red Investor Autumn 2015

AUTUMN 2015 | EDITION 003

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REDINVESTOR INSIDER

2 HOCKINGSTUART – RED INVESTOR INSIDER - AUTUMN 2015

CONTENTS INSIDER NEWS

Rail Improvements Boosting Your Area 3

INVESTOR INSIGHTS

Melbourne’s Best Performing Suburbs 4

Renovator’s Dream Suburbs 4

Australia at a Glance 5

Suburbs with Best Auction Clearance Rates 5

LOCAL FOCUS

Inner City 6

Inner West 7

Inner North 8

Inner East 9

Eastern Suburbs 10

Bayside 11

Outer Suburbs 12

Mornington Peninsula 13

Greater Geelong 14

Regional Victoria 15

UNWAVERING DEMAND DRIVING PRICES. Average house prices in several suburbs are still enjoying rapid growth, well into 2015. In Box Hill, prices have increased by 23% in the last 12 months and by more than 5% in the last quarter. Nearby in Doncaster, a well-positioned but average block sized property purchased for just over $700,000 in 2010, sold recently for $1.35m, with only minor improvements since it was acquired.

Immensely popular with foreign investors, Box Hill and Doncaster are two of several eastern suburbs that are consistently in high demand, especially in areas within or close to coveted school zones, such as Balwyn in the inner east, and the south eastern locales of Glen Waverley and Mount Waverley.

With the gradual build up of Buyers facing limited supply along with the lowest interest rates we’ve seen in decades, the constant demand is set to keep prices on a steady upward trend. It is difficult to see the market hitting the brakes in 2015.

For ‘upgraders’, the benefit of selling at a higher sale price is likely to be eroded by the equally high price of their next family home, if buying in the same or surrounding suburbs. ‘Upgraders’ moving to bigger homes in the outer suburbs and ‘downsizers’ benefit the most from the growing dollar gap between their current home and next property.

Yours sincerely,

Nigel O’Neil

Managing Director & CEO

This Market Report has been prepared by hockingstuart as a general guide to the historical performance of suburbs within particular areas. It is provided for information purposes only and does not constitute advice or recommendations. It does not purport to, and cannot, predict the future performance of particular suburbs or areas. It is by its nature generic and cannot be used to predict the future performance of any particular property or type of property. You should obtain independent professional advice and consider your personal circumstances before making any financial decisions. You should not rely on this Market Report when making investment decisions and hockingstuart disclaims any liability if you seek to do so.

While hockingstuart has prepared this Market Report in good faith, it is based on information provided by third parties and it could contain errors, be incomplete, or out of date. hockingstuart has not independently verified the information and makes no express or implied warranty as to the accuracy, adequacy or reliability of the information. hockingstuart accepts no responsibility for the accuracy or completeness of any material contained in this report.

NEPEAN HWY

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Close proximity to public transport plays a pivotal roll in increasing a property’s worth. This is especially true in Melbourne due to the rate of population growth. Living close to a strong and reliable train network allows easier access to work, study and other important facilities. It also helps reduce congestion on roads.

RAIL IMPROVEMENTS BOOSTING YOUR AREA

RINGWOOD Ringwood Station and Interchange Upgrade

The Ringwood Station and Bus Interchange is undergoing a $66 million upgrade which will be completed in 2016. People utilising the precinct will be provided with modern and integrated transport facilities which are deemed to be safer due to newly installed CCTV and increased lighting. They will also have improved access with the insulation of new ramps, lifts and escalators. The project has also taken into consideration the need for pedestrian and cycling facilities as well as improvements to the road in and around the area.

CAROLINE SPRINGS Caroline Springs Station

Caroline Springs has boomed and is in need of transport desperately to satisfy the expected 1,500 people daily who will commute from this station. In 2016 the V/Line Station will allow people to travel on the Melton line, giving new and existing residence improved access to jobs and study. The new station will feature a single sided platform with shelter, bus bays and taxi rank, 350 parking spaces, CCTV and pedestrian and bicycle access with secure cage.

MELBOURNE Flinders Street Station

This year, works are set to begin on Flinders Street Station in order to save the aging façade and clock tower, improve access, and upgrade facilities. The $100 million project will take place over the next four years and will result in a number of benefits. These include reduced congestion at peak times for commuters and tourists, repaired toilets, improved lighting, upgraded ticket office and timetabling board and a boost to employment and commercial activity in the area.

FRANKSTON, WERRIBEE & WILLIAMSTOWN Bayside Rail Project

Frankston, Werribee and Williamstown train lines will soon see major improvements to their reliability and capacity. This is great news for commuters. Passengers will see the $115 million investment put into upgrading infrastructure such as tracks, signals and power substations, allowing the lines to operate the new X’Trapolis trains. These trains are the largest and fastest in the Melbourne train system and feature new seating layout, designed to maximise capacity and improve passengers comfort as well as a modern design with effective air-conditioning and heating. The result - increased value to all suburbs surrounding these train lines.

CRANBOURNE PAKENHAM Cranbourne Pakenham Rail Corridor

This initiative will see a huge 30% increase in capacity for commuters travelling in peak times. According to the Department of Transport, Planning and Local Infrastructure, this equates to two new lanes on the Monash Freeway. To achieve the increased capacity 25 new high capacity metro trains will be added, along with new signalling, removal of level crossings, rebuilt stations and new power stations. The next round of detailed designs will be available for community consultation later this year.

CHELTENHAM Southland Station

The Franskston Line will see a new station added in 2017 with the new Southland stop due to open. The Government has invested $21 million in a bid to help reduce parking congestion at Southland Shopping Centre, as well as in and around surrounding roads. Furthermore it hopes to spread the load from neighbouring stations. Over 4,400 people are expected to pass through every day making it the fourth busiest stop on the line.

3HOCKINGSTUART – RED INVESTOR INSIDER - AUTUMN 2015


MELBOURNE’S BEST PERFORMING SUBURBS

RENOVATOR’S DREAM SUBURBS

SUBURB Median ValueCapital Growth last:

Quarter 12 months

Low price range ($206,500 to $356,000)

Footscray $353,000 4.23% 7.00%

Carlton $320,000 4.17% 2.78%

St Albans $284,000 4.16% 2.70%

Sunshine North $326,500 4.11% 5.25%

Flemington $341,500 3.96% 0.44%

Low-mid price range ($356,000 to $470,000)

Ascot Vale $428,000 4.31% 3.89%

Brooklyn $396,000 4.25% 9.33%

Kingsbury $379,000 4.10% 6.13%

Altona North $417,500 4.06% 8.27%

Briar Hill $442,500 4.04% 5.04%

Mid-high price range ($470,000 to $616,500)

Alphington $503,500 4.17% 6.46%

Newport $512,500 4.13% 2.99%

Blackburn $584,500 4.11% 10.07%

Burwood $570,000 3.87% 7.86%

Wheelers Hill $530,500 3.73% 14.67%

High price range ($616,500 to $1,109,000)

South Wharf $897,500 3.98% 4.28%

Ashburton $688,000 3.77% 13.11%

Mount Waverley $637,000 3.71% 12.00%

Deepdene $737,000 3.52% 11.56%

North Warrandyte $879,500 3.40% 11.23%

SUBURB Median ValueCapital Growth last:

Quarter 12 months

Low price range ($276,000 to $452,500)

Wandin North $452,500 5.07% 7.63%

Albion $443,500 4.78% 15.51%

Beenak $363,500 4.05% 6.82%

Dandenong North $432,000 3.66% 9.63%

Broadmeadows $354,000 3.62% 10.55%

Low-mid price range ($452,500 to $652,000)

Wantirna $652,000 5.41% 16.34%

Keilor $618,500 5.39% 7.04%

Menzies Creek $537,500 4.72% 5.50%

Hadfield $503,500 4.63% 9.52%

Dandenong $463,000 4.09% 13.80%

Mid-high price range ($652,000 to $941,000)

Essendon North $768,500 6.03% 4.14%

Blackburn $939,000 5.57% 15.15%

Box Hill North $871,500 5.21% 18.87%

Oakleigh $868,500 5.17% 21.27%

Oak Park $660,000 4.94% 6.41%

High price range ($941,000 to $2,029,500)

Cremorne $944,500 6.04% 14.96%

Box Hill $1,075,500 5.90% 23.80%

Burnley $1,034,500 5.73% 17.57%

Kangaroo Ground $1,175,000 5.44% 12.55%

Northcote $1,029,500 5.43% 15.96%

UNITS

HOUSES

HOUSES

UNITSNo. of streets with renovation potential

Point Cook 151

Camberwell 134

Glen Iris 129

Kew 125

Preston 122

No. of streets with renovation potential

South Yarra 73

St Kilda 58

Richmond 54

Hawthorn 47

Elwood 45

Capital Growth is one of the main indicators of how your property investment is performing. The suburbs are broken up into four price brackets, houses vs units and ranked on % increase in property value in the last quarter.

Not every suburb contains properties with renovation potential as opportunities are dependent on the position a suburb holds in its lifecycle.

The information below is vital for identifying areas that have the best prospects for profit through renovation.

* All data is based on information from Q2 14/15 (1 Oct - 31 Dec 2014)


AUSTRALIA AT A GLANCE

HOUSES

UNITS

Capital City Median Value Growth Last Quarter Rent - Month Ending Dec 2014

Sales - Year Ending Dec 2014

Adelaide $422,500 1.99% $375 18,933

Brisbane $484,000 2.71% $450 38,299

Darwin $568,000 -0.98% $590 1,454

Hobart $369,000 0.72% $350 1,983

Melbourne $652,500 -0.35% $445 49,259

Perth $530,500 -1.38% $460 32,805

Sydney $900,500 4.82% $645 48,128

Capital City Median Value Growth Last Quarter Rent - Month Ending Dec 2014

Sales - Year Ending Dec 2014

Adelaide $316,000 3.61% $310 4,954

Brisbane $371,000 0.22% $380 17,185

Darwin $423,500 -2.13% $475 740

Hobart $259,000 -1.91% $285 611

Melbourne $470,500 1.22% $400 33,862

Perth $465,000 0.22% $440 12,282

Sydney $606,500 3.61% $540 43,438

When investing it is important to compare against median figures across Australia. The data below gives insight into where your investment sits in the Australian market.

High clearance rates suggest high bidder demand and limited property supply in an area.

*Source: REIV, The above table only includes suburbs with minimum 20 Auctions per quarter.

SUBURB No. of Auctions Sold at Auction Sold Prior Clearance Rate

Abbotsford 25 20 3 92.0%

Carlton North 48 37 7 91.7%

Hampton East 26 17 5 88.5%

Ringwood North 24 16 5 87.5%

Ringwood East 39 27 7 87.2%

Burwood East 45 32 7 86.7%

Heathmont 22 14 5 86.4%

Oakleigh 29 23 2 86.2%

Highett 43 34 3 86.0%

Ringwood 63 42 12 85.7%

SUBURBS WITH BEST AUCTION CLEARANCE RATES*


WHERE HAVE PROPERTY VALUES INCREASED THE MOST?

