Red Report. Issue hockingstuart.com.au

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1 Red Report Issue 08 hockingstuart.com.au

2 Contents 0. Insider News Market Update Q & A with David Wood Flipping 0. 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 0. Local Focus Property Market Snapshot Inner City Inner West Inner North Inner East Eastern Suburbs 6 Outer Suburbs 7 Bayside 0 Greater Geelong & Bellarine Peninsula Mornington Peninsula Regional Victoria 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in good faith, it is based on information provided by third parties and it could contain errors, be incomplete, or out of date.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.

3 0. Insider News Market update A lot can change in twelve months, especially when it comes to the property market. This time last year we were coming off the back of a 7.% annual increase in median dwelling prices, making Melbourne housing affordability a hot topic in the media. In contrast, the first quarter of 08 saw the state experience a 0.% decrease in median dwelling price to sit at $70,88, according to CoreLogic data. While this might appear at first glance as though the market is slowing, what s actually happening is many buyers investors included are seeking more affordable options in greenfield spaces or apartments. This has been helped by the changes to stamp duty and government grants in 07 that aimed to support first home buyers to find their feet in the property market. The surge in interest in affordable homes is why, for instance, Melbourne units have experienced a 6.6% increase in value over the past months. This is good news for those who previously invested in units, or those looking for an investment option with low initial capital outlay. In terms of options in the market, March saw one of the strongest months on record, with over,000 properties going under the hammer in Melbourne. With a healthy supply of stock available, there s less competition at auctions, with typically serious bidders, as opposed to the seen during periods of low stock. The northern suburbs of Victoria are sure to see an increase in interest in the coming months with the North East Link expected to ease congestion and reduce travel times between Melbourne s north and south. This should continue to drive house prices in the surrounding suburbs, with areas like Watsonia North (median price $790,000) and Mill Park (median price $677,000) likely to continue to trending upwards. The strong sales despite the falling median price indicates a healthy market going into the remainder of 08. For those concerned by talk of a housing crash, experts assure this is unlikely in Melbourne given the tighter lending restrictions, relatively low unemployment rate and strong competition that continues to drive interest in homes throughout Melbourne. Simon Jovanovic CEO hockingstuart 0

4 0. Insider News Q&A with David Wood Flipping houses Flipping houses has always been seen as a great way to turn a profit in a shorter period, particularly if you don t have time to wait for capital appreciation. Television shows like The Block show that even everyday investors can renovate a property to gain a profit, so we sat down with winning auctioneer on The Block, hockingstuart Albert Park s David Wood, to discuss the ins and outs of flipping houses. What types of property should investors be looking for? If you re looking to sell, the properties that will offer the greatest potential for high returns are what we call ugly ducklings located in a great area. Homes with good bones, such as those built in the 60s, 70s or 80s with solid brick exteriors will allow you to build upon the existing structure without needing to do a complete rebuild. Sticking to interior refurbishments instead of the exterior which can be costly, will ensure that you don t overcapitalise and will allow you to flip the house faster. Are there any particular areas that you should focus your attention on? Location plays a major role when it comes time to sell. As a general rule of thumb, look for areas with amenities, transport and schools which are always in demand. However, within these areas you ll need to look for older homes, typically found in Melbourne s middle ring suburbs, which have greater renovation potential. Remember too, the further out you go, the less capital investment you ll need to purchase the property. What should everyone do before investing in a house with the intention of flipping it? Do your research. Ensure the area you want to buy in doesn t have heritage overlays or restrictions that will limit the renovations you can complete. Visit local open inspections to see the types of properties that are drawing a crowd, the types of people walking through and the styling of properties that sell well to make sure you re on the right track. 0

5 It s also a good idea to look at recent sales and the amount of interest currently in the area to get a feel for the type of returns possible to help you to set realistic expectations. How much time would you need to invest to successfully flip a property? There s no set amount of time that will equal success. How long it takes you to flip a property will depend on the type of renovations or refurbishments taking place. Anywhere from six months for minor cosmetic changes, to + years for complete rebuilds can be expected to complete your project and get it back on the market. While undergoing your renovations, you will need to keep an eye on the market to see if it is increasing or decreasing or if the type of property you re hoping to sell is becoming popular to ensure you sell at the right time. What s one of the biggest mistakes people make when flipping a house? The number one mistake we see is flippers not considering the wider market when doing their renovations. When you re renovating to sell, you need to disregard your own quirky tastes in favour of the needs of the buyers. For example, removing car parking to add an atrium because it s what you want isn t putting the needs of your potential buyers first. If anything, it will limit the number of buyers who would be willing to put their hand up come auction day because car parking is a major selling point as suburbs become more congested. David Wood Director / Auctioneer, Albert Park 0

6 0. Melbourne Market Melbourne at a glance over the past quarter House value $8,000 % change of median value.% value $9,000 % change of median value.% rent $0 /wk rent $0 /wk Rental yield.7% pa Rental yield.6% pa Suburbs with the highest median $ value increase over the last years House Kooyong $,60,000 Toorak $,0,000 East Melbourne $,9,00 Keilor North $,7,000 Canterbury $,80,000 Essendon West $,700,000 St Helena $90,000 Wattle Glen $77,000 Ashburton $8,000 Kew East $7,00 06

7 0. Melbourne Market Suburbs with the highest % of stock These suburbs 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. 0 Inner North Heidelberg West.8% Inner City Docklands 9.% Inner East Ashburton.% Inner West Braybrook.% Eastern Suburbs Ashwood.8% 7 07 Outer Suburbs Officer.% Bayside Highett.% 7 7 Source: RP Data 07

8 0. Melbourne Market 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. Value Average Rent Capital Growth Rental Yield Value Average Rent Capital Growth Rental Yield Last Months P/A Last Months P/A Low price range $9,00 $06,00 Low price range $08,000 $8,00 Frankston North $90,000 $0.%.% Melton South $00,000 $0.6%.% Diggers Rest $7,000 $0.%.8% Werribee $86,000 $0 0.7%.6% Wyndham Vale $70,000 $ 0.%.8% Albion $,000 $70.%.% Plenty $,000 $80.8%.% Hoppers Crossing $7,000 $00 8.%.% Cranbourne $70,000 $00 8.%.% Werribee $,70 $00 6.7%.% Lowmid price range $06,00 $7,000 Lowmid price range $8,00 $06,00 Officer $,000 $90.%.8% Mickleham $9,900 $8.%.8% Plumpton $8,00 $0 0.%.8% Rockbank $8,000 $.0%.9% Albion $7,000 $0.9%.% Eynesbury $0,000 $0 7.7%.6% Belgrave $0,000 $0.%.8% Belgrave Heights $0,000 $0.%.8% Plumpton $0,000 $0.7%.9% Officer $99,900 $70 6.7%.8% Midhigh price range $7,000 $,090,00 Midhigh price range $06,00 $668,00 Toolern Vale $900,000 $7.7%.% Braybrook $760,000 $0.%.% Bayswater $8,000 $9.%.% Croydon South $80,000 $0.8%.6% Knoxfield $86,9 $0.%.% Chelsea Heights $6,00 $0 7.%.6% Burnside Heights $8,000 $7.%.7% Briar Hill $660,000 $80.0%.9% Ringwood East $68,000 $60.%.9% Ringwood North $66,000 $90.%.0% High price range $,090,00 $,6,7 High price range $668,00 $,0,000 Docklands $,60,000 $00 9.%.% Box Hill $,790,000 $0 7.%.% Clayton $,,90 $ 6.%.7% Box Hill North $,,000 $0.%.7% Highett $,,000 $0.%.0% Watsonia North $70,000 $0 6.8%.% Wheelers Hill $8,000 $0.%.6% Keilor $760,000 $80.7%.6% Deepdene $,07,70 $.%.0% Kew East $,0,000 $0.%.0% Source: RP Data 08

9 0. Melbourne Market Top suburbs for rental return Here are the suburbs in Melbourne which had the highest rental yield for the past months. This is useful for identifying where you can make the most of rental income, therefore minimising mortgage repayments. Source: RP Data % Rental yield Ravenhall.9% Devon Meadows.98% Bacchus Marsh.8% Kurunjang.8% Cranbourne South.% Princes Hill 6.9% Keilor Downs 6.09% Notting Hill 6.0% Melbourne 6.0% Carlton.9% Suburbs with the highest average rent Here are a list of suburbs which have the highest average rental prices. This is useful to let you know where you can get a higher rental return, especially if your investment strategy is renovating and rental increase. Source: RP Data Highest average rent East Melbourne $96 Warrandyte South $90 Parkville $860 St Kilda West $8 Elwood $8 Ravenhall $67 Kilsyth South $70 Exford $60 Pearcedale $0 Eynesbury $0 Suburbs with the highest demand The average rental property in Victoria has 90 online inspections. Here are the suburbs which currently have the highest number of online inspections on average per property. This is useful for identifying suburbs that will likely obtain high occupancy rates, therefore improving your cash flow. Source: realestate.com.au Average online views Abbotsford,86 Burnley,7 Baxter,8 Collingwood,66 Belgrave Heights,9 Belgrave South,08 Langwarrin South,0 Belgrave Heights,676 Belgrave,676 Narre Warren North,9 09

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11 0. Local Focus Property market snapshot 0 Inner City P. Capital Growth.%.% Value $,07,00 $9,000 Rent $6 $0 Rental Yield.%.% 0 Inner West P. Capital Growth 0.8%.6% Value $976,000 $0,000 Rent $0 $00 Rental Yield.%.88% 0 Inner North P. Capital Growth.%.7% Value $,00,00 $7,70 Rent $70 $00 Rental Yield.%.7% 0 Inner East P. Capital Growth.%.6% Value $,8,000 $60,000 Rent $60 $00 Rental Yield.87%.6% 0 Eastern Suburbs P.6 Capital Growth.8% 7.8% Value $,00,000 $606,0 Rent $ $6 Rental Yield.9%.0% 06 Outer Suburbs P.7 Capital Growth.% 7.% Value $60,000 $0,000 Rent $97 $ Rental Yield.%.% 07 Bayside P.0 08 Greater Geelong & Bellarine Peninsula P. 0 Capital Growth.07%.08% Value $,00,000 $88,000 Capital Growth 7.6%.88% Value $70,00 $60, Rent $0 $00 Rental Yield.8%.6% Rent $8 $00 Rental Yield.7%.8% Mornington Peninsula P. 0 Regional P. 06 Capital Growth 9.%.% Value $97,00 $,000 Capital Growth 8.7%.0% Value $7,000 $6,00 09 Rent $0 $0 Rental Yield.80%.7% Rent $ $68 Rental Yield.0%.6% Source: RP Data

12 0. Local Focus Inner City Local offices Top three trends Albert Park Downsizers drive demand Many retirees are now looking to sell their family home and downsize to an apartment, opening up opportunities for investors looking to buy larger homes or hoping to sell off an existing apartment. Predictions Stamp duty changes drive sales With the recent changes to stamp duty for properties under $600,000, many young buyers are flocking to apartments in the city where they can benefit from the reduced costs and still maintain their existing lifestyle. This means competition may increase in the CBD. Renters get a rise With high rental demand and low vacancy rates, the rental market within the CBD has remained strong thanks in part to Melbourne s growing population and the number of international students wanting easy access to tertiary education facilities. We re currently seeing low stock numbers combined with high demand from first home buyers and investors alike, especially for entry level properties such as apartments, townhouses and small homes. As such, the market will see moderate growth over the next twelve months as buyers and renters continue to seek inner city living and the convenience of having everything at their fingertips. Armadale Carlton Commercial Melbourne Richmond South Yarra 9868 Property value increase In the last months Capital Growth Price Capital Growth Price Fitzroy Fitzroy North Melbourne.% $,,000 Princes Hill.9% $,800,000 Capital growth looking to benefit from long term property price increase..9% Carlton 6.8% $,67,00 Carlton $9,000 West Melbourne.9% $,0,000 Prahran.6% $,00,000 Carlton North 6.0% $6,000 Burnley.9% $86,0 Windsor.7% $9,00 Prahran.% $6,600 Return on your investment In the last months Rental Yield Price Rental Yield Weekly Rent Rental yield wanting the most out of rental income and to minimise mortgage repayments Melbourne.6% Princes Hill 6.9% Melbourne $0 Princes Hill $00 Parkville.% $860 Kensington.8% $70 Collingwood.7% $60 Richmond.7% $670 Melbourne 6.0% $0 Carlton.9% $0 Southbank.% $70 Docklands.% $60

13 0. Local Focus Inner West Local offices Top three trends Altona Spotswood is heating up With its close proximity to the CBD via the West Gate Bridge and strong community amenities, Spotswood is fast dominating as a hotspot in the west, with strong demand pushing house prices well beyond expectations. Owner occupiers moving in Owner occupiers are flocking from the east for affordability reasons, creating more competition with local investors and first home buyers for the available properties. It s a monthly market Clearance rates have stayed steady at about 80% for the past few months, with the average time on market being 0 days for most properties in the area. Commercial Sunshine 9 0 Williamstown Yarraville Predictions A combination of the spring selling season and burgeoning property developments are leading to an influx of new stock throughout the western suburbs to meet strong buyer demand. Over the next six months, experts predict that given the increase in stock, prices should steady. While we don t expect to see the % yearonyear growth we have seen previously, moderate growth and ongoing demand it s good news. Property value increase In the last months Capital Growth Price Capital Growth Price Braybrook Braybrook Essendon West.% $,,000 Niddrie.0% $,9,000 Capital growth looking to benefit from long term property price increase..% Altona 8.8% $760,000 Altona $60,000 Moonee Ponds.8% $,0,80 Essendon North.8% $,00,000 Brooklyn 8.7% $6,000 Braybrook 8.% $0,000 Tottenham 8.% $0,000 West Footscray 8.% $8,900 Return on your investment In the last months Rental Yield Price Rental Yield Weekly Rent Rental yield wanting the most out of rental income and to minimise mortgage repayments Seddon.8% Travancore.8% Seddon $ Travancore $00 Williamstown Nth.8% $600 Maidstone.6% $ Brooklyn.6% $08 Maribyrnong.6% $0 Strathmore Hts.% $0 Essendon North.8% $70 Maidstone.% $00 Footscray.% $0

14 0. Local Focus Inner North Local offices Top three trends Carlton No time to wait With an average of 8 days on the market, homes in the north are being snapped up quickly. Investors heading north With the influx of first home buyers and families, many investors are moving further north to areas like Lalor, Epping and Thomastown. Infrastructure drawing the crowds Areas with existing infrastructure like Preston are gaining popularity as buyers look to plan for the future. This includes homes near schools and proposed shopping districts. Commercial Ivanhoe Preston Reservoir Predictions Following a period of increased interest in the north that saw a significant rise in sale prices (including a % increase in Northcote s median house price), the market appears to be steadying with clearance rates averaging 7% across Coburg, Preston and Reservoir slightly lower than the Melbourne average of 7.7%. Demand for rental properties is increasing, which is good news. The median rent paid for houses in Thornbury and Coburg is currently sitting higher than Melbourne s average ($0), and rental yields are averaging.%. Property value increase In the last months Capital Growth Price Capital Growth Price Bellfield Bellfield Fairfield.% $,,00 Heidelberg West.8% $70,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.% Rosanna 8.9% Rental Yield Coburg North.8% Heidelberg.% $906,000 Rosanna $7,000 Price Coburg North $0 Heidelberg $60 Alphington.7% $,7,000 Rosanna.6% $,9,00 Reservoir 8.8% $,00 Viewbank 8.% $66,70 Heidelberg Heights 7.9% $6,70 Pascoe Vale South 7.% $6,000 Rental Yield Weekly Rent Coburg.7% $0 Brunswick East.6% $80 Brunswick.6% $80 Heidelberg West.% $0 Rosanna.% $0 Bellfield.% $0 Ivanhoe.% $ Fairfield.% $0

