate sales information for each reference period and median prices calculated from the data do not need to be revised.

4 Real Estate Institute of Australia


Real Estate Market Facts

Sales Markets at a Glance HOUSE SALES The key features of the market for houses in the December quarter 2010 are: • The Australian weighted average median house price of $545,873 was 2.4% higher compared to the September quarter 2010 and 6.1% higher compared to the December quarter 2009. • Median house prices increased in six of the eight capital cities over the quarter, with the largest increase evident in Melbourne, where the median house price increased 6.9%. Median house prices in Perth and Canberra decreased 1.8% and 1.0%, respectively. • Over the year median house prices grew in all capital cities, with the exception of Brisbane and Perth. The largest increase was in Melbourne, where median house prices increased 12.4% compared to the December quarter of the last year. Moving annual (trend) median house prices increased in all capital cities.

Chart 2: Australian weighted average median house price (all capital cities) $(’000) 540 520 500 480 460 440 420

Dec 09 Mar 10 Jun 10 Sep 10 Dec 10

380

Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09

400

Quarter Australian Median House Price

• Moving annual (trend) median house prices increased in most capital cities, the exceptions being Brisbane and Perth.

Table 1: Summary of Median House Sales Prices ($‘000), December Quarter 2010 Dec quarter 2010 Sep quarter 2010 Dec quarter 2009 Quarter Change % Annual Change %

Sydney1 637.0 630.7 600.9 1.0 6.0

Melbourne 601.5 562.5 535.0 6.9 12.4

Brisbane 450.0 447.5 451.0 0.6 -0.2

Adelaide 407.5 402.0 387.5 1.4 5.2

Perth2 480.0 489.0 485.0 -1.8 -1.0

Canberra 510.0 515.0 491.0 -1.0 3.9

Hobart 382.5 380.0 370.0 0.7 3.4

Darwin 559.5 552.3 540.1 1.3 3.6

Cap Cit 545.9 533.2 514.7 2.4 6.1

Brisbane, Hobart, Darwin and Capital Cities weighted average median prices are not revised. For Sydney, Melbourne, Adelaide Canberra, and Perth where current quarter estimates are based on a high (75% -90%) sample of final sales, current quarter estimates are compared with the revised estimates in previous quarters. Canberra, Sydney, Adelaide and Perth medians are revised once and Melbourne medians are revised twice. 1. Sydney median price series adjusted for compositional change - data is supplied by APM. 2. Perth data excludes properties on lots larger than 1ha, which represent approximately 1.5% of sales, all above the Perth overall median.

Table 2: Moving Annual Median House Sales Prices ($‘000), December Quarter 2010 2007 2008

2009

2010

Quarter Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar June Sep Dec

Sydney1 540.3 547.3 550.7 546.3 539.2 533.2 535.4 543.9 561.8 581.4 601.1 617.7 626.7

Melbourne 422.0 434.4 443.1 445.6 433.8 430.0 425.6 435.6 463.1 490.5 503.5 526.6 543.2

Brisbane 376.2 394.1 407.6 414.2 411.2 406.8 406.5 411.5 424.8 437.8 448.0 452.4 452.1

Adelaide 324.2 339.5 353.8 363.8 365.0 362.5 360.0 362.0 368.9 382.1 394.8 402.0 407.0

Perth 464.6 464.6 462.9 455.8 442.0 433.3 433.8 440.0 456.3 474.4 486.9 494.1 492.9

Canberra 442.3 453.5 463.8 461.3 453.3 449.1 444.7 446.2 457.6 476.6 494.1 512.6 517.4

Hobart 312.8 323.0 326.8 327.7 325.7 320.7 323.4 330.1 342.1 358.5 366.1 374.3 377.4

Darwin 399.4 406.9 414.0 420.5 425.3 434.1 445.8 464.0 491.0 514.0 535.3 548.6 553.5

Aus 441.5 451.9 459.1 459.7 452.2 446.7 446.2 456.2 474.6 494.4 513.5 525.2 533.0

Values may differ from previous publications, as the sales data is updated. 1. Sydney moving annual median price series adjusted for compositional change.

5


Chart 3: Moving Annual Median House Prices, Capital Cities 610

560

510

Median Prices ($'000)

460

410

360

310

260

210

160 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

2003

2005

2006

2004

2007

2008

2009

2010

Quarters SYD1

MEL

BRIS2

ADEL

PERTH

CANB

HOB

DAR

1. Sydney moving annual median price series adjusted for compositional change. 2. Brisbane moving annual median price is based on preliminary data from September 2006 onwards, causing the data to be revised slightly downwards from previous publications.

OTHER DWELLING SALES

• Moving annual (trend) median prices increased in most capital cities, except for Brisbane, Perth and Hobart.

440 420 400 380 360 340 320 300 280

Dec 09 Mar 10 Jun 10 Sep 10 Dec 10

• Median prices for other dwellings increased in Melbourne, Brisbane and Darwin, where median other dwelling prices grew by 2.6%, 1.3% and 6.4%, respectively; decreases of 0.5%, 1.0% and 2.3% were reported in Adelaide, Perth and Canberra, respectively. Other dwellings median prices remained unchanged in Sydney and Hobart.

$(’000)

Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09

• The weighted average median price for other dwellings was $430,043 for the December quarter, 0.8% higher than the September quarter 2010 and 5.8% higher than the corresponding quarter in the previous year.

Chart 4: A  ustralian weighted average median other dwelling price (all capital cities)

Dec 04 Mar 05

The key features of the market for other dwellings in the December quarter 2010 are:

Quarter Weighted Average Median Other Dwelling Price

6 Real Estate Institute of Australia


Real Estate Market Facts

Sales Markets at a Glance Table 3: Summary of Median Other Dwellings Sales Prices ($‘000), December Quarter 2010

Dec quarter 2010 Sep quarter 2010 Dec quarter 2009 Quarterly % Annual %

Sydney1

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

439.0 439.0 422.1 0.0 4.0

480.0 468.0 441.0 2.6 8.8

380.0 375.0 381.5 1.3 -0.4

317.5 319.0 301.0 -0.5 5.5

405.0 409.0 410.0 -1.0 -1.2

420.0 430.0 387.0 -2.3 8.5

290.0 290.0 298.5 0.0 -2.8

438.0 411.7 412.0 6.4 6.3

Cap City 430.0 426.7 406.3 0.8 5.8

Brisbane, Hobart , Darwin and capital city weighted average median prices are not revised. For Sydney, Canberra, Melbourne, Adelaide and Perth where current quarter estimates are based on a high (75% -90%) sample of final sales, current quarter estimates are compared with the revised estimates in previous quarters. Sydney, Canberra, Adelaide and Perth medians are revised once and Melbourne medians are revised twice. 1. Sydney median price series adjusted for compositional change - data is supplied by APM.

Table 4: Moving Annual Median Other Dwellings Sales Prices ($‘000), December Quarter 2010 2007 2008

2009

2010

Quarter Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

Sydney1 366.5 369.5 369.8 368.3 366.4 365.8 373.3 381.9 393.0 405.2 417.8 428.1 434.7

Melbourne 355.0 367.3 372.3 373.8 368.1 365.4 370.4 380.6 400.3 412.0 424.3 438.8 448.5

Brisbane 317.8 334.0 345.5 350.5 352.4 350.2 356.0 353.9 361.9 368.8 375.3 377.8 377.4

Adelaide 250.4 262.3 271.7 277.2 279.7 280.3 284.7 288.8 291.6 299.9 306.3 312.6 316.8

Perth 372.3 374.8 376.0 372.3 363.0 356.8 359.0 365.8 380.5 398.0 405.8 411.3 411.0

Canberra 342.8 354.3 362.3 363.3 361.3 363.2 367.7 377.4 384.9 398.0 405.5 414.3 422.5

Hobart 245.3 252.0 256.3 256.3 251.3 250.6 253.1 259.9 272.0 279.0 283.3 287.8 285.6

Darwin 302.1 307.8 320.2 326.9 342.7 358.2 371.0 380.4 390.3 404.2 418.5 425.3 431.8

Aus 347.7 355.6 359.4 359.9 357.2 356.3 360.5 368.5 381.3 395.7 408.5 418.3 424.2

Values may differ from previous publications, as the sales data has been updated. 1. Sydney moving annual median price series adjusted for compositional change.

Chart 5: Moving Annual Median Prices, Other Dwellings, Capital Cities 450

400

350

Median Prices ($'000)

300

250

200

150

100 50 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2003 2007 2006 2005 2004 2008 2009 2010 Quarters SYD1

MEL

BRIS

ADEL

PERTH

CANB

HOB

DAR

1. Sydney moving annual median price series adjusted for compositional change. 2. Brisbane moving annual median price is based on preliminary data from September 2006 onwards, causing the data to be revised slightly downwards from previous publications.

