Real Estate Market Facts

Transcription

1 Real Estate Market Facts A QUARTERLY REVIEW OF MAJOR PROPERTY MARKETS IN AUSTRALIA DECEMBER QUARTER 2015 Median house price falls for the first time in three years The December quarter 2015 recorded a decrease in median prices for the Australian residential property market. The weighted average capital city median price decreased by 0.4% for houses and 0.7% for other dwellings. The weighted average median house price for the eight capital cities is now $695,788. Over the quarter, the median house price increased in Brisbane, Perth, Canberra, Hobart and Darwin. Sydney and Melbourne recorded decreases while Adelaide had no change. Compared to the corresponding quarter of the previous year, the median house price went up by 7.4% and with the exception of Perth all the capitals contributed to the increase. At $1,025,478, Sydney s median house price is the highest among the capitals. Hobart remains the capital city with the lowest median house price at $392,000 the figure is 56.3% lower than the national average. The weighted average median price for other dwellings for the eight capital cities was $543,468 in the December quarter of Sydney, Brisbane, Adelaide and Darwin contributed to the quarterly decrease, while prices increased in Melbourne, Perth, Canberra and Hobart. Sydney s 2.1% decrease was the largest across the capital cities while Canberra recorded a 2.5% jump. Chart 1: Housing Finance, Trend data When compared to the same time last year, the weighted average eight capital cities median price for other dwellings increased 5.7%. Sydney, Melbourne and Hobart contributed to the annual increase while no change was recorded in Brisbane. Median prices for other dwellings decreased in Adelaide, Perth, Canberra and Darwin when compared to the December quarter of Over the December quarter, median house rents increased in Melbourne, Brisbane, Hobart and Canberra. Adelaide, Perth and Darwin recorded decreases while no change was seen in Sydney. Compared to the same quarter of 2014, Melbourne had the largest increase, up by 4.2%, followed by Brisbane up by 2.7% and Sydney, up by 2.2%. Over the last quarter of 2015, Hobart was the only capital city to record an increase in the median rent for two bedroom other dwellings, up by 3.7% while a fall of 4.2% in Darwin was the largest across all capitals. Compared to the December quarter of 2014, a 5.3% jump in Canberra was the largest across the capital cities while Darwin had the biggest fall. Fast Facts: December quarter 2015 Quarterly Australian weighted average median house price is $695,788 Quarterly Australian weighted average median other dwellings price is $543,468 Median house prices up: Brisbane 3.2% to $490,000 Perth 0.4% to $535,000 Hobart 9.8% to $392,000 Darwin 0.5% to $608,750 Canberra 3.7% to $593,000 Median house prices down: Sydney 2.5% to $1,025,478 Melbourne 0.1% to $718,000 Median house prices unchanged: Adelaide at $430,000 Median other dwelling prices up: Melbourne 1.6% to $537,500 Perth 1.2% to $435,000 Hobart 2.2% to $295,500 Canberra 2.5% to $415,000 Billions $ $ Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Dec-2011 Mar-2012 Jun-2012 Sep-2012 Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Median other dwelling prices down: Sydney 2.1% to $662,770 Brisbane 1.2% to $405,000 Adelaide 1.5% to $322,000 Darwin 0.9% to $490,000 Vacancy rates Sydney 2.1% Melbourne 3.1% Brisbane 3.1% Adelaide n/a Perth 6.0% Hobart 3.1% Darwin 8.9% Canberra 2.8% Investor Finance Owner Occupier (Excl. refinancing)

2 Acknowledgements REIA gratefully acknowledges the state and territory REIs for their cooperation and assistance in the preparation of REIA Real Estate Market Facts. REIA also acknowledges the many real estate agency firms and the government and private organisations within the states and territories that regularly provide sales, rental and vacancy rate data to the REIs and/or directly to REIA for this publication. REIA Real Estate Market Facts would cease to exist without their continuing invaluable assistance. The organisations that regularly provide information for REIA Real Estate Market Facts are: NSW: Australian Property Monitors (sales data), NSW Department of Family and Community Services (rent data), The Real Estate Institute of New South Wales (vacancy rate data) VIC: The Real Estate Institute of Victoria (sales data, vacancy rate data), Victorian Department of Health & Human Services (rent data) QLD: Australian Property Monitors (sales data), Queensland Residential Tenancies Authority (rent data), The Real Estate Institute of Queensland (vacancy rate data) SA: South Australian Department of Planning, Transport and Infrastructure (sales data), Office of Consumer and Business Affairs (rent data) WA: The Real Estate Institute of Western Australia ACT: Planning and Land Authority, ACT Department of Urban Services Registrar General s Office (sales data), ACT Department of Justice and Community Safety (rent data), The Real Estate Institute of the Australian Capital Territory (vacancy rate data) TAS: The Real Estate Institute of Tasmania NT: The Real Estate Institute of the Northern Territory Institutes: REI Australian Capital Territory (02) REI New South Wales (02) REI Northern Territory (08) REI Queensland (07) REI South Australia (08) REI Tasmania (03) REI Victoria (03) REI Western Australia (08) Subscriptions are available at or by phoning 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 Print Post Approved No.PP299436/00043 Real Estate Institute of Australia Ltd PO Box 234, DEAKIN WEST ACT 2600 Tel: (02) Fax: (02) reia@reia.com.au Regional Information Regional market activity information can be provided by state and territory REIs. 2

