Urban Development Institute of Australia (Victorian Division) PROPERTY MARKET UPDATE UDIA URBAN IQ June 2018 Quarterly Report Information provided by UDIA s Partner, RPM Real Estate Group
URBAN IQ UDIA KNOWLEDGE PORTAL URBAN IQ is a series of research, news, analysis and market intelligence initiatives for the Victorian urban development industry. www.udiavic.com.au THANK YOU TO UDIA PARTNER RPM REAL ESTATE GROUP FOR PROVIDING THE INFORMATION CONTAINED WITHIN THIS REPORT. DISCLAIMER: ALTHOUGH ALL REASONABLE CARE HAS BEEN TAKEN IN THE PREPARATION OF THIS REPORT, THE RPM REAL ESTATE GROUP PTY LTD AND UDIA VICTORIA TAKE NO RESPONSIBILITY FOR THE ACCURACY OF THE INFORMATION CONTAINED HEREIN. IT IS RECOMMENDED THAT ALL THE INFORMATION BE VERIFIED IF IT IS TO BE USED FOR COMMERCIAL PURPOSES.
UDIA URBAN IQ PROPERTY MARKET UPDATE JUNE QUARTER 2018 ECONOMIC MARKET UPDATE 04 RESIDENTIAL MELBOURNE MARKET PRICES 07 FINANCE ACTIVITY 08 BUILDING ACTIVITY 10 AFFORDABILITY 12 PROPERTY MARKET NEWS 14 ABOUT RPM REAL ESTATE GROUP 15 UDIA PRINCIPLES FOR THE WAY AHEAD 17 UDIA PARTNER
URBAN IQ ECONOMIC MARKET UPDATE ECONOMIC MARKET UPDATE Australia s Gross Domestic Product (GDP) in March quarter 2018 (the latest available data) increased by 1.03% from the corresponding figure in the previous quarter. This led to growth of annual GDP to March 2018 picking up to 2.56%. Public investment is a key driver of economic growth, underpinned by major state infrastructure projects and commonwealth defence projects, with new private investment in non residential dwellings and machinery and equipment also starting to improve. However, GDP growth remains below the long term trend. Private consumption growth is moderate in the face of low wage growth, while new dwelling investment has declined by 2.47% over the year. Growth in the Victorian economy has outperformed the national average, with annual State Final Demand (SFD) at March 2018 being 4.76% higher than the same figure at March 2017. Significantly, this was also the highest growth rate amongst all states and territories. Public Investment Victorian State Economy Employment Source: Australian Bureau of Statistics INTEREST RATES After reducing the cash rate by 25 basis points in both May and August of 2016, the RBA has made no further changes in following 22 monthly meetings, leaving the cash rate at a historical low of 1.50%. This persistent low interest rate environment has been attributed to below trend economic growth and low wage growth resulting in weak inflationary pressures. Moreover, with Sydney and Melbourne both experiencing a correction in dwelling prices in 2018, and recent directives by APRA on major banks to restrict growth in investment lending and interest only loans being successful in containing overall residential investment lending, it has removed the requirement for the cash rate to rise in the short term. Nevertheless, additional cuts to the cash rate are unlikely, with the next RBA move in the cash rate still likely to be up, although not until second half of 2019. Notably, non major banks have recently increased their variable rates in response to their short term borrowing costs surging. The official standard variable interest rate for owner occupiers sits at 5.20% (while investor loans sits at 5.80%). However, with some bargaining owner occupiers can obtain a discounted interest rate of 4.50% (investors can obtain 5.10%) from the major lenders. Furthermore, some banks outside of the big four currently have introductory rates of 3.65% for owner occupiers who pay principal and interest. 1.50% 5.20% 4.50% 4.15% % - 3yr Cash Rate (June-18) Standard Variable Rate (Owner Occupiers - Jun-18) Discounted Variable Rate (Jun-18) 3 Year Fixed Rate (Jun-18) / Page 4 / Source: Reserve Bank Australia
CONSUMER PRICE INDEX EMPLOYMENT AND WAGES The Consumer Price Index (CPI) increased by 2.08% across Australia in June quarter 2018, compared to the same quarter in 2017. This continued the trend of CPI remaining below or at the lower end of the RBA targeted range of 2% to 3% since late 2014. Sub groups that experienced significant annual increases in their respective CPI index were alcohol and tobacco (7.81%), followed by transport (5.18%), and health (3.38%). The Consumer Price Index (CPI) escalated by a higher 2.52% in Melbourne in June quarter 2018, compared to the same quarter in 2017. In Melbourne, the CPI housing index (+4.38%) rose at a faster pace than overall CPI in June quarter 2018, highlighting the largely strong performance of the Victorian housing market during financial year 2018. The number of employed persons in Victoria increased by a modest 1.91% over the twelve months to June 2018. This was below national annual employment growth rate at June 2018 of 2.70%. Victoria s unemployment rate edged higher in June 2018 to 5.6%, which was also slightly above the national unemployment rate of 5.4%. Average weekly earnings for full time adults in Victoria of $1,572.50 at November 2017, represented annual growth of 1.35%. $ CONSUMER SENTIMENT The Westpac-Melbourne Institute Consumer Sentiment Index is the most widely quoted barometer of consumer sentiment in Australia. A score of greater than 100 means that optimists outnumber pessimists, with readings of below 100 indicating that pessimistic consumers are in the majority. 115.0 Consumer sentiment 110.0 105.0 102.1 Index = 100 100.0 95.0 90.0 85.0 80.0 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017 Mar-2018 Jun-2018 Source: Westpac-Melbourne Institute Consumer Sentiment Index The Westpac-Melbourne Institute Consumer Sentiment Index continues to hold in slightly optimistic territory with a reading of 102.1 in June 2018. However, the Index is still well below levels typically associated with strong consumer sentiment. From May to June, expectations on house prices, job security, and the long term view of the economy all deteriorated. Furthermore, the family finances index remains below its longer run average despite the lift in June, in response to ongoing pressures on household budgets from slow growth in wages and rising petrol prices. / Page 5 /
BUSINESS CONFIDENCE NAB s Business Survey has been tracking Australian business confidence levels for more than two decades. Businesses are approached quarterly, with two smaller monthly surveys conducted in the intervening months to capture changes on a more regular basis. The panel now exceeds 2,700 businesses. Growth in business conditions has largely remained solid from the middle of 2015, with the June 2018 result of a 13.2 percentage point increase continuing the double digit monthly rises since March 2017. Business conditions are also robust across all states, with the Victorian index recording a 14 percentage point increase in June. Trading/sales and profitability indices both experienced improved growth in June. Although growth in employment conditions diminished, it is consistent with current jobs growth. NAB Index Business Conditions 25.0 20.0 15.0 10.0 +13.2 5.0 0.0-5.0-10.0 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017 Mar-2018 Jun-2018 Source: National Australia Bank Business Survey Most major industry groups are still experiencing solid business conditions, with the construction industry being particularly buoyant, attributed to a large pipeline of residential construction work which is necessary to ensure a healthy balance between supply and demand in context of Victoria s rapidly growing population. VICTORIAN POPULATION Victoria gained 28,610 people during December 35,000 quarter 2017 (latest available data), lifting its estimated resident population to 6,385,849 people. This equated to a population increase of 143,420 people or 2.30% growth in Victoria over the twelve months to December 2017, which were both the strongest in absolute terms and percentage terms amongst all states and territories. People 30,000 25,000 20,000 15,000 10,000 5,000 - -5,000 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 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017 POPULATION COMPONENTS Natural Increase Net overseas migration Net interstate migration Source: Australian Bureau of Statistics A breakdown of the three components of population growth shows that in December quarter 2017 Victoria recorded; Natural Increase + Net Interstate Migration Net Overseas Migration +3.6% * -26.4% * -23.6% * +42,312 persons over the 12 months to December 2017 (+14.1%). Reflects 29% of the national natural increase +16,386 persons over the 12 months to December 2017 (-13.5%). +84,722 persons over the 12 months to December 2017 (+23.6%). Reflects 35% of the national intake / Page 6 / * on same quarter of the previous year
URBAN IQ RESIDENTIAL MELBOURNE MARKET PRICES Property prices in Melbourne have trended upwards since the middle of 2013, with detached houses achieving stronger growth than units. Over June quarter 2018, sales recorded a preliminary median; The established housing market to date remains robust when compared to other states with approximately 44,574 auctions held in Victoria during the twelve months to June 2018, with a clearance rate of 69.4% (REIV). The number of auction sales during the twelve months to June 2018 is 6.1% higher than the corresponding period a year earlier, where the clearance rate was 76.9% (REIV). House price of $840,000 (-0.6% from the previous quarter, and +3.6% from the corresponding quarter a year earlier) Unit price of $604,000 (+0.5% from the previous quarter, +0.3% from the corresponding quarter a year earlier) Land price of $325,000 (+0.6% from the previous quarter, +19.5% from the corresponding quarter a year earlier) Median House & Apartment Price MELBOURNE PRICES $850,000 $800,000 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 Melbourne Prices Melb House Price (LHS) Melb Unit Price (LHS) Melb Land Price (RHS) $325,000 $840,000 $604,000 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 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 Mar-18 Jun-18 $350,000 $325,000 $300,000 $275,000 $250,000 $225,000 $200,000 $175,000 Median Land Price PRICE CHANGE PER PERIOD Source: REIV, RPM Research Division % change 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 117% 89% 65% 54% 55% 48% 31% 19% 17% 13% 4% 0% 12 months 2 years 5 years 10 years Melbourne House Price Melbourne Unit Price Melbourne Land Price Source: REIV, RPM Research Division / Page 7 /
URBAN IQ FINANCE ACTIVITY: VICTORIA VALUE OF LOANS BY DWELLING TYPE Victoria recorded 47,612 new owner occupation loans approvals during June quarter 2018, which was 2.2% higher than the corresponding figure in the same quarter in 2017. However, owner occupier demand has subsided through 2018, with the number of loans down by 7.4% from the peak in December quarter 2017. This is evident through lower turnover activity of established dwellings, and the decline in lot sales. In June quarter 2018, compared to the previous corresponding period, new owner occupation loans for the construction or purchase of a new dwelling and for established dwellings both increased by 2.2%. Established dwellings accounted for the majority (83%) of total new loans for owner occupation in the three month period. No. of dwellings financed 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Construction of Dwellings Purchase of New Dwellings Purchase of Established Dwellings Source: Australian Bureau of Statistics Overall, the number of new owner occupation loans during financial year 2018 in Victoria was a relatively high 191,920 loans, which was 6.5% above the number of similarly financed dwellings over financial year 2017. Considerable lending activity to owner occupiers has been underpinned by strong population growth and historical low borrowing costs. Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 VALUE OF LOANS BY PURCHASER TYPE The total value of new owner occupier loans in June quarter 2018 escalated by 9.1% compared to the previous corresponding period. This was primarily attributed to the substantial 19.5% annual growth in the median lot price at June 2018, with owner occupier loans for the construction of a new dwelling increasing at a greater rate compared to that for established dwellings. This reflects a shift in demand to the relatively more affordable outer metropolitan areas, and also to new housing in developments in the greenfields. The total value of loans to investors during the three months to June 2018 was 12.0% lower compared to the same period in 2017. This has coincided with the ongoing limit on new interest only lending to 30% of total new residential mortgage lending, with these loans also requiring the loan to value ratio not exceeding 80%. Moreover, with an increasing amount of investor loans moving from interest only to principal and interest because of the mortgage rate saving, the outstanding loan amount is reducing. $8,000 total value of loan by type ($m) $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Owner Occupier Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Investor Sep-17 Dec-17 Mar-18 Jun-18 Source: Australian Bureau of Statistics / Page 8 /
NUMBER OF LOANS TO FIRST HOME BUYERS AND NON-FIRST HOME BUYERS The number of loans attributed to first home buyers reached 9,010 loans over June quarter 2018, which was a substantial 36% higher than first home buyer loans in the same period in 2017. This was the highest June quarter total of first home buyer loans since June quarter 2009 when the Federal Government s first home owner boost scheme was in place. This surge in first home buyer demand was attributed to the two Victorian Government initiatives beginning July 2017 of abolishing stamp duty for first home buyers when purchasing a dwelling of up to $600,000 in value, and for owner occupation, and the doubling of the first home buyer grant to $20,000 when purchasing a new dwelling outside of Greater Melbourne. Dwellings financed to non-first home buyers recorded 38,602 loans during June quarter 2018, reflecting a 3.4% decline on the same quarter in the previous year. As a result, the proportion of total loans accounted for by first home buyers of 19% in June quarter 2018 was a notable increase from the 14% share in June quarter 2017. No. of loans 60,000 50,000 40,000 30,000 20,000 10,000 0 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 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 Mar-18 Jun-18 23% 20% 18% 15% 13% 10% 8% 5% 3% 0% % share of FHBs First Home Buyers Non-First Home Buyers Share of FHBs Source: Australian Bureau of Statistics AVERAGE LOAN SIZE FIRST HOME BUYERS AND NON-FIRST HOME BUYERS The average loan size to first home buyers in June quarter 2018 increased by 11.0% from the previous corresponding period, while the average loan size to non-first home buyers escalated by 7.0%. At June 2018, the average loan size attributed to a non-first home buyer was $54,930 above the average loan size to a first home buyer ($365,600). While this divergence in average loan size between first home buyers and non first home buyers remains relatively large, it closed significantly in June quarter 2018, to its lowest gap in two years. $425,000 $400,000 Average loan size ($) $375,000 $350,000 $325,000 $300,000 $275,000 $250,000 FHBs - Average loan size Non-FHBs - Average loan size Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 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 Mar-18 Jun-18 Source: Australian Bureau of Statistics / Page 9 /
URBAN IQ BUILDING ACTIVITY: VICTORIA APPROVALS Victoria recorded a robust 17,467 dwelling approvals in June quarter 2018, representing a sizeable escalation of 17.2% on dwelling approvals in the same quarter in 2017. This is the third consecutive quarter of double digit annual growth in quarterly approvals, which underpinned an overall 16.0% increase in total approvals during financial year 2018 to 75,392 dwellings. New detached house recorded a solid 10,321 approvals in June quarter 2018, which reflected growth of 6.6% on new detached house approvals in the same quarter in 2017. Record lot sales activity through 2016 and 2017 has resulted in new house approvals strengthening as these sales starting moving into settlement. As a result, there were 39,603 new detached house approvals in Victoria during financial year 2018, reflecting a 10.4% annual increase. Significantly, this was a record for annual new detached house approvals, surpassing the previous high that occurred in the twelve month period to July 2010 when boosted first home owner grants drove demand. Recent strong house and lot price growth has benefit demand for semi-detached/row/terrace houses and townhouses in Victoria, as purchasers are increasingly priced out of the detached house market. Approvals of semi-detached/row/terrace houses and townhouses were up by 11.1% in June quarter 2018 to 3,432 dwellings, compared to the same quarter in 2017. Annual growth was much stronger at 18.7%, with a long term high of 13,520 semi-detached/row/terrace house and townhouse approvals during financial year 2018. Victoria recorded 3,203 approvals of flats/units/apartments in buildings of 4 storeys in June quarter 2018, which was almost 50% higher compared to the same quarter in 2017. However, 4 storey or higher dwellings approvals are down by almost two thirds from the record in December quarter 2017, and 42% from the previous quarter. While the timing of approvals for large developments has a significant impact on overall quarterly approvals, this trend is also likely attributed to the slowdown in investment lending and contraction in demand from overseas purchasers. Nevertheless, strong approval activity in the previous two quarterly periods has propelled approvals of flats/units/apartments in buildings of 4 storeys and higher to 20,680 dwellings during financial year 2018, which was 31.9% above approvals in the previous corresponding period. 11,000 10,000 Detached Houses Townhouses Apartments 9,000 No. of approvals 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 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 Mar-18 Jun-18 Source: Australian Bureau of Statistics / Page 10 /
COMMENCEMENTS Detached house commencements in Victoria stabilised at 35,690 starts in 2016/17, before an expected further rise in 2017/18, increasing by an estimated 9.2% to 38,960 starts. Over the following three years, detached house commencements are forecast to decline by an average of 16% from its peak, contracting to 30,100 starts by 2020/21. This will be similar to house contraction activity during the three year period from 2011/12 to 2013/14. Multi unit dwelling commencements are expected to rebound in 2017/18, escalating by an estimated 26.4% to 36,020 starts. Significantly, this too will be a record level of activity in multi unit dwelling commencements. However, this recovery is projected to be short lived, with multi unit dwelling starts contracting by an overall forecast average of 37% over the three years to 2020/21, to average 19,510 starts. 80,000 70,000 Houses Multi-units Forecast 60,000 No. of dwellings 50,000 40,000 30,000 20,000 10,000 0 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 e 2018/19 2019/20 2020/21 Source: Housing Industry Association / Page 11 /
URBAN IQ AFFORDABILITY Over the past decade housing affordability has received an increasing share of media attention. Generally, first home buyers are noted as the age cohort that bears the brunt of consistently increasing house prices. However, in more recent times the dialogue has shifted to include all age cohorts who particularly have a desire to reside in the middle ring of Melbourne but find it increasing unaffordable to do so. The common benchmark for identifying housing stress in Australia has historically been identified as those households that allocate at least 30% of disposable household income to finance their mortgage. This ratio has been in place for decades and in recent times there is a growing view that the ratio should be closer to 40% to reflect the market of today. The chart below reflects 48 suburbs throughout the growth corridors of Melbourne and Greater Geelong. If considering the traditional mark of 30%, only two suburbs (St Leonards and Curlewis), both located Greater Geelong, meet this ratio. If the ratio increases to 40%, then the number of the identified suburbs that fall under this ratio is 27 suburbs more than half. This means that a little less than half of the identified suburbs would be considered to be under mortgage stress. More specifically, 21 suburbs recorded a mortgage to household income ratio of between 40% and 45%. The majority of these suburbs were located relatively closer to the Melbourne CBD within their respective municipality, and were a mixture of established suburbs and new development fronts. There were some exceptions, with limited competition and subdued new lot supply applying upward pressure to lot prices in Sunbury, and the regions of Clyde and Officer in the south east. The proportion of household income required to finance a mortgage was 45% or higher in Burnside, Berwick, Greenvale, Point Cook, and Botanic Ridge. These five suburbs also contained the most expensive median lot prices in June quarter 2018, all above $410,000, which was also considerably more expensive than that for Greater Melbourne of $325,000. Another 15 suburbs covered recorded a mortgage to household income ratio of above 35% and below 40%, with this level being synonymous with the emergence of constrained affordability. These suburbs were generally located further out within their respective municipality, and characterised as larger development fronts containing an abundance of greenfield land, which kept lot prices more affordable. / Page 12 /
Principal Loan Amount $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 Principal Amount (80% loan) % share of income used for repayments Historical 30% of income used to finance a mortgage 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% Mortgage Repayments as a % of Income $50,000 5% $0 Burnside Berwick Greenvale Point Cook Botanic Ridge Bonnie Brook Cranbourne Sunbury Mernda Wollert Craigieburn Deanside Fraser Rise Clyde North Cranbourne South Cranbourne East Truganina (Melton) Williams Landing Kalkallo Officer Truganina Clyde Rockbank Officer South Aintree Donnybrook Mickleham Point Lonsdale Eynesbury Mambourin Tarneit Wyndham Vale Thornhill Park Werribee Strathtulloh Weir Views Ocean Grove Melton South Cranbourne West Fyansford Highton Bacchus Marsh Armstrong Creek Lara Wandana Heights Leopold St Leonards Curlewis Source: RBA, ATO & RPM Research Division 0% CALCULATION ASSUMPTIONS The chart depicts the median land price in June quarter 2018 by suburb, along with a median anticipated construction cost and net income by corridor. The median construction costs and incomes are taken from RPM s Internal Buyer Surveys. The construction cost ranges from $234,900 (Moorabool) to $264,300 (Wyndham) while income levels reflect net levels to provide a more accurate level of disposable income. In addition, the chart also assumes a 20% deposit has been paid and mortgage repayments are based on a 30 year loan at the discounted standard variable rate at June 2018 of 4.50%. / Page 13 /
URBAN IQ PROPERTY MARKET NEWS VICTORIAN PLANNING AUTHORITY UPDATES In an effort to boost housing supply, the VPA has been set a target to complete 17 Precinct Structure Plans over 2017 and 2018, which will include the rezoning of more than 100,000 lots. The table below contains projections for the number dwellings, people and jobs each of these 17 Precinct Structure Plans are anticipated to support. Precinct Structure Plan LGA Status Estimated Dwellings Estimated Population Estimated Jobs Pakenham East Cardinia Planning Panel 7,150 21,000 1,313 McPherson Casey Submitted for Approval 10,100 28,300 1,619 Minta Farm Casey Planning Panel 3,000-10,000 Lancefield Road Hume Submitted for Approval 8,000 22,000 - Lindum Vale Hume Structure Plan Finalisation 1,500 - - Sunbury South Hume Submitted for Approval 11,800 33,000 - Kororoit Melton Completed - February 2018 9,200 25,875 2,100 Mt Atkinson & Tarneit Plains Melton Completed - September 2017 6,700 19,000 18,000 Plumpton Melton Completed - February 2018 10,680 29,900 12,000 Beveridge Central Mitchell Submitted for Approval 3,640 10,193 - Beveridge North West Mitchell Council & State Agency Consultation 11,290 31,611 6,165 Donnybrook & Woodstock Whittlesea Completed - November 2017 16,400 46,000 3,316 Shenstone Park Whittlesea Council Led - - - Wollert Whittlesea Completed - February 2017 15,060 42,168 8,040 Quandong Wyndham Council Led - - - Source: Victorian Planning Authority Furthermore, background studies and draft structure preparation for the Precinct Structure Plans of Werribee Junction in City of Wyndham and Craigieburn West in City of Hume have commenced during 2018. / Page 14 /
ABOUT RPM REAL ESTATE GROUP RPM Real Estate Group is Victoria s most successful residential development sales, marketing and advisory agency. We specialise in sales within master-planned communities, medium and high density developments, greenfield and infill development sites and international investment sales. We advise our clients on all aspects of the sales process from site due diligence, acquisition, planning and risk mitigation through to product mix, pricing, launch, sales and settlement. Our research-backed strategies deliver higher revenues, faster sales rates and better returns for our clients. FULL SERVICE OFFERING Project Marketing: specialising in sales and marketing of medium density and mid-rise apartment infill sites throughout Melbourne. Backed by unrivalled inhouse research to help clients develop the best product and sales strategy to drive maximum return in this burgeoning market. Transactions & Advisory: specialising in development site transactions across greenfield and infill residential, commercial and medium density sites. The team s philosophy is based on not just selling, but adding value to the selling process and unlocking the value of sites. Research: in-depth analysis on current economic and housing conditions, future supply and demand assessments, and buyer demographics to enable clients to make the most informed decisions. Communities: the market leader in sales and marketing of master-planned estates, we offer unparalleled expertise in the management of an estate, product mix and design, pricing, market dynamics and matching product to demand to ensure faster sales rates and maximum yield. RPM International: helps clients including property owners, developers and investors diversify and maximise their property portfolio by connecting an expansive network of offshore buyers keen to invest in high quality residential estates and medium density projects throughout Melbourne. Property Management: providing full service property management services for both Australian and international clients to ensure their property assets are protected and maximised.
THANK YOU TO UDIA PARTNER RPM REAL ESTATE GROUP FOR PROVIDING THE INFORMATION CONTAINED WITHIN THIS REPORT. RPM REAL ESTATE GROUP Victoria s leading residential development sales and marketing agency Full-service sales and marketing, research and advisory capability Unsurpassed track record of delivering outstanding returns for clients Unparalleled breadth and depth of research to optimise client decision making $1.4 billion englobo land transactions 4,300 property sales over financial year 2017/18 44 active projects 36,000+ total yield of current projects Year to date group sales totals $3.7 billion CONTACT RPM P +613 9862 9555 F +613 9862 9512 E W enquiries@rpmrealestate.com.au www.rpmrealestate.com.au
UDIA PRINCIPLES FOR THE WAY AHEAD THESE PRINCIPLES WILL GUIDE UDIA AS WE CONTINUE ON OUR JOURNEY OF GROWTH AND AS WE FURTHER SOLIDIFY OUR LONG TERM, SUSTAINABLE POSITION AS THE URBAN DEVELOPMENT INDUSTRY S ASSOCIATION OF CHOICE. LEADERSHIP Drive the thought leadership agenda and exercise tangible influence with government and other stakeholders INFLUENCE Be known as the pre-eminent expert organisation on housing and urban development KNOWLEDGE Be the go-to organisation for industry knowledge and business building insights LOYALTY Possess a deeply loyal membership base as a result of consistently providing solid member services EXPERTISE AND INNOVATION Offer innovative membership services that respond to the changing needs of our industry INDUSTRY SUCCESS Advance and support the industry in the public arena and facilitate industry recognition and promotion DEEPLY CONNECTED Facilitate a fruitful business environment by connecting industry and government stakeholders
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA (VIC) udiavic.com.au +61 3 9832 9600 info@udiavic.com.au