Real Estate Market Facts A QUARTERLY REVIEW OF MAJOR PROPERTY MARKETS IN AUSTRALIA JUNE QUARTER 2013 Growth Continues But Is Uneven The June quarter recorded an increase in median prices for the Australian residential property market. The weighted average, capital city median price increased by 3.3% for houses and 2.6% for other dwellings. Sydney, Melbourne, Brisbane, Adelaide and Darwin contributed to the increase, while Hobart recorded the biggest drop, down by 3.5%.The weighted average, median house price for eight capital cities is now $549,898. Hobart had the lowest median house price at $347,300, while Sydney had the highest median house price across the capital cities at $690,064. This figure is 25.5% above the capital cities weighted average. Compared to the June quarter of 2012, the weighted average, median house price rose 6.1% and with the exception of Hobart, increases were recorded in all capitals. Melbourne had the highest jump, up by 8.4%. The weighted average, median price for other dwellings for the eight capital cities was $448,403. Over the quarter, Sydney, Melbourne, Adelaide and Darwin recorded increases and again, the biggest quarterly fall in median prices for other dwellings was in Hobart, down by 5.7%. Chart 1: Housing Finance, Trend data Billions $ $ 40 35 30 25 20 15 10 Compared to the June quarter of 2012, the weighted average, median price for other dwellings for the eight capital cities went up 4.1%. Brisbane and Canberra were the only capitals to record falls, down by 0.7% and 3.0% respectively. Over the June quarter, median rents for three bedroom houses fell in most capital cities. Darwin had the only rise, while there was no change in Perth or Hobart. Compared to the June quarter of 2012, a 17.1% increase in the median rent for three bedroom houses in Darwin was the largest of the capitals. Canberra was the only capital city to record a drop, down by 2.2%. Over the quarter, rents for two bedroom other dwellings increased in Perth and Darwin. Median rents remained unchanged in Sydney, Adelaide and Hobart. Compared to the June quarter of last year, Darwin and Perth had the largest increases in median rents for other dwellings, up by 18.6% and 12.2% respectively. Fast Facts: June quarter 2013 Quarterly, Australian weighted average, median house price is $549,898. Quarterly, Australian weighted average, median other dwellings price is $448,403. Median house prices up: Sydney 2.7% to $690,064 Melbourne 7.2% to $569,000 Brisbane 2.3% to $445,000 Adelaide 1.3% to $400,000 Darwin 3.4% to $612,000 Median house prices down: Perth 0.2% to $514,000 Canberra 0.3% to $507,250 Hobart 3.5% to $347,300 Median other dwelling prices up: Sydney 2.4% to $491,845 Melbourne 5.6% to $470,000 Adelaide 4.3% to $313,000 Darwin 9.2% to $464,000 Median other dwelling prices down: Brisbane 1.3% to $371,000 Perth 1.2% to $420,000 Hobart 5.7% to $273,500 Canberra 1.3% to $402,500 Vacancy rates Sydney 2.1% Melbourne 3.4% Brisbane 2.1% Adelaide 2.9% Perth 3.4% Hobart 4.4% Darwin 2.4% Canberra 3.6% Investor Finance Owner Occupier (Excl. refinancing)
Acknowledgements REIA gratefully acknowledges the state and territory REIs for their cooperation and assistance in the preparation of Bendigo Bank 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. Bendigo Bank REIA Real Estate Market Facts would cease to exist without their continuing invaluable assistance. The organisations that regularly provide information for Bendigo Bank REIA Real Estate Market Facts are: NSW: Australian Property Monitors NSW Department of Housing VIC: Real Estate Institute of Victoria (REIV) (sales data) Victorian Department of Human Services, Office of Housing QLD: Department of Natural Resources and Mines via RP Data (sales data), Queensland Residential Tenancies Authority (rent data) and REIQ rental survey (vacancy rates) SA: South Australian Office of Consumer and Business Affairs, Tenancies Branch, South Australian Department for Families and Communities, Research and Analysis Unit Land Services Group, Department for Administrative and Information Services WA: Western Australia Department of Land Administration ACT: Planning and Land Authority, ACT Department of Urban Services Registrar- General s Office, ACT Department of Justice and Community Safety TAS: All data obtained from Real Estate Institute Member Agents NT: The Australian Valuation Office for the Valuer-General of the Northern Territory Regional Information Regional market activity information can be provided by state and territory REIs. Institutes: REI Australian Capital Territory (02) 6282 4544 REI New South Wales (02) 9264 2343 REI Northern Territory (08) 8981 8905 REI Queensland (07) 3249 7347 REI South Australia (08) 8366 4300 REI Tasmania (03) 6223 4769 REI Victoria (03) 9205 6666 REI Western Australia (08) 9380 8222 Subscriptions are available at www.reia.com.au or by phoning 02-6282 4277 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 0818-11512 Print Post Approved No.PP299436/00043 2013 REAL ESTATE INSTITUTE OF AUSTRALIA LTD Real Estate Institute of Australia Ltd PO Box 234, DEAKIN WEST ACT 2600 Tel: (02) 6282 4277 Fax: (02) 6285 2444 www.reia.com.au email: reia@reia.com.au 2
Real Estate Market Facts REIA President s Message Welcome to the June quarter Bendigo Bank/ REIA Real Estate Market Facts. The property market recovery continues with the weighted average, median house price for Australia s eight capital cities now at $549,898. That s a rise of 3.3% and Sydney, Melbourne, Brisbane, Adelaide and Darwin all contributed to the quarterly increase. Compared to the June quarter of 2012, the figure rose by 6.1% and with the exception of Hobart, all capitals increased, noting Melbourne was up by 8.4%. Following the past few years of a subdued market, increases in prices are once again prompting some in the media to say we are heading for a housing price bubble. It is Sponsor s Message Bendigo Bank is pleased to sponsor the Real Estate Institute of Australia s quarterly Bendigo Bank/ REIA Real Estate Market Facts Report. For more than 150 years, Bendigo has been helping people own their own homes. We aim to be Australia s leading customer-connected bank. We understand our customers needs and objectives and partner with them for sustainable long-term outcomes. We recognise that our bank can only be successful by helping our customers and communities to prosper. This philosophy has seen us embraced into more than 600 communities across Australia, and our new Relationship Banking service is furthering this commitment. If you re a Bendigo customer, or would like to be, I invite you to try out this new customer service offering your own banker taking all the hassles out of banking. I am also pleased to announce that our services are now even more accessible with important to distinguish between a recovering housing market and an overheated market which is a precursor to a bubble. Yes, some markets are performing well but this growth is not, by any means, Australia-wide. Hot spots like inner Sydney and Melbourne tell one story but try asking someone in Hobart if there s a property boom. They d laugh you out of the room. It s worth noting that the RBA does not believe we are heading for a bubble and in fact, the minutes of the August Board meeting say that dwelling investment had thus far been in a muted recovery relative to past cyclical upturns. Property is a long-term investment strategy and the results we are seeing tell me we can remain optimistic about the future of the Australian housing market as we welcome in a new government. Peter Bushby President, REIA the recent opening of Bendigo Bank Agencies in real estate offices in rural and regional areas, a further broadening of our relationship with the industry. This edition of Bendigo Bank / REIA Real Estate Market Facts reveals some interesting trends around the country that will help people to find suitable residential or investment properties. The Australian weighted average median house price is now $549,898 or 3.3% higher compared with the revised figure for the March quarter 2013. Compared with the June quarter for 2012, the median Australian house price increased 6.1% over the past 12 months. In other news, Adelaide s median house price has broken through the $400,000 barrier and the standout capital city for price growth was Melbourne, where the median increased by 7.2%, to $569,000. This represents a rise of 8.4% for Melbourne compared with the same quarter in 2012. The median price for other dwellings in Melbourne jumped 5.6% compared with the March quarter, to $470,000. Bendigo s commitment to providing our customers with an accessible, full range of banking and financial services is evident in the number of new Bendigo Bank branches and Community Bank branches we continue to open Australia-wide. We will also shortly unveil our new website with a fresh new look and improved functionality. As part of our 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...8...9 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...26 Bricks and Clicks growth strategy, I m sure you ll find doing business with us easier than ever before. If you d like to discuss how Bendigo Bank can support your business, your family and your community, or how Bendigo Wealth can help grow your savings and protect your future, call in to one of our 600-plus customer service outlets, visit www.bendigobank.com. au or call 1300 Bendigo to try out our new Relationship Banking service. Dennis Bice Executive Retail Bendigo and Adelaide Bank 3
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 self-contained 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, semidetached 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 = 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. 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. Timing of publication Timing of the release date of Bendigo Bank 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 Bendigo Bank 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 1995. Canberra (contract date) is revised once. In June 2007, revisions were made to the series back to December 2004. 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. New South Wales prices The New South Wales prices information published in REMF is based on contract date sales data published by REINSW in its quarterly Property Focus. A new series of median prices for Sydney, where prices have been adjusted for compositional change sourced from APM, was introduced in the September quarter 2005. The new series estimates are not comparable with earlier estimates of Sydney median prices. The changes introduced for Sydney median prices do not apply to the estimates for Wollongong and Newcastle. Queensland prices Brisbane median prices published in REMF are derived from sales and rents in the Brisbane Statistical Division (SD) so that they are comparable with the median prices and rents published for other capital cities. The Real Estate Institute of Queensland (REIQ) publishes median prices for both the Brisbane LGA and the Brisbane SD. 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
Real Estate Market Facts Sales Markets at a Glance House sales The key features of the market for houses in the June quarter 2013 are: The Australian weighted average, median house price of $549,898 is 3.3% higher compared to the revised figure for the March quarter of 2013. Compared to the June quarter of 2012, the median house price increased 6.1%. Sydney, Melbourne, Brisbane, Adelaide and Darwin recorded increases over the quarter. Hobart had the largest drop, down by 3.5%. Compared to the June quarter of 2012, with the exception of Hobart, median house prices increased in all capital cities. Melbourne recorded the largest rise, up by 8.4%. With the exception of Hobart, moving annual (trend), median house prices increased in all capital cities. Chart 2: Australian weighted average median house price (all capital cities) $( 000) 560 540 520 500 480 460 440 420 400 380 Australian Median House Price Table 1: Summary of Median House Sales Prices ($ 000), June Quarter 2013 Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap Cit Jun quarter 2013 690.1 569.0 445.0 400.0 514.0 507.3 347.3 612.0 549.9 Mar quarter 2013 671.9 530.9 435.0 395.0 515.0 508.7 360.0 592.0 532.3 Jun quarter 2012 646.7 525.0 427.5 395.0 485.0 480.0 370.0 570.0 518.1 Quarter Change % 2.7 7.2 2.3 1.3-0.2-0.3-3.5 3.4 3.3 Annual Change % 6.7 8.4 4.1 1.3 6.0 5.7-6.1 7.4 6.1 Table 2: Moving Annual Median House Sales Prices ($ 000), June Quarter 2013 Quarter Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 2010 June 601.1 520.0 448.0 394.8 487.5 494.1 366.1 535.3 513.7 Sep 622.0 543.1 452.4 402.0 495.0 512.6 374.3 548.6 526.6 Dec 629.4 554.4 452.1 407.4 496.3 525.1 377.4 553.5 533.0 2011 Mar 638.1 565.6 449.4 406.8 491.3 526.0 372.6 554.3 537.4 Jun 642.9 567.4 443.1 405.4 486.3 526.0 373.4 544.2 537.4 Sep 640.1 561.8 438.1 402.4 478.8 523.5 364.7 532.9 531.8 Dec 640.6 549.3 431.9 397.6 473.8 518.3 360.3 522.1 525.1 2012 Mar 639.9 539.3 428.6 391.8 472.5 516.3 358.3 522.1 519.8 Jun 638.7 528.8 426.8 389.3 473.8 509.4 358.3 535.8 515.3 Sep 640.4 522.5 427.4 389.0 478.8 509.4 357.0 551.1 514.7 Dec 648.1 527.5 431.1 391.5 486.3 511.6 357.0 566.6 520.2 2013 Mar 655.8 530.2 433.1 394.8 495.0 508.7 358.8 577.1 524.9 Jun 667.2 541.2 437.5 396.0 502.3 512.4 353.1 587.6 532.8 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
Chart 3: Moving Annual Median House Prices, Capital Cities 710 660 610 560 Median Prices () 510 460 410 360 310 260 210 160 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 MarJun 2006 2007 2008 2009 2010 2011 2012 2013 SYD 1 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 Dwelling Sales The key features of the market for other dwellings in the June quarter 2013 are: The weighted average, median price for other dwellings fell by 2.6% over the June quarter and 4.1% compared to the same quarter of 2012, to $448,403. Sydney, Melbourne, Adelaide and Darwin recorded increases in median prices for other dwellings. The largest quarterly decline was in Hobart, down by 5.7%. Moving annual (trend), median prices for other dwellings went down in Brisbane and Canberra. Median Price $( 000) 460 440 420 400 380 360 340 320 300 Jun 07 Sep 07 Dec 07 Mar 08 Chart 4: Australian weighted average median other dwelling price (all capital cities) Quarter Australian Median House Price 6
Real Estate Market Facts Sales Markets at a Glance Table 3: Summary of Median Other Dwellings Sales Prices ($ 000), June Quarter 2013 Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Cap Cit Jun quarter 2013 491.8 470.0 371.0 313.0 420.0 402.5 273.5 464.0 448.4 Mar quarter 2013 480.3 445.0 376.0 300.0 425.0 408.0 290.0 425.0 436.8 Jun quarter 2012 468.9 445.0 373.5 300.0 415.0 415.0 270.0 435.0 430.9 Quarter Change % 2.4 5.6-1.3 4.3-1.2-1.3-5.7 9.2 2.6 Annual Change % 4.9 5.6-0.7 4.3 1.2-3.0 1.3 6.7 4.1 Table 4: Moving Annual Median Other Dwellings Sales Prices ($ 000), June Quarter 2013 Quarter Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Aus 2010 June 421.3 440.4 375.3 306.3 408.8 405.5 283.3 418.5 410.1 Sep 433.8 454.9 377.8 312.6 414.3 414.3 287.8 425.3 421.0 Dec 440.5 463.4 377.4 316.9 414.3 424.0 285.6 431.8 426.6 2011 Mar 446.7 467.9 377.5 318.3 410.0 422.7 290.5 430.6 430.2 Jun 447.3 467.5 375.8 317.0 408.5 422.7 290.0 427.4 429.9 Sep 448.8 463.0 374.3 313.0 405.0 420.2 286.0 429.5 428.3 Dec 451.8 456.8 373.3 311.0 402.3 417.9 287.6 423.8 427.2 2012 Mar 455.8 452.1 371.3 308.3 404.1 415.5 277.6 418.8 427.0 Jun 459.7 446.6 370.9 304.5 405.6 415.9 273.9 421.3 426.8 Sep 462.4 443.5 373.3 302.5 408.9 412.9 272.9 422.5 427.4 Dec 470.0 444.2 371.8 301.8 413.9 412.4 270.5 426.3 431.0 2013 Mar 473.8 445.1 374.5 300.5 417.0 411.9 279.3 428.8 433.3 Jun 479.6 451.4 373.9 303.8 418.3 408.4 280.1 436.0 437.7 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. Chart 5: Moving Annual Median Prices, Other Dwellings, Capital Cities 500 450 400 Median Prices () 350 300 250 200 150 Jun Sep Dec MarJun SepDec MarJun SepDec MarJun SepDec MarJun SepDec MarJun SepDec MarJun SepDec MarJun 2006 2007 2008 2009 Quarters 2010 2011 2012 2013 SYD MEL BRIS ADEL PERTH CANB HOB DAR 7
Rents and at a Glance Rents Over the June quarter, the median rent for a three bedroom house increased in Darwin by 0.9%. Rents remained unchanged in Perth and Hobart while Canberra s drop of 4.3% was the largest among the capitals. Compared to the same quarter of 2012, Canberra recorded the biggest drop while the median three bedroom house rent rose 17.1% in Darwin. Over the quarter, rents for two bedroom other dwellings increased in Perth and Darwin. Median rents in Sydney, Adelaide and Hobart remained unchanged. Compared to the second quarter of 2012, Darwin and Perth recorded the largest increases in median rents for other dwellings, up by 18.6% and 12.2% respectively. Table 5: Summary of Median Weekly Rents, June Quarter 2013 Capital City 3 Bedroom Houses 2 Bedroom Other Dwellings Quarterly Median $/week Quarterly % Change Annual % Change Quarterly Median $/week Quarterly % Change Annual % Change Sydney 420.0-2.3 0.0 470.0 0.0 4.4 Melbourne 340.0-1.4 1.5 360.0-2.7 0.0 Brisbane 360.0-1.4 2.9 360.0-2.7 2.9 Adelaide 320.0-3.0 0.0 280.0 0.0 1.8 Perth 480.0 0.0 6.7 460.0 2.2 12.2 Hobart 330.0 0.0 0.0 270.0 0.0 1.9 Darwin 656.0 0.9 17.1 485.0 3.0 18.6 Canberra 450.0-4.3-2.2 435.0-1.1-3.3 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 June quarter, Sydney, Melbourne, Perth and Canberra recorded increases in vacancy rates. With a vacancy rate of 2.1%, Sydney and Brisbane have the tightest rental markets and with a rate of 4.4%, Hobart has the highest vacancy rate across the capitals. 8
Real Estate Market Facts Chart 6: Average Quarterly Vacancy Rate % 3.5 3.0 2.5 2.0 1.5 1.0 Jun Sep Dec MarJun SepDec 2008 2009 MarJun SepDec 2010 MarJun Sep Dec 2011 MarJun SepDec MarJun 2012 2013 Quarter Average Quarterly Vacancy Rate Table 6: (All Rented Dwellings), June Quarter 2013 Capital City Quarterly Vacancy Rate % Quarterly Change (ppts) Annual Change (ppts) Moving Annual (Trend) Vacancy Rate % Quarterly Change (ppts) Sydney 2.1 0.3 0.3 2.1 0.1 0.5 Melbourne 3.4 0.5 0.8 3.1 0.2 0.2 Brisbane 2.1 0.0 0.0 2.0 0.0-0.1 Adelaide 2.9-0.1-1.0 3.0-0.3-0.5 Perth 3.4 1.0 1.5 2.4 0.4 0.2 Hobart 4.4-0.5-0.4 4.7-0.1 1.0 Darwin 2.4-1.2 1.6 2.7 0.4 0.4 Canberra 3.6 0.1 0.8 3.1 0.3 0.8 Annual Change (ppts) Source: REI surveys of Real Estate Agent Property Managers. Note: For 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
Australian Capital Territory Sales Median Prices 600 550 500 450 400 350 Canberra Median House Prices Qtrly Moving Annual Medians Qtrly Medians The median house price for Canberra went down 0.3% compared to the revised figure for the previous quarter, to $507,250. This represents a 5.7% increase compared to the June quarter of 2012. Over the quarter, West and North was the only zone of Canberra to record an increase in the median house price, up by 4.0%. The median price decreased the most for houses in Inner South, down by 9.2%. Compared to the June quarter of 2012, West and North recorded the only rise in the median house price, up by 11.4%. The median price for other dwellings fell 1.3% over the quarter and 3.0% compared to the June quarter of 2012, to $402,500. While Inner Central recorded the only rise over the quarter, median prices for other dwellings in Inner South fell by 9.4%. Compared to the June quarter of last year, all zones of Canberra recorded decreases in median prices for other dwellings. The biggest drop was in Inner South, down by 5.0%. Table 7: Australian Capital Territory House Sales Prices, June Quarter 2013 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Canberra 468 507.3-0.3 5.7 425.0 610.5 Inner Central 69 708.0-2.6-1.7 600.0 920.0 Inner South 42 562.8-9.2-3.0 471.8 736.9 West and North 266 478.3 4.0 11.4 391.9 565.0 Outer South 91 480.0-4.0-1.5 445.8 567.5 Table 8: Australian Capital Territory Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Canberra 292 402.5-1.3-3.0 347.8 478.1 Inner Central 98 459.5 2.2-2.2 406.3 580.0 Inner South 40 407.5-9.4-5.0 333.8 509.3 West and North 104 370.0-3.9-2.2 306.5 415.7 Outer South 50 387.5-0.6-0.6 359.3 419.8 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 and Weston Creek. West and North is Belconnen, Gungahlin and Hall. Outer South is Tuggeranong 10
Australian Capital Territory Rents Real Estate Market Facts 4.0 Canberra 12 Canberra Residential Investment Property 3.5 10 3.0 2.5 2.0 1.5 1.0 0.5 % 8 6 4 2 0 Annual Yield 3bdr house Annual Return 2bdr other dwelling 5 Yr Return 10 Yr Return Moving Annual Over the June quarter, the median rent for three bedroom houses in Canberra fell 4.3% to $450 a week. This represents a 2.2% drop compared to the same quarter last year. Four bedroom houses in Inner South recorded the only quarterly increase, up by 0.4%. The median rent dropped the most for four bedroom houses in Inner Central - down by 11.5%. Compared to the same quarter of 2012, there was no increase in median house rents. While the median rent remained unchanged for two bedroom houses in West and North, the same type of houses in Inner Central recorded the largest drop, down by 9.6%. The median weekly rent for two bedroom other dwellings went down 1.1% over the quarter and 3.3% compared to the figure last year, to $435. Two bedroom other dwellings in Inner South and Outer South were the only categories to record increases over the quarter, up by 4.5% and 3.8% respectively. Inner South recorded the largest drop over the quarter and over the year, where the median rent for one bedroom other dwellings fell 9.6% and 11.6% respectively. Canberra recorded a 0.1 percentage points increase in the vacancy rate to 3.6%. Table 9: Australian Capital Territory House Rents, June quarter 2013 City/Zone No. bedrooms Median Inner Central 2 b/r 425.0-7.1-9.6 400.0 487.5 3 b/r 500.0-3.8-9.1 455.0 590.0 4 b/r 637.5-11.5-5.6 580.0 782.5 Inner South 2 b/r n/a n/a n/a n/a n/a 3 b/r 477.5-2.6-0.5 450.0 513.8 4 b/r 577.5 0.4-0.9 520.0 630.0 West and North 2 b/r 400.0 0.0 0.0 362.5 420.0 3 b/r 447.5-0.6-0.6 420.0 470.0 4 b/r 560.0-4.3-1.8 512.5 600.0 Outer South 2 b/r n/a n/a n/a n/a n/a 3 b/r 430.0 0.0-2.3 410.0 460.0 4 b/r 540.0-1.8-1.8 502.5 570.0 Table 10: Australian Capital Territory Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Inner Central 1 b/r 402.5-8.5-6.4 350.0 461.3 2 b/r 480.0-4.0-2.0 425.0 550.0 3 b/r 580.0-3.3-3.3 500.0 645.0 Inner South 1 b/r 305.0-9.6-11.6 267.5 367.5 2 b/r 402.5 4.5 0.6 377.5 440.0 3 b/r 480.0-0.5-4.0 457.5 542.5 West and North 1 b/r 350.0-2.8-5.4 320.0 375.0 2 b/r 395.0-1.3-1.3 380.0 422.5 3 b/r 450.0 0.0 0.0 420.0 490.0 Outer South 1 b/r 390.0-1.3-1.3 380.0 412.5 2 b/r 405.0 3.8 1.9 378.8 450.0 3 b/r 410.0-4.7-2.4 400.0 422.5 11
New South Wales Sales Median Prices 700 680 660 640 620 600 580 560 540 520 500 Sydney Median House Prices Qtrly Moving Annual Medians Qtrly Medians The Sydney median house price increased 2.7% over the quarter and 6.7% compared to the June quarter of 2012, to $690,064. Over the quarter, all zones of Sydney recorded increases. While the median house price in Newcastle went up 1.2%, Wollongong recorded a drop of 4.2%. Compared to the June quarter of 2012, all zones of Sydney recorded increases with the largest in Inner Sydney, up by 12.0%. The median price for other dwellings in Sydney increased 2.4% over the June quarter to $491,845. This is 4.9% higher compared to the same time last year. Over the quarter, increases in median prices for other dwellings were recorded in all zones of Sydney and Newcastle. Wollongong recorded a drop of 3.2%. Compared to the June quarter of 2012, median prices for other dwellings fell 0.3% in both Wollongong and Newcastle. Table 11: New South Wales House Sales Prices, June Quarter 2013 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Sydney 21,251 690.1 2.7 6.7 433.0 906.0 Inner 2,457 1,210 5.2 12.0 885.0 1,700.0 Middle 5,360 794.5 5.9 10.3 610.0 1,130.0 Outer 13,437 495.0 2.1 4.2 376.0 700.0 Wollongong 1,467 430.0-4.2-1.6 350.0 543.0 Newcastle 3,154 389.7 1.2 3.9 320.0 486.0 Table 12: New South Wales Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Median price Current preliminary median compared with revised medians in earlier quarters Sydney 10,590 491.8 2.4 4.9 400.0 670.0 Inner 3,811 630.0 3.7 6.2 505.0 799.0 Middle 4,088 490.0 1.4 2.7 391.3 625.0 Outer 2,688 423.0 0.7 2.5 306.0 535.0 Wollongong 326 329.0-3.2-0.3 250.1 435.0 Newcastle 425 324.0 0.1-0.3 258.0 415.0 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
New South Wales Rents Real Estate Market Facts 3.0 2.5 2.0 1.5 1.0 0.5 Sydney % 10 9 8 7 6 5 4 3 2 1 0 Sydney Residential Investment Property Annual Yield Annual Return 5 Yr Av Return 10 Yr Av Return 3bdr house 2bdr other dwelling Moving Annual Over the June quarter, the median weekly rent for a Sydney three bedroom house dropped by 2.3%, to $420. No change was recorded compared to the figure last year. The largest quarterly increase was for two bedroom houses in Inner Sydney, up by 2.4%. Over the quarter, the median rent for two bedroom houses in Newcastle fell by 2.8%. Compared to the June quarter of 2012, median house rents increased throughout Sydney with the largest rise for a two bedroom house in the outer suburbs of the NSW capital. Three bedroom houses in Wollongong and two bedroom houses in Newcastle recorded no change. Over the quarter, the median rent for two bedroom other dwellings in Sydney remained unchanged at $470 per week. This represents an increase of 4.4% compared to the June quarter of 2012. Over the quarter, the only drops were for one bedroom other dwellings in Middle Sydney and two bedroom other dwellings in Newcastle. When compared to the June quarter of 2012, the median rents for other dwellings increased throughout the state with the largest jump of 14.8% recorded for one bedroom other dwellings in Newcastle. Vacancy rates in Sydney increased by 0.3 percentage points over the quarter to 2.1%. Table 13: New South Wales House Rents, June Quarter 2013 City/Zone No. bedrooms Median Sydney Inner 2 b/r 635.0 2.4 2.4 570.0 700.0 3 b/r 780.0-1.3 4.0 675.0 935.0 Sydney Middle 2 b/r 440.0 2.3 2.3 390.0 500.0 3 b/r 525.0 1.0 2.9 460.0 620.0 Sydney Outer 2 b/r 335.0 1.5 4.7 300.0 380.0 3 b/r 400.0 0.0 3.9 360.0 450.0 Wollongong 2 b/r 340.0 0.0 3.0 300.0 360.0 3 b/r 390.0-2.5 0.0 350.0 430.0 Newcastle 2 b/r 350.0-2.8 0.0 330.0 395.0 3 b/r 400.0 0.0 2.6 370.0 450.0 Table 14: New South Wales Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Sydney Inner 1 b/r 480.0 1.1 2.1 410.0 550.0 2 b/r 600.0 0.8 0.8 515.0 700.0 Sydney Middle 1 b/r 410.0-2.4 6.5 325.0 480.0 2 b/r 445.0 3.5 6.0 380.0 540.0 Sydney Outer 1 b/r 320.0 4.1 6.7 250.0 390.0 2 b/r 380.0 0.0 2.7 315.0 450.0 Wollongong 1 b/r 225.0 2.3 7.1 195.0 260.0 2 b/r 310.0 0.0 5.1 270.0 360.0 Newcastle 1 b/r 276.0 8.0 14.8 223.0 340.0 2 b/r 350.0-5.4 2.9 300.0 401.0 13