3 Real Estate Market Facts REIA President s message Welcome to the latest REIA Real Estate Market Facts. This edition of the REIA Real Estate Market Facts shows that after thirteen consecutive quarters of growth, the weighted average median house price for the eight Australian capital cities decreased by 0.4% in the last quarter of Strong growth in Hobart, Canberra and Brisbane, followed by marginal increases in Darwin and Perth, were unable to offset falling median prices in Sydney and Melbourne while Adelaide recorded no change over the quarter. New South Wales capital also showed the largest quarterly drop in the median price for other dwellings leaving some commentators speculating whether the city s housing market has reached its peak. Regulatory frameworks are responsible for the decrease in the value of investment housing commitments. Uncertainty around the future on negative gearing arrangements is expected to further contribute to the decline in investor activity. With this, owner occupiers continue to have a strong presence in the stabilising market. Neville Sanders President, REIA Contents The Market...1 ACKNOWLEDGMENTS...2 REIA President s Message...3 EXPLANATORY NOTES...4 SALES MARKET AT A GLANCE...5 House Sales...5 Other Dwellings Sales...6 RENTS & VACANCY RATES AT A GLANCE...8 Rents THIS PUBLICATION IS BROUGHT TO YOU BY THE REAL ESTATE INSTITUTE OF AUSTRALIA. FOR FURTHER INFORMATION ABOUT ADVERTISING, PLEASE CONTACT REIA ON OR AT REIA@REIA.COM.AU GET THE LATEST TWEETS FROM REIA (@REIANational) 16 THESIGER COURT, DEAKIN ACT 2600 O 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

4 Explanatory Notes Geographical Statistical Areas 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 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. 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) has identified the inner, middle and outer zones considered to best demonstrate the price differentials in their capital city. 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 houses 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). 2. Statistical Terms 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. Price per House $86,200 $87,300 $88,000 (lower quartile price) 25% of the prices are less than the lower quartile price $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 $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. Timing of publication Timing of the release date of REIA 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. The REIA 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 Canberra (contract date) is revised once. In June 2007, revisions were made to the series back to December Melbourne, Adelaide and Perth (contract date) prices are revised once and percentage changes compare current quarter preliminary estimates with revised estimates in previous quarters. Hobart, Brisbane (contract date) and Darwin (settlement date) prices are not revised. 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, Department of Planning, Transport and Infrastructure. Tasmania prices The Real Estate Institute of Tasmania (REIT) collects 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. 4. Weights for Calculating an Australian Median Price 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 2011 Census. 4

5 Real Estate Market Facts Sales Markets at a Glance The key features of the market for houses in the December quarter 2015 were: The Australian weighted average, median house price of $695,788 is 0.4% lower compared with the revised figure for the September quarter of Over the quarter, the median house price increased in Brisbane, Perth, Canberra, Hobart and Darwin. Sydney and Melbourne recorded decreases while Adelaide had no change. Compared to the corresponding quarter of the previous year, the median house price went up by 7.4% and with the exception of Perth all the capitals contributed to the increase. Over the last quarter of 2015, moving annual (trend) median house prices increased in all capital cities with the exception of Perth. Chart 2: Australian weighted average median house price (all capital cities) $( 000) Quarter Australian Median House Price Table 1: Summary of Median House Sales Prices ($ 000), December Quarter 2015 Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap Cit Dec Quarter , Sep Quarter , Quarter Change % Table 2: Moving Annual Median House Sales Prices ($ 000), December Quarter 2015 Quarter Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 2012 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 1, Brisbane, Hobart, Darwin 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. 1. Sydney median price series adjusted for compositional change. 2. Perth data excludes properties on lots larger than 1ha, which represent approximately 1.5% of sales, all above the Perth overall median. 5

6 Chart 3: Moving Annual Median House Prices, Capital Cities Median Prices () 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 SYD 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. Other Dwellings Sales The key features of the market for other dwellings in the December quarter 2015 were: The weighted average median price for other dwellings for the eight capital cities was $543,468 in the last quarter of Sydney, Brisbane, Adelaide and Darwin contributed to the quarterly decrease, while prices increased in Melbourne, Perth, Canberra and Hobart. Sydney s 2.1% decrease was the largest across the capital cities while Canberra recorded a 2.5% jump. When compared to the same time last year, the weighted average eight capital cities median price for other dwellings increased 5.7%. Sydney, Melbourne and Hobart contributed to the annual increase while no change was recorded in Brisbane. Median prices for other dwellings decreased in Adelaide, Perth, Canberra and Darwin when compared to the December quarter of Over the quarter, the moving annual (trend) median price for other dwellings increased in Sydney, Melbourne and Hobart. Chart 4: Australian weighted average median other dwellings prices (all capital cities) Median Price $( 000) Australian Median Price for other dwellings 6

7 Real Estate Market Facts Sales Markets at a Glance Table 3: Summary of Median Other Dwellings Sales Prices ($ 000), December Quarter 2015 Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap Cit Dec Quarter Sep Quarter Quarter Change % Table 4: Moving Annual Median Other Dwellings Sales Prices ($ 000), December Quarter 2015 Quarter Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 2012 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Brisbane, Hobart and Darwin 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. 1. Sydney median price series adjusted for compositional change. Chart 5: Moving Annual Median Prices, Other Dwellings, Capital Cities Median Prices () 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 SYD 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, requiring the data to be revised downwards from previous publications. 7

8 Rents and at a Glance Rents Over the December quarter, median house rents increased in Melbourne, Brisbane, Hobart and Canberra. Adelaide, Perth and Darwin recorded decreases while no change was seen in Sydney. Compared to the same quarter of 2014, Melbourne had the largest increase, up by 4.2%, followed by 2.7% rise in Brisbane and a 2.2% increase in Sydney. Over the last quarter of 2015, Hobart was the only capital city to record an increase in the median rent for two bedroom other dwellings, up by 3.7% while a fall of 4.2% in Darwin was the largest across all capitals. Compared to the December quarter of 2014, a 5.3% jump in Canberra was the largest across the capital cities while Darwin had the biggest fall. Table 5: Summary of Median Weekly Rents, December Quarter 2015 Capital City 3 Bedroom Houses 2 Bedroom Other Dwellings Quarterly Median $/week Quarterly % Change Annual % Change Quarterly Median $/week Quarterly % Change Annual % Change Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra 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. Over the December quarter, the vacancy rate increased in most of the capital cities with Canberra being the only capital to record a decrease. With a 2.1% vacancy rate, Sydney had the tightest rental market and with a rate of 8.9%, Darwin had the highest vacancy rate across the capitals. The weighted average vacancy rate for eight capitals increased by 0.2 percentage points to 3.2% during the December quarter of

9 Real Estate Market Facts Chart 6: Weighted Average Quarterly Vacancy Rate % 3,5 3,0 2,5 2,0 1,5 1,0 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Quarter Average Quarterly Vacancy Rate Table 6: (All Rented Dwellings), December Quarter 2015 Capital City Quarterly Vacancy Rate % Quarterly Change (ppts) Annual Change (ppts) Moving Annual (Trend) Vacancy Rate % Quarterly Change (ppts) Sydney Melbourne Brisbane Adelaide n/a n/a n/a n/a n/a n/a Perth Hobart Darwin Canberra Annual Change (ppts) Source: REI surveys of Real Estate Agent Property Managers. Note: FFor Sydney, Brisbane, Darwin, Adelaide, Melbourne and Canberra, vacancy rates are measured at the close of the quarter. For Hobart and Perth 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 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. 9

10 Australian Capital Territory Sales Median Prices Canberra Median House Prices Qtrly Moving Annual Medians Qtrly Medians Over the December quarter, the median house price for Canberra increased by 3.7% to $593,000. Compared to the last quarter of 2014 the median house price increased by 7.7%. West and North contributed to the quarterly increase while other zones of the territory recorded decreases in median house prices. Inner Central had the biggest drop, down by 8.7%. Compared to the December quarter of 2014, Inner South, and West and North, recorded increases, up by 1.1% and 13.8% respectively. The biggest drop was recorded in Inner Central, down by 6.5%. At $415,000, the median price for other dwellings in Canberra increased by 2.5% over the December quarter. This represents a 1.2% decrease when compared to the last quarter of West and North recorded the largest increases with the median price for other dwellings going up by 9.3% over the quarter and 6.5% compared to the December quarter of The largest decrease was evident in Inner South where the median price for other dwellings fell by 2.7% during the quarter and 7.3% when compared to the corresponding quarter of Table 7: Australian Capital Territory House Sales Prices, December Quarter 2015 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Canberra Inner Central Inner South West and North Outer South Table 8: Australian Capital Territory Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Canberra Inner Central Inner South West and North Outer South From the June quarter 2007, preliminary medians are compared with revised medians. Canberra zone definitions: Inner Central is Canberra North and Canberra South. Inner South is Woden, Weston Creek and Molonglo Valley. West and North is Belconnen, Gungahlin and Hall. Outer South is Tuggeranong. 10

11 Australian Capital Territory Rents Real Estate Market Facts 5,5 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 Canberra % Canberra Residential Investment Property Annual Yield Annual Return 5 Yr Return 10 Yr Return 3bdr house 2bdr other dwelling Moving Annual Over the last quarter of 2015, the median rent for a three bedroom house in Canberra increased by 0.6%, to $432.5 a week. This also represents an increase of 0.6% compared to the December quarter of Two bedroom houses in Inner Central recorded the largest jump going up by 7.1% over the quarter and also 12.5% when compared to the December quarter of The largest fall was recorded in Outer South with the median rent for a three bedroom house decreasing by 8.2% over the quarter and 4.9% when compared to the December quarter of Over the quarter, Inner South recorded the largest increase with the median rent for one bedroom other dwellings rising by 5.1%. The zone also recorded the biggest drop with the median rent falling by 2.8% for two bedroom other dwellings during the December quarter of Compared to the December quarter of 2014, two bedroom other dwellings in Outer South recorded an 18.2% jump in median rents. During the December quarter, the vacancy rate in Canberra decreased to 2.8%. At $400 a week, the median weekly rent for two bedroom other dwellings remained unchanged during the last quarter of 2015 a 5.3% increase compared to the December quarter of Table 9: Australian Capital Territory House Rents, December Quarter 2015 City/Zone No. bedrooms Median Inner Central 2 b/r b/r b/r Inner South 2 b/r b/r b/r West and North 2 b/r b/r b/r Outer South 2 b/r n/a n/a n/a n/a n/a 3 b/r b/r n/a because sample size was too small Table 10: Australian Capital Territory Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Inner Central 1 b/r b/r b/r Inner South 1 b/r b/r b/r West and North 1 b/r b/r b/r Outer South 1 b/r n/a n/a n/a n/a n/a 2 b/r b/r n/a n/a n/a n/a n/a n/a because sample size was too small 11