7


Rents and Vacancy Rates at a Glance RENTS Over the December quarter, rents for three bedroom houses remained unchanged in most capital cities. The exceptions were Sydney, Darwin and Canberra, where house rents growth rates were 2.6%, -2.2% and 2.3% respectively.

Despite showing a decrease in median house rents, Darwin maintains the highest rent for a three bedroom house at $545 per week while Adelaide recorded the lowest rent for this type of dwelling at $310 per week. Sydney recorded the highest weekly rent for two bedroom other dwellings, at $435 per week and Hobart the lowest weekly rent at $275.

Table 5: Summary of Median Weekly Rents, December Quarter 2010 Capital City

3 Bedroom Houses

2 Bedroom Other Dwellings

Quarterly

Quarterly %

Annual %

Quarterly

Quarterly %

Annual %

Median $/week

Change

Change

Median $/week

Change

Change

Sydney

400.0

2.6

8.1

435.0

1.2

8.7

Melbourne

330.0

0.0

3.1

340.0

0.0

6.3

Brisbane

350.0

0.0

2.9

335.0

-1.5

1.5

Adelaide

310.0

0.0

3.3

260.0

0.0

4.0

Perth

370.0

0.0

-1.3

360.0

1.4

2.9

Hobart

330.0

0.0

0.0

275.0

4.6

3.8

Darwin

545.0

-2.2

-4.4

414.0

0.2

-3.7

Canberra

450.0

2.3

7.1

420.0

2.4

2.4

VACANCY RATES A comparison of the rental data in Table 5 with the corresponding vacancy rate information in Table 6 usually provides an indication of the relationship (generally expected to be inverse), between movements in median rental values and movements in vacancy rates. An industry benchmark vacancy rate is considered to be a value of 3.0%. Vacancy rates lower than 3.0% indicate strong demand for rental accommodation, whilst rates higher than 3.0% are generally considered to reflect an oversupply of rental accommodation.

8 Real Estate Institute of Australia

Over the December quarter, Hobart and Canberra were the only capital cities to record decreases in vacancy rates, decreasing 0.2 and 1.3 percentage points respectively. Vacancy rates in all other Australian capital cities decreased.


Real Estate Market Facts

Chart 6: Average Quarterly Vacancy Rate % 3.5 3.0 2.5 2.0 1.5 1.0

Dec Mar Jun Sep Dec

2005

2006

Mar Jun Sep Dec

Mar Jun Sep Dec

Mar Jun Sep Dec

Mar Jun Sep Dec

2007

2008

2009

2010

Quarter Average Quarterly Vacancy Rate

Table 6: Vacancy Rates (All Rented Dwellings), December Quarter 2010 Capital City

Quarterly Vacancy Rate %

Quarterly Change %

Annual Change %

Moving Annual (Trend) Vacancy Rate %

Quarterly Change percentage points

Annual Change percentage points

Sydney

1.4

0.2

0.1

1.3

0.0

0.0

Melbourne

2.4

1.0

0.8

1.7

0.2

0.3

Brisbane1

3.4

0.0

-0.4

3.6

-0.1

0.5

Adelaide

0.9

0.1

-0.3

1.0

-0.1

-0.4

Perth

3.2

0.2

-1.5

3.8

-0.4

-0.2

Hobart

2.2

-0.2

0.1

2.3

0.0

0.2

Darwin

2.3

0.0

-0.7

2.1

-0.2

0.3

Canberra

1.7

-1.3

0.7

1.7

0.2

0.2

Source: REI surveys of Real Estate Agent Property Managers. Brisbane vacancy rates are for the Brisbane Statistical Division (ie Greater Brisbane) and are sourced from the Qld Office of Economic and Statistical Research. Note: For Darwin, Adelaide, Melbourne and Canberra, vacancy rates are measured at the close of the quarter. For Hobart, Perth, Sydney and Brisbane, an average vacancy rate over the quarter is used. Vacancy rates are only broad indicators of the “true� vacancy rates at any particular point in time. The vacancy rates are aggregate values across all rented properties (no distinction is made between specific vacancy rates for houses and vacancy rates for other dwellings), and these very broad indicators are compared with median rents derived from large numbers of rented properties. Vacancy rates are useful indicators of the current availability of rental accommodation, but the expected inverse relationship between vacancy rates and median rents is not always apparent from the data. 1 Brisbane vacancy rates have been revised from March 2004 in line with data from the Qld Office of Economic and Statistical Research. 2 The data sources underlying the calculation of the vacancy rate for the June quarter 2009 differs from that in previous quarters. Comparisons between the June quarter 2009 and previous quarters should be made on this basis.

9


AUSTRALIAN CAPITAL TERRITORY SALES The median house price for the Australian Capital Territory decreased 1.0% to $510,000 over the quarter, but increased 4.9% over the year. The zones that contributed to the quarterly decrease were the Inner South and Outer South where house prices decreased 2.0% and 4.3% respectively.

Canberra Median House Prices 550 440 330 220

Qtrly Moving Annual Medians

110

Dec 10

Jun 10

Sep 10

Mar 10

Jun 09

Sep 09

Dec 09

Dec 08

Mar 09

Jun 08

Sep 08

Mar 08

Jun 07

Sep 07

Dec 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

Qtrly Medians Mar 06

0

The Inner Central and West and North areas performed better with increases of 5.1% and 4.2% respectively over the quarter. Over the year, except for the Inner South, all zones recorded increases in house prices. The median price for other dwellings decreased 2.3% to $420,000 for the quarter. Inner Central and Outer South recorded declines in other dwelling median prices with the most significant decrease recorded in the Inner Central, a decrease of 4.6%. Over the year, all areas of the Australian Capital Territory, except for the Inner Central, recorded increases in other dwelling median prices.

Table 7: Australian Capital Territory House Sales Prices, December Quarter 2010 City/Zone

Median price

Current preliminary median compared with revised medians in earlier quarters Change over quarter %

Lower quartile

Upper quartile

$’000

$’000

Change over year %

No. Sales

$’000

320

510.0

-1.0

4.9

439.3

623.1

50

713.8

5.1

15.1

602.5

805.3

Inner South

42

612.5

-2.0

-5.8

512.5

785.8

West and North

165

470.0

4.2

2.6

412.0

543.0

Outer South

63

465.0

-4.3

1.1

427.5

524.5

Canberra Inner Central

From the June quarter 2007, preliminary medians are compared with revised medians.

Table 8: Australian Capital Territory Other Dwellings Sales Prices, December Quarter 2010 City/Zone

Median price

Current preliminary median compared with revised medians in earlier quarters

Lower quartile

Upper quartile

No. Sales

$’000

Change over quarter %

Change over year %

$’000

$’000

149

420.0

-2.3

8.5

370.0

480.0

Inner Central

45

440.0

-4.6

-2.2

390.0

495.0

Inner South

25

443.0

4.2

16.9

360.0

568.0

West and North

45

420.0

1.2

17.5

365.0

451.0

Outer South

34

390.0

-3.1

4.7

371.3

430.6

Canberra

From the June quarter 2007, preliminary medians are compared with revised medians. LGA definitions: Inner Central is Canberra North and Canberra South. Inner South is Woden and Weston Creek. West and North is Belconnen, Gungahlin and Hall. Outer South is Tuggeranong.

10 Real Estate Institute of Australia


Real Estate Market Facts

AUSTRALIAN CAPITAL TERRITORY RENTS Canberra Residential Investment Property

Canberra 4.0 Vacancy Rates

3.5

Vacancy Rate

3.0

3bdr house

2bdr other dwelling

20

Moving Annual Vacancy Rate

15

2.5 %

2.0 1.5

10

1.0 Dec 10

Jun 10

Sep 10

Dec 09

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

5 Mar 06

0.5

0

Rents for three bedroom houses increased 2.3% to $450 per week over the quarter and rents for two bedrooms other dwellings increased 2.4% to $420 per week. Canberra rents remain amongst the highest in Australia. Over the quarter, all zones recorded increases in median house rents, with the exception of Inner Central and South

Annual Yield

Annual Return

5 Yr Return

10 Yr Return

where three bedroom median houses, which remained unchanged. Vacancy rates for rental properties in the Australian Capital Territory decreased 1.3 percentage points to 1.7% over the December quarter.