15 0. Local Focus Inner East Local offices Top three trends Armadale Rental market running hot With modern properties and apartments in high demand coupled with low vacancy rates (% in the City of Boroondara, for instance), the rental market is looking strong. Predictions New hotspots emerging Due to its close proximity to a number of primary and secondary schools, public transport options and Chadstone shopping centre, the small suburb of Hughesdale is emerging as a hotspot, particularly among families. Family homes at the forefront While houses that offer improvement opportunities and the potential to subdivide will continue to be popular, there has been increase in demand for,, and bedroom family homes. The increased activity in building and construction within the area, particularly multiunit development sites in key areas such as Carnegie, Murrumbeena and Caulfield, will increase the amount of stock on the market. With these areas in extremely high demand, we expect strong market growth and steady competition at auctions over the next months, even as stock levels increase. Balwyn Bentleigh Caulfield 8 00 Commercial Glen Iris Richmond South Yarra 9868 Property value increase In the last months Capital Growth Price Capital Growth Price Kooyong Kooyong Ashburton.% $,8,000 Caulfield East.% $,69,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments 8.8% Mont Albert North 9.6% Rental Yield Caulfield East.% Caulfield East.% $,00,000 Mont Albert North $,00,00 Price Caulfield East $600 Caulfield East $89 Caulfield.8% $,78,000 Hughesdale.8% $,80,000 Balwyn North 8.% $960,000 Surrey Hills 7.8% $80,000 Hughesdale 7.% $67,000 Carnegie 7.0% $60,000 Rental Yield Weekly Rent Glen Huntly.0% $77 Caulfield.0% $69 Kew East.9% $70 Armadale.9% $800 Hawthorn.9% $00 Glen Huntly.7% $90 Kooyong.7% $0 Armadale.7% $0

16 0. Local Focus Eastern Suburbs Local offices Top three trends Balwyn Established properties win out With the apartment market remaining stagnant, we re seeing many investors moving back to the established market instead of buying off the plan. Predictions Opportunities for strong capital growth Entry level houses in the area have seen a boost in prices from $00k to $600k. The increase in high rise towers and multilevel developments in the area are creating opportunities for firsttime investors. Land is in demand Homes sold with a land component are attracting strong competition at auctions, including substantial sized allotments ideal for subdivisions. Low supply of established properties (down 0% in the past year) is resulting in hotly contested auctions in the eastern suburbs, in turn driving extraordinary capital growth in the area. These will be ongoing factors raising the median house price in this everpopular area. Blackburn Commercial Glen Iris Glen Waverley Mooroolbark Mount Waverley Ringwood Property value increase In the last months Capital Growth Price Capital Growth Price Ashwood Ashwood Doncaster.% $,8,000 Doncaster East.% $,,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.8% Wheelers Hill.% Rental Yield Warrandyte South.6% Ashwood 6.0% $,0,000 Wheelers Hill $8,000 Price Warrandyte South $90 Ashwood $60 Croydon South.8% $80,000 Mount Waverley.6% $,00,000 Croydon Hills 9.9% $900,000 Templestowe Lower.6% $,00,000 Ringwood East.9% $900,000 Ringwood North.% $98,000 Rental Yield Weekly Rent Warranwood.9% $ Croydon Hills.8% $87 Warrandyte.7% $80 Croydon.6% $0 Mount Waverley.7% $0 Blackburn.% $0 Burwood.9% $0 Blackburn North.% $0 6

17 0. Local Focus Outer Suburbs Local offices Top three trends Berwick Fast growth on track for Melton With one of the fastest growing councils in Australia, new estates are popping up and getting filled quickly, leading to population growth of four percent more than double of that seen in previous years Predictions Sydneysiders stepping in Interstate investors are getting excited about the opportunities of Melbourne s outer suburbs, with many bidding on properties sightunseen. Entrylevel units and larger bedroom homes in particular are proving popular thanks to their affordability. Auction numbers double Since stock levels have tightened, more people are choosing auctions over private sales to generate competition and maximise sale prices from the increased demand. As a result, the area is seeing high clearance rates of around 9%. Housing affordability in the area has allowed for positive growth in the local market, with strong demand helping to drive prices beyond expectations. With bigger homes between $70k $m gaining in popularity, the amount of land available in the area compared with more central suburbs is providing a feeling of more value for money. Commercial Cranbourne Epping Frankston Melton Mooroolbark Point Cook Ringwood Sunshine 9 0 Werribee Property value increase In the last months Capital Growth Price Capital Growth Price Officer Officer Mickleham.% $,0 Plumpton 0.% $8,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.0% Diggers Rest 7.7% Rental Yield Ravenhall.% Attwood.7% $,000 Diggers Rest $0,000 Price Ravenhall $0 Attwood $9 Box Hill 7.% $,790,000 Clayton 6.% $,7,00 Exford 7.7% $0,000 Eynesbury 7.7% $0,000 Belgrave Heights.% $0,000 Belgrave.% $0,000 Rental Yield Weekly Rent Devon Meadows.9% $0 Bacchus Marsh.% $0 Kurunjang.% $ Cranbourne South.% $9 Kealba 6.0% $7 Junction Village.9% $0 Seaholme.% $9 Bacchus Marsh.% $00 7

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20 0. Local Focus Bayside Local offices Top three trends Albert Park North Brighton emerging With growing interest from families with longterm planning on their minds, areas close to schools and sporting facilities are emerging as hotspots. North Brighton in particular has seen an increase in interest from investors and homeowners alike. Predictions Renters surging Many Bayside suburbs are seeing strong demand in the rental market, especially Frankston which is emerging as a rental hotspot with yields hovering between %. Boutique apartments on the rise The surge in interest from downsizers looking to stay in the area has made boutique apartments and premium quality highrise apartments particularly popular a trend that should continue throughout the next year. From Albert Park to Frankston, the bayside area has seen pockets of great growth as a result of the increased popularity for Melbourne s beaches among owner occupiers. In fact, house prices for unattached and semiattached dwellings have risen steeply, with price growth between 8.% across the City of Port Phillip in particular in Elwood, St Kilda and St Kilda East. Suburbs where rentals continue to perform well include Port Melbourne, with a vacancy rate of just.8%, and St Kilda (.%). Bentleigh Brighton Caulfield 8 00 Commercial Frankston Mentone 98 6 Sandringham St Kilda Property value increase In the last months Capital Growth Price Capital Growth Price Gardenvale Gardenvale Highett.% $,,000 Balaclava.% $,0,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.% Chelsea Heights 7.% Rental Yield Carrum Downs.% Frankston North.9% $,880,000 Chelsea Heights $6,00 Price Carrum Downs $80 Frankston North $0 Frankston North.% $90,000 Hampton East.8% $,0,000 Hampton East.% $800,000 Aspendale 0.6% $80,000 Bonbeach 0.6% $600,000 Brighton East 9.% $98,000 Rental Yield Weekly Rent Frankston North.% $0 Frankston.% $7 Chelsea Heights.0% $0 Patterson Lakes.9% $ Gardenvale.6% $97 Carrum Downs.% $0 St Kilda.% $0 Albert Park.% $90 0

21 0. Local Focus Greater Geelong & Bellarine Peninsula Local offices Top three trends Bellarine External buyers leading the charge With more than 0% of buyers coming from outside Geelong, investors are seeing value buying in fringe areas where the median house price is still around $00,000. Predictions Geelong banking on positive sentiment Between affordable housing in the area and stamp duty incentives, buyers are confident in the potential for strong yields, which is driving capital growth upwards. Jobs are driving change While there are a number of external investors in the area, the increase in jobs, particularly in the building sector, is adding fuel to the property market and attracting more owneroccupiers. Following the recently announced changes to stamp duty for regional areas, there has been a spike in land sales for new estates and established properties between $00,000 $00,000. As a result, the property market in Greater Geelong is expected to continue growing steadily over the next months. Areas 0km outside of Geelong, such as Leopold, Clifton Park and Grovedale are gaining interest among investors as emerging hotspots. Geelong Torquay Property value increase In the last months Capital Growth Price Capital Growth Price South Geelong South Geelong Connewarre 0.8% $,00,000 Freshwater Creek 0.8% $,,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.6% Indented Head 7.6% Rental Yield Anakie.7% Whittington 6.% $66,000 Indented Head $70,000 Price Anakie $600 Whittington $77 Geelong West 0.7% $69,000 Gnarwarre 0.7% $,,00 Breakwater.% $7,00 Ceres.% $7,00 Geelong West 0.% $,070 Gnarwarre 0.% $,070 Rental Yield Weekly Rent Barrabool.% $00 Whittington.8% $00 Marshall.7% $00 Breakwater.6% $00 Lovely Banks 6.% $70 St Albans Park.% $90 Norlane.% $7 Leopold.% $

22 0. Local Focus Mornington Peninsula Local offices Top three trends Blairgowrie Low stock driving high competition While the current market has seen 00% growth in the past few years, low stock levels and increased interest in the area mean investors may see increased competition at auctions. Predictions prices hitting high It s good news looking to sell, with median house prices along the Mornington Peninsula currently sitting at unprecedented levels, such as Blairgowrie which has risen from $60,000 to $900,000 since 0. Long term rentals increasing There have been low vacancy rates across the board in rental properties (%), with holiday rentals becoming difficult to find in peak seasons. This is increasing the number of people opting for long term rentals that are only occupied for a fraction of the year. Demand for the area has never been higher, with homes only sitting on the market for 00 days on average. It is predicted that the growth in median house prices will continue to rise by approximately 0 0%. With Baby Boomers being the primary buyers in the area and limited opportunities to subdivide, changes to interest rates in the next months will be the only major roadblock to further growth. This could in turn increase stock levels in the area and lower the median price if it were to take place. Dromana Mornington 97 Mt Eliza Rosebud Property value increase In the last months Capital Growth Price Capital Growth Price Flinders Flinders Main Ridge.7% $,60,000 Fingal.6% $,0,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.9% Balnarring.% Rental Yield Main Ridge.7% Somers.% $,,00 Balnarring $60,000 Price Main Ridge $60 Somers $0 Sorrento.% $,00,000 St Andrews Beach.% $8,000 Balnarring Beach.% $,00,000 Blairgowrie.6% $60,000 Safety Beach.% $60,000 Shoreham.% $60,000 Rental Yield Weekly Rent Bittern.9% $0 Tyabb.7% $0 Crib Point.6% $60 Hastings.% $0 Portsea 9.8% $0 Fingal 6.% $8 Crib Point.6% $ Merricks Beach.6% $

23 0. Local Focus Regional Victoria Local offices Top three trends Ballarat 9 00 New estates attracting buyers Increases in the first home buyers grant are spurring sales in new housing estates and developments, especially on the fringes of Ballarat. Properties selling fast Increased demand in the local market has seen a substantial decrease in the days on the market with properties being snapped up fast as competition between buyer groups heats up. Melburnians making the move There has been an increase in Melbournebased buyers hoping to capitalise on the continued growth in the area and concessions for those buying regional properties. Daylesford Predictions Interest in regional areas has increased significantly thanks to affordable housing as well as the recent changes to stamp duty and the regional first home buyers grant. Expectations are for the market to remain steady throughout the next year as interest in the area continues to grow. Premium areas like central Ballarat and Lake Gardens have been the biggest winners from increased interest in regional areas. Property value increase In the last months Capital Growth Price Capital Growth Price Carlsruhe Carlsruhe Clunes.8% $00,000 Cobaw.8% $77,000 Return on your investment In the last months Capital growth looking to benefit from long term property price increase. Rental yield wanting the most out of rental income and to minimise mortgage repayments.8% Creswick 9.% Rental Yield Bullarto 9.% Miners Rest 8.0% $70,000 Creswick $,00 Price Bullarto $700 Miners Rest $00 Smeaton.0% $,000 Spring Hill.0% $70,000 Dereel 9.% $,00 Haddon 9.% $,00 Invermay 9.% $,00 Woodend.% $7,7 Rental Yield Weekly Rent Newbury 7.% $7 Barrys Reef 6.% $ Sebastopol.6% $80 Mount Pleasant.% $0 Creswick 6.% $60 Dereel 6.% $60 Haddon 6.% $60 Invermay 6.% $60

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