12 New South Wales Sales Median Prices Sydney Median House Prices Qtrly Moving Annual Medians Qtrly Medians The median house price in Sydney decreased by 2.5% over the December quarter, to $1,025,478 the figure increased by 13.9% compared to the December quarter of Inner Sydney contributed to the quarterly drop with the median house price going up by 4.6%. A 2.8% rise was seen in Outer Sydney while the figure remained unchanged in middle suburbs of the state s capital. When compared to the December quarter of 2014, strong results were seen in Sydney with median house prices rising by 10.0% in Inner Sydney, 20.8% in Middle Sydney and 13.2% in Outer Sydney. The Sydney median price for other dwellings decreased by 2.1% to $662,770 over the December quarter but increased by 8.9% when compared to the last quarter of Over the quarter, Outer Sydney recorded the only increase while a decrease of 2.6% was seen in Newcastle. Compared to the December quarter of 2014, Outer Sydney recorded the biggest jump, up by 12.6%, followed by an 11.6% rise in Wollongong. Table 11: New South Wales House Sales Prices, December Quarter 2015 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Sydney 16,459 1, ,390.0 Inner 2,118 1, , ,250.0 Middle 3,963 1, ,751.5 Outer 10, Wollongong 1, Newcastle 3, Table 12: New South Wales Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Sydney 9, Inner 3, ,050.0 Middle 3, Outer 2, Wollongong Newcastle 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. Sydney zone definitions: Inner is Ashfield, Botany, Drummoyne, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, South Sydney, Sydney, Waverley, Willoughby and Woollahra. Middle is Auburn, Bankstown, Burwood, Canterbury, Concord, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde and Strathfield. Outer is Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly and Wyong. 12

13 New South Wales Rents Real Estate Market Facts 3,0 Sydney 30 Sydney Residential Investment Property 2,5 25 2,0 1,5 % ,0 5 0,5 0 Annual Yield 3bdr house Annual Return 2bdr other dwelling 5 Yr Av Return 10 Yr Av Return Moving Annual At $460, the median weekly rent for a Sydney three bedroom house remained unchanged over the December quarter but increased by 2.2% compared to the December quarter of The median rent for two bedroom other dwellings in Sydney remained unchanged at $520 per week. This represents an increase of 4.0% when compared to the December quarter of Three bedroom houses in Outer Sydney recorded the biggest increase going up by 2.3% over the last quarter of The largest decrease was seen in Wollongong where the median rent for a two bedroom house fell by 3.8%. Compared to the December quarter of 2014, three bedroom houses in Newcastle recorded no change in median rents while the rest of the state had increases. A rise of 10.0% was recorded for two bedroom houses in Wollongong. Table 13: New South Wales House Rents, December Quarter 2015 City/Zone No. bedrooms Median In Inner Sydney, one bedroom other dwellings had the largest increase in median rents, up by 4.0% over the December quarter the figure also jumped by 4.0% compared to the last quarter of One bedroom other dwellings in Wollongong recorded the largest increase with the median rent rising by 8.0% over the quarter and also when compared to the December quarter of During the December quarter, the vacancy rate in Sydney increased to 2.1%. Sydney Inner 2 b/r b/r ,000.0 Sydney Middle 2 b/r b/r Sydney Outer 2 b/r b/r Wollongong 2 b/r b/r Newcastle 2 b/r b/r Table 14: New South Wales Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Sydney Inner 1 b/r b/r Sydney Middle 1 b/r b/r Sydney Outer 1 b/r b/r Wollongong 1 b/r b/r Newcastle 1 b/r b/r

14 Northern Territory Sales Median Prices Darwin Median House Prices Qtrly Moving Annual Medians Qtrly Medians The median house price in Darwin increased by 0.5% over the quarter and by 4.1% when compared to the December quarter of It now stands at $608,750. Over the quarter, Inner Darwin recorded a decrease of 4.6% followed by a 3.9% drop in Palmerston. Compared to the December quarter of 2014, the median house price in Inner Darwin went down by 0.6% while a fall of 3.6% was recorded in Palmerston. At $490,000, the median price for other dwellings in Darwin decreased by 0.9% over the quarter and by 1.0% when compared to the figure for the last quarter of Over the quarter, decreases were seen throughout the territory with the largest in Inner Darwin, down by 9.5%. This was followed by a 8.6% fall in Palmerston. Compared to the December quarter of 2014, most areas of the Northern Territory recorded decreases in the median price for other dwellings. A fall of 10.3% was recorded in Alice Springs, followed by a 9.5% drop in Inner Darwin. Table 15: Northern Territory House Sales Prices, December Quarter 2015 City/Zone No. sales Median Price, Darwin Inner Northern Suburbs Palmerston Alice Springs Table 16: Northern Territory Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Median Price, Darwin Inner Northern Suburbs Palmerston Alice Springs 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. The median price for the Northern Suburbs is calculated as a weighted average. Darwin zone definitions: Inner is City (inner), Fannie Bay, Larrakeyah, Ludmilla, Narrows, Parap, Stuart Park, The Gardens and 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 and Wulag. Palmerston is Driver, Gray, Moulden, Woodroffe and Palmerston (T) Bal. Alice Springs is Charles, Heavitree, Larapinta, Ross and Stuart.. 14

15 Northern Territory Rents Real Estate Market Facts Darwin % Darwin Residential Investment Property Annual Yield Annual Return 5 Yr Av Return 10 Yr Av Return 3bdr house 2bdr other dwelling Moving Annual Over the December quarter, the median weekly rent for a three bedroom house in Darwin decreased by 1.5%, to $ Compared to the December quarter of 2014, this is a drop of 15.4%. Four bedroom houses in Alice Springs recorded the largest rise over the quarter, up by 2.3% while a fall of 5.3% was seen for the same category in the Northern Suburbs the biggest quarterly drop. Compared to the December quarter of 2014, three bedroom houses in Inner Darwin had the biggest fall, down by 20.3%. Alice Springs had the only annual increase across the territory. The median rent for two bedroom other dwellings decreased by 4.2% to $412 over the December quarter. This was a decrease of 11.6% when compared to the corresponding quarter of Over the quarter, one bedroom other dwellings in Inner Darwin recorded a 3.3% increase while the same category in the Northern Suburbs had an 11.7% drop. One bedroom other dwellings in Alice Springs saw a 3.6% rise in the median rent when compared to the December quarter of The biggest annual drop was recorded for three bedroom other dwellings in Inner Darwin. The vacancy rate in Darwin gained 1.4 percentage points over the quarter and is now 8.9%. Table 17: Northern Territory House Rents, December Quarter 2015 City/Zone No. bedrooms Median Darwin Inner 3 b/r b/r Northern Suburbs 3 b/r n/a 4 b/r n/a Palmerston 3 b/r b/r Alice Springs 2 b/r b/r b/r Table 18: Northern Territory Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Darwin Inner 1 b/r b/r b/r Northern Suburbs 1 b/r n/a 2 b/r n/a 3 b/r n/a Palmerston 2 b/r b/r Alice Springs 1 b/r b/r b/r Median rent for the Northern Suburbs is calculated as a weighted average 15

16 Queensland Sales Median Prices Brisbane Median House Prices Qtrly Moving Annual Medians Qtrly Medians Table 19: Queensland House Sales Prices, December Quarter 2015 City/Zone No. sales Median Price, The Brisbane median house price increased by 3.2% to $490,000 during the December quarter. This represents an increase of 1.0% when compared to the same time last year. All areas of Queensland s capital contributed to the increase with the median house price going up by 1.9% in Inner Brisbane, 3.5% in Middle Brisbane and 2.4% in Outer Brisbane. Cairns was the only regional centre to record a quarterly decrease. Compared to the December quarter of 2014, median house prices increased throughout the state with the only decrease seen in Townsville, down by 1.4%. The median price for other dwellings in Brisbane recorded a 1.2% decrease over the quarter, to $405,000. The figure remained unchanged when compared to the corresponding quarter of the previous year. All areas of Brisbane recorded decreases over the quarter while the largest jump was seen in Townsville, up by 10.5%. Compared to the December quarter of 2014, the median price for other dwellings in Cairns went up by 5.5% the largest increase across the state. Brisbane 10, Inner Middle 5, Outer 4, Gold Coast 2, Sunshine Coast 1, Townsville Cairns Table 20: Queensland Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Median Price, Brisbane 2, Inner 1, Middle Outer Gold Coast 2, Sunshine Coast Townsville Cairns Brisbane zone 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

17 Queensland Rents 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 Brisbane At $380 per week, the median rent for a three bedroom house in Brisbane increased by 1.3% over the last quarter of 2015 and by 2.7% when compared to the December quarter of During the quarter, varied results were recorded across the state. While two bedroom houses recorded a 6.7% increase in Cairns, a fall of 5.4% was seen for the same category in Townsville. In Brisbane, the largest annual increase was recorded for three bedroom houses in Middle Brisbane, up by 2.5%, while four bedroom houses recorded a 3.5% fall. Moving Annual % Annual Yield 3bdr house Real Estate Market Facts Brisbane Residential Investment Property Annual Return 2bdr other dwelling 5 Yr Av Return 10 Yr Av Return The median rent for two bedroom other dwellings in Brisbane went down by 1.3% over the quarter the figure remained unchanged compared to the December quarter of 2014, at $370 per week. Two bedroom other dwellings in Inner Brisbane recorded the largest increase, up by 4.3% during the last quarter of The biggest quarterly fall was recorded for one bedroom other dwellings in Cairns, down by 4.5%. The median rent for three bedroom other dwellings on the Gold Coast went up by 6.4% compared to the December quarter of 2014 the largest annual increase across the state. The vacancy rate in Brisbane gained 0.3 percentage points and is now 3.1%. Table 21: Queensland House Rents, December Quarter 2015 City/Zone No. bedrooms Median Price, Brisbane Inner 2 b/r b/r b/r Brisbane Middle 2 b/r b/r b/r Brisbane Outer 2 b/r b/r b/r Gold Coast 2 b/r b/r b/r Townsville 2 b/r b/r b/r Cairns 2 b/r b/r b/r Table 22: Queensland Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Price, Brisbane Inner 1 b/r b/r b/r Brisbane Middle 1 b/r b/r b/r Brisbane Outer 1 b/r b/r b/r Gold Coast 1 b/r b/r b/r Townsville 1 b/r b/r b/r Cairns 1 b/r b/r b/r All house data refers to the sale of single detached dwellings on land size less than 2400sqm. All unit data refers to the sale of building units and group titled properties, which includes units, villas and townhouses. As of the June quarter 2013, all Queensland data includes Recent Sales Advice, as advised by real estate agents. As such comparisons with sales volumes prior to June 2013 are statistical not reliable (SNR) SOURCE: REIQ, data obtained from RPData ( Enquiries about the reproduction of part or all of the information should be directed to the Corporate Affairs Division, REIQ. Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws. 17

18 South Australia Sales Median Prices Adelaide Median House Prices Qtrly Moving Annual Medians Qtrly Medians Adelaide s median house price remained unchanged during the last quarter of 2015, at $430,000. This represents a 1.2% increase compared to the figure for the corresponding quarter of Inner Adelaide recorded a 2.9% drop compared to the September quarter of 2015 while a rise of 1.4% was seen for the middle zone of the South Australia s capital. Compared to the December quarter of 2014, Port Lincoln had a 9.0% decrease in the median house price the only annual fall across the state. The median price for other dwellings in Adelaide went down 1.5% over the quarter, to $322,000 a decrease of 3.9% compared to the December quarter of Outer Adelaide contributed to the quarterly decrease with the median price for other dwellings falling by 2.9% during the last three months of A rise of 3.4% was recorded for Inner Adelaide. Compared to the December quarter of 2014, the median price for other dwellings went up by 5.1% in Middle Adelaide the only increase across the South Australia s capital. Table 23: South Australia House Sales Prices, December Quarter 2015 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Adelaide 4, Inner Middle 1, Outer 1, Mount Gambier Port Lincoln Riverland Table 24: South Australia Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Adelaide 1, Inner Middle Outer Mount Gambier n/a n/a n/a n/a n/a n/a Port Lincoln n/a n/a n/a n/a n/a n/a Riverland n/a n/a n/a n/a n/a n/a Adelaide zone definitions: Inner is Adelaide, Burnside, Norwood/Payneham/St Peters portion (former LGAs Kensington/Norwood, St Peters), Prospect, Unley, Walkerville and West Torrens. Middle is Campbelltown, Charles Sturt, Holdfast Bay, Marion, Mitcham, Norwood/ Payneham/ St Peters portion (former LGA Payneham and Port Adelaide/ Enfield. Outer is Adelaide Hills portion (former LGAs East Torrens, Stirling), Gawler, Onkaparinga, Playford, Salisbury and Tea Tree Gully. Riverland is Berri/Barmera, Loxton and Waikerie (former LGAs Loxton, Waikerie). 18

19 South Australia Rents Real Estate Market Facts % Adelaide Residential Investment Property Annual Yield Annual Return 5 Yr Av Return 10 Yr Av Return 3bdr house 2bdr other dwelling The median weekly rent for three bedroom houses in Adelaide decreased by 2.9% over the December quarter, to $330. The figure remained unchanged when compared to the December quarter of Over the quarter, the largest increase was recorded for two bedroom houses in Riverland, up by 9.1% while a drop of 7.1% was seen for three bedroom houses in Port Lincoln. Compared to the December quarter of 2014, median rents for three bedroom houses in Riverland went up by 15.0%. At $285 a week, Adelaide s median rent for two bedroom other dwellings went down by 1.7% over the quarter but increased 1.8% when compared to the December quarter of One bedroom other dwellings in Outer Adelaide recorded a 12.5% decrease while the median rent for two bedroom other dwellings in Port Lincoln went up by 15.8%. In South Australia s capital, the biggest annual drop was seen in Middle Adelaide where the median rent for one bedroom other dwellings decreased by 7.3% compared to the December quarter of Table 25: South Australia House Rents, December Quarter 2015 City/Zone No. bedrooms Median Adelaide Inner 2 b/r b/r b/r Adelaide Middle 2 b/r b/r b/r Adelaide Outer 2 b/r b/r b/r Mt Gambier 2 b/r b/r b/r Pt Lincoln 2 b/r n/a b/r b/r Riverland 2 b/r b/r b/r Table 26: South Australia Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Adelaide Inner 1 b/r 2 b/r b/r Adelaide Middle 1 b/r b/r b/r Outer Adelaide 1 b/r b/r b/r Mt Gambier 1 b/r n/a n/a n/a n/a n/a 2 b/r b/r Pt Lincoln 1 b/r n/a n/a n/a n/a n/a 2 b/r b/r Riverland 1 b/r n/a n/a n/a n/a n/a 2 b/r b/r n/a

20 Tasmania Sales Median Prices Hobart Median House Prices Qtrly Moving Annual Medians Qtrly Medians Over the December quarter, the median house price in Hobart increased by 9.8%, to $392,000. Compared to the December quarter of 2014, this is an increase of 8.9%. All areas of the state contributed to the quarterly increase with the median house prices rising by 1.0% in Inner Hobart, 5.3% in Middle Hobart and 11.2% in Outer Hobart. Compared to the December quarter of 2014, Launceston recorded a 2.1% rise in the media house price while an increase of 10.9% was seen in the North-West Centres. The median price for other dwellings went up by 2.2% to $295,500 over the December quarter and also by 12.6% compared to the December quarter of Inner Hobart was the only area of Tasmania s capital to record a quarterly drop while the median price for other dwellings increased by 4.0% in Middle Hobart and 14.2% in Outer Hobart. Compared to the December quarter of 2014, Launceston recorded the largest jump, up by 14.5%. Table 27: Tasmania House Sales Prices, December Quarter 2015 City/Zone No. sales Median Hobart Inner Middle Outer Launceston North-West Centres Table 28: Tasmania Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Median Hobart Inner Middle Outer Launceston North-West Centres 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. Hobart zone definitions: Inner is Hobart-Inner and Hobart-Remainder. Middle is Clarence and Glenorchy. Outer is Kingborough and Derwent Valley Pt A. Launceston is Launceston-Inner, Launceston Pt B and Launceston Pt C. North-West Centres is Burnie Pt A, Central Coast Pt A and Devonport. 20

21 Tasmania Rents Real Estate Market Facts 5,3 Hobart 18 Hobart Returns 4,8 16 4,3 3,8 3,3 2,8 2,3 % ,8 2 0 Annual Yield Annual Return 5 Yr Av Return 10 Yr Av Return Moving Annual 3bdr house 2bdr other dwelling At $330 a week, the median rent for three bedroom houses in Hobart increased by 3.1% over the quarter but decreased by 5.7% when compared to the December quarter of Over the quarter, increased rents were seen in most zones of Hobart. Two and four bedroom houses in outer suburbs of Tasmania s capital were the only types of houses to record decreases while an 18.2% rise was recorded for two bedroom houses in the North-West Centres. Compared to the December quarter of 2014, Middle Hobart recorded the largest jump with the median rent for two bedroom houses going up by 8.2%. The median weekly rent for two bedroom other dwellings increased 3.7% over the quarter, to $280. The figure remained unchanged compared to the December quarter of Over the quarter, the largest increase was recorded for two bedroom other dwellings in the North-West Centres, up by 14.2% while no change was seen for the same category in Middle Hobart and Outer Hobart. One bedroom other dwellings in Outer Hobart recorded an 8.6% rise when compared to the December quarter of 2014 the largest annual increase across the state. Table 29: Tasmania House Rents, December Quarter 2014 City/Zone No. bedrooms Median Over the quarter, the vacancy rate in Hobart increased to 3.1%. Hobart Inner 2 b/r b/r b/r Hobart Middle 2 b/r b/r b/r Hobart Outer 2 b/r b/r b/r Launceston 2 b/r b/r b/r North-West 2 b/r Centres 3 b/r b/r Table 30: Tasmania Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Hobart Inner 1 b/r b/r b/r Hobart Middle 1 b/r b/r b/r Hobart Outer 1 b/r b/r b/r Launceston 1 b/r b/r b/r North-West 1 b/r Centres 2 b/r b/r

22 Victoria Sales Median Prices Melbourne Median House Prices Qtrly Moving Annual Medians Qtrly Medians Over the December quarter, the median house price in Melbourne decreased marginally by 0.1% to $718,000 this represents an increase in the rolling annual median house price of 8.0%. Outer zones of Victoria s capital recorded the largest increase with the median house price for houses rising by 2.9% during the last three months of Compared to the December quarter of 2014, with the exception of Bendigo, increases were recorded throughout the state with the figure rising by 17.0% in Inner Melbourne followed by a 13.2% rise in Middle Melbourne. The median price for other dwellings in Melbourne increased by 1.6% compared to the revised figure for the September quarter, to $537,500. Based on the rolling annual, the annual increase was 5.0%. Geelong was the only area of the state to record a decrease while a 3.2% rise was seen in Outer Melbourne. Compared to the December quarter of 2014, the median price for other dwellings in Middle Melbourne recorded a 8.8% jump. Table 31: Victoria House Sales Prices, December Quarter 2015 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Annual change is based on rolling annual figures % Melbourne 12, ,079.0 Inner 2,521 1, ,825.5 Middle 4, ,181.5 Outer 5, Geelong 2, Bendigo 1, Ballarat 1, Table 32: Victoria Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Annual change is based on rolling annual figures % Melbourne 5, Inner 2, Middle 1, Outer 1, Geelong Bendigo Ballarat The REIV gathers results on residential, commercial and industrial sales directly from its members. The bulk of the data is 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. Melbourne zone 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

23 Victoria Rents Real Estate Market Facts 4,0 Melbourne 12 Melbourne Residential Investment Property 3,5 10 3,0 2,5 2,0 1,5 1,0 % ,5 0 Annual Yield 3bdr house Annual Return 2bdr other dwelling 5 Yr Av Return 10 Yr Av Return Moving Annual In Melbourne, the median rent for a three bedroom house increased by 2.8% over the December quarter of 2015 and by 4.2% when compared to the corresponding quarter of 2014, to $370 a week. In the state s capital, the biggest increase was recorded for three bedroom houses in Outer Melbourne, up by 2.9% over the quarter and by 6.1% compared to the December quarter of Across the state, the largest quarterly increase was seen in Geelong. Compared to the December quarter of 2014, four bedroom houses in Middle Melbourne recorded the largest drop, down by 3.2%. The weekly median rent for two bedroom other dwellings in Melbourne decreased by 2.6% over the quarter, to $380. However, this represented a 2.7% rise when compared to the December quarter of Varied results were recorded over the quarter. A 4.3% rise for two bedroom other dwellings in Bendigo was the state s largest increase while median rents for one bedroom other dwellings in Outer Melbourne decreased by 3.8%. Compared to the December quarter of 2014, median rents increased 6.3% for one bedroom other dwellings in Ballarat the largest jump across the state. During the December quarter, the rental vacancy rate in Melbourne increased by 0.2 percentage points to 3.1%. Table 33: Victoria House Rents, December Quarter 2015 City/Zone No. bedrooms Median Melb Inner 2 b/r b/r b/r Melb Middle 2 b/r b/r b/r Melb Outer 2 b/r b/r b/r Geelong 2 b/r b/r b/r Bendigo 2 b/r b/r b/r Ballarat 2 b/r b/r b/r Table 34: Victoria Other Dwellings Rents, December Quarter 2015 City/Zone No. bedrooms Median Melb Inner 1 b/r b/r b/r Melb Middle 1 b/r b/r b/r Melb Outer 1 b/r b/r b/r Geelong 1 b/r b/r b/r Bendigo 1 b/r b/r b/r Ballarat 1 b/r b/r b/r

24 Western Australia Sales Perth Median House Prices The median house price in Perth increased by 0.4% compared to the revised figure for the September quarter of 2015 a 4.1% fall compared to the December quarter of 2014, to $535,000. Median Prices Qtrly Moving Annual Medians Qtrly Medians All areas of Perth recorded decreases with the median house price going down by 1.8%, 0.9% and 0.6% in inner, middle and outer suburbs of Western Australia s capital respectively. Kalgoorlie recorded the largest increase, up by 3.6%. When compared to the December quarter of 2014, decreases in median house prices were recorded throughout the state. Inner Perth had the largest drop, down by 12.7%. The median price for other dwellings in Perth increased by 1.2% over the December quarter of 2015, to $435,000. When compared to the December quarter of 2014, a decline of 2.2%. Over the quarter, Inner Perth recorded the largest increase going up by 5.0%. Bunbury had the biggest quarterly drop, down by 2.4%. Compared to the December quarter of 2014, Mandurah recorded the largest decrease with the median price for other dwellings going down by 13.5%. Table 35: Western Australia House Sales Prices, December Quarter 2015 City/Zone No. sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Perth 4, Inner ,350.0 Middle 1, Outer 2, Mandurah Bunbury Kalgoorlie/ Boulder Geraldton Broome Albany Table 36: Western Australia Other Dwellings Sales Prices, December Quarter 2015 City/Zone No. sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Perth Inner Middle Outer Mandurah Bunbury Kalgoorlie/ n/a n/a n/a n/a n/a n/a Boulder Geraldton n/a n/a n/a n/a n/a n/a Broome n/a n/a n/a n/a n/a n/a Albany n/a n/a n/a n/a n/a n/a REIWA excludes properties > 1 Ha which represent approx 1.5% of sales, all with prices above Perth s overall median. 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. Perth zone definitions: Inner is Cities of Perth, Stirling (Sth. East), South Perth, Subiaco, Nedlands, Belmont; Towns of Cambridge, Vincent, Victoria Park, Claremont, Cottesloe and the 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 and the Shire of Kalamunda. Outer is Cities of Wanneroo (Northern half), Armadale, Rockingham; Town of Kwinana; Shires of Swan, Mundaring and Serpentine-Jarradale 24

25 Western Australia Rents Real Estate Market Facts 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Perth % Perth Residential Investment Property Annual Yield Annual Return 5 Yr Av Return 10 Yr Av Return 3bdr house 2bdr other dwelling Moving Annual The median weekly rent for three bedroom houses in Perth decreased by 3.6% over the quarter and also by 10.0% when compared to the December quarter of 2014, to $405. Outer Perth recorded a 2.5% decrease over the quarter while median house rents remained unchanged in inner and middle suburbs of Western Australia s capital. The largest quarterly decrease was recorded in Broome. Compared to the December quarter of 2014, Middle Perth recorded a 8.7% decrease in the median house rent the largest drop across the state. Perth s median rent for two bedroom other dwellings went down by 3.8% during the quarter and also by 9.5% when compared to the December quarter of Albany recorded the largest increase in median rents for other dwellings, up by 8.9% over the quarter and 17.3% compared to the December quarter of The largest quarterly drop was seen in Mandurah, down by 8.6%, followed by a 4.0% decrease in Middle Perth. Over the December quarter of 2015, the vacancy rate in Perth was 6.0%. Table 37: Western Australia House Rents, December Quarter 2015 City/Zone Median quarter % Perth Inner Perth Middle Perth Outer Mandurah Bunbury Broome Albany Table 38: Western Australia Other Dwellings Rents, December Quarter 2015 City/Zone Median quarter % Perth Inner Perth Middle Perth Outer Mandurah Bunbury Broome Albany

26 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. Annual yield 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. 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. 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 Real Estate Market Facts. Table 39: Residential Investment Property Returns: Three Bedroom Houses 3 Bedroom Houses Returns (%) Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Annual Yield: Dec'14 to Dec' Quarterly Return: Sep'15 to Dec' Annual Return: Dec'14 to Dec' Average annual return over past 5 years: Dec'10 to Dec' Average annual return over past 10 years: Dec'05 to Dec' Table 40: Residential Investment Property Returns: 2 Bedroom Two Bedroom Other Dwellings Other Dwellings Returns (%) Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Annual Yield: Dec'14 to Dec' Quarterly Return: Sep'15 to Dec' Annual Return: Dec'14 to Dec' Average annual return over past 5 years: Dec'10 to Dec' Average annual return over past 10 years: Dec'05 to Dec'

27 Real Estate Market Facts The Adelaide Bank Housing Affordability Report is recognised as the most authoritative indicator of Australian housing affordability currently available. Real Estate Institute of Australia Real Estate Market Facts Report is a quarterly report on the state of residential property markets in the capital cities and major regional centres throughout Australia. Extend your knowledge with the most reliable and up-to-date residential property statistics. REIA publications provide a detailed snapshot of the market's performance during a quarter while REIA spreadsheets are an excellent tool to analyse the market's long term development, with data dating back to the 1980's. 27

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