FROM THE FRONT LINESRichmond, South Yarra and Toorak have seen continued strong demand for property, however quality stock to purchase from is limited. Buyers are seeing the value in land due to the hive of apartment development. They are especially looking for houses that can be redeveloped or demolished and rebuilt. This demand has seen an increasing number of people through Open For Inspections and a strong number of competitive bidders, averaging between two to four in South Yarra and Toorak. This results in high clearance rates of about 90% and low number of days on market.

The leasing landscape has seen vacancy rates very low and most properties leasing with no vacancy at all. South Yarra has enjoyed low Tenant turnover compared to recent years, meaning Landlords are enjoying longer, more stable tenancies. The challenges associated with the influx of new developments occurring at the moment, means Investors need to make their properties stand out by keeping it in good condition, clean, use professional photography and price at market value.

RED HOT ALERT Properties in demand

UNIQUENESS SOUTH YARRA

Bidding wars are happening everywhere. hockingstuart South Yarra sold 15 Luxton Road after six bidders competed to own this unique property. It offered dual options as a primary residence as well as a small business on the street front. This well presented Victorian property was on the market at $1,150,000 and was successful sold for $1,430,300.

HOUSES

No. of Houses

No. of Sales

Burnley 265 5

Abbotsford 1,884 31

Richmond 7,235 108

Kensington 3,467 50

Prahran 3,347 47

HOUSES

Median Price

Capital Growth

Burnley $1,034,500 17.57%

Cremorne $944,500 14.96%

Southbank $968,000 13.18%

Melbourne $1,050,000 13.00%

Fitzroy North $1,089,000 12.76%

HOUSES

Median Weekly Rent

Rental Yield

North Melbourne $685 4.03%

Docklands $780 4.03%

West Melbourne $700 3.94%

Collingwood $605 3.90%

Southbank $685 3.80%

UNITS

Median Price

Capital Growth

Clifton Hill $561,000 11.33%

Carlton North $529,500 8.40%

Princes Hill $507,500 8.11%

Collingwood $582,000 6.60%

Kensington $441,500 5.95%

UNITS

Median Weekly Rent

Rental Yield

Carlton $370 5.97%

Melbourne $475 5.61%

West Melbourne $525 5.01%

South Melbourne $520 4.96%

Docklands $540 4.95%

HOUSES

Median Weekly Rent

Docklands $780 (+$80)

South Melbourne $765 (+$45)

Cremorne $635 (+$40)

Southbank $685 (+$25)

East Melbourne $1,225 (+$20)

UNITS

Median Weekly Rent

Carlton $370 (+$25)

Melbourne $475 (+$20)

Flemington $325 (+$15)

Kensington $400 (+$10)

Princes Hill $425 (+$10)

UNITS

No. of Units

No. of Sales

Abbotsford 2,982 77

Prahran 5,920 146

Burnley 192 3

Melbourne 47,976 725

Windsor 3,133 46

MOST ACTIVE SUBURBS THIS QUARTER IN TERMS OF SALES

WHERE DID THE RENTS GO UP THE MOST THIS QUARTER?

SUBURBS FETCHING THE MOST RENT COMPARED TO PROPERTY VALUES

INNER CITY MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

LOCAL OFFICES:

ALBERT PARK 9690 5366 ARMADALE 9509 0411 CARLTON 9340 1900 COMMERCIAL 9690 6000

MELBOURNE 9600 2192 NORTH MELBOURNE 9328 8388 PROJECTS 9388 5200

RICHMOND 9421 7100 SOUTH YARRA 9868 5444


HOUSES

No. of Houses

No. of Sales

Essendon North 719 15

Kingsville 1,162 24

Niddrie 1,962 34

Maribyrnong 2,991 51

Altona 4,112 66

UNITS

No. of Units

No. of Sales

Ascot Vale 2,879 78

Brooklyn 453 11

Newport 1,335 26

West Footscray 2,255 43

Maribyrnong 2,835 54


FROM THE FRONT LINESThe Inner West is a hive of activity. Families in Williamstown are bidding fiercely to secure family homes and large blocks, while Maribyrnong is seeing first home Buyers settling in because of affordability. Over in Footscray, Buyers are seeing the value in the suburbs close proximity to the city. This is taking the area through a development boom with 700-1,000 planning permits approved and due to be built in the next three to four years. A few suburbs across in Yarraville the median price continues to climb and is getting close to the $1 million mark. In 2014 hockingstuart Yarraville saw over 30 properties sell for $1 million plus, where it was half the amount the year before.

The rental market in and around Yarraville has been going from strength to strength this year, with Tenants also after properties close to the city, which have all amenities, are easily accessible and have strong infrastructure. The train, tram and bus network are also strong pulling factors to the area, as people look to decrease their commute time into the city.


THE THREE BEDROOM HOME YARRAVILLE

Homes with three bedrooms, 400sqm and in the $1 million bracket are flying out the door, with Buyers bidding competitively in Yarraville. hockingstuart Yarraville recently sold 20 Fairlie Street, which was expected to receive $1.1 million. This property had been purchased 12 months prior for $725,000. After a full renovation it fetched $1,377,000 due to demand.

HOUSES

Median Price

Capital Growth

Kingsville $735,000 12.31%

Altona $645,000 12.29%

Maidstone $596,000 12.20%

Footscray $670,500 12.05%

Brooklyn $536,000 11.97%

HOUSES

Median Weekly Rent

Rental Yield

Altona North $400 3.74%

Maribyrnong $470 3.74%

South Kingsville $460 3.63%

Avondale Heights $385 3.61%

Newport $510 3.59%

UNITS

Median Price

Capital Growth

Spotswood $542,500 12.93%

West Footscray $331,500 11.58%

Brooklyn $396,000 9.33%

Altona North $417,500 8.27%

Footscray $353,000 7.00%

UNITS

Median Weekly Rent

Rental Yield

West Footscray $300 4.85%

Footscray $325 4.81%

Maribyrnong $375 4.79%

Altona North $380 4.78%

Brooklyn $350 4.74%

HOUSES

Median Weekly Rent

Kingsville $490 (+$30)

Brooklyn $355 (+$20)

Maidstone $390 (+$15)

Essendon North $435 (+$15)

Altona $395 (+$10)

UNITS

Median Weekly Rent

Ascot Vale $380 (+$30)

Spotswood $450 (+$25)

Footscray $325 (+$20)

Seddon $350 (+$20)

Avondale Heights $365 (+$20)




INNER WEST MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

LOCAL OFFICES:

ALTONA 9398 8044 COMMERCIAL 9690 6000 NORTH MELBOURNE 9328 8388

PROJECTS 9388 5200 WILLIAMSTOWN 9399 9888 YARRAVILLE 8387 0555



FROM THE FRONT LINESFamilies are swarming to the Inner Northern suburbs of Carlton, Brunswick and Northcote where three to four bedroom properties are hotly contested. The reduction in interest rates has generated attention at every level of the property market. Investors are back competing with first home Buyers at the lower end of the market, while families looking for a place to call home for the next 15 years, are having to compete with like-minded prospective purchasers.

Apartments are still being built throughout the Inner North. Developments are appearing on every second corner and will continue to be built, as there is still demand from local and foreign Investors. Developers are using this to capitalise on growth of the Inner North especially in Preston and Reservoir.

Limited supply and high demand is definitely creating a sense of urgency amongst potential Tenants. Most properties are leased within 14 days. Currently the Pascoe Vale and Coburg Office have a very small amount of properties that remain vacant. This relates to setting rental prices at market value, even if it means reducing rent to secure better Tenants.


RENOVATES DREAM COBURG

Homes with land and renovation potential in the $800,000 - $900,000 range are of particular interest to Buyers in the Inner Northern suburbs at the moment. hockingstuart Pascoe Vale and Coburg sold 8 Danny Street, a three bedroom home for $935,000 after some very strong and competitive bidding.

HOUSES

Median Price

Capital Growth

Northcote $1,029,500 15.96%

Heidelberg Heights $630,000 13.86%

Fairfield $1,046,500 13.74%

Ivanhoe $1,212,500 13.26%

Bellfield $602,500 11.60%

HOUSES

Median Weekly Rent

Rental Yield

Brunswick East $625 3.94%

Brunswick $590 3.88%

Coburg $525 3.86%

Coburg North $405 3.83%

Heidelberg West $325 3.82%

UNITS

Median Price

Capital Growth

Eaglemont $637,500 12.06%

Rosanna $510,000 11.30%

Heidelberg $518,500 9.69%

Preston $430,500 7.56%

Pascoe Vale South $447,000 7.51%

UNITS

Median Weekly Rent

Rental Yield

Coburg North $345 4.81%

Brunswick West $330 4.69%

Brunswick $385 4.69%

Northcote $400 4.69%

Reservoir $315 4.67%

HOUSES

Median Weekly Rent

Northcote $695 (+$25)

Coburg $525 (+$15)

Reservoir $380 ($10)

Brunswick West $575 ($10)

Fairfield $645 (+$10)

UNITS

Median Weekly Rent

Kingsbury $340 (+$15)

Fairfield $315 (+$10)

Brunswick West $330 (+$10)

Heidelberg Heights $370 (+$10)

Alphington $400 (+$10)




INNER NORTH MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Bellfield 721 12

Heidelberg 1,607 26

Eaglemont 1,336 21

Heidelberg Heights 2,206 33

Pascoe Vale 4,545 61

UNITS

No. of Units

No. of Sales

Brunswick East 3,037 68

Pascoe Vale 3,307 73

Northcote 4,510 90

Heidelberg Heights 1,268 23

Brunswick 6,075 103

LOCAL OFFICES:

BRUNSWICK 9388 5200 CARLTON 9340 1900 COMMERCIAL 9690 6000 IVANHOE 9499 5611

NORTHCOTE 8481 1900 NORTH MELBOURNE 9328 8388 PASCOE VALE AND COBURG 9350 5333 PRESTON 9471 1100

PROJECTS 9388 5200 RESERVOIR 9470 2525



FROM THE FRONT LINESBoth Glen Iris and Balwyn Offices have seen properties fly out the door selling after only 23-24 days on the market due to competitive bidding from an average three to four people. The top end of the market in Balwyn North has come back stronger than ever with three sales over $4 million in one week.

The summer months were very busy in terms of leasing. Investors whose properties were on the market during this period have benefited from the heightened activity. This is especially true for family homes in the Balwyn area with families settling into their homes prior to the start of the school year. The Autumn market is staying strong however moving into Winter we will likely see a slow in activity. During this time Investors are advised to be realistic in terms of the asking rental and ensure that their properties are well presented in order to stand out amongst the competition, especially new developments.


DEVELOPMENT SITES ASHBURTON

Ashburton has see strong demand for development and home sites as demonstrated when hockingstuart Glen Iris sold 9 Stocks Avenue for $1.725 million setting a new land record of over $2,000/m2 for the suburb. The Auction brought five bidders head to head with the final sale price going $300,000 above reserve.

HOUSES

Median Price

Capital Growth

Deepdene $2,198,000 22.91%

Balwyn North $1,449,000 20.96%

Carnegie $1,035,500 19.83%

Toorak $3,277,000 19.60%

Balwyn $1,738,000 18.28%

HOUSES

Median Weekly Rent

Rental Yield

Glen Huntly $580 3.23%

Ormond $695 3.14%

Carnegie $590 3.13%

Murrumbeena $575 3.12%

Caulfield South $625 3.11%

UNITS

Median Price

Capital Growth

Balwyn North $812,500 14.88%

Surrey Hills $663,500 13.23%

Ashburton $688,000 13.11%

Balwyn $676,000 9.78%

Toorak $794,000 9.48%

UNITS

Median Weekly Rent

Rental Yield

Caulfield East $335 4.53%

Glen Huntly $390 4.46%

Murrumbeena $385 4.37%

Carnegie $390 4.33%

Ormond $390 4.28%

HOUSES

Median Weekly Rent

Kooyong $1,415 (+$150)

Toorak $1,680 (+$60)

Malvern $990 (+$50)

Caulfield North $850 (+$45)

Ormond $695 (+$35)

UNITS

Median Weekly Rent

Balwyn North $575 (+$30)

Mont Albert North $505 (+$25)

Ashburton $565 (+$25)

Glen Iris $425 (+$15)

Hughesdale $450 (+$15)




INNER EAST MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Deepdene 673 14

Balwyn North 7,197 136

Balwyn 3,822 58

Kew 6,975 105

Glen Iris 6,893 103

UNITS

No. of Units

No. of Sales

Mont Albert North 693 12

Balwyn 2,576 44

Canterbury 1,184 20

Glen Huntly 1,942 32

Carnegie 5,082 79

LOCAL OFFICES:

ARMADALE 9509 0411 BALWYN 9830 7000 BENTLEIGH 9557 7733

CARNEGIE 9569 3666 CAULFIELD 8532 5200 COMMERCIAL 9690 6000

GLEN IRIS 9885 9811 PROJECTS 9388 5200 SOUTH YARRA 9868 5444



FROM THE FRONT LINESOpen For Inspections in the Blackburn Office regions have seen a huge increase in people coming through, reaching 100 groups in some cases. This high number is driven by a lack of desirable stock in and around the area. Potential Buyers are looking for decent sized homes, suitable for a family in the $1 million plus range. In addition to this, there is also a strong trend of people downsizing and moving out, while first home Buyers are moving in.

Foreign Buyers are showing strong interest in Mount Waverly, Blackburn and in and around Doncaster. Over the last 12 months, Mount Waverley sold seven out of ten properties to overseas Buyers looking to capitalising on local schools, access to the city and the multicultural atmosphere.

On the rental front the Doncaster Office recommends Landlords assess the money that goes in as well as out. It is vital to make sure finance costs are low and entitlements, such as depreciation and other taxable claims, are maximised.


LAND MITCHAM

All around Melbourne ‘the norm’ seems to be multiple competitive bidders. This was true for 27 Cobham Road, Mitcham. The property estimated at $600,000 - $650,000 was sold for $714,000 by hockingstuart Blackburn. The need for quality houses with substantial land drew in five bidders all hoping to win the Auction.

HOUSES

Median Price

Capital Growth

Box Hill $1,075,500 23.80%

Glen Waverley $956,000 22.92%

Mount Waverley $980,000 21.75%

Oakleigh East $783,500 21.30%

Oakleigh $868,500 21.27%

HOUSES

Median Weekly Rent

Rental Yield

Mulgrave $445 3.82%

Vermont South $495 3.50%

Moorabbin $510 3.46%

Forest Hill $450 3.45%

Vermont $455 3.45%

UNITS

Median Price

Capital Growth

Oakleigh East $591,000 15.23%

Wheelers Hill $530,500 14.67%

Doncaster East $610,000 13.73%

Vermont $538,000 12.16%

Mount Waverley $637,000 12.00%

UNITS

Median Weekly Rent

Rental Yield

Notting Hill $350 4.63%

Huntingdale $335 4.61%

Mulgrave $420 4.51%

Oakleigh $420 4.48%

Vermont South $355 4.42%

HOUSES

Median Weekly Rent

Doncaster $540 (+$30)

Mulgrave $445 (+$20)

Oakleigh $515 (+$20)

Blackburn $520 (+$20)

Burwood $500 (+$15)

UNITS

Median Weekly Rent

Mulgrave $420 (+$20)

Burwood East $425 (+$15)

Doncaster $450 (+$15)

Huntingdale $335 (+$10)

Oakleigh South $395 (+$10)




EASTERN SUBURBS MARKET WRAP

LOCAL OFFICES:

