Alexandria Property Factsheet

Transcription

1 Alexandria Property Factsheet 1st Half 2018

2 OVERVIEW Alexandria is an inner-eastern Sydney suburb located approx. 4km south of the Sydney CBD. Formerly recognised as an industrial suburb, it is now growing as a trendy urban area with modern retail, coffee shops, business and beautiful homes. It is an ideal place to live for the matured and established independent professionals looking to take advantage of the suburb s growth and convenience. Change from Last Year Half Year House Sales MARKET CONDITIONS The Alexandria* property market has experienced a softening in median price over the last 12 months up to Q4 2017, currently at $1,372,000 for house and $805,000 for units. This represents an annual change of -8.5% (houses) and -4.5% (units), reflective of Sydney s cooling in property prices. That said Alexandria s* prices sit above the greater Sydney region (of $1,128,000 for houses and $750,000 for units), confirming it as a premium market. Average vendor discounts remain in the seller s favour for units, holding steady above the zero line over the past 12 months to Q4 2017, currently at 2.0%. This suggest high level of demand whereby buyers are willing to pay more than the initial listing price indicating now is the time to sell. House average vendor discount on the other hand has shown a swing towards a buyer s market, at -1.4% in Q4 2017, suggesting increasing affordability. Thus, now is the perfect time for house buyers to enter the market. Median rental prices have seen strong growth of 8.1% for units over the last 12 months up to Q4 2017, currently sitting at $670 per week. Houses experienced a more moderate growth, of 1.5%, now sitting at $795 per week. Over the same period of time, the number of units being rented have increased significantly. Strong returns are available in the Alexandria property market, particularly for units at 4.0%, while houses are returning at 2.8%. The continued supply of unit stock will assist in a sustainable growth of the highly attractive and profitable Alexandria* property market. GREATER SYDNEY GROWTH Number of Sales $1,500,000 $1,000,000 $500,000 0 $0 Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q House Unit Median House Price Median Unit Price Median Price House Median Price House Rental Price Unit Sales Unit Median Price Unit Rental Price FUTURE DEVELOPMENTS** The impressive growth in Alexandria* will be sustained by a well balanced delivery of development projects commencing in the 1 st half This includes an estimated $164.5M worth of mixed use projects, $147.0M of residential and $164.4M of commercial developments. In total Alexandria* is scheduled to construct an additional 644 apartments, 159 units, 37 townhouses and 10 dwellings to the property market. A significant mixed use project commencing in 1 st Half 2018 is the Gardeners Road Mixed Development. This project will involve the demolition of an existing warehouse and construction of a 6 storey mixed development. The project is due for completion by late 2020 and deliver opportunities for commercial and residential tenancies. A continued mixture of developments will further establish Alexandria* as a dynamic node for commercial activity and modern residential living opportunities. *Disclaimer: Alexandria market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. **Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Quoted construction and completion dates are estimate only, as per relevant data authority. Source: APM Pricefinder, realestate.com.au. Copyright PRDnationwide 2018.

3 AVERAGE VENDOR DISCOUNT* Change from Listing to Sale Price 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% 7.7% 1.6% 8.5% -0.9% House 6.5% 2.4% 0.7% Unit 2.8% 0.1% 2.5% -1.4% 2.0% Q Q Q Q Q Q AVERAGE VENDOR DISCOUNT Average Average vendor vendor discount discount reflects reflects the the average average percentage percentage difference difference between between first listed first list price price and and final sold price. A price. lower A lower percentage percentage difference difference suggests (closer buyers to zero) are suggests willing tobuyers purchase are close to willing theto first purchase asking close price to the of first a property. asking price of a property. MARKET COMPARISON GRAPH KEY FACTS UNIT The market comparison graph provides comparative trend for median price of house and units over the past 10 years. Suburbs profiled are chosen based on proximity to the main suburb analysed in the factsheet, which is Alexandria. The main suburb is highlighted through a dotted black line graph. HOUSE MARKET COMPARISON $2,000,000 House Median Price $1,600,000 $1,200,000 $800,000 $400,000 $ UNIT MARKET COMPARISON $1,000,000 Alexandria Surry Hills Mascot Newtown Waterloo Unit Median Price $800,000 $600,000 $400,000 $200,000 $ Alexandria Surry Hills Mascot Newtown Waterloo *Alexandria market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. Source: APM Pricefinder, realestate.com.au, Real Estate Institute of Australia. Copyright PRDnationwide 2018.

4 AVERAGE DAYS ON MARKET** Average Days on Market Q Q Q Q Q Q House Unit Overall Market Trend OVERVIEW HOUSE KEY FACTS Q Median Sale Price: $1,372,000 Annual Growth: -8.5%* Average Days on Market: 37 % Change between First Listed Price and Sold Price: -1.4% KEY UNITS FACTS KEY UNIT* FACTS Q Median Sale Price : $785,000 Annual Area Growth: 11% Median Sale Price: $805,000 Average Days on Market: 36 Annual Growth: -4.5%* % Change between First Listed Price and Average Days on Market: 42 Sold Price: -0.1% % Change between First Listed Price and Sold Price: 2.0% SALES AND MEDIAN PRICE** 450 $1,600, $1,400, $1,200,000 Number of Sales $1,000,000 $800,000 $600,000 Median Price $400, $200,000 0 Q Q Q Q Q Q House Sales Unit Sales Median House Price Median Unit Price $0 *Annual growth represents price growth for property transactions between Q to Q (inclusive). **Alexandria market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. Source: APM Pricefinder, realestate.com.au, SQM Research. Copyright PRDnationwide 2018.