Table 9: Australian Capital Territory House Rents, December Quarter 2010 City/Zone Inner Central

Inner South

West and North

Outer South

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week

quarter %

year %

$ per week

$ per week

2 b/r

450.0

3.4

1.1

375.0

480.0

3 b/r

500.0

0.0

7.5

450.0

550.0

4 b/r

700.0

6.1

55.6

535.0

782.5

2 b/r

390.0

n/a

11.4

380.0

406.3

3 b/r

450.0

0.0

5.9

425.0

495.0

4 b/r

630.0

18.9

23.5

487.5

687.5

2 b/r

375.0

n/a

7.1

365.0

416.3

3 b/r

430.0

0.6

7.5

400.0

460.0

4 b/r

530.0

1.0

10.4

490.0

580.0

2 b/r

n/a

n/a

n/a

n/a

n/a

3 b/r

425.0

3.7

3.7

390.0

450.0

4 b/r

540.0

3.3

3.3

488.8

582.5

1. n/a because sample size was too small

Table 10: Australian Capital Territory Other Dwellings Rents, December Quarter 2010 City/Zone Inner Central

Inner South

West and North

Outer South

Median $ per week

Change over quarter %

Change over year %

Lower quartile $ per week

Upper quartile $ per week

1 b/r

420.0

6.3

10.5

345.0

465.0

2 b/r

480.0

6.7

9.1

420.0

530.0

3 b/r

555.0

2.8

-0.9

500.0

615.0

1 b/r

305.0

3.4

17.3

280.0

345.0

2 b/r

370.0

-2.6

5.0

330.0

420.0

3 b/r

450.0

0.0

9.1

415.0

520.0

1 b/r

360.0

0.0

12.5

320.0

380.0

2 b/r

375.0

1.4

2.7

350.0

405.0

3 b/r

425.0

1.2

-1.2

400.0

470.0

1 b/r

360.0

n/a

28.6

320.0

380.0

2 b/r

375.0

-6.3

-6.3

350.0

405.0

3 b/r

425.0

3.7

84.6

400.0

470.0

2. n/a because sample size was too small

11


NEW SOUTH WALES SALES Sydney house prices increased 1.0% over the quarter, taking the median price to $637,000; up from the revised median in September 2010 of $630,693. House prices over the year rose 6.0%.

Sydney Median House Prices 640 Qtrly Moving Annual Medians Qtrly Medians

620 600

All Sydney zones as well as Wollongong and Newcastle reported increases in house prices over the quarter. The highest increase was reported in Outer Sydney where house prices increased 4.4%.

580 560 540

Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

500

Mar 06

520

Over the year, all Sydney zones and New South Wales regional centres such as Wollongong and Newcastle recorded increases in house prices, with the most significant increase observed in the Inner zone, increasing 7.4%. Other dwelling median prices in Sydney remained unchanged at $439,000 over the quarter. In the inner and outer suburbs other dwelling prices decreased 1.1% and 0.3%. The most significant increase in other dwellings median prices was recorded in Wollongong. Over the year, all Sydney zones reported increases in other dwellings median prices, with the largest increase evident in the outer suburbs, where prices increased by 5.6%; Wollongong reported a decrease of 2.0%.

Table 11: New South Wales House Sales Prices,December Quarter 2010 City/Zone

No. sales

No.

Median price

Current preliminary median compared with revised medians in earlier quarters Change over quarter %

Change over year %

Upper quartile

$’000

$’000

Sydney

13,869

637.0

1.0

6.0

414.0

898.0

Inner

2,434

1,042

0.1

7.4

805.0

1,530.0

Middle

4,451

724.8

4.1

6.8

530.0

1,020.0

Outer

9,682

475.0

4.4

6.9

350.0

692.5

755

428.0

4.0

4.0

340.0

545.0

2,533

365.0

1.0

4.0

299.0

470.0

Wollongong Newcastle

$’000

Lower quartile

Table 12: New South Wales Other Dwellings Sales Prices,December Quarter 2010 City/Zone

No. sales

No.

Median price

Current preliminary median compared with revised medians in earlier quarters Change over quarter %

Lower quartile

Upper quartile

$’000

$’000

Change over year %

$’000

Sydney

11,335

439.0

0.0

4.0

358.0

620.0

Inner

4,796

565.0

-1.1

5.4

449.0

725.0

Middle

3,613

431.0

0.2

5.1

340.0

562.0

Outer

2,921

380.0

-0.3

5.6

287.0

480.0

Wollongong

299

340.0

8.0

-2.0

270.0

425.0

Newcastle

471

325.0

2.0

2.0

255.0

448.0

This is a compositional adjusted series. Median prices have been stratified by market segment to adjust for compositional changes that can occur from one period to the next. LGA Definitions: Inner is Ashfield, Botany, Drummoyne, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, South Sydney, Sydney, Waverley, Willoughby, Woollahra. Middle is Auburn, Bankstown, Burwood, Canterbury, Concord, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield. Outer is Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly, Wyong. All data for Tables 11 and 12 is supplied by APM .

12 Real Estate Institute of Australia


Real Estate Market Facts

NEW SOUTH WALES RENTS Sydney 3.0

12

Vacancy Rate

10

2.0

1.0

3bdr house

6

2

Dec 10

Jun 10

Sep 10

Mar 10

Jun 09

Sep 09

Dec 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

4 Dec 05

0.5

2bdr other dwelling

8 %

1.5

Mar 06

Vacancy Rates

2.5

Sydney Residential Investment Property

Moving Annual Vacancy Rate

0

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Over the December quarter, median rents for three bedroom houses in Sydney increased 2.6% to $400. All Sydney areas recorded increases in three bedroom house median rents.

dwelling median rents, while Newcastle was the only region reporting a decline in median rents for one bedroom other dwellings.

Median rents for two bedroom other dwellings in Sydney increased 1.2%, taking the median rent to $435 per week. Wollongong was the only region reporting no change in other

Vacancy rates in Sydney decreased 0.2 percentage points to 1.4%. Sydney has historically low vacancy rates.

Table 13: New South Wales House Rents, December Quarter 2010 City/Zone

Sydney Inner Sydney Middle Sydney Outer Wollongong Newcastle

Median $ per week

Change over quarter %

Change over year %

Lower quartile $ per week

Upper quartile $ per week

2 b/r

570.0

0.0

5.6

500.0

650.0

3 b/r

730.0

4.3

10.6

620.0

883.0

2 b/r

410.0

2.5

7.2

365.0

461.0

3 b/r

490.0

2.1

8.9

490.0

590.0

2 b/r

300.0

0.0

7.1

265.0

350.0

3 b/r

370.0

2.8

8.8

330.0

420.0

2 b/r

300.0

0.0

7.1

260.0

360.0

3 b/r

360.0

2.9

9.1

320.0

420.0

2 b/r

310.0

3.3

5.1

285.0

340.0

3 b/r

360.0

2.9

5.9

330.0

395.0

Table 14: New South Wales Other Dwellings Rents, December Quarter 2010 City/Zone

Sydney Inner Sydney Middle Sydney Outer Wollongong Newcastle

Median $ per week

Change over quarter %

Change over year %

Lower quartile $ per week

Upper quartile $ per week

1 b/r

430.0

2.4

7.5

370.0

500.0

2 b/r

550.0

0.0

10.0

460.0

650.0

1 b/r

380.0

5.6

8.6

300.0

440.0

2 b/r

400.0

1.3

5.3

350.0

485.0

1 b/r

278.0

6.7

11.0

215.0

350.0

2 b/r

350.0

0.0

6.1

290.0

430.0

1 b/r

190.0

0.0

5.6

156.0

224.0

2 b/r

285.0

0.0

9.6

240.0

340.0

1 b/r

205.0

-1.2

10.8

179.0

300.0

2 b/r

300.0

0.0

7.1

270.0

360.0

13


NORTHERN TERRITORY SALES Over the December quarter, median house prices in Darwin increased 1.3% to $559,500.

Darwin Median House Prices 600

Over the year, except for the Inner Suburbs of Darwin and Palmerston, all areas of the Northern Territory recorded increases in median house prices.

Qtrly Moving Annual Medians

550

Qtrly Medians

500 450 400

Other dwelling median prices increased 6.4% to $438,000. All areas of the Northern Territory, except for Alice Springs, recorded increases over the December quarter.

350

Dec 10

Jun 10

Sep 10

Mar 10

Jun 09

Sep 09

Dec 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

250

Mar 06

300

Over the year, other dwelling median prices increased 6.3% in Darwin while other dwelling median prices increased in Palmerston and Alice Springs by 7.2% and 9.4% respectively. The Inner suburbs recorded a decline in other dwelling median prices of 0.7%

Table 15: Northern Territory House Sales Prices, December Quarter 2010 City/Zone

No. Sales

Median Price $’000

Change over quarter %

Change over year %

Darwin

233

559.5

1.3

3.6

Inner

27

800.0

-7.5

2.6

Northern Suburbs

109

580.0

4.5

10.3

Palmerston

97

510.0

-1.0

4.9

Alice Springs

112

465.0

3.3

12.0

Table 16: Northern Territory Other Dwellings Sales Prices, December Quarter 2010 City/Zone

No. Sales

Median Price $’000

Change over quarter %

Change over year %

Darwin

282

438.0

6.4

6.3

Inner

174

543.3

12.9

-0.7

Northern Suburbs

74

387.3

3.6

0.8

Palmerston

34

391.3

1.6

7.2

Alice Springs

53

350.0

0.0

9.4

Darwin property prices are not revised. It is not possible to identify exchange dates on property sales records that are processed by the Australian Valuation Office, Darwin Region. REINT calculates median property prices from quarterly sales data supplied by the AVO. LGA Definitions: Inner is City(inner), Fannie Bay, Larrakeyah, Ludmilla, Narrows, Parap, Stuart Park, The Gardens, City(remainder). Northern Suburbs is Alawa, Anula, Brinkin, Coconut Grove, Jingili, Karama, Leanyer, Lee Point, Malak, Marrara, Millner, Moil, Nakara, Nightcliff, Rapid Creek, Tiwi, Wagaman, Wanguri,Winnellie, Wulagi,. Palmerston is Driver, Gray, Moulden, Woodroffe, Palmerston(T) Bal. Alice Springs is Charles, Heavitree, Larapinta, Ross, Stuart.

14 Real Estate Institute of Australia


Real Estate Market Facts

NORTHERN TERRITORY RENTS Darwin Residential Investment Property Moving Annual Vacancy Rate

20

Vacancy Rate

2bdr other dwelling 3bdr house

15 %

10

Dec 10

Jun 10

Sep 10

Dec 09

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

5 Mar 06

Vacancy Rates

Darwin 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

0

The median weekly rent for three bedroom houses in Darwin decreased over the quarter, down 2.2% to $545. Median rents for other dwellings increased 0.2% to $414. Rents in Darwin are the highest compared to all other capital cities. Median house rents in the Northern Territory recorded varied results over the quarter. With the exception of Palmerston, all areas of Darwin recorded decreases in median house rents. The highest increase was evident in Alice Springs where rents for two bedroom house increased 25.0%. The largest decline was in Darwin Inner suburbs where rents for three bedroom median decreased 16.3%.

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Median rents for other dwellings also showed varied results over the quarter with the largest increase for three bedrooms other dwellings being in Alice Springs - up 5.0%. The largest decline was evident in the northern suburbs of Darwin where rents for three bedroom other dwelling median rents declined 8.7%. Vacancy rates in Darwin remained at 2.3% over the quarter.

Table 17: Northern Territory House Rents, December Quarter 2010 City/Zone Darwin Inner Nthn Suburbs Palmerston Alice Springs

Median

Change over

Change over

$ per week

quarter %

year %

3 b/r

566.0

-16.3

-21.1

4 b/r

800.0

-1.1

-9.6

3 b/r

498.0

-2.2

-1.6

4 b/r

631.0

-9.2

-4.2

3 b/r

572.0

17.5

17.0

4 b/r

720.0

18.2

23.7

2 b/r

500.0

25.0

42.9

3 b/r

515.0

-0.2

-1.5

4 b/r

625.0

-8.6

-10.5

Table 18: Northern Territory Other Dwellings Rents, December Quarter 2010 City/Zone Darwin Inner

Nthn Suburbs

Palmerston Alice Springs

Median

Change over

Change over

$ per week

quarter %

year %

1 b/r

415.0

0.0

-10.0

2 b/r

478.0

3.4

-8.4

3 b/r

646.0

-1.7

-3.7

1 b/r

279.0

0.0

20.3

2 b/r

389.0

-0.3

-3.2

3 b/r

480.0

-8.7

-20.0

2 b/r

376.0

-3.1

2.2

3 b/r

450.0

-3.2

-1.5

1 b/r

282.0

1.4

7.6

2 b/r

393.0

2.9

11.3

3 b/r

502.0

5.0

-3.5

15


QUEENSLAND SALES Brisbane median house prices increased over the December quarter the with Sunshine Coast and Cairns being the only zones where decreases were evident, down 1.1% and -0.8%.

Brisbane Median House Prices Qtrly Moving Annual Medians

Brisbane median prices increased 0.6% to $450,000 over the quarter. The largest change for the state was recorded in Townsville where median house prices increased 4.1%.

Qtrly Medians

Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

Over the year, decreases were evident in all areas of Queensland, with the exception of the inner suburbs of Brisbane where median house prices increased 0.7% Mar 06

480 460 440 420 400 380 360 340 320 300

Median prices for other dwellings in Brisbane increased 1.3% to $380,000. Median prices remained unchanged in the inner suburbs of Brisbane at $440,000. Median prices decreased in the middle suburbs of Brisbane, Townsville and Cairns by 1.2%, 3.5% and 4.4% respectively. Over the year, all areas across Brisbane recorded decreases in other dwelling median prices, with the largest change evident in Brisbane Middledecreasing 4.2%. Median prices for other dwellings also declined in all regional centres, with Cairns reporting the largest decrease, down 12.1%.

Table 19: Queensland House Sales Prices, December Quarter 2010 City/Zone Brisbane Inner Middle Outer Gold Coast Sunshine Coast Townsville Cairns

Sample size

Median Price $’000

Change over quarter %

Change over year %

Lower quartile $’000

Upper quartile $’000

4,045 295 2,118 1,629 751

450.0 725.0 490.0 370.0 490.0

0.6 1.4 0.0 0.8 2.1

-0.2 0.7 -4.9 -4.1 -3.9

365.0 590.3 415.0 310.0 415.5

570.1 922.5 605.0 449.0 609.5

549

450.0

-1.1

-5.3

396.0

550.0

467 342

380.0 361.0

4.1 -0.8

-1.3 -3.1

321.5 305.0

440.0 444.6

Table 20: Queensland Other Dwellings Sales Prices, December Quarter 2010 City/Zone Brisbane Inner Middle Outer Gold Coast Sunshine Coast Townsville Cairns

Sample size

Median Price $’000

Change over quarter %

Change over year %

Lower quartile $’000

Upper quartile $’000

1,474 579

380.0 440.0

1.3 0.0

-0.4 -1.1

321.0 366.5

475.8 550.0

587 308 915 384

367.0 307.8 365.0 357.5

-1.2 0.9 2.8 0.7

-4.2 -2.3 -3.9 -5.9

325.0 248.9 290.0 285.0

435.0 352.0 506.0 505.0

105 219

300.0 233.0

-3.5 -4.4

-4.3 -12.1

250.0 152.0

400.0 330.0

The REIQ calculates all Queensland median residential prices from contract date sales. The series are median prices for Brisbane city as geographically defined within the Brisbane Statistical Division. The calculations of quarterly and annual percentage changes in median prices for Brisbane compare preliminary estimates in the current quarter with preliminary estimates in previous quarters. LGA Definitions: Inner is the 0-5km radius from the CBD. Middle is the 5-20km radius from the CBD. Outer is between 20km from the CBD and the boundary of the Brisbane SD.

16 Real Estate Institute of Australia


Real Estate Market Facts

QUEENSLAND RENTS Brisbane Residential Investment Property 20

Moving Annual Vacancy Rate

2bdr other dwelling

3bdr house

Vacancy Rate

15 %

10

Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

5 Dec 05

4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5

Mar 06

Vacancy Rates

Brisbane

0

Over the quarter, median rents for three bedroom houses remained unchanged in Brisbane at $350 per week; median rents for two bedrooms other dwellings decreased 1.5% to $335 per week. Median house rents for three bedroom houses remained unchanged across Queensland, except for the Gold Coast where three bedroom median house rents increased 1.3%. Over the year, median rents for three bedroom houses increased across Queensland, with the exception of Townsville and Cairn where median rents remained at $330 and $300 per week, respectively.

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Other dwelling median rents for two bedrooms showed varied result across Queensland; the largest increase was observed in Brisbane Inner, where median rents for this type of dwelling increased 2.3% to $440 per week; and the largest decrease was observed in Brisbane Outer-down 1.9% to $255 per week. Over the year, other dwelling median rents for two bedrooms increased in all areas of Brisbane but decreased in all regional centres. Vacancy rates in Brisbane remained at 3.4%.

Table 21: Queensland House Rents, December Quarter 2010 City/Zone Brisbane Inner Brisbane Middle Brisbane Outer Gold Coast Townsville Cairns

2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week 385.0 450.0 620.0 335.0 370.0 440.0 260.0 310.0 360.0 330.0 395.0 450.0 300.0 330.0 390.0 255.0 300.0 360.0

quarter % -3.8 0.0 3.3 -1.5 0.0 0.0 0.0 0.0 0.0 -4.3 1.3 3.4 7.1 0.0 2.6 15.9 0.0 0.0

year % 4.1 2.3 4.2 1.5 2.8 2.3 0.0 3.3 1.4 3.1 1.3 0.0 3.4 0.0 2.6 -8.9 0.0 2.9

$ per week 350.0 395.0 490.0 300.0 340.0 395.0 230.0 280.0 320.0 275.0 350.0 400.0 270.0 300.0 370.0 230.0 280.0 330.0

$ per week 440.0 520.0 740.0 375.0 410.0 525.0 280.0 350.0 400.0 360.0 450.0 530.0 320.0 360.0 420.0 300.0 330.0 400.0

Table 22: Queensland Other Dwellings Rents, December Quarter 2010 City/Zone Brisbane Inner Brisbane Middle Brisbane Outer Gold Coast

Townsville

Cairns

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week

quarter %

year %

$ per week

$ per week

320.0 440.0 585.0 235.0 330.0 380.0 200.0 255.0 320.0 280.0 330.0 365.0 200.0 270.0 380.0 180.0 240.0 310.0

3.2 2.3 4.5 0.0 0.0 1.3 0.0 -1.9 1.6 0.0 0.0 1.4 -13.0 -1.8 5.6 2.9 0.0 0.0

0.0 4.8 8.3 4.4 3.1 1.3 2.6 2.0 3.2 -1.8 0.0 1.4 2.6 0.0 2.7 -5.3 0.0 -3.1

250.0 360.0 460.0 195.0 300.0 350.0 167.5 230.0 290.0 250.0 290.0 335.0 160.0 230.0 320.0 160.0 200.0 280.0

400.0 520.0 715.0 270.0 375.0 420.0 240.0 290.0 340.0 335.0 385.0 420.0 310.0 320.0 465.0 225.0 280.0 350.0

17


SOUTH AUSTRALIA SALES The median house price in Adelaide increased to $407,500 over the December 2010 quarter, up 1.4% from the September quarter.

Adelaide Median House Prices

Dec 10

Jun 10

Sep 10

Dec 09

House median prices increased in all areas of South Australia, with the exception of Port Lincoln and Riverland, where median house prices were down 15.9% and 17.7% respectively; median house prices in the middle suburbs of Adelaide remained at $450,000.

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

Qtrly Moving Annual Medians Qtrly Medians

Mar 06

410 390 370 350 330 310 290 270 250

Over the year, median house prices increased across South Australia, except for Port Lincoln where median house prices remained at $265,000, and Riverland, where median house prices declined 14.7%. Prices for other dwellings in Adelaide declined 0.5% to $317,500. In the inner suburbs of Adelaide, median prices for other dwellings remained at $350,000; in the middle and outer suburbs median prices increased 0.6% and 0.4% respectively.

Table 23: South Australia House Sales Prices, December Quarter 2010 City/Zone

Adelaide Inner Middle Outer Mount Gambier Port Lincoln Riverland

No. Sales

Preliminary median price

Current preliminary median compared with revised medians in earlier quarters

Lower quartile

Upper quartile

$’000

Change over quarter %

Change over year % $’000

$’000

4,464 648 1,744 2,072 79

407.5 641.6 450.0 330.0 247.5

1.4 3.5 0.0 1.2 3.7

5.2 7.8 4.7 3.1 7.6

322.0 511.1 385.0 280.0 203.0

530.0 820.0 550.0 398.0 310.0

46 38

265.0 153.5

-15.9 -17.7

0.0 -14.7

174.5 120.0

335.0 187.5

Lower quartile

Upper quartile

Table 24: South Australia Other Dwellings Sales Prices, December Quarter 2010 City/Zone

Adelaide Inner Middle Outer Mount Gambier Port Lincoln Riverland

No. Sales

Preliminary median price

Current preliminary median compared with revised medians in earlier quarters

$’000

Change over quarter %

Change over year % $’000

$’000

1,073 405 505 163 n/a

317.5 350.0 320.0 260.0 n/a

-0.5 0.0 0.6 0.4 n/a

5.5 16.3 6.3 -13.6 n/a

260.0 279.5 265.0 225.0 n/a

397.5 446.0 390.0 290.0 n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

n/a n/a

LGA Definitions: Inner is Adelaide, Burnside, Norwood/ Payneham/St Peters – portion (former LGAs Kensington/Norwood, St Peters), Prospect, Unley, Walkerville, West Torrens. Middle is Campbelltown, Charles Sturt, Holdfast Bay, Marion, Mitcham, Norwood/ Payneham/ St Peters – portion (former LGA Payneham), Port Adelaide/ Enfield. Outer is Adelaide Hills – portion (former LGAs East Torrens, Stirling), Gawler, Onkaparinga, Playford, Salisbury, Tea Tree Gully. Riverland is Berri/Barmera, Loxton, Waikerie (former LGAs Loxton, Waikerie).

18 Real Estate Institute of Australia


Real Estate Market Facts

SOUTH AUSTRALIA RENTS Adelaide Residential Investment Property

Adelaide

3bdr house

15

1.5

%

1.0 0.5

10

Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Mar 08

Jun 07

Sep 07

Dec 07

Mar 07

Jun 06

Sep 06

Dec 06

Dec 05

5 Mar 06

0.0

2bdr other dwelling

Vacancy Rate

2.0 Vacancy Rates

20

Moving Annual Vacancy Rate

2.5

0

Median rents in Adelaide were stable during the December 2010 quarter, with median rents for three bedroom houses and two bedroom units remaining at $310 and $260 per week respectively. In the December quarter, median rents for three bedroom houses showed varied results across Adelaide. In the inner suburbs median rents for this type of dwelling decreased 2.6%; in the middle suburbs median rents remained unchanged at $340; and increased 0.9% in the outer suburbs. In regional South Australia median rents for three bedroom houses also experienced varied results, with median rents increasing 2.3% and 9.1% in Mt Gambier and Pt Lincoln respectively, whilst decreasing 4.2% in Riverland. Over the year, median rents for three bedroom houses increased across South Australia, with the exception of the Riverland, where

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

house median rents decreased 1.4%. The only area in Adelaide reporting an increase in median rents for two bed room other dwellings was Outer Adelaide, where median rents increased 4.2%. In the other areas of Adelaide median rents for two bedrooms other dwelling recorded no change.

Over the year, median rents for two bedroom other dwellings increased, with the exception of Middle Adelaide, where rents remained unchanged. All regional centres experienced decreases in median rents for two bedroom other dwellings except for Port Lincoln. The vacancy rate in metropolitan Adelaide eased slightly to 0.9% over the December quarter but still indicates a tight rental market.

Table 25: South Australia House Rents, December Quarter 2010 City/Zone Adelaide Inner Adelaide Middle Adelaide Outer Mt Gambier Pt Lincoln Riverland

2 b/r 3 b/r 4 b/r 2 b/r 3 b/r 4 b/r 2 b/r 3 b/r 4 b/r 2 b/r 3 b/r 4 b/r 2 b/r 3 b/r 4 b/r 2 b/r 3 b/r 4 b/r

Median $ per week 350.0 380.0 490.0 290.0 340.0 400.0 252.5 282.5 340.0 155.0 220.0 287.5 185.0 270.0 320.0 150.0 172.5 200.0

Change over quarter % 4.5 -2.6 8.9 1.8 0.0 0.6 1.0 0.9 0.0 -15.1 2.3 -3.4 -17.8 9.1 -1.5 -3.2 -4.2 -21.6

Change over year % 7.7 2.7 6.5 7.4 6.3 5.3 5.2 4.6 3.0 -8.8 4.8 -4.2 -7.5 3.8 -3.0 11.1 -1.4 -13.0

Lower quartile $ per week 305.0 350.0 400.0 260.0 300.0 350.0 220.0 255.0 300.0 140.0 180.0 245.0 140.0 250.0 290.0 130.0 155.0 200.0

Upper quartile $ per week 395.0 460.0 595.0 320.0 380.0 475.0 280.0 315.0 392.5 220.0 245.0 330.0 225.0 300.0 360.0 165.0 200.0 250.0

Table 26: South Australia Other Dwellings Rents, December Quarter 2010 City/Zone Adelaide Inner Adelaide Middle Outer Adelaide Mt Gambier Pt Lincoln Riverland

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week

quarter %

year %

$ per week

$ per week

230.0 285.0 377.5 210.0 250.0 340.0 180.0 240.0 295.0 105.0 135.0 250.0 120.0 180.0 300.0 135.0 125.0 185.0

-8.0 0.0 -7.9 -4.5 0.0 -2.9 -5.3 4.3 0.0 16.7 8.0 -2.0 -7.7 0.0 15.4 0.0 -10.7 n/a

0.0 5.6 4.9 7.7 0.0 3.0 28.6 4.3 5.4 5.0 -18.2 17.6 -5.9 9.1 3.4 -3.6 -10.7 -15.9

200.0 250.0 330.0 175.0 220.0 300.0 150.0 200.0 270.0 100.0 115.0 200.0 112.5 170.0 257.0 100.0 100.0 185.0

275.0 355.0 450.0 250.0 285.0 390.0 210.0 275.0 335.0 117.5 210.0 280.0 132.5 200.0 330.0 135.0 150.0 185.0

19


TASMANIA SALES Median house prices in Hobart increased 0.7% over the December quarter to $382,500; Middle Hobart and the North West Centres were the only areas to experience a decrease in house median prices, down 7.7% and 1.9% respectively.

Hobart Median House Prices 390

Qtrly Moving Annual Medians

370

Qtrly Medians

350

Over the year, with the exception of the North-West centres, median house prices increased in all areas across Tasmania.

330 310 290

Dec 10

Jun 10

Sep 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

Mar 06

270 250

During the December quarter, other dwelling median prices remained at $290,000; decreases were evident in the middle and outer suburbs, where median prices decreased 2.5% and 0.7% respectively. Over the year, other dwelling prices decreased 2.8%, with the middle and outer suburbs reporting decreases of 7.9% and 7.6% respectively. Tasmania regional centres showed increases in median other dwelling prices over the year.

Table 27: Tasmania House Sales Prices, December Quarter 2010 City/Zone

No. Sales

Median Price $’000

Change over quarter %

Change over year %

Lower quartile $’000

Upper quartile $’000

512

382.5

0.7

3.4

300.0

517.6

Inner

150

550.0

15.5

12.2

420.4

650.0

Middle

255

327.5

-7.7

7.4

270.0

400.0

Outer

Hobart

107

369.0

7.0

9.3

292.5

450.0

Launceston

239

275.0

2.8

1.9

234.5

345.0

North-West Centres

117

255.0

-1.9

-1.6

215.0

324.5

Table 28: Tasmania Other Dwellings Sales Prices, December Quarter 2010 City/Zone

No. Sales

Median Price $’000

Change over quarter %

Change over year %

Lower quartile $’000

Upper quartile $’000

153

290.0

0.0

-2.8

218.0

380.0

Inner

71

350.0

7.7

-7.9

280.5

439.0

Middle

67

232.0

-2.5

-7.6

187.3

295.5

Outer

15

295.0

-0.7

3.5

281.0

312.5

Launceston

51

237.0

4.2

6.5

185.0

297.0

North-West Centres

20

231.0

6.0

3.8

200.5

281.5

Hobart

The REIT collects its Tasmanian sales data through its members, using monthly survey forms. Prices are recorded at the date of exchange and sales collected from members account for 88% of all sales in the reference period. This direct collection method provides the most timely and accurate sales information for each reference period and median prices calculated from the data do not need to be revised. LGA Definitions: Inner is Hobart-Inner, Hobart-Remainder. Middle is Clarence, Glenorchy. Outer is Kingborough, Derwent Valley Pt A. Launceston is Launceston-Inner, Launceston Pt B, Launceston Pt C. North-West Centres is Burnie Pt A, Central Coast Pt A, Devonport.

20 Real Estate Institute of Australia


Real Estate Market Facts

TASMANIA RENTS Hobart 2.4 Vacancy Rates

Hobart Residential Investment Property

Moving Annual Vacancy Rate Vacancy Rate

20

3bdr house

15

2.3 2.2

%

2.1

10

2.0

5 Dec 10

Jun 10

Sep 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

Mar 06

1.9 1.8

2bdr other dwelling

0

Median rents for three bedroom houses in Hobart remained at $330 per week; while median rents of two bedroom other dwellings increased 4.6% to $275. Middle Hobart was the only area to record an increase in median rents for three bedroom houses, up 6.0%. All regional centres recorded increases in house median rents. Over the year, Tasmania recorded increases in median rents for three bedrooms other dwellings, with the largest increase in Launceston, increasing 8.0%.

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Two bedroom other dwelling rents increased in all areas across Tasmania during the December quarter, with the exception of the inner suburbs of Hobart, where median rents decreased 5.1%. Over the year, median rents for two bedroom other dwellings increased across all Tasmania, except for Inner Hobart, where median rents remained unchanged. The vacancy rate in Hobart declined 0.2 percentage points during the quarter to 2.2%.

Table 29: Tasmania House Rents, December Quarter 2010 City/Zone Hobart Inner

2 3 4 2 3 4 2 3 4 2 3 4 2 3 4

Hobart Middle

Hobart Outer

Launceston

North-West Centres

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week

quarter %

year %

$ per week

$ per week

360.0 370.0 465.0 323.0 318.0 385.0 280.0 320.0 460.0 250.0 270.0 385.0 238.0 250.0 385.0

12.5 -7.5 -3.1 34.6 6.0 -1.3 -12.5 -0.9 8.7 0.0 3.8 16.7 5.8 8.7 24.2

18.0 5.7 -1.1 9.5 6.0 -2.5 6.5 3.2 10.0 6.4 8.0 1.3 19.0 4.2 28.3

308.0 330.0 448.0 310.0 290.0 350.0 238.0 285.0 350.0 233.0 249.0 298.0 201.0 234.0 320.0

395.0 401.0 484.0 331.0 350.0 475.0 326.0 355.0 500.0 268.0 300.0 415.0 248.0 271.0 400.0

Table 30: Tasmania Other Dwellings Rents, December Quarter 2010 City/Zone Hobart Inner

Hobart Middle

Hobart Outer

Launceston

North-West Centres

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median

Change over

Change over

Lower quartile

Upper quartile

$ per week 210.0 280.0 440.0 180.0 240.0 328.0 n/a 280.0 298.0 155.0 220.0 420.0 128.0 223.0 230.0

quarter % 7.7 -5.1 25.7 21.6 3.0 35.0 n/a 9.8 -0.7 0.0 0.0 27.3 -21.5 17.4 -4.2

year % 10.5 0.0 18.9 12.5 9.1 -23.7 n/a 12.0 -9.7 6.9 10.0 41.9 -1.5 14.4 -20.7

$ per week 185.0 250.0 358.0 148.0 218.0 275.0 n/a 258.0 284.0 150.0 183.0 415.0 120.0 190.0 203.0

$ per week 260.0 320.0 521.0 195.0 275.0 361.0 n/a 303.0 383.0 176.0 250.0 425.0 135.0 255.0 245.0

21


VICTORIA SALES Over the December quarter, the median house price in Melbourne increased 6.9% to $601,500. All areas across Victoria recorded increases in median house prices, with the exception of Bendigo, where median house prices declined by 7.2%.

Melbourne Median House Prices 800 Qtrly Moving Annual Medians

700

Qtrly Medians

600

Over the year, median house prices increased in all areas of Victoria, while Bendigo was again the only area to record a decline, down 2.8%.

500

Dec 10

Jun 10

Sep 10

Mar 10

Jun 09

Sep 09

Dec 09

Dec 08

Mar 09

Jun 08

Sep 08

Mar 08

Jun 07

Sep 07

Dec 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

300

Mar 06

400

Median prices of other dwellings increased 2.6% to $480,000 in Melbourne over the quarter. In most areas of Victoria median prices of other dwellings recorded increases with the exception of Bendigo and Ballarat where prices decline by 16.1% and 9.1%. Over the year, other dwelling median prices increased across all Victoria, with the largest increase observed in the outer suburbs of Melbourne, up 16.9%.

Table 31: Victoria House Sales Prices, December Quarter 2010 City/Zone

No. Sales

Preliminary median price

Current preliminary median compared with revised medians in earlier quarters

$’000

Change over quarter %

Change over year %

Lower quartile

Upper quartile

$’000

$’000

Melbourne Inner Middle Outer

9,522 2,313 3,256 3,951

601.5 881.5 640.0 461.0

6.9 0.2 3.2 3.1

12.4 13.0 19.5 19.7

440.0 690.0 485.0 380.0

830.0 1260.0 827.0 590.0

Geelong Bendigo Ballarat

481 227 456

375.0 257.5 277.5

1.4 -7.2 8.2

10.3 -2.8 5.7

300.0 210.3 230.0

490.0 344.4 343.0

Table 32: Victoria Other Dwellings Sales Prices, December Quarter 2010 City/Zone

Melbourne Inner Middle Outer Geelong Bendigo Ballarat

No. Sales

Preliminary median price

4,779 2,589 1,421 769 92 37 94

Current preliminary median compared with revised medians in earlier quarters

Lower quartile

Upper quartile

$’000

Change over quarter %

Change over year %

$’000

$’000

480.0 519.5 490.0 375.0 307.5 226.5 220.0

2.6 -2.0 3.0 5.6 18.3 -16.1 -9.1

8.8 14.7 14.0 16.9 13.3 5.3 5.4

380.0 412.5 400.0 312.9 217.8 210.0 185.0

620.0 666.0 610.0 440.0 428.5 286.3 251.1

The REIV gathers results on residential, commercial, and industrial sales directly from its members. The bulk of the data are collected online, with many agents submitting results electronically several times per week. A call centre dedicated to the collection of property sales results has been established, and receives widespread support within the industry. REIV also collaborates with industry portal realestateview.com.au to gather listings. All data are checked for accuracy and questionable sales results are either verified with the selling agent or discarded. Approximately 60% of total transactions in a reference period are received initially and revisions to the median prices are based on 70-80% of total transactions. LGA Definitions: Inner is suburbs within ten kilometres of the CBD. Middle is between ten and twenty kilometres from the CBD. Outer is more than twenty kilometres from the CBD.

22 Real Estate Institute of Australia


Real Estate Market Facts

VICTORIA RENTS Melbourne Residential Investment Property

Moving Annual Vacancy Rate

2bdr other dwelling 15

Vacancy Rate

3bdr house

12 %

9

Dec 10

Jun 10

Sep 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Mar 08

Jun 07

Sep 07

Dec 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

6 Mar 06

Vacancy Rates

Melbourne 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

3 0

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Over the December quarter, median rents for three bedroom houses increased in all regions across Victoria, with the exception of Melbourne, where median rents remained at $330 per week.

rents for this type of dwelling due to median rents in Inner and Middle Melbourne remaining unchanged. In all regional centres, median rents for two bedroom other dwellings showed increases.

Over the year, house rents increased across Victoria with the largest increase observed in Ballarat, where median rents increased 12.5%.

Over the year, median rents for two bedrooms other dwellings increase across all Victoria, with the most significant increase observed in Bendigo, where rents went up 10.5%

Median rents for two bedroom other dwellings showed varied results, with Melbourne reporting no changes in median

The rental vacancy rate increased 1.0 percentage points to 2.4%.

Table 33: Victoria House Rents, December Quarter 2010 City/Zone Melb Inner Melb Middle Melb Outer Geelong Bendigo Ballarat

2 3 4 2 3 4 2 3 4 2 3 4 2 3 4 2 3 4

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median $ per week 470.0 590.0 777.5 360.0 400.0 517.5 280.0 310.0 360.0 260.0 300.0 390.0 220.0 255.0 350.0 230.0 270.0 330.0

Change over quarter % 4.4 1.7 11.1 0.0 0.0 3.5 3.7 0.0 0.0 8.3 7.1 2.6 1.1 2.0 9.4 9.5 3.8 3.1

Change over year % 6.8 7.3 8.7 2.9 2.6 4.5 7.7 3.3 5.9 8.3 11.1 18.2 15.8 6.3 9.4 9.5 12.5 10.0

Lower quartile $ per week 420.0 500.0 650.0 320.0 350.0 425.0 250.0 285.0 325.0 235.0 260.0 325.0 190.0 225.0 310.0 200.0 240.0 300.0

Upper quartile $ per week 550.0 700.0 980.0 415.0 480.0 690.0 300.0 340.0 405.0 310.0 340.0 430.0 240.0 280.0 380.0 250.0 300.0 370.0

Lower quartile $ per week 280.0 370.0 510.0 225.0 300.0 365.0 185.0 240.0 285.0 150.0 230.0 300.0 125.0 180.0 250.0 130.0 185.0 240.0

Upper quartile $ per week 390.0 519.0 750.0 290.0 380.0 485.0 230.0 300.0 350.0 195.0 280.0 395.0 145.0 230.0 280.0 180.0 247.5 300.0

Table 34: Victoria Other Dwellings Rents, December Quarter 2010 City/Zone Melb Inner Melb Middle Melb Outer Geelong Bendigo Ballarat

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r b/r

Median $ per week 330.0 440.0 650.0 250.0 340.0 420.0 201.0 270.0 320.0 165.0 255.0 330.0 130.0 210.0 260.0 140.0 210.0 260.0

Change over quarter % 3.1 0.0 3.2 0.0 0.0 0.0 0.5 1.9 1.6 3.1 4.1 6.5 -7.1 5.0 0.0 -6.7 5.0 -3.0

Change over year % 3.1 4.8 3.2 4.2 6.3 5.0 5.8 8.0 6.7 10.0 8.5 17.9 0.0 10.5 8.3 -5.1 7.7 8.3

23


WESTERN AUSTRALIA SALES Perth Median House Prices Qtrly Moving Annual Medians

550

Qtrly Medians

500 450 400 350

Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Dec 08

Mar 09

Jun 08

Sep 08

Dec 07

Mar 08

Jun 07

Sep 07

Mar 07

Jun 06

Sep 06

Dec 06

Dec 05

250

Mar 06

300

Median house prices showed varied results across Western Australia, with median house prices in Perth declining 2.0%. The largest decrease was in Broome, decreasing 11.0% to $650,000; Bunbury, Geraldton and Albany recorded increases of 5.4%, 2.8% and 1.1% respectively. Over the year, median house prices in Perth decreased 2.0%; all areas of Perth recorded declines in house prices, with the largest evident in Inner Perth, down 3.9%. Mandurah, Bunbury and Albany also recorded decreases of 5.5%, 2.2% and 4.5% respectively. Median prices of other dwellings decreased over the December quarter across most of Western Australia regions, with other dwelling median prices in Perth down 1.0% to $405,000. The largest decrease was evident in Bunbury, where median prices declined 10.5%. Over the year, all areas across Western Australia recorded decreases in other dwelling median prices, except for Kalgoorlie/Boulder and Geraldton where median prices increased by 21.1% and 11.6% respectively.

Table 35: Western Australia House Sales Prices, December Quarter 2010 City/Zone

No. sales

Preliminary median price

$’000 Perth Inner Middle Outer Mandurah Bunbury Kalgoorlie/ Boulder Geraldton Broome Albany

Current preliminary median compared with revised medians in earlier quarters Change over quarter %

Change over year %

Lower quartile

Upper quartile

4,279 480 1,842 1,957 278 199

480.00 865.00 496.50 430.00 379.50 370.00

-2.0 1.8 -0.7 -2.3 -3.7 5.4

-2.0 -3.9 -0.7 -1.7 -5.5 -2.2

$’000 380.00 652.00 400.00 350.00 310.00 310.00

$’000 635.00 1,250.00 633.00 525.00 485.00 450.00

97

330.00

-2.9

1.5

250.00

416.50

81 32 85

400.00 650.00 365.00

2.8 -11.0 1.1

7.4 2.0 -4.5

315.00 555.00 305.00

500.00 795.00 432.50

REIWA excludes properties > 1 Ha which represent approx 1.5% of sales, all with prices above Perth’s overall median.

Table 36: Western Australia Other Dwellings Sales Prices, December Quarter 2010 City/Zone

Perth Inner Middle Outer Mandurah Bunbury Kalgoorlie/ Boulder Geraldton Broome Albany

No. Sales

Preliminary median price

Current preliminary median compared with revised medians in earlier quarters

Lower quartile

Upper quartile

$’000

Change over quarter %

Change over year %

$’000

$’000

1,063

405.0

-1.0

-1.2

316.0

540.0

545 397 121 47 31

475.0 374.0 310.0 340.0 305.0

-1.0 1.1 -6.8 -5.6 -10.5

-2.1 -1.4 -3.1 -10.5 -3.9

355.0 315.0 265.0 260.0 250.0

640.0 450.0 400.0 760.0 395.0

13

276.0

3.6

21.1

220.0

285.0

7 n/a n/a

318.0 n/a n/a

9.7 n/a n/a

11.6 n/a n/a

225.0 n/a n/a

366.0 n/a n/a

Western Australia prices are revised once only from the additional information that becomes available in the quarter immediately following the quarter for which preliminary estimates of median prices are published. LGA Definitions: Inner is Cities of Perth, Stirling (Sth. East), South Perth, Subiaco, Nedlands, Belmont; Towns of Cambridge, Vincent, Victoria Park, Claremont, Cottesloe; Shire of Peppermint Grove. Middle is Cities of Stirling (Central and Coastal), Bayswater, Canning, McIIville, Fremantle (inner & remainder), Cockburn, Gosnells, Wanneroo (Sth West & Sth East) southern half only; Towns of Bassendean, East Fremantle; Shire of Kalamunda. Outer is Cities of Wanneroo (Northern half), Armadale, Rockingham; Town of Kwinana; Shires of Swan, Mundaring, SerpentineJarradale.

24 Real Estate Institute of Australia


Real Estate Market Facts

WESTERN AUSTRALIA RENTS Perth 6

20

Moving Annual Vacancy Rate

5 Vacancy Rates

Perth Residential Investment Property 2bdr other dwelling

3bdr house

Vacancy Rate

4

15

3

%

2

10

1 Jun 10

Sep 10

Dec 10

Dec 09

Mar 10

Jun 09

Sep 09

Mar 09

Jun 08

Sep 08

Dec 08

Dec 07

Mar 08

Jun 07

Sep 07

Dec 06

Mar 07

Jun 06

Sep 06

Dec 05

5 Mar 06

0

0

Median house rents in Perth remained unchanged at $370 per week while median rents for two bedroom other dwellings increased 1.4% to $360; Outer Perth was the only area showing a decrease in median house rents-down 2.7% Over the year, median house rents increased across most of Western Australia, except for Broome where median rents decreased 3.1%, and Albany, where median rent remained unchanged.

Annual Yield

Annual Return 5 Yr Avg Return 10 Yr Avg Return

Bunbury and Albany, where rents decreased 2.2%, 6.9% and 16.1%, respectively; median rents in Inner Perth remained at $400 per week. Over the year, Outer Perth and Albany were the two areas where decreases in median rents for other dwellings were evident; Inner Perth saw no changes during the year. Perth’s vacancy rate increased 0.2 percentage points to 3.2% over the quarter.

Over the quarter, other dwelling median rents increased across most of Western Australia, except for Outer Perth,

Table 37: Western Australia House Rents, December Quarter 2010

City/Zone

Median $ per week

Change over quarter %

Change over year %

Lower quartile $ per week

Upper quartile $ per week

Perth Inner

500.0

6.4

11.1

400.0

700.0

Perth Middle

385.0

1.3

1.3

340.0

450.0

Perth Outer

360.0

-2.7

0.0

310.0

420.0

Mandurah

320.0

3.2

10.3

280.0

350.0

Bunbury

330.0

3.1

10.0

280.0

373.0

Broome

620.0

-10.1

-3.1

545.0

738.0

Albany

300.0

0.0

0.0

280.0

350.0

Table 38: Western Australia Other Dwellings Rents, December Quarter 2010

City/Zone

Median $ per week

Change over quarter %

Change over year %

Lower quartile $ per week

Upper quartile $ per week

Perth Inner

400.0

0.0

0.0

320.0

500.0

Perth Middle

350.0

2.9

2.9

300.0

400.0

Perth Outer

318.0

-2.2

-0.6

250.0

364.0

Mandurah

290.0

3.6

5.5

270.0

335.0

Bunbury

270.0

-6.9

3.8

228.0

350.0

Broome

475.0

0.4

5.6

400.0

550.0

Albany

235.0

-16.1

-3.3

194.0

273.0

25


Residential Investment Property Market Tables 39 and 40 report residential property investment yields and returns before tax, based on net rental income, i.e. median rent adjusted downward by 20% to take into account costs including maintenance, insurance and agency fees, that are associated with ownership of an investment property. Yields and returns are reported as percentages.

Quarterly, annual and average returns incorporate the growth in overall median prices (capital growth), together with the percentage returns derived from net rental income, for three bedroom houses and two bedroom other dwellings. Capital growth is derived for each capital city from quarterly median dwelling prices.

Annual yield is calculated by dividing net annual rental income by the overall median price, and is provided for three bedroom houses and two bedroom other dwellings. It does not take capital growth into account.

This information should be used for indicative purposes only. Preliminary sales data is not revised. REIA has discontinued the Residential Investment Property Index (RIPI) and the Average Annual Return since March1982/1988 provided in earlier editions of Mortgage Choice Real Estate Market Facts.

Table 39: Residential Investment Property Returns: Three Bedroom Houses Returns (%)

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

2.6

2.3

3.2

3.2

3.2

3.7

3.6

4.1

1.7

7.5

1.4

2.2

-1.1

-0.1

1.6

2.3

8.7

15.0

3.0

8.4

2.2

7.6

7.1

7.8

6.0

11.6

11.2

11.8

13.2

11.3

10.9

18.1

9.4

11.1

15.3

15.7

15.5

15.1

16.6

15.9

Annual Yield: Dec‘09 to Dec ‘10 Quarterly Return: Sep ‘10 - Dec ‘10 Annual Return: Dec ‘09 to Dec ‘10 Average annual return over past 5 years: Dec ‘05 to Dec‘10 Average annual return over past 10 years: Dec ‘00 to Dec ‘10

Table 40: Residential Investment Property Returns: Two Bedroom Other Dwellings Returns (%)

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

4.1

2.9

3.7

3.4

3.7

4.2

3.9

4.0

1.0

3.3

2.3

0.4

-0.1

-1.3

1.0

5.5

10.7

12.1

3.3

9.1

3.9

13.0

0.9

8.9

7.8

12.2

12.4

12.5

15.0

12.0

10.6

19.3

9.0

12.4

12.6

16.8

17.4

16.2

16.9

16.1

Annual Yield: Dec‘09 to Dec ‘10 Quarterly Return: Sep ‘10 - Dec ‘10 Annual Return: Dec ‘09 to Dec ‘10 Average annual return over past 5 years: Dec ‘05 to Dec‘10 Average annual return over past 10 years: Dec ‘00 to Dec ‘10

26 Real Estate Institute of Australia


Real Estate Market Facts

Acknowledgments REIA gratefully acknowledges the eight affiliated state and territory REIs for their cooperation and assistance in the preparation of Real Estate Market Facts. REIA also acknowledges the many real estate agency firms and the government and private organisations within the states and territories who regularly provide sales, rental and vacancy rate data to the REIs and/or directly to REIA for publication in Real Estate Market Facts. Real Estate Market Facts would cease to exist without their continuing invaluable assistance. The organisations that regularly provide information for Real Estate Market Facts are: NSW: Australian Property Monitors NSW Department of Housing VIC: Real Estate Institute of Victoria (REIV) (sales data) Victorian Department of Human Services, Office of Housing QLD: Queensland Department of Natural Resources Queensland Residential Tenancies Authority SA: South Australian Office of Consumer and Business Affairs, Tenancies Branch, South Australian Department for Families and Communities, Research and Analysis Unit Land Services Group, Department for Administrative and Information Services

Subscriptions are available at www.reia.com.au or by phoning 02-6282 4277 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by means electronic, mechanical, photocopy, recording or otherwise, without the prior consent of the publishers. ISSN 0818-11512 Print Post Approved No.PP299436/00043 Š 2009 REAL ESTATE INSTITUTE OF AUSTRALIA LTD Real Estate Institute of Australia Ltd PO Box 234, DEAKIN WEST ACT 2600 Tel: (02) 6282 4277 Fax: (02) 6285 2444 www.reia.com.au email: reia@reia.com.au

WA: Western Australia Department of Land Administration ACT: Planning and Land Authority, ACT Department of Urban Services Registrar- General’s Office, ACT Department of Justice and Community Safety TAS: All data obtained from Real Estate Institute Member Agents NT: The Australian Valuation Office for the Valuer-General of the Northern Territory Regional Information Regional market activity information can be provided by state and territory REIs. Institutes: REI Australian Capital Territory (02) 6282 4544 REI Northern Territory (08) 8981 8905 REI Queensland (07) 3249 7347 REI South Australia (08) 8366 4300 REI Tasmania (03) 6223 4769 REI Victoria (03) 9205 6666 REI Western Australia (08) 9380 8222

27


Real Estate Market Facts  

December Quarter 2010

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