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Forest Hill 3,653 61

Vermont South 3,776 60

Mitcham 4,932 73

Ashwood 1,964 29

Templestowe 5,121 75

UNITS

No. of Units

No. of Sales

Notting Hill 691 32

Mitcham 3,026 83

Vermont 1,071 29

Templestowe Lower 1,071 24

Bulleen 793 17

BALWYN 9830 7000 BENTLEIGH 9557 7733 BLACKBURN 9894 8788

COMMERCIAL 9690 6000 DONCASTER 9842 1188 GLEN IRIS 9885 9811

GLEN WAVERLEY 9886 6900 MOUNT WAVERLEY 9807 9522 PROJECTS 9388 5200



FROM THE FRONT LINESBentleigh sees vacancy rates remain under 2%, with the majority of properties leasing within a reasonable timeframe. Potential Tenants are becoming more and more savvy about the rental market, armed with useful information on comparable properties for lease in surrounding suburbs. Investors should not be concerned about decreasing rental yields as this is primarily due to the burgeoning sales market currently being experienced, leading to impressive capital growth.

Chelsea and surrounding Bayside areas are seeing an influx of first home owners especially after the rate cuts. These Buyers are looking for properties under the $600,000 mark to make the most of government assistance available. Three bedroom homes are quite accessible within this price. A key piece of advice for first home owners is to not rely solely on the advertised price guide, your own market research will help prepare you for what a property is likely to fetch. Closer to the city in St Kilda, Investors are purchasing a wide range of properties which stretch from a $200,000 studio flat to $750,000 for more ‘upmarket’ apartments.


BEACH BLISS EDITHVALE

Views and walking distance to the beach are driving up prices in Edithvale. hockingstuart Mentone sold 16 Bristol Ave after five bidders fought it out, with the price finishing up at $1.28 million. The three bedroom home was hotly desired, not only for the views and location, but because it will soon be out of reach for many.

HOUSES

Median Price

Capital Growth

Highett $873,500 16.43%

Chelsea $602,000 15.43%

Bentleigh East $864,500 15.31%

Bonbeach $641,000 14.47%

Mckinnon $1,199,000 14.29%

HOUSES

Median Weekly Rent

Rental Yield

Carrum Downs $340 5.15%

Frankston North $275 4.94%

Frankston $320 4.55%

Chelsea Heights $400 4.13%

Patterson Lakes $505 4.12%

UNITS

Median Price

Capital Growth

Aspendale $518,000 12.19%

Beaumaris $714,000 11.48%

Mckinnon $658,000 10.87%

Sandringham $617,500 8.84%

Chelsea $409,500 8.46%

UNITS

Median Weekly Rent

Rental Yield

Carrum Downs $305 5.10%

Aspendale Gardens $380 5.04%

Frankston $255 4.86%

Seaford $290 4.72%

Patterson Lakes $345 4.65%

HOUSES

Median Weekly Rent

Bonbeach $450 (+$35)

Mentone $575 (+$30)

Chelsea $415 (+$25)

Gardenvale $740 (+$25)

St Kilda East $745 (+$25)

UNITS

Median Weekly Rent

Frankston North $235 (+$20)

Aspendale $425 (+$15)

Highett $430 (+$15)

Hampton East $445 (+$15)

Bentleigh $465 (+$15)




BAYSIDE MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Patterson Lakes 2,164 43

Bentleigh 5,258 102

Beaumaris 4,624 87

Aspendale 2,224 41

Frankston South 6,065 111

UNITS

No. of Units

No. of Sales

Sandringham 1,952 93

Mentone 3,419 89

Aspendale 869 22

Chelsea Heights 423 10

Parkdale 2,165 47

LOCAL OFFICES:

ALBERT PARK 9690 5366 BENTLEIGH 9557 7733 BRIGHTON 9596 7055 CAULFIELD 8532 5200

CHELSEA 9772 7222 COMMERCIAL 9690 6000 FRANKSTON 9781 3366 MENTONE 9583 3246

PROJECTS 9388 5200 SANDRINGHAM 9521 9800 ST KILDA 9593 8733


LOCAL OFFICES:


FROM THE FRONT LINESAreas in and around Berwick and Narre Warren in 2015 have seen a sharp increase in sale prices and Buyer activity, mainly driven by the lack of good quality affordable homes. Ringwood and surrounding areas have seen similar trends however this is largely due to Foreign Investors continuing to buy properties in close proximity to decent facilities. These trends have lead to a 100% clearance rate in the first quarter of the year, for the Ringwood Office.

Based on current trends it is anticipated that the market will stay strong over the coming months, especially with the current interest rates. First home Buyers are taking advantage of low interest rates in Greensborough and Yallambie. Also very active in those area’s are downsizers looking to have a smaller home and spend more time at their coastal properties. Looking forward there appears to be a fair amount of property about to hit the market, so it will be a good test to see how strong the market is with high stock levels heading into Winter.

HOUSES

Median Price

Capital Growth

Ringwood $641,000 21.18%

Werribee South $663,500 20.44%

Clayton $759,000 19.41%

Knoxfield $560,500 16.66%

Wantirna $652,000 16.34%

HOUSES

Median Weekly Rent

Rental Yield

Rockbank $315 5.71%

Melton South $245 5.54%

Baxter $350 5.44%

Melton $245 5.43%

Coolaroo $295 5.41%

UNITS

Median Price

Capital Growth

Wantirna South $393,000 16.91%

Heathmont $477,500 14.42%

Heatherton $390,000 14.17%

Mooroolbark $399,500 12.32%

Werribee South $498,000 12.32%

UNITS

Median Weekly Rent

Rental Yield

Doreen $265 6.48%

Dallas $260 5.86%

Meadow Heights $300 5.74%

Melton South $215 5.72%

Cranbourne $275 5.69%

HOUSES

Median Weekly Rent

Narre Warren East $1,020 (+$65)

Werribee South $445 (+$45)

Dandenong $365 (+$30)

Ravenhall $445 (+$30)

Bangholme $500 (+$30)

UNITS

Median Weekly Rent

Heatherton $305 (+$30)

Ardeer $285 (+$20)

Narre Warren $315 (+$20)

Briar Hill $380 (+$20)

Clayton $415 (+$20)




OUTER SUBURBS MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Lyndhurst 1,241 37

Burnside Heights 1,147 33

Taylors Hill 2,406 68

Caroline Springs 5,223 146

Lysterfield South 258 7

UNITS

No. of Units

No. of Sales

Sunshine 1,185 59

Kurunjang 326 12

Craigieburn 1,308 44

Croydon South 235 7

Caroline Springs 958 27

ALTONA 9398 8044 BENTLEIGH 9557 7733 BERWICK 8768 3800 CAROLINE SPRINGS 9999 9888 COMMERCIAL 9690 6000

DANDENONG 9792 5333 FRANKSTON 9781 3366 GREENSBOROUGH 9432 1988 MELTON 9746 6888 MOOROOLBARK 9727 7888

PROJECTS 9388 5200 RINGWOOD 9876 9001 WERRIBEE 9731 7022


HOT PROPERTY NARRE WARREN SOUTH

hockingstuart Berwick received an outstanding result for the four bedroom house at 45 Filmer Crescent. Desire for a perfect family home drew in 70 groups to inspect the property. Multiple offers then saw the property sell for $70,000 over the advertised price all occurring within a week of being listed.



FROM THE FRONT LINESAt present well presented properties are on most Buyers checklist, especially those along the Peninsula that require little to no renovation. Properties that require work or updates are also doing well, as long as they are in prime locations and are very well priced. Buyers guided by good value are extremely cautious about paying above the odds. This has lead to an increase in Auction listings, as Vendors try to achieve standout results through competitive Auction conditions.

Blairgowrie and Sorrento have seen an increase in average sales. Sorrento in particular, saw a monthly average increase to nine and a half sales from the previous quarter average of five. On the development front, Blairgowrie Yacht Squadron is undergoing a multi-million dollar upgrade including 125 additional marina berths. This is likely to generate increased demand in surrounding properties.

After a shortage of rental properties at the start of the year, the Peninsula sees a flood of properties come on the market after Easter; meaning vacancy time on the average property will be extended. However the market should return to ‘normal’ shortly after.


HOLIDAY HOME RYE

Blairgowrie and the western parts of Rye have seen Buyers looking predominately for a holiday home/second residence. hockingstuart Blairgowrie had a large amount of competition at the Auction of 135 Canterbury Jetty Road for just that reason. The three bedroom, two bathroom property sold for $495,000 to a family looking for that perfect holiday home.

HOUSES

Median Price

Capital Growth

Point Leo $965,500 16.21%

Balnarring $583,000 14.14%

Moorooduc $1,130,000 10.40%

Tuerong $1,178,000 10.06%

Sorrento $828,000 8.51%

HOUSES

Median Weekly Rent

Rental Yield

Merricks $1,460 8.67%

Flinders $1,110 7.97%

Sorrento $930 6.30%

Portsea $1,220 5.90%

Merricks North $1,355 5.56%

UNITS

Median Price

Capital Growth

Balnarring $412,000 9.32%

Dromana $367,500 8.27%

Mount Eliza $420,000 7.92%

Mount Martha $444,500 5.96%

Hastings $272,000 5.00%

UNITS

Median Weekly Rent

Rental Yield

Portsea $835 6.09%

Balnarring $400 5.27%

Hastings $265 5.20%

Somerville $290 5.19%

Crib Point $280 5.17%

HOUSES

Median Weekly Rent

Point Leo $780 (+$80)

Sorrento $930 (+$50)

Merricks North $1,355 (+$45)

Somers $430 (+$40)

Fingal $635 (+$40)

UNITS

Median Weekly Rent

Portsea $835 (+$85)

Rosebud West $295 (+$25)

McCrae $335 (+$15)

Balnarring $400 (+$15)

Somerville $290 (+$10)




MORNINGTON PENINSULA MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

St Andrews Beach 649 16

Safety Beach 2,500 59

Arthurs Seat 299 7

Fingal 345 7

Mount Martha 7,428 138

UNITS

No. of Units

No. of Sales

Safety Beach 694 19

Crib Point 317 8

Mount Martha 1,272 26

McCrae 238 4

Mornington 4,522 74

LOCAL OFFICES:

BLAIRGOWRIE 5988 9095 COMMERCIAL 9690 6000 MORNINGTON 5973 5444

PROJECTS 9388 5200 ROSEBUD 5986 5777



FROM THE FRONT LINESOnce again the Geelong area has seen the market remain consistent with slight growth over the last quarter. Clearance rates remain between 30-45 days for the Inner City, as Buyers compete for property within suburbs 5km from central Geelong. Higher growth areas where there is a higher volume for Buyers to choose from have seen clearance rates of 45-60 days. The demand in high and low growth areas also apply to the rental market. Developing areas where a lot of new homes are being constructed has resulted in an over supply, lower yields and vacancy rates almost double that of the Inner City locations.