5 SALES PRICE POINT ANALYSIS* HOUSE PRICE POINT 2016 HOUSE PRICE POINT % 4.1% 9.2% Less than $999, % 16.9% $1,000,000 to $1,199,999 $1,200,000 to $1,399,999 $1,400,000 to $1,599, % $1,600,000 to $1,799,999 $1,800,000 to $1,999,999 $2,000,000 to $2,199, % 16.9% $2,200,000 plus 7.3% 11.9% 8.9% 4.9% 19.4% 8.9% 14.6% 24.3% UNIT PRICE POINT 2016 UNIT PRICE POINT % 5.8% 5.4% 5.4% 11.5% 18.5% 26.7% 17.5% Less than $699,999 $700,000 to $799,999 $800,000 to $899,999 $900,000 to $999,999 $1,000,000 to $1,099,999 $1,100,000 to $1,199,999 $1,200,000 $1,299,999 $1,300,000 plus 14.3% 6.3% 5.4% 7.6% 11.3% 16.0% 23.0% 16.1% KEY IMPLICATIONS - HOUSE The proportion of houses being sold in Alexandria* in 2017 remains primarily in the $1,200,000-$1,400,000 price segment, with a minor decrease from 25.9% to 24.3%. A partial increase occurred in the $1,400,000 to $1,600,000 price segment, from 16.9% to 19.4%. The housing market experienced minor percentage changes in price segments, reflective of the softening in annual median price (of -8.5%) between Q to Q Furthermore, there has been a partial increase in the less than $1,000,000 price range, from 7.2% to 8.9%. This suggests that there are some opportunities for buyers seeking a more affordable option. KEY IMPLICATIONS - UNIT The dominant proportion of units being sold in the Alexandria* property market remain in the less than $700,000 price segment, although this has decreased from 26.7% in 2016 to 23.0% in The amount of being sold in Alexandria* in the $1,300,000 plus segment increased significantly from 2016 (9.3%) to 2017 (14.3%). This reflects the increase of the high quality of stock entering the Alexandria* unit market, providing more premium options for investors and owner occupiers. That said a large weight of sales remain in the more affordable price brackets due to a sustainable supply of new unit stock. *Alexandria market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. Source: APM Pricefinder. Copyright PRDnationwide 2018.

6 INVESTMENT ANALYSIS HOUSE UNIT 2 Bedroom 3 Bedroom 4+ Bedroom 1 Bedroom 2 Bedroom 3+ Bedroom OVERVIEW HOUSE KEY FACTS Q Median Rent Price: $795 per week Suburb Rental Yield: 2.8% Average Days on Market: 37 Bedroom Breakdown: 2 Bed: 14%, 3 Bed: 44%, 4+ Bed: 42% KEY COMMENTS Interest in Alexandria* and its surrounding suburbs has been recorded at an average of 717 online visits per property. Median rent for both houses and units has increased over the past 12 months to Q4 2017, currently at $795 (houses) and $670 (units). Vacancy rates are currently at 2.3%, which is lower than the Sydney metro rate of 2.6%. Astute investors will be rewarded in the Alexandria property market with strong rental yields for both houses and units at 2.8% and 4.0%, respectively. Overview UNITS KEY FACTS Q Median Rent Price: $670 per week Suburb Rental Yield: 4.0% Average Days on Market: 42 Bedroom Breakdown: 1 Bed: 10%, 2 Bed: 48%, 3+ Bed: 42% MEDIAN RENT AND AVERAGE DAYS ON MARKET* Number of Rentals Median Rent ($) / Average Days on Market Q Q Q Q Q Q House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent *Alexandria market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. Source: APM Pricefinder, realestate.com.au, SQM Research, Copyright PRDnationwide 2018.

7 RENTAL PERFORMANCE 2017 $1,400 $1,200 $1,000 $800 $600 $400 $200 $- Median House Rent P/W 5.4% $590 One Bedroom 7.1% $750 Two Bedrooms 9.1% $955 Three Bedrooms Annual Change 4.2% $1,250 Four + Bedrooms 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% KEY COMMENTS Alexandria (4.2%), Surry Hills (4.0%) and Newtown (3.8%) present strong rental returns, with more impressive unit yields than that of Sydney Metro (3.8%). 3 bedroom houses provide the highest annual rental growth at 9.1%, currently at $955 per week in The Alexandria unemployment rate is much lower (3.5%) than Sydney (6.0%) and NSW (6.3%), which presents a higher opportunity for properties in the market to be absorbed by the market. The percentage of professionals and weekly incomes are also higher, however more people prefer to rent than buy. VACANCY RATES 2017 RENTAL YIELD % 2.5% 2.0% Suburb/ Postcode/ LGA House Rental Yield Unit Rental Yield 1.5% 1.0% 0.5% Alexandria 2.7% 4.2% Surry Hills 3.0% 4.0% 0.0% Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Newtown 2.8% 3.8% Alexandria Surry Hills Newtown City of Sydney LGA Sydney Metro Sydney Metro 2.9% 3.8% KEY HOUSING DEMOGRAPHICS Alexandria Sydney New South Wales Median weekly household income $2,421 $1,926 $1,486 Median monthly mortgage repayments $2,500 $2,499 $1,986 Unemployed 3.5% 6.0% 6.3% Professionals 40.6% 37.7% 23.6% Owned outright 12.7% 14.0% 32.2% Owned with mortgage 34.2% 19.9% 32.3% Rented 50.3% 62.2% 31.8% *Rental performance graph represents aggregate house median rent prices in the suburbs of: Alexandria, Newtown, Surry Hills, Waterloo, Mascot. Annual change is a comparison between 2016 and 2017 median rent figures. Source: Australian Bureau of Statistics, APM PriceFinder, Cordell Database, CoreLogic RPdata, New South Wales Department of Planning and Environment, SQM Research, Housing NSW. Copyright PRDnationwide Source: Australian Bureau of Statistics, APM PriceFinder, Cordell Database, CoreLogic RPdata, New South Wales Department of Planning and Environment, SQM Research, Housing NSW.

8 PROJECT DEVELOPMENT MAP 1 ST HALF 2018* 17.7% 49.2% 33.1% Commercial Residential Mixed Use Location Project** Type Commence Date*** 1 Veriu Green Square Commercial 26/02/ Ibis Styles Hotel Mascot Commercial 24/01/ Qhotel Sydney Airport- The Felix Commercial 12/06/ The Henderson Hotel Commercial 26/02/ Doody Street Office Commercial 30/04/ Botany Road Commercial Development- Emerald City Commercial 19/03/ Gardeners Road Mixed Use Development (90 Apartments) Mixed Use 04/06/ The Gentry Alexandria (37 Townhouses) Mixed Use 05/03/ Lachlan Street Mixed Development (61 Apartments) Mixed Use 30/04/ Mitchell Rd Mixed Use Development Teracota Alexandria (29 Apartments) Mixed Use 26/03/ Dank St Mixed Development Art House (43 Units) Mixed Use 26/03/ Botany Road Mixed Development (29 Units) Mixed Use 15/01/ Botany Road Mixed Development Highline (40 Units) Mixed Use 15/05/ Botany Road Mixed Development (25 units) Mixed Use 30/04/ Henderson Road Mixed Development (28 apartments) Mixed Use 14/05/ Huntley Street Apartments- Arkadia Apartments (153 Apartments) Residential 15/01/ O Riordan Street Apartments (100 apartments) Residential 12/06/ Elizabeth Street Apartments North Apartments (35 Apartments) Residential 30/04/ Henderson Road Apartments (27 Apartments) Residential 21/05/ Amelia Street Apartments (39 Apartments) Residential 13/03/2018 *Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburbs of : Alexandria, Newtown, Surry Hills, Waterloo, Mascot. ***Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date in which each project commences and/or is completed. Source: Cordell Database, ESRI ArcGIS, Department of Planning and Environment NSW. Copyright PRDnationwide 2018.

9 ABOUT PRDnationwide RESEARCH PRDnationwide s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia Our extensive research capability and specialised approach ensures our clients can make the most informed and financially sound decisions about residential and commercial properties. OUR KNOWLEDGE Access to accurate and objective research is the foundation of all good property decisions As the first and only truly knowledge based property services company, PRDnationwide shares experience and knowledge to deliver innovative and effective solutions to our clients. We have a unique approach that integrates people, experience, systems and technology to create meaningful business connections. We focus on understanding new issues impacting the property industry; such as the environment and sustainability, the economy, demographic and psychographic shifts, commercial and residential design; and forecast future implications around such issues based on historical data and fact. OUR PEOPLE Our research team is made up of highly qualified researchers who focus solely on property analysis Skilled in deriving macro and micro quantitative information from multiple credible sources, we partner with clients to provide strategic advice and direction regarding property and market performance. We have the added advantage of sourcing valuable and factual qualitative market research in order to ensure our solutions are the most well considered and financially viable. Our experts are highly sought after consultants for both corporate and AREA government XXXXXX bodies and their advice has AREA helped steer XXXXXX the direction of a number of property developments and secured successful outcomes for our clients. OUR SERVICES Our research services span over every suburb, LGA, and state within Australia; captured in a variety of standard and customized products We have the ability and systems to monitor market movements, demographic changes and property trends. We use our knowledge of market sizes, price structure and buyer profiles to identify opportunities for clients and provide market knowledge that is unbiased, thorough and reliable. Con Xanthis Principal M E c.xanthis@prd.com.au Peter Kasavetis Principal M E p.kasavetis@prd.com.au PRDnationwide Alexandria Shop AR3/252 Botany Road Alexandria, NSW 2015 Australia T F PRD.com.au/alexandria PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the Information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. Copyright PRDnationwide 2018.

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