Northern Territory Sales Median Prices Darwin Median House Prices 650 600 550 500 450 400 350 300 Qtrly Moving Annual Medians Qtrly Medians Over the June quarter, the median house price in Darwin increased by 3.4% to $612,000 - a rise of 7.4% compared to the same time last year. Northern Suburbs contributed to the quarterly increase with the median house price rising 4.7%. Over the quarter, median house prices in Inner Darwin dropped 13.1%. Compared to the June quarter of 2012, median house prices rose in Darwin, Palmerston and Alice Springs, with the largest increase in Palmerston, up by 9.7%. The median other dwellings price in Darwin rose 9.2% over the quarter and 6.7% compared to the June quarter of last year, to $464,000. Northern Suburbs recorded the largest jump with the median price for other dwellings, rising 16.1% over the quarter and 31.7% compared to the June quarter of 2012. Table 15: Northern Territory House Sales Prices, June Quarter 2013 City/Zone No. sales Median Price, Darwin 322 612.0 3.4 7.4 Inner 31 760.0-13.1 6.2 Northern Suburbs 153 721.3 4.7 6.5 Palmerston 138 554.0 0.7 9.7 Alice Springs 80 469.5 4.9 5.2 Table 16: Northern Territory Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Median Price, Darwin 340 464.0 9.2 6.7 Inner 183 520.0 4.1 5.1 Northern Suburbs 90 491.1 16.1 31.7 Palmerston 67 412.5 3.4 10.0 Alice Springs 48 329.5 0.0-5.7 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. 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
Northern Territory 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 Darwin % 18 16 14 12 10 8 6 4 2 0 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 June quarter, the median weekly rent for three bedroom houses in Darwin increased by 0.9% to $656. Compared to the same quarter of 2012, Darwin had the biggest rise in the median house rent of all the capitals, up by 17.1%. Over the quarter, Alice Springs recorded a 20.0% jump in the median rent for two bedroom houses while the median rent for a three bedroom house in Inner Darwin fell 10.9% compared to the March quarter. Compared to the figure last year, four bedroom houses in Inner Darwin and three and four bedroom houses in Alice Springs were the only categories of houses to record declines in the median rent. Northern Suburbs had the largest increase. The median rent for two bedroom other dwellings in Darwin rose by 3.0% during the quarter, to $485 per week. As with house rents, compared to the June quarter of 2012, the median rent for other dwellings in Darwin rose the most of all the capitals, up by 18.6%. The median rent for two bedroom other dwellings in Palmerston showed the largest increase - 8.3% over the quarter and 25.6% compared to the June quarter of 2012. The vacancy rate in Darwin tightened 1.2 percentage points to 2.4%. Table 17: Northern Territory House Rents, June Quarter 2013 City/Zone No. bedrooms Median Darwin Inner 3 b/r 738.0-10.9 7.1 4 b/r 1,011.0-7.8-8.0 Northern Suburbs 3 b/r 657.0 6.4 12.0 4 b/r 796.6 5.8 16.1 Palmerston 3 b/r 574.0 0.3 13.9 4 b/r 702.0-5.0 7.8 Alice Springs 2 b/r 480.0 20.0 7.1 3 b/r 508.0-0.8-1.9 4 b/r 655.0-7.7-2.5 Table 18: Northern Territory Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Darwin Inner 1 b/r 372.0-15.6 3.6 2 b/r 543.0-1.6 7.7 3 b/r 798.0-4.5 0.3 Northern Suburbs 1 b/r 321.6-1.9 n/a 2 b/r 459.3 2.0 12.2 3 b/r n/a n/a n/a Palmerston 2 b/r 485.0 8.3 25.6 3 b/r 532.0-3.3 17.4 Alice Springs 1 b/r 281.0-1.1 0.0 2 b/r 395.0-1.5-0.3 3 b/r 496.0-2.9 3.8 Median rent for the Northern Suburbs is calculated as a weighted average. 15
Queensland Sales Median Prices 480 460 440 420 400 380 360 340 320 300 Brisbane Median House Prices Qtrly Moving Annual Medians Qtrly Medians The Brisbane median house price increased 2.3% during the second quarter of 2013 to $445,000 and compared to the June quarter of 2012, that s a rise of 4.1%. Inner and Middle Brisbane contributed to the quarterly increase with median house prices rising 1.5% and 0.8% respectively. Townsville was the only regional centre to record an increase in the median house price while the Gold Coast had the biggest drop. Compared to the June quarter of last year, the Sunshine Coast showed the largest increase across the region, up by 2.8%. The median price for other dwellings in Brisbane fell by 1.3% over the quarter and 0.7% compared to the June quarter of 2012, to $371,000. Middle and Outer Brisbane decreased over the quarter, down by 0.7% and 4.5% respectively. Compared to the June quarter of 2012, declines in median prices for other dwellings were recorded throughout the state with the largest drop in Cairns, down by 16.4%. Table 19: Queensland House Sales Prices, June Quarter 2013 City/Zone No. sales Median Price, Brisbane 4,578 445.0 2.3 4.1 350.0 580.0 Inner 420 685.0 1.5 1.5 570.0 900.0 Middle 2,443 490.0 0.8 3.5 410.0 615.0 Outer 2,066 365.0-1.4-0.1 285.0 465.0 Gold Coast 1006 466.0-2.9 2.4 405.0 650.0 Sunshine Coast 702 438.0-1.6 2.8 381.0 585.0 Townsville 428 363.0 0.8-0.6 300.0 440.0 Cairns 410 345.8-2.6 1.7 285.0 420.0 Table 20: Queensland Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Median Price, Brisbane 1,686 371.0-1.3-0.7 300.0 460.0 Inner 814 430.0 0.7-3.4 355.0 550.0 Middle 676 350.0-0.7-4.1 305.0 400.0 Outer 318 275.0-4.5-14.9 206.5 350.0 Gold Coast 1,114 341.5-0.9-2.4 270.0 480.0 Sunshine Coast 423 320.0-7.2-7.2 256.0 420.0 Townsville 82 270.0-11.2-13.2 212.0 345.0 Cairns 216 180.0-10.0-16.4 130.0 256.0 The REIQ calculates all Queensland median residential prices from contract date sales. The series is median prices for Brisbane city as geographically defined within the Brisbane Statistical Division. The calculations of quarterly and annual percentage changes in median prices for Brisbane compare preliminary estimates in the current quarter with preliminary estimates in previous quarters. 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
Queensland Rents Real Estate Market Facts 4.5 Brisbane 14 Brisbane Residential Investment Property 4.0 12 3.5 3.0 2.5 2.0 1.5 1.0 0.5 % 10 8 6 4 2 0 Annual Yield 3bdr house Annual Return 5 Yr Av Return 2bdr other dwelling 10 Yr Av Return Moving Annual The median rent for three bedroom houses in Brisbane fell 1.4% over the June quarter, to $360 per week. This represents a 2.9% increase when compared to the same quarter of 2012. Over the quarter, median house rents showed varied results. The largest increase was for a two bedroom house in Inner Brisbane, up by 2.4%. Two bedroom houses in Townsville recorded the biggest quarterly drop, down by 3.2%. Compared to the June quarter of last year, the median rent increased most for a three bedroom house in Inner Brisbane. During the quarter, the median rent for two bedroom other dwellings fell 2.7%, to $360 per week. As with house rents, the figure is 2.9% higher than it was a year ago. The median rent went down in Middle Brisbane while three bedroom other dwellings in Inner Brisbane recorded the largest rise, up by 3.4%. The median rent for three bedroom other dwellings in Townsville recorded the largest drop, down 28.8% compared to both the March quarter this year and the June quarter of 2012. The vacancy rate in Brisbane remained unchanged at 2.1%. Table 21: Queensland House Rents, June Quarter 2013 City/Zone No. bedrooms Median Price, Brisbane Inner 2 b/r 430.0 2.4 4.9 385.0 475.0 3 b/r 510.0-1.0 6.3 440.0 600.0 4 b/r 690.0 0.0-0.7 570.0 860.0 Brisbane Middle 2 b/r 355.0-1.4 1.4 325.0 400.0 3 b/r 400.0 0.0 2.6 360.0 450.0 4 b/r 480.0 0.0 2.1 430.0 580.0 Brisbane Outer 2 b/r 270.0 1.9 3.8 240.0 300.0 3 b/r 320.0 0.0 3.2 290.0 350.0 4 b/r 380.0 0.0 2.7 340.0 430.0 Gold Coast 2 b/r 330.0-2.9-4.3 300.0 375.0 3 b/r 400.0 0.0 0.0 360.0 470.0 4 b/r 460.0 2.2 2.2 400.0 560.0 Townsville 2 b/r 300.0-3.2 0.0 280.0 340.0 3 b/r 340.0-2.9-1.4 310.0 370.0 4 b/r 400.0-2.4 0.0 378.0 430.0 Cairns 2 b/r 280.0 0.0-3.4 250.0 340.0 3 b/r 330.0-1.5 3.1 300.0 370.0 4 b/r 395.0-1.3 1.3 355.0 450.0 Table 22: Queensland Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Price, Brisbane Inner 1 b/r 360.0 2.9 2.9 280.0 445.0 2 b/r 471.0 1.3 2.4 380.0 570.0 3 b/r 600.0 3.4 0.8 495.0 750.0 Brisbane Middle 1 b/r 260.0-1.9 1.6 220.0 300.0 2 b/r 350.0-2.8 0.0 320.0 400.0 3 b/r 400.0-2.4 1.3 370.0 450.0 Brisbane Outer 1 b/r 200.0 2.6 0.0 160.0 235.0 2 b/r 270.0 0.0 1.9 250.0 295.0 3 b/r 330.0 1.5 4.8 300.0 350.0 Gold Coast 1 b/r 290.0 0.0 1.8 250.0 350.0 2 b/r 340.0-2.9 1.5 295.0 400.0 3 b/r 370.0 0.0 2.8 340.0 430.0 Townsville 1 b/r 220.0-12.0-4.3 180.0 290.0 2 b/r 280.0-6.7 0.0 250.0 330.0 3 b/r 285.0-28.8-28.8 320.0 480.0 Cairns 1 b/r 200.0-4.8 8.1 170.0 260.0 2 b/r 260.0-3.7 4.0 225.0 300.0 3 b/r 340.0-2.9 3.0 310.0 390.0 17
South Australia Sales Median Prices 430 410 390 370 350 330 310 290 270 Adelaide Median House Prices Qtrly Moving Annual Medians Qtrly Medians Table 23: South Australia House Sales Prices, June Quarter 2013 City/Zone No. Sales Preliminary median price Adelaide s median house price is now $400,000. This represents a 1.3% increase compared to the revised figure for the March quarter and also compared to the June quarter of 2012. Inner and outer suburbs of the capital contributed to the quarterly increase while the median house price in Middle Adelaide remained unchanged. Compared to the June quarter of 2012, the median house price in Port Lincoln climbed 16.5% while Riverland had a 10.8% drop. The median price for other dwellings in Adelaide increased 4.3% over the quarter, to $313,000. Compared to the same quarter of 2012, that s a 4.3% rise. All zones of Adelaide contributed to the increase. The largest increase was for other dwellings in Middle Adelaide, where median prices increased 4.0%. Compared to the June quarter of 2012, Mount Gambier was the only area of the state to record a drop in median prices for other dwellings, down by 24.0%. Current preliminary median compared with revised medians in earlier quarters Adelaide 4,596 400.0 1.3 1.3 315.0 515.0 Inner 667 600.0 1.9 0.0 476.2 785.0 Middle 1,863 430.0 0.0 0.7 370.0 535.0 Outer 2,066 325.0 1.6 2.5 266.5 395.0 Mount Gambier 84 223.0 1.4 7.5 182.0 265.0 Port Lincoln 63 314.5-3.2 16.5 227.0 399.0 Riverland 49 169.5-0.3-10.8 125.0 240.0 Table 24: South Australia Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Adelaide 1,097 313.0 4.3 4.3 259.0 384.0 Inner 370 350.0 2.9 7.4 288.0 435.0 Middle 542 312.0 4.0 4.0 266.0 372.0 Outer 185 253.0 1.2 0.0 220.0 292.0 Mount Gambier 13 136.5-4.5-24.0 78.0 175.0 Port Lincoln 13 208.5-33.2 11.5 183.5 290.0 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
South Australia Rents Real Estate Market Facts 4.4 Adelaide 14 Adelaide Residential Investment Property 3.9 12 3.4 2.9 2.4 1.9 1.4 0.9 0.4 % 10 8 6 4 2 0 Annual Yield 3bdr house Annual Return 5 Yr Av Return 2bdr other dwelling 10 Yr Av Return Moving Annual The median weekly rent for three bedroom houses in Adelaide fell 3.0% over the June quarter, to $320 - an unchanged figure from the same time last year. Across the state, median house rents showed varied results over the quarter. The largest increase was recorded for a four bedroom house in Middle Adelaide, up by 2.9% while three bedroom houses in Riverland had the biggest drop, down by 7.1%. Compared to the June quarter of 2012, declines in rent were recorded for two bedroom houses in Inner Adelaide and Outer Adelaide, down 0.7% and 1.0% respectively. At $280 a week, Adelaide s median rent for two bedroom other dwellings remained unchanged over the June quarter but increased 1.8% compared to the same time last year. The largest drop was recorded for three bedroom other dwellings in Inner Adelaide, down by 5.0% over the quarter and 3.8% compared to the same quarter of 2012. Over the quarter, the vacancy rate in Adelaide fell 0.1 percentage points to 2.9%. Table 25: South Australia House Rents, June Quarter 2013 City/Zone No. bedrooms Median Adelaide Inner 2 b/r 347.5-3.5-0.7 310.0 400.0 3 b/r 400.0-4.8 0.0 350.0 470.0 4 b/r 530.0-3.6 1.9 450.0 650.0 Adelaide Middle 2 b/r 300.0 0.0 0.0 270.0 345.0 3 b/r 360.0 1.4 2.9 320.0 400.0 4 b/r 440.0 2.9 2.3 380.0 500.0 Adelaide Outer 2 b/r 250.0-3.8-1.0 210.0 285.0 3 b/r 290.0 0.0 0.0 255.0 320.0 4 b/r 350.0-2.8 0.0 300.0 400.0 Mt Gambier 2 b/r 225.0-4.3 12.5 195.0 240.0 3 b/r 230.0-4.2 4.5 200.0 260.0 4 b/r 300.0 0.0 0.0 270.0 340.0 Pt Lincoln 2 b/r 230.0 0.0 31.4 192.5 265.0 3 b/r 270.0-3.6 0.0 240.0 300.0 4 b/r 360.0 0.0 3.6 340.0 390.0 Riverland 2 b/r 170.0 0.0 6.3 160.0 185.0 3 b/r 195.0-7.1 2.6 175.0 230.0 4 b/r 267.5-0.9 9.2 195.0 300.0 Table 26: South Australia Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Adelaide Inner 1 b/r 247.0-5.0 0.8 205.0 295.0 2 b/r 300.0 0.0 0.0 260.0 365.0 3 b/r 380.0-5.0-3.8 319.5 490.0 Adelaide Middle 1 b/r 225.0-4.3-2.2 200.0 260.0 2 b/r 270.0 0.0 0.0 250.0 300.0 3 b/r 350.0 0.0 0.0 320.0 400.0 Outer Adelaide 1 b/r 200.0 0.0 17.6 155.0 205.0 2 b/r 255.0 2.0 6.3 220.0 280.0 3 b/r 305.0 1.7 3.4 275.0 350.0 Mt Gambier 1 b/r 115.0 2.2 9.5 100.0 125.0 2 b/r 180.0 5.9 28.6 135.0 215.0 3 b/r 245.0-3.9 19.5 180.0 267.5 Pt Lincoln 1 b/r 170.0 17.2 21.4 155.0 175.0 2 b/r 205.0 2.5 13.9 170.0 230.0 3 b/r 345.0 16.9 19.0 305.0 417.5 Riverland 1 b/r 140.0-9.7 0.0 122.5 160.0 2 b/r 160.0 10.3 6.7 140.0 175.0 3 b/r 205.0 5.1-14.6 190.0 220.0 19
Tasmania Sales Median Prices Hobart Median House Prices 390 370 350 330 310 290 270 250 Qtrly Moving Annual Medians Qtrly Medians Over the June quarter, the median house price in Hobart fell 3.5%, to $347,300. This is a drop of 6.1% compared to the same quarter of 2012. While over the quarter house prices in the Inner and Middle suburbs of Tasmania s capital fell, Outer Hobart recorded a rise of 0.9%. Launceston had the biggest jump in the median house price over the quarter and also compared to the June quarter of last year, up 4.0% and 4.1% respectively. The median price for other dwellings dropped 5.7% over the quarter, to $273,500. When compared to the June quarter of 2012, the figure went up by 1.3%. Middle and Outer Hobart contributed to the drop - down 1.9% and 5.2% respectively. North-West Centres had the biggest jump while prices in Launceston remained unchanged. Compared to the June quarter of 2012, increases were evident throughout the state with the exception of Outer Hobart. Table 27: Tasmania House Sales Prices, June Quarter 2013 City/Zone No. sales Median Hobart 518 347.3-3.5-6.1 275.8 439.5 Inner 165 450.0-1.2 3.4 375.0 580.0 Middle 248 303.5-6.9-9.4 243.0 375.0 Outer 105 325.0 0.9-3.0 260.0 387.0 Launceston 246 273.5 4.0 4.1 225.1 350.0 North-West Centres 114 242.8-2.3 2.8 197.8 304.4 Table 28: Tasmania Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Median Hobart 156 273.5-5.7 1.3 223.8 346.3 Inner 54 355.0 6.0 8.4 246.3 495.0 Middle 71 260.0-1.9 8.3 200.0 290.0 Outer 31 275.0-5.2-3.5 231.6 315.0 Launceston 47 225.0 0.0 3.4 192.2 269.5 North-West Centres 12 261.5 15.5 24.5 229.6 313.1 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
Tasmania Rents Real Estate Market Facts 5.3 Hobart 600 Melbourne Median House Prices 4.8 4.3 3.8 3.3 2.8 2.3 1.8 Moving Annual Median Prices 550 500 450 400 350 300 Qtrly Moving Annual Medians Qtrly Medians The median rent for three bedroom houses in Hobart remained unchanged over the quarter and when compared to the June quarter of 2012, at $330 per week. Rents for houses showed varied results. Outer Hobart recorded the largest increase with the median price for a two bedroom house rising 12.5% over the June quarter and 24.2% compared to the same quarter of 2012. Over the quarter, the median weekly rent for two bedroom other dwellings remained unchanged at $270. This represents a 1.9% increase compared to the same time last year. Over the quarter, all types of other dwellings in inner suburbs of Hobart recorded falls in rent. Rent for two bedroom other dwellings in North-West Centres fell by 7.5% over the quarter and 8.9% compared to the June quarter of 2012. Over the quarter, the vacancy rate in Hobart lost 0.5 percentage points and is now 4.4%. Table 29: Tasmania House Rents, June Quarter 2013 City/Zone No. bedrooms Median Hobart Inner 2 b/r 300.0-6.3-4.8 288.0 370.0 3 b/r 365.0-3.9-2.7 320.0 398.0 4 b/r 450.0-10.0-6.3 390.0 596.0 Hobart Middle 2 b/r 280.0 12.0 14.3 260.0 295.0 3 b/r 320.0 4.9 3.2 290.0 350.0 4 b/r 355.0 0.0-5.3 329.0 404.0 Hobart Outer 2 b/r 298.0 12.5 24.2 295.0 300.0 3 b/r 320.0 1.6 0.0 278.0 350.0 4 b/r 383.0-34.5-2.5 373.0 403.0 Launceston 2 b/r 250.0 4.2 4.2 233.0 263.0 3 b/r 278.0-0.7 3.0 251.0 313.0 4 b/r 370.0 5.7 1.9 340.0 420.0 North-West 2 b/r 230.0 4.5-2.1 218.0 237.0 Centres 3 b/r 250.0 0.0-1.2 230.0 270.0 4 b/r 300.0-3.2-3.2 260.0 310.0 Table 30: Tasmania Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Hobart Inner 1 b/r 200.0-4.8 2.6 183.0 230.0 2 b/r 270.0-5.3 0.0 244.0 333.0 3 b/r 365.0-5.9-29.1 330.0 400.0 Hobart Middle 1 b/r 180.0 0.0-5.3 165.0 196.0 2 b/r 250.0 2.0 0.0 215.0 278.0 3 b/r 320.0 3.2-4.5 306.0 339.0 Hobart Outer 1 b/r 228.0 38.2 52.0 201.0 254.0 2 b/r 285.0 4.8 1.8 248.0 299.0 3 b/r 330.0 5.4-2.9 305.0 337.0 Launceston 1 b/r 155.0-7.7 3.3 120.0 185.0 2 b/r 220.0 4.8 10.0 190.0 250.0 3 b/r 332.0 18.6 27.7 271.0 368.0 North-West 1 b/r 150.0 38.9 0.0 110.0 180.0 Centres 2 b/r 185.0-7.5-8.9 169.0 235.0 3 b/r 330.0 40.4 n/a 310.0 490.0 21
Victoria Sales Median Prices Melbourne Median House Prices 600 550 500 450 400 350 300 Qtrly Moving Annual Medians Qtrly Medians Over the June quarter, the median house price in Melbourne increased 7.2%, to $569,000. This represents a rise of 8.4% compared to the same quarter of 2012. Over the quarter, all zones of the Victorian capital contributed to the increase. Outside the metropolitan area, Ballarat recorded the biggest rise while the median house price in Bendigo fell by 2.3%. Compared to the June quarter of 2012, there were increases throughout the state with the biggest rise in the inner suburbs of Melbourne, up by 7.0%. The median price for other dwellings in Melbourne jumped 5.6% compared to the March quarter and also when compared to the figure last year, to $470,000. Bendigo was the only area of Victoria to record a drop over the quarter - down by 16.0%. Geelong s increase of 18.6% was the state s largest. Compared to the June quarter of 2012, the median price for other dwellings increased in all zones of Melbourne with the largest rise in the middle suburbs, up by 7.6%. In the regions, Bendigo and Ballarat recorded decreases. Table 31: Victoria House Sales Prices, June Quarter 2013 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Melbourne 10,505 569.0 7.2 8.4 410.0 810.0 Inner 2,145 920.0 2.2 7.0 710.0 1,320.0 Middle 3,378 620.0 3.3 6.0 445.0 811.0 Outer 4,981 440.0 1.1 4.3 362.5 562.0 Geelong 499 400.0 2.6 3.8 320.0 501.0 Bendigo 376 310.5-2.3 1.3 261.9 383.1 Ballarat 454 291.3 4.0 3.5 240.0 369.5 Table 32: Victoria Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. Sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Melbourne 5,659 470.0 5.6 5.6 365.5 600.0 Inner 2,675 517.0 4.1 4.4 410.0 662.5 Middle 1,841 495.0 4.2 7.6 392.0 610.0 Outer 1,143 359.0 1.1 1.7 299.2 435.0 Geelong 85 342.5 18.6 18.9 273.8 421.5 Bendigo 52 225.0-16.0-7.2 192.0 278.0 Ballarat 68 250.0 13.6-0.2 218.5 276.0 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
Victoria Rents 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Melbourne Moving Annual Over the June quarter, the median rent for a three bedroom house in Melbourne dropped 1.4% to $340, which is an increase of 1.5% compared to the same time last year. The largest rise was recorded for four bedroom houses in Inner Melbourne where the median rent jumped 6.5% over the quarter and 15.8% compared to the same time last year. Regionally, the biggest drops over the quarter and compared to the same time last year, were in Bendigo. Rent for two bedroom houses fell 7.7% over the quarter, while four bedroom houses had a 5.7% drop compared to the second quarter of 2012. The median rent for two bedroom other dwellings in Melbourne fell 2.7% over the June quarter, to $360 per week, an unchanged Table 33: Victoria House Rents, June Quarter 2013 City/Zone No. bedrooms Median figure compared to the same time last year. Real Estate Market Facts While over the quarter, the median rent increased most for one bedroom other dwellings in Inner Melbourne, one bedroom other dwellings in the outer suburbs of the capital had the biggest rise when compared to the June quarter of 2012. The median rent for one bedroom other dwellings in Geelong rose 5.4% over the quarter - the same level of increase when compared to the June quarter of last year. The rental vacancy rate in Melbourne was 3.4%, which is 0.5 percentage points higher than the previous quarter. Melb Inner 2 b/r 510.0 0.0 2.0 450.0 580.0 3 b/r 650.0 0.0-1.5 560.0 775.0 4 b/r 895.0 6.5 15.8 688.0 1100.0 Melb Middle 2 b/r 395.0 1.3 5.3 350.0 450.0 3 b/r 430.0 0.0 2.4 375.0 518.0 4 b/r 550.0 0.0 3.8 450.0 750.0 Melb Outer 2 b/r 290.0 0.0 0.0 265.0 320.0 3 b/r 320.0 0.0 0.0 290.0 350.0 4 b/r -203.3 2.8 2.8 330.0 415.0 Geelong 2 b/r -153.4-3.6-4.6 235.0 295.0 3 b/r -174.1-1.6 5.0 280.0 350.0 4 b/r -212.5 5.3 2.6 350.0 438.0 Bendigo 2 b/r -139.7-7.7-4.0 210.0 260.0 3 b/r -160.2-3.4-3.4 255.0 310.0 4 b/r -177.9 0.0-5.7 300.0 350.0 Ballarat 2 b/r -123.5-0.4 3.9 215.0 250.0 3 b/r -147.2 1.9 1.9 250.0 300.0 4 b/r -190.0 0.0 0.0 310.0 380.0 Table 34: Victoria Other Dwellings Rents, June Quarter 2013 City/Zone No. bedrooms Median Melbourne Residential Investment Property Melb Inner 1 b/r 350.0 4.5 0.0 300.0 400.0 2 b/r 480.0 0.0 2.1 400.0 550.0 3 b/r 675.0-0.7 0.0 550.0 795.0 Melb Middle 1 b/r 265.0 1.9 0.0 235.0 305.0 2 b/r 350.0-2.5 0.0 320.0 400.0 3 b/r 445.0-1.1 1.1 385.0 520.0 Melb Outer 1 b/r 220.0 2.3 4.8 200.0 260.0 2 b/r 290.0 1.8 3.6 260.0 320.0 3 b/r 330.0 0.0 0.0 300.0 360.0 Geelong 1 b/r 195.0 5.4 5.4 175.0 220.0 2 b/r 265.0-3.6 0.8 240.0 295.0 3 b/r 330.0-2.9-1.5 293.0 365.0 Bendigo 1 b/r 165.0 4.4 6.5 150.0 175.0 2 b/r 225.0-2.2-2.2 200.0 250.0 3 b/r 288.0-4.0-0.7 270.0 310.0 Ballarat 1 b/r 160.0 2.6 6.7 145.0 180.0 2 b/r 220.0-2.2 0.0 185.0 260.0 3 b/r 290.0 1.8 5.5 275.0 310.0 % 12 10 8 6 4 2 0 Annual Yield 3bdr house Annual Return 2bdr other dwelling 5 Yr Av Return 10 Yr Av Return 23
Western Australia Sales Median Prices 550 500 450 400 350 300 Perth Median House Prices Qtrly Moving Annual Medians Qtrly Medians Inner suburbs of the Western Australian capital contributed to the decline with the median house price falling 3.8% over the quarter. In the regions, Kalgoorlie/Boulder recorded the biggest rise, up by 2.9%, while Broome s drop in the median house price was the state s largest. Compared to the June quarter of 2012, Broome was the only area of the state to record a fall in the median house price, down by 4.0%. Prices in the middle suburbs of Perth had the largest increase, up by 9.3%. The median price for other dwellings in Perth fell by 1.2% over the June quarter but increased 1.2% compared to the same time last year, to $420,000. Middle and Outer Perth recorded increases in the median prices for other dwellings, up by 3.8% and 3.1% respectively. In nonmetropolitan areas, Kalgoorlie/Boulder was the only centre to record a rise over the quarter and jumped up by 26.1%. The median house price for Perth fell 0.2% over the June quarter, to $514,000. Compared to the same quarter of last year, the figure is 6.0% higher. Compared to the June quarter of 2012, Broome had the largest increase in the median price for other dwellings, while prices in Mandurah declined the most. Table 35: Western Australia House Sales Prices, June Quarter 2013 City/Zone No. sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Perth 6,059 514.0-0.2 6.0 412.5 655.0 Inner 571 895.0-3.8 2.3 690.0 1,295.0 Middle 2,522 545.5 0.6 9.3 440.0 675.0 Outer 2,966 460.0 1.1 7.0 380.0 555.0 Mandurah 432 393.8-1.6 4.4 320.0 465.0 Bunbury 228 370.0 2.2 2.8 315.0 430.0 Kalgoorlie/ Boulder 100 360.0 2.9 5.9 280.0 418.0 Geraldton 73 375.0-1.3 0.3 277.5 458.5 Broome 13 640.0-5.9-4.0 604.0 781.3 Albany 79 355.0 1.4 0.7 292.0 422.0 Table 36: Western Australia Other Dwellings Sales Prices, June Quarter 2013 City/Zone No. sales Preliminary median price Current preliminary median compared with revised medians in earlier quarters Perth 1,418 420.0-1.2 1.2 328.0 560.0 Inner 669 500.0-5.9 0.0 360.0 665.0 Middle 547 410.0 3.8 10.8 335.0 499.5 Outer 202 330.0 3.1-5.7 256.0 395.0 Mandurah 62 292.5-9.3-25.9 225.0 450.0 Bunbury 42 303.0-3.8-7.9 245.0 350.0 Kalgoorlie/ 13 295.0 26.1 1.7 229.0 370.0 Boulder Geraldton 7 210.0-10.1-16.0 204.0 297.0 Broome 5 412.5-8.3 21.3 247.5 717.5 Albany 6 245.3-12.4-14.7 205.0 283.0 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
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 The median weekly rent for three bedroom houses in Perth remained unchanged over the quarter at $480 but compared to the June quarter of last year, the figure increased by 6.7%. Over the quarter, Broome had the largest jump in the median house rent, up by 8.7%. A 3.1% fall in Albany was the state s largest. Compared to the figure last year, the median house rent increased throughout Western Australia with the biggest rise for houses in the middle suburbs of Perth. Moving Annual Table 37: Western Australia House Rents, June Quarter 2013 City/Zone Median % 16 14 12 10 8 6 4 2 0 Annual Yield 3bdr house Perth Residential Investment Property Annual Return 2bdr other dwelling 5 Yr Av Return 10 Yr Av Return Perth s median rent for two bedroom other dwellings rose 2.2% during the June quarter to $460 a week. This represents a 12.2% rise compared to the same quarter of 2012. Over the quarter, all zones of Perth recorded increases and in the regions, Broome was the only town to record a drop in the median rent for other dwellings, down by 2.9%. Compared to the June quarter of 2012, the median rent for other dwellings in Inner Perth jumped up by 12.8%. The vacancy rate in Perth increased by 1 percentage point to 3.4%. Perth Inner 685.0-2.1 10.5 530.0 950.0 Perth Middle 490.0 0.0 11.4 420.0 590.0 Perth Outer 450.0 1.1 7.1 400.0 530.0 Mandurah 380.0 2.7 8.6 330.0 435.0 Bunbury 360.0 2.9 2.9 310.0 400.0 Broome 815.0 8.7 6.8 750.0 900.0 Albany 310.0-3.1 3.3 280.0 370.0 Table 38: Western Australia Other Dwellings Rents, June Quarter 2013 City/Zone Median Perth Inner 530.0 1.9 12.8 400.0 675.0 Perth Middle 430.0 1.2 8.0 380.0 500.0 Perth Outer 380.0 2.7 8.6 330.0 440.0 Mandurah 350.0 2.9 9.4 295.0 450.0 Bunbury 330.0 3.1 4.8 285.0 400.0 Broome 510.0-2.9 7.4 411.0 580.0 Albany 263.0 1.2-1.9 220.0 288.0 25
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 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 Returns (%) Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Annual Yield: Jun'12 to Jun'13 2.5 2.5 3.4 3.3 3.9 3.7 4.0 4.5 Quarterly Return: Mar 12 to Jun'13 3.3 7.8 3.2 2.1 0.8 0.6-2.6 4.5 Annual Return: Jun'12 to Jun'13 9.4 11.1 7.6 4.7 10.0 6.8-2.5 12.0 Average annual return over past 5 years: Jun'08 to Jun'13 6.6 6.7 4.8 5.6 5.1 5.7 5.4 11.9 Average annual return over past 10 years: Jun'03 to Jun'13 5.7 7.5 11.3 11.2 13.2 11.3 13.2 15.3 Table 40: Residential Investment Property Returns: Two Bedroom Other Dwellings Returns (%) Sydney Melbourne Brisbane Adelaide Perth Canberra Hobart Darwin Annual Yield: Jun'12 to Jun'13 4.0 3.2 4.0 3.7 4.6 4.5 4.1 4.3 Quarterly Return: Mar 12 to Jun'13 3.4 6.5-0.3 5.3-0.1-0.2-4.7 10.4 Annual Return: Jun'12 to Jun'13 9.1 9.0 3.4 8.1 5.6 1.0 5.4 11.2 Average annual return over past 5 years: Jun'08 to Jun'13 9.5 7.2 5.5 5.9 6.1 6.8 5.9 10.7 Average annual return over past 10 years: Jun'03 to Jun'13 7.0 8.3 11.6 11.6 13.9 11.0 14.3 15.3 26
Real Estate Market Facts Do you find managing your finances puzzling? SUPERANNUATION wealth Puzzle: Move one piece to make a square. PROTECTING FAMILY MANAGED FUNDS BORROWING TO INVEST Financial advice is provided by Bendigo Financial Planning Limited, ABN 81 087 585 073 AFSL 237898, a division of the Bendigo and Adelaide Bank Group. (S41794-1) (08/12) www.bendigobank.com.au/fi nancialplanning 27