Currently hockingstuart Geelong is seeing single level units in Geelong West, Belmont, Highton, Hamlyn Heights selling well, especially as many sit at the median price range. Period homes in East Geelong and Geelong West and 1950 - 1970’s homes in Belmont, Hamlyn Heights, Highton, in the $300,000 to $400,000 price range have also been selling well to first home Buyers and Investors.


DOWNSIZING BELMONT

hockingstuart Geelong recently sold 2/34 Laura Grove for $369,000. This single level unit with two bedrooms, one bathroom and close to shopping and transport was sold to a Buyer looking to downsize. This is a perfect example of the activity and interest in single level, low maintenance homes that are close to shopping.

HOUSES

Median Price

Capital Growth

Breamlea $732,500 19.59%

Anakie $493,500 13.30%

Jan Juc $591,000 10.30%

Rippleside $602,000 10.01%

North Geelong $332,500 9.55%

HOUSES

Median Weekly Rent

Rental Yield

Bellbrae $1,255 6.37%

Norlane $240 6.01%

Corio $265 5.83%

Whittington $275 5.61%

Breakwater $295 5.52%

UNITS

Median Price

Capital Growth

East Geelong $276,500 15.62%

Seville $330,500 15.57%

Breakwater $278,000 12.92%

St Leonards $259,500 11.45%

Herne Hill $207,500 8.52%

UNITS

Median Weekly Rent

Rental Yield

Norlane $235 5.77%

East Geelong $275 5.66%

Marshall $310 5.61%

St Albans Park $250 5.60%

Breakwater $285 5.60%

HOUSES

Median Weekly Rent

Bellbrae $1,255 (+$95)

Little River $515 (+$50)

Armstrong Creek $470 (+$35)

Wandin North $390 (+$25)

Newtown $470 (+$25)

UNITS

Median Weekly Rent

St Leonards $265 (+$10)

Highton $310 (+$10)

Geelong $395 (+$10)

Herne Hill $210 (+$5)

Drysdale $265 (+$5)




GREATER GEELONG MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Wandana Heights 564 12

Seville East 325 6

Highton 5,730 105

Barwon Heads 1,859 33

Manifold Heights 917 16

UNITS

No. of Units

No. of Sales

Lovely Banks 131 10

Newtown 1,410 30

Seville 160 3

Barwon Heads 397 7

Highton 1,517 26

LOCAL OFFICES:

GEELONG 5223 2525 PROJECTS 9388 5200 TORQUAY 5261 8888



FROM THE FRONT LINESBallarat continues to be a stable area to invest with the market staying consistent over the last two years. Attention in the area isn’t just shown by locals, many out of town Investors are also keen to purchase. The wide range of Buyers attracted is due to the wide range of property types and locations available. Central Ballarat properties continue to have the highest appeal for Buyers.

Landlords can breath easy in the Ballarat area with a low vacancy rate of approximately 4%. Having said that, it is important for Landlords to be aware that due to the diversity of supply, Tenants are generally able to choose a location and property type to fit their budget and lifestyle. This means good properties that are well maintained and well presented, without being over priced, will gain an advantage over others.


LIFESTYLE CHANGE LAKE WENDOUREE

hockingstuart Ballarat have seen an increasing shift in Buyers selling up in the city and moving to Ballarat for a lifestyle change. Within seven days of being listed, 1403 Gregory Street was snapped up by a Melbourne Buyer relocating because of affordability and the properties close proximity to Lake Wendouree, the Botanical Gardens, recreational facilities, shops and walking tracks.

HOUSES

Median Price

Capital Growth

Fryerstown $514,000 30.94%

Newham $667,000 22.81%

Inglewood $179,000 21.79%

Tyers $441,000 20.96%

Tallangatta $206,000 19.16%

HOUSES

Median Weekly Rent

Rental Yield

Sandy Point $880 14.34%

Brim $150 11.20%

Waratah Bay $770 10.90%

Fish Creek $490 10.30%

Anglesea $1,175 9.53%

UNITS

Median Price

Capital Growth

Romsey $317,000 12.85%

White Hills $208,500 12.36%

Anglesea $457,500 11.58%

Quarry Hill $260,500 11.43%

Newington $336,000 11.12%

UNITS

Median Weekly Rent

Rental Yield

Aireys Inlet $820 8.07%

Ararat $205 6.55%

Mildura $195 6.54%

Robinvale $140 6.42%

Ballarat East $260 6.31%

HOUSES

Median Weekly Rent

Anglesea $1,175 (+$110)

Fairhaven $1,295 (+$90)

Kangaroo Ground $790 (+$75)

Barkers Creek $450 (+$50)

Fryerstown $425 (+$45)

UNITS

Median Weekly Rent

Lorne $550 (+$45)

Newington $300 (+$30)

Romsey $365 (+$25)

Heathcote $205 (+$20)

Ballarat Central $245 (+$15)




REGIONAL VICTORIA MARKET WRAP

LAST QUARTER

LAST 12 MONTHS

HOUSES

No. of Houses

No. of Sales

Lucas 146 7

Hopetoun Park 157 6

Cardigan Village 161 6

Moggs Creek 155 5

Clyde North 1,620 48

UNITS

No. of Units

No. of Sales

Foster 173 7

Ballan 146 5

Drouin 656 17

Wallan 415 10

Mansfield 418 10

LOCAL OFFICES:

BALLARAT 5329 2500 DAYLESFORD 5348 1700 PROJECTS 9388 5200

Real estate is our world

red Investor Autumn 2015

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Transcript of red Investor Autumn 2015