Market Report October 2017

November, 2017 by

NSW real estate review

The media is in a bit of a lather about the latest Domain State of the Market Report, which shows that Sydney’s house prices were down 1.9% for the September quarter and down 0.8% for apartments.  

Let’s not forget that Sydney house prices are up in excess of 10% over the last year and significantly more than that since the middle of 2012 when low interest rates helped to turbo charge returns. Domain Group Chief Economist Andrew Wilson said, “Although there has been a minor dip in property prices since June, Sydney remains the highest-priced capital city in Australia, ahead of quick growth Melbourne. Sydney is still an ideal city for homeowners and investors looking to sell and unlock the value of their property.”

Meanwhile, the CoreLogic September home value results showed that growth rates have been remarkably strong in some regional NSW markets, particularly those close to Sydney. The strongest regional performer was the Newcastle and Lake Macquarie, where values were 15.3% higher over the past twelve months. Southern Highlands and Shoalhaven (+14.3%) and Illawarra (+13.5%) rounded out the top three regional markets based on the 12 month change in dwelling values.

Queensland real estate review

Australia’s third largest city, Brisbane, has recently attracted more attention as improved housing market conditions take hold, according to CoreLogic.

Historically, peaks in the Sydney property market have proven to be good news for Brisbