Red Report 2017 Issue 1

Red Report

hockingstuart.com.au

Issue 1 2017

Contents 01. Insider News Market Update

3

Q & A with Dick Karlsson from DIAKRIT

4

02. Melbourne Market Melbourne at a glance

6

Suburbs with the highest % of stock

7

Melbourne’s best performing suburbs

8

Top suburbs from rental yield

9

Suburbs with the best auction clearance rates

9

Suburbs with the highest sales turnover

9

03. Local Focus Property Market Snapshot

11

Inner City

12

Inner West

13

Inner North

14

Inner East

15

Eastern Suburbs

16

Outer Suburbs

17

Bayside

20

Greater Geelong

21

Mornington Peninsula

22

Regional Victoria

23

This Market Report has been prepared by hockingstuart as a general guide to the historical performance of suburbs within particular areas. It is provided for information purposes only and does not constitute advice or recommendations. It does not purport to, and cannot, predict the future performance of particular suburbs or areas. It is by its nature generic and cannot be used to predict the future performance of any particular property or type of property. You should obtain independent professional advice and consider your personal circumstances before making any financial decisions. You should not rely on this Market Report when making investment decisions and hockingstuart disclaims any liability if you seek to do so. While hockingstuart has prepared this Market Report in good faith, it is based on information provided by third parties and it could contain errors, be incomplete, or out of date. hockingstuart has not independently verified the information and makes no express or implied warranty as to the accuracy, adequacy or reliability of the information. hockingstuart accepts no responsibility for the accuracy or completeness of any material contained in this report.

01. Insid er News

Market update.

The 2017 selling season has produced exceptional results so far, with auction clearance rates remaining high and property prices soaring. Clearance rates across Melbourne have averaged in the high 70's this year, with demand catapulting above 80% at the end of March. Additionally, the average median house price across the city has been increasing year-on-year. In December 2014, the median was $627,068 – now it’s sitting at $795,447.

For investors with assets in real estate, the strong demand we’re experiencing across the city is great news when it comes to capital appreciation.

Experts predict that despite rental yields remaining stable over the past two years, rental returns should increase this year with many Victorians opting to rent instead of buy to reduce their cost of living.

There are, however, several changes currently at play which will impact investor lending for the remainder of 2017. The most prominent being that APRA has encouraged major banks to implement restrictions on investor loans. The Victorian Government has also re-introduced stamp duty levies for investors purchasing off-the-plan apartments.

Investors should also be aware of government initiatives for first home buyers set to roll out this July. Notably, it has slashed stamp duty for homes under $600,000 and will provide an additional $10,000 first home buyers grant for those in regional cities. Investors are likely to see increased competition from this market, especially for entry level homes and in rural areas.

Overall, the buoyant market is positive for those who have invested in bricks and mortar and is set to continue well into 2017. With banks tightening investor loans and property prices soaring, now is the time to hit go if you’ve been considering extending your portfolio.

Simon Jovanovic CEO hockingstuart

03

01 . I nsid er News

Q&A with Dick Karlsson from DIAKRIT Our latest partnership is raising the standards of digital visualisation in the property industry. We sit down with Executive Vice President and Co-Founder of DIAKRIT, Dick Karlsson to discuss what’s new to hockingstuart listings.

Tell us about DIAKRIT and how it came about?

What does DIAKRIT do?

DIAKRIT started over 15 years ago when at the time, I was looking to buy a new home in Sweden and found it extremely unsatisfying sifting through subpar floorplans and low quality photos to decide on one of the biggest life decisions. I realized I wasn’t alone in this search. I could see a clear need for solutions that could help consumers to not only better visualise the layout and space of a property, but also to see the potential for renovation and redecoration plus what it would feel like to live there. This sparked an idea, which has since evolved into what we know as DIAKRIT today.

We offer a full suite of services to help people better market properties from cloud-based software, to 2D & 3D floor plan services, high-end 3D visualisations, interactive decorating and furnishing features, 360 degree and virtual reality tours, and magazine-quality photographs, including lifestyle and dusk photography. Every solution we develop is to empower the buyer or renter to be able to visualise and experience for themselves the complete potential of their new home, all through a real estate professionals' online listing.

Since opening in 2001, we have expanded across northern Europe, America and Australia. DIAKRIT is the global leader in real estate visualisation and photography tools, the sort of engaging and interactive features that you see on sites such as domain.com.au and realestate.com.au when searching for a rental property or place to buy. We are proud to have around 600 members of staff and 500 freelance photographers on our books, servicing more than 2,000 real estate clients internationally.

04

Offered exclusively by hockingstuart in Victoria through to 1st December, hockingstuart is also the first real estate agency in Australia to leverage DIAKRIT’s services across their whole franchise network, which confirms they are a progressive business looking to use innovative technologies to support their agents and offer compelling propositions to their customers.

Why is real estate visualisation technology important to buyers and renters?

One of the most important things for people is being able to imagine themselves living in the property: entertaining in the kitchen, watching the kids play in the living room.

We get great feedback in other global markets on our furnishing, styling and renovation software tools which enables users to digitally furnish and alter the layout of an online property listing.

Being able to add their own furniture to the space and imagine themselves and their family living in it is inspirational! They’re able to really understand what’s on offer and develop an emotional connection with the property before coming to an open house for inspection.

How can the technology benefit hockingstuart vendors and landlords?

This new technology offers transparency to clients, giving them access to accurate, to-scale information about the property they’re interested in. The photographs used in a listing are true representations of a home: they’re not overexposed or taken with a fish-eye lens to give an unrealistic perception of space and light, helping to market the property to its full potential.

With rental returns remaining steady in many markets across Melbourne, giving clients access to this information is one way for landlords to ensure their property stands out from the competition. In fact, our research shows that our 3D floor plan technology can generate up to 17 percent more leads than a 2D plan, thanks to this emotional connection buyers and tenants develop with the property.

Part of the reason for that is that when the client walks through the door of the property at an open house, it’s a space they recognise. They have already built an emotional and rational connection to the property, making them a qualified lead who is closer to making a decision. By enhancing their experience, our products can cut the time it takes for them to close in on a sale or lease agreement.

The best part about hockingstuart’s DIAKRIT offering is that it’s the same price as regular marketing photography you would engage when listing a property through an agent. Your property will stand out from the crowd without having to increase your marketing spend. It’s a win, win!

To find out more about DIAKRIT’s visualisation tools, contact your nearest hockingstuart office.

05

02. Melbourne M a r ket

Melbourne at a glance over the past 12 months.

House

Units

Median value

$718,677

Median value

$513,565

% change of median value

10.70%

% change of median value

5%

Number of listings

63,067

Number of listings

27,275

Median rent

$400 /wk

Median rent

$385 /wk

Rental yield

3.32% pa

Rental yield

4.13% pa

Median combined dwelling value by suburb

% change in median combined dwelling value over the last 12 months

Median Value

Growth per annum

$1.2m+

16%+

$1.0 - $1.2m

12% - 16%

$800k - $1.0m

8% - 12%

$600k - $800k

4% - 8%

$0 - $600k

Less than 4%

No data

No data

Source: Residex

06

02. Melbourne M a r ket

Suburbs with the highest % of stock.

Here is a list of suburbs which top their respective regions for the level of stock that’s available in respect to a total number of dwellings. These suburbs represent pockets in Melbourne whereby there are high levels of stock available, perhaps representing a good opportunity for investors to compete in a more balanced marketplace.

01 Inner North Houses Heidelberg West 5.50%

01

Units Kingsbury 5.10%

02

02 Inner City Houses South Melbourne 5.30% Units Docklands 5.50%

04 04 Inner East

03

05

Houses Deepdene 7.10% Units Malvern East 4.60%

06

03 Inner West

05 Eastern Suburbs

Houses Essendon West 7.90%

07

Units Travancore 8.90%

Houses Notting Hill 6.40% Units Huntingdale 7.60%

07 Outer Suburbs

06 Bayside

Houses Point Cook 8.80%

Houses Frankston South 6.60%

Units Kurunjang 10.50%

Units Frankston South 7.00%

Source: RP Data (last 12 months)

07

02. Melbourne M a r ket

Melbourne’s best performing suburbs.

Capital Growth is one of the main indicators of how your property investment is performing. The suburbs are broken up into four price brackets, houses vs units and ranked on percentage increase in property value in the last quarter.

Houses

Median Value

- Capital Growth Last Quarter

Low price range

Last 12 Months

Rental Yield P/A

$293,500 - $506,500

Units

Median Value

- Capital Growth Last Quarter

Low price range

Last 12 Months

Rental Yield P/A

$208,000 - $384,500

Mickleham

$373,250

16.6%

N/A

5.3%

Seabrook

$380,000

5.8%

10.5%

4.2%

Ardeer

$502,000

10.3%

32.1%

3.3%

Junction Village

$260,000

5.1%

4.0%

N/A

Burnside

$501,000

9.5%

20.7%

4.0%

Cranbourne West

$342,000

4.9%

16.2%

4.9%

Kealba

$470,500

8.2%

17.6%

3.9%

Eumemmerring

$335,000

4.7%

3.5%

4.5%

Delahey

$455,000

7.8%

13.8%

4.0%

Melton South

$230,000

4.5%

7.5%

5.9%

Low-mid price range Belgrave

$506,500 - $743,000 $537,000

11.2%

10.7%

Low-mid price range

$384,500 - $506,500

4.1%

Hadfield

$410,000

10.8%

9.3%

4.2%

$500,000

10.0%

11.7%

3.7% 3.7%

Brooklyn

$673,500

9.0%

16.4%

2.9%

Avondale Heights

Seaford

$570,500

6.4%

21.4%

3.4%

Ripponlea

$495,000

8.5%

6.5%

Chirnside Park

$634,000

5.7%

15.0%

3.4%

Chelsea Heights

$456,700

7.1%

9.3%

4.3%

Sunshine

$670,000

5.5%

25.7%

2.6%

Noble Park North

$406,000

5.2%

N/A

4.2%

Mid-high price range Research

$743,000 - $1,090,500 $865,000

16.5%

28.8%

Mid-high price range

$506,500 - $668,500

2.8%

Moorabbin

$592,450

19.7%

21.3%

3.6%

$540,000

11.9%

3.9%

3.2% 3.8%

Narre Warren North

$853,000

13.0%

9.0%

3.0%

Murrumbeena

South Kingsville

$862,500

11.7%

16.7%

2.8%

Wantirna South

$535,000

11.3%

12.6%

Brunswick West

$995,000

9.3%

16.9%

2.7%

Bentleigh

$608,500

11.1%

6.8%

3.5%

Avondale Heights

$775,000

9.2%

19.2%

2.6%

Coburg North

$513,500

8.1%

4.8%

3.7%

High price range

$1,090,500 - $2,645,725

High price range

$668,500 - $1,150,000

Parkville

$1,828,000

28.3%

42.8%

1.3%

Ivanhoe East

$815,000

29.4%

N/A

Williamstown North

$1,135,500

26.2%

37.2%

2.5%

Caulfield South

$850,000

20.9%

15.6%

2.6%

St Kilda

$1,171,000

14.4%

27.9%

2.3%

Ringwood North

$720,000

14.3%

23.7%

2.6%

Black Rock

$1,672,500

11.2%

9.0%

2.8%

Templestowe

$824,750

13.1%

18.7%

2.5%

Burnley

$1,225,505

9.5%

22.7%

2.8%

Kew East

$725,000

10.7%

0.7%

3.0%

Source: RP DATA

08

2.5%

02. Melbou r ne M a r ket

% Rental yield

Top suburbs for rental yield Here are the suburbs in Melbourne which had the highest rental yield for the past 12 months.

This is useful for identifying where you can make the most of rental income, therefore minimising mortgage repayments.

Houses Rockbank

5.60%

Mickelham

5.30%

Melton

5.20%

Melton South

5.10%

Melbourne

5.00%

Units

Source: RP Data Carlton

6.40%

Melton

6.20%

Roxburgh Park

5.90%

Melton South

5.90%

Notting Hill

5.90%

Clearance rates

Suburbs with the best auction clearance rates Auction clearance rates are the percentage of properties sold, usually calculated weekly. A high auction clearance rate indicates a seller’s market or a hot market. The hottest markets in Melbourne are shown here.

Source: REIV Results are based on data from Sep 16 - Feb 17 Includes suburbs with more than 40 auctions

Thomastown

94.60%

Heidelberg West

91.70%

Macleod

91.70%

Coburg North

91.70%

Montmorency

91.30%

Mill Park

90.70%

Forest Hill

90.20%

Heidelberg Heights

90.20%

Dingley Village

90.20%

Chelsea

90.00%

Highest sales turnover

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

Source: RP Data

Houses Mickelham

9.40%

Sandhurst

9.30%

Cranbourne East

9.10%

Cranbourne South

9.00%

Rockbank

8.90%

Units Tarneit

8.90%

Carrum Downs

8.80%

Kurunjang

8.60%

Doveton

8.10%

Brooklyn

7.90%

09

03. Lo cal Focus

Property market snapshot.

P.12

01 - Inner City Houses

Units

01 02

2.20%

Capital Growth

14.60%

76.72%

76.72%

Clearance Rate

81.30%

81.30%

Median Value

$1,228,475 $534,548

Median Value

$927,557

$492,210

Median Rent

$607

$432

Median Rent

$447

$355

Rental Yield

2.70%

4.34%

Rental Yield

2.50%

3.83%

P.14 Houses

Units

Capital Growth

12.20%

1.75%

Clearance Rate

83.38%

83.38%

Median Value

07

Units

Capital Growth

4.50%

0.81%

Clearance Rate

81.01%

81.01%

$1,009,827 $527,404

Median Value

$1,894,437 $692,872

Median Rent

$471

$363

Median Rent

$673

$412

Rental Yield

2.50%

3.67%

Rental Yield

1.90%

3.23%

P.16

P.17

06 - Outer Suburbs

Houses

Units

Houses

Units

Capital Growth

7.20%

2.53%

Capital Growth

11.39%

4.90%

Clearance Rate

79.19%

79.19%

Clearance Rate

79.86%

79.86%

Median Value

$995,768

$633,425

Median Value

$584,484

$392,893

Median Rent

$447

$392

Median Rent

$385

$331

Rental Yield

2.40%

3.31%

Rental Yield

3.62%

4.48%

P.20

P.21

08 - Greater Geelong

Houses

Units

Houses

Units

Capital Growth

11.10%

3.94%

Capital Growth

8.50%

1.72%

Clearance Rate

79.79%

79.79%

Clearance Rate

81.45%

81.45%

Median Value

$1,199,700 $592,126

Median Value

$483,505

$344,928

Median Rent

$584

$398

Median Rent

$357

$289

Rental Yield

2.70%

3.62%

Rental Yield

4.10%

4.70%

P.22

P.23

10 - Regional

05 06

09

P.15

04 - Inner East Houses

09 - Mornington Peninsula

08

2.59%

14.00%

07 - Bayside

04

Units

Clearance Rate

05 - Eastern Suburbs

03

Houses

Capital Growth

03 - Inner North

10

P.13

02 - Inner West

Houses

Units

Houses

Units

Capital Growth

12.10%

15.60%

Capital Growth

4.14%

0.67%

Clearance Rate

76.90%

76.90%

Clearance Rate

N/A

N/A

Median Value

$777,867

$492,844

Median Value

$384,757

$267,165

Median Rent

$448

$349

Median Rent

$319

$255

Rental Yield

3.10%

3.84%

Rental Yield

4.45%

5.06%

Source: RP Data and REIV

11

03. Local Focus

Inner City

Local offices

Top three trends

Albert Park

9690 5366

Armadale

9509 0411

Downsizers drive demand

Townhouses in hot demand

Head north

Commercial

9690 6000

Strong demand from downsizers for lock-and-leave living and a low maintenance lifestyle in the inner city.

Townhouses and small houses in South Yarra and Parkville are highly valued by renters who wish to live the inner-city life without having to purchase.

The inner north is still incredibly strong with buyers and renters wishing to be as close to the city as possible. Many investors are buying now and leasing their property, with the aim to occupy it themselves in years to come.

Melbourne

9600 2192

Richmond

9421 7100

South Yarra

9868 5444

Predictions Thanks to Melbourne’s surging population, demand for rental properties has gone gangbusters.

Vacancy rates in the inner city are low and rental returns have grown in the last 12 months.

With more demand for inner city living, competition for rental properties has increased, some open for inspections are even receiving up to 60 groups in one day. For those who already have investment properties in the inner city, this demand will drive up rental returns in the long-term.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Parkville

42.8%

1

Clifton Hill

12.0%

Capital Growth

Median Price

2 Windsor

39.4%

$1,450,000

3 Abbotsford

32.9%

$1,176,500

4 Burnley

22.7%

$1,225,505

5 West Melbourne

20.4%

$885,000

2 Windsor

10.2%

$530,000

3 Abbotsford

8.6%

$570,000

4 North Melbourne

5.2%

$527,250

5 Southbank

5.1%

$578,000

Rental Yield

Median Weekly Rent

2 Collingwood

3.3%

$565

3 Cremorne

3.3%

$630

4 West Melbourne

3.2%

$550

5 North Melbourne

3.1%

$560

2 Melbourne

5.6%

$480

3 West Melbourne

5.0%

$460

4 Docklands

5.0%

$550

5 Southbank

4.9%

$540

Median Price

1

Parkville

$1,828,000

1

Clifton Hill

$665,000

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Melbourne

1

5.0%

1

Carlton

6.4%

12

Median Price

Melbourne

$695

1

Carlton

$400

03. Local Focus

Inner West

Local offices

Top three trends

Altona

9398 8044

Commercial

9690 6000 9311 4550

Over the bridge

Shift to developments

Jam-packed OFIs

Sunshine

Buyers from traditionally popular inner city suburbs like South Yarra and Prahran are heading to the inner west in search of stronger land value.

With plenty of competition from owner-occupiers for established homes, investors are looking towards apartment developments or housing estates.

Open for inspections are seeing plenty of people coming through the doors from owner-occupiers and investors, driving competition for homes.

Williamstown

9393 0000

Yarraville

8387 0555

Predictions Still the most affordable pocket within 10km of the CBD, the inner west is seeing huge amounts of development in terms of apartment developments and house and land packages, attracting investors and owner occupiers equally. With many homes in the inner west built during the middle of the last century, investors will continue to preference developments over ďŹ xer-uppers so they can lease out immediately.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Williamstown Nth

37.2%

1

South Kingsville

Capital Growth

Median Price

2 Travancore

31.5%

$1,288,500

3 Essendon North

27.3%

$875,000

4 Avondale Heights

19.2%

$775,000

5 Kingsville

17.5%

$925,000

2 Aberfeldie

14.4%

$497,500

3 Strathmore

13.4%

$675,000

4 Niddrie

13.3%

$617,500

5 Avondale Heights

11.7%

$500,000

Rental Yield

Median Weekly Rent

2 Brooklyn

2.9%

$375

3 Altona North

2.9%

$400

4 Footscray

2.9%

$420

5 Seddon

2.8%

$485

2 Spotswood

4.6%

$393

3 Kingsville

4.4%

$300

4 Maidstone

4.4%

$360

5 Essendon North

4.4%

$340

Median Price

1

Williamstown Nth

$1,135,500

1

33.6%

South Kingsville

$552,500

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Maidstone

Median Price

1

3.1%

1

Travancore

5.4%

Maidstone

$395

1

Travancore

$380

13

03. Local Focus

Inner North

Local offices

Top three trends

Coburg

9350 5333

Commercial

9690 6000

Period homes on point

Alphington picks up

Café culture

Ivanhoe

9499 5611

Families from Melbourne’s East are moving to Preston and Reservoir, where beautiful family homes are within their budgets.

Buyers pushed out of Northcote and Westgarth have trickled into Alphington, lifting the median house price by 21% in the suburb.

Trendy cafes, hip bars and restaurants emerging in the north are attracting buyers to Preston and Coburg.

Pascoe Vale

9350 5333

Preston

9471 1100

Reservoir

9470 2525

Predictions Our offices are seeing many enquires for families from the eastern suburbs seeking out affordable family homes. They predict the established home market will be highly competitive for investors in the next six months. Investors with assets in apartment developments in the north will be content with rental returns which have increased, especially in Heidelberg Heights, Brunswick West and Preston. With many more developments under construction, especially in Brunswick East and Collingwood, time will tell if rents will stabilise.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to benefit from long term property price increase.

Alphington

21.1%

1

Heidelberg West

Capital Growth

Median Price

2 Coburg North

19.6%

$771,500

3 Fairfield

18.7%

$1,270,500

4 Thornbury

17.2%

$1,075,000

5 Brunswick West

16.9%

$995,000

2 Fairfield

19.5%

$561,500

Median Price

1

Alphington

$1,540,000

1

21.6%

Heidelberg West

$497,500

3 Pascoe Vale South

10.2%

$520,000

4 Alphington

10.0%

$650,000

5 Reservoir

6.7%

$416,000

Rental Yield

Median Weekly Rent

2 Brunswick East

3.1%

$570

3 Brunswick

3.0%

$540

4 Coburg

2.9%

$480

5 Coburg North

2.8%

$420

2 Heidelberg Heights

4.4%

$380

3 Brunswick West

4.3%

$330

4 Preston

4.2%

$360

5 Reservoir

4.1%

$330

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Kingsbury

1

3.1%

1

Kingsbury

4.5%

14

Median Price

Kingsbury

$360

1

Kingsbury

$330

03. Local Focus

Inner East

Local offices

Top three trends

Armadale

9509 0411

Balwyn

9830 7000 9557 7733

Hawthorn hits the $2M mark

Rental demand in Caulfield

Buyers seek fixer-uppers

Bentleigh

Median house prices in Hawthorn have catapulted by 30% over the last twelve months, increasing above $2,000,000.

Rents for apartments in Caulfield North and Caulfield East have skyrocketed.

Homes with renovation potential, especially in Caulfield, are receiving interest from second home owners and investors.

Carnegie

9569 3666

Caulfield

8532 5200

Commercial

9690 6000

Glen Iris

9818 1888

South Yarra

9868 5444

Predictions The apartment developments settling this year in the inner east will increase the amount of stock for investors – a lucrative investment that offers high rental returns. Investors should avoid looking for established homes, as stock is low. Owner-occupiers are remaining in their homes for longer, and opting to renovate instead of move house. Caulfield East and Glen Huntly will be up and coming hotspots for the next few years, as buyers trickle out of Elsternwick.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to benefit from long term property price increase.

Hawthorn

30.8%

1

Caulfield South

15.6%

Capital Growth

Median Price

2 Ormond

19.2%

$1,550,000

3 Toorak

18.1%

$4,169,000

4 Caulfield North

12.2%

$2,020,000

5 Caulfield East

11.6%

$1,300,000

2 Caulfield

15.4%

$725,000

3 Ashburton

15.0%

$1,150,000

4 Hawthorn East

11.7%

$619,950

5 Mont Albert North

9.9%

$930,000

Rental Yield

Median Weekly Rent

2 Caulfield South

2.2%

$638

3 Glen Huntly

2.2%

$550

4 Caulfield East

2.1%

$536

5 Kooyong

2.1%

$1,075

2 Caulfield North

4.1%

$430

3 Glen Huntly

3.9%

$385

4 Glen Iris

3.7%

$390

5 Carnegie

3.7%

$378

Median Price

1

Hawthorn

$2,079,000

1

Caulfield South

$850,000

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Carnegie

Median Price

1

2.2%

1

Caulfield East

4.9%

Carnegie

$555

1

Caulfield East

$400

15

03. Local Focus

Eastern Suburbs

Local offices

Top three trends

Balwyn

9830 7000

Blackburn

9894 8788

Land Land Land

Downsizers drive apt. demand

Schools still a major draw card

Commercial

9690 6000

Investors in particular are seeking out land in the east to either build one or multiple homes on.

Baby Boomers looking to leave their family home but remain in the local area are driving demand for apartments in Kew.

The demand for private and public education continues to be a major factor for demand.

Doncaster

9842 1188

Glen Iris

9818 1888

Glen Waverley

9886 6900

Mooroolbark

9727 7888

Mount Waverley

9807 9522

Ringwood

9876 9001

Predictions The past six months has seen limited supply of homes in the east, subsequently driving up competition, house prices and clearance rates. With stamp duty concessions arriving in July for ďŹ rst home buyers, competition for apartments under $600,000 will intensify, especially as young buyers wish to remain close to their families in the suburbs.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Moorabbin

1

19.9%

1

Ringwood North

23.7%

Capital Growth

Median Price

2 Blackburn South

14.0%

$1,050,000

3 Croydon

13.3%

$680,000

4 Templestowe

12.6%

$1,280,850

5 Wonga Park

11.8%

$821,500

2 Moorabbin

21.3%

$592,450

3 Oakleigh East

20.2%

$730,000

4 Templestowe

18.7%

$824,750

5 Wheelers Hill

16.8%

$725,000

Rental Yield

Median Weekly Rent

2 Warranwood

3.3%

$530

3 Wonga Park

3.2%

$513

4 Croydon South

3.2%

$400

5 Croydon

3.0%

$390

2 Huntingdale

5.1%

$350

3 Oakleigh

4.4%

$385

4 Doncaster

3.8%

$420

5 Croydon North

3.8%

$368

Median Price

Moorabbin

$976,794

1

Ringwood North

$720,000

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Croydon Hills

1

3.5%

1

Notting Hill

5.9%

16

Median Price

Croydon Hills

$490

1

Notting Hill

$350

03. Local Focus

Outer Suburbs

Local offices

Top three trends

Berwick

8768 3800

Caroline Springs

9999 9888 9690 6000

Outside area buyers

Transition to auctions

Growth Growth Growth

Commercial

Suburbs such as Frankston, Cranbourne and Sunshine are seeing an increase in out-ofarea buyers seeking affordable housing.

As demand increases, vendors are opting to sell via auction instead of private sale.

Capital appreciation has skyrocketed in the outer suburbs, with areas such as Albion, Sunshine and Plumpton seeing between 20 to 30% growth.

Cranbourne

5995 1888

Epping

8468 9900

Predictions

Frankston

9781 3366

Melton

9746 6888

Mooroolbark

9727 7888

Point Cook

9395 6888

Ringwood

9876 9001

Sunshine

9311 4550

Werribee

9731 7022

The next twelve months is extremely positive for those investing in the outer suburbs. Affordable housing, coupled with infrastructure upgrades and improved amenities will draw intense demand from young families and ďŹ rst home buyers. Investors, especially those from Sydney and Brisbane, are continuing to place capital in the growth corridors too, catering for the increased demand for affordable rental homes as the population increases. The major infrastructure projects and school developments underway in the outer suburbs will also help drive capital appreciation in the outer areas.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Plumpton

37.5%

1

Dandenong Nth

Capital Growth

Median Price

2 Ardeer

32.1%

$502,000

3 Research

28.8%

$865,000

4 Sunshine

25.7%

$670,000

5 Albion

24.7%

$580,000

2 Mooroolbark

17.5%

$493,500

Median Price

1

Plumpton

$470,000

1

20.5%

Dandenong Nth

$385,750

3 Wantirna

17.1%

$556,000

4 Cranbourne West

16.2%

$342,000

5 Sunshine West

15.6%

$393,000

Rental Yield

Median Weekly Rent

2 Mickleham

5.3%

$380

3 Melton

5.2%

$280

4 Melton South

5.1%

$280

5 Coolaroo

4.9%

$320

2 Roxburgh Park

5.9%

$320

3 Melton South

5.9%

$260

4 Kurunjang

5.7%

$270

5 Meadow Heights

5.5%

$320

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Rockbank

Median Price

1

5.6%

1

Melton

6.2%

Rockbank

$310

1

Melton

$275

17

18

19

03. Local Focus

Bayside

Local offices

Top three trends

Albert Park

9690 5366

Bentleigh

9557 7733

St Kilda rules the roost

Influx of Sydney-siders

Apartments in high demand

Brighton

9596 7055

House prices have risen steeply in St Kilda, thanks to the suburb’s proximity to the city, lifestyle and range of accommodation options.

With the cost of living rising in Sydney, people are relocating to Bayside Melbourne as it offers a similar beachside lifestyle at a lower cost.

Demand for larger apartments and townhouses has increased as buyers are pushed out of the detached-dwelling market.

Caulfield

8532 5200

Chelsea

9772 7222

Commercial

9690 6000

Frankston

9781 3366

Mentone

9583 3246

Sandringham

9521 9800

St Kilda

9593 8733

Predictions The apartment market in Bayside, from St Kilda right down to Sandringham and Chelsea has grown tremendously, and it will strengthen this year. This can be put down to first home buyers seeking out apartments, second home buyers looking at larger apartments instead of houses, and downsizers wishing to stay in their local area. Investors with apartments in Bayside can be rest assured that capital appreciation will be strong this year. Those looking to sell their apartment's should capitalise on this growing trend and consider listing over the next twelve months.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to benefit from long term property price increase.

St Kilda

27.9%

1

Edithvale

Capital Growth

Median Price

2 Chelsea

22.0%

$825,000

3 Ripponlea

21.6%

$1,702,500

4 Edithvale

21.5%

$890,000

5 Seaford

21.4%

$570,500

2 Bonbeach

18.3%

$515,000

Median Price

1

St Kilda

$1,171,000

1

19.9%

Edithvale

$578,000

3 Mentone

17.8%

$555,000

4 Aspendale

14.2%

$685,000

5 Sandringham

10.6%

$656,500

Rental Yield

Median Weekly Rent

2 Carrum Downs

4.2%

$350

3 Frankston

3.9%

$350

4 Chelsea Heights

3.5%

$435

5 Patterson Lakes

3.4%

$535

2 Frankston

4.6%

$285

3 Patterson Lakes

4.6%

$393

4 Gardenvale

4.5%

$298

5 Chelsea Heights

4.3%

$375

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Frankston Nth

1

4.4%

1

Carrum Downs

5.1%

20

Median Price

Frankston Nth

$295

1

Carrum Downs

$330

03. Local Focus

Greater Geelong

Local offices

Top three trends

Geelong

5223 2525

Torquay

5261 8888

Inner-city Geelong performing

City-goers arrive

Period homes

The inner-city suburbs continue to perform best, with high demand for East Geelong, Manifold Heights, Belmont and Newtown.

The city is seeing enormous interest from city-siders from Melbourne and Sydney looking for a lifestyle change with lower living costs.

Homes with period details and metal work are receiving a lot of attention from city-buyers and upsizers.

Predictions The rental market in inner-city Geelong suburbs has remained solid, however as new land estates hit the market, there’s a large supply of rental homes in the outer areas. Over the next twelve months, rentals in the outer areas are predicted to decrease. The sales market in Greater Geelong is likely to piggy-back off the strong Melbourne market and continue to grow, as families relocate from the city to be near quality schools, a great lifestyle and the amenities Geelong offers. Therefore, capital appreciation will remain solid for investors in the area.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Manifold Heights

1

28.4%

1

Point Lonsdale

Capital Growth

Median Price

2 Rippleside

20.1%

$710,000

3 East Geelong

16.5%

$512,500

4 Queenscliff

15.9%

$800,000

5 Portarlington

14.5%

$472,500

2 Newtown

19.4%

$420,000

3 East Geelong

17.2%

$381,000

4 Drysdale

15.2%

$319,000

5 Geelong West

12.2%

$378,000

Rental Yield

Median Weekly Rent

2 Whittington

5.4%

$290

3 Corio

5.4%

$260

4 Norlane

5.4%

$240

5 Thomson

5.1%

$305

2 Norlane

5.7%

$250

3 Corio

5.7%

$230

4 Newcomb

5.6%

$270

5 Lara

5.5%

$290

Median Price

Manifold Heights

$610,000

1

30.0%

Point Lonsdale

$617,500

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Breakwater

Median Price

1

5.6%

1

Whittington

7.2%

Breakwater

$300

1

Whittington

$240

21

03. Local Focus

Mornington Peninsula

Local offices

Top three trends

Blairgowrie

Owner-occupiers increase

Baby Boomer demand

Rental properties in high demand

Traditionally an area full of holiday rentals, the Peninsula is transforming to be predominantly owneroccupied.

Downsizers are seeking out coastal homes to retire to, or use as a weekend getaway.

With the sales market going strong, the number of investment properties available has decreased, causing rental returns to increase.

5988 9095

Dromana

5987 1999

Mornington

5973 5444

Rosebud

5986 5777

Predictions Due to the strong sales market, more rental properties are being sold, forcing existing tenants to look for new rental accommodations - driving demand and weekly rents. Many vendors are taking advantage of the strong sales market and selling their home. Capel Sound (previously known as Rosebud West), has seen immense change, welcoming young families to the area because it offers affordable housing options.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

St Andrews Beach

30.4%

1

Dromana

46.6%

Capital Growth

Median Price

2 Sorrento

28.5%

$1,112,500

3 Blairgowrie

22.1%

$760,000

4 Mount Eliza

14.5%

$950,000

5 Tootgarook

13.9%

$460,000

2 Safety Beach

18.4%

$473,750

3 Rye

15.4%

$420,000

4 Mornington

12.1%

$520,000

5 Mount Eliza

11.5%

$480,000

Rental Yield

Median Weekly Rent

2 Rosebud

3.7%

$330

3 Mornington

3.4%

$450

4 Rye

3.3%

$350

5 Dromana

3.3%

$365

2 Mount Martha

4.3%

$430

3 Safety Beach

4.1%

$373

4 Rye

3.7%

$295

5 Mornington

3.6%

$360

Median Price

1

St Andrews Beach

$730,000

1

Dromana

$525,000

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Tootgarook

1

3.8%

1

Rosebud

4.4%

22

Median Price

Tootgarook

$340

1

Rosebud

$323

03. Local Focus

Regional Victoria

Local offices

Top three trends

Ballarat

5329 2500

Daylesford

5348 1700

Apartment market lifts in Ballarat

Eateries and cafes rise

Young buyers drive demand

Apartments in Ballarat Central are seeing an 18% rise in capital growth.

New cafes and great places to eat continue to attract weekend renters and younger buyers alike.

Families with young children are relocating to Ballarat thanks to its community vibe and affordable housing.

Predictions Housing estates in regional areas continue to grow in popularity, especially from investors catering to the rental market in these areas. As of the 1st of July, the ďŹ rst home buyer grant will increase for those buying new homes in regional areas, which will drive up competition for new dwellings.

Property value increase In the last 12 months

Un i ts

Houses

Capital Growth

1 Capital growth for investors looking to beneďŹ t from long term property price increase.

Brown Hill

21.2%

1

Ballarat Central

18.2%

Capital Growth

Median Price

2 Mount Macedon

16.8%

$750,000

3 Hepburn Springs

13.0%

$418,000

4 Soldiers Hill

12.2%

$345,000

5 Blackwood

10.9%

$288,000

2 Lake Wendouree

15.1%

$313,000

3 Wendouree

13.6%

$237,500

4 Daylesford

8.0%

$351,000

5 Alfredton

3.5%

$282,000

Rental Yield

Median Weekly Rent

2 Sebastopol

5.5%

$260

3 Clunes

5.4%

$260

4 Creswick

5.4%

$280

5 Miners Rest

5.4%

$340

2 Sebastopol

5.9%

$225

3 Redan

5.8%

$228

4 Canadian

5.8%

$260

5 Ballarat East

5.5%

$240

Median Price

1

Brown Hill

$330,500

1

Ballarat Central

$260,000

Return on your investment In the last 12 months

Uni ts

Houses

Rental Yield

1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments

Wendouree

Median Price

1

5.5%

1

Mount Clear

6.0%

Wendouree

$260

1

Mount Clear

$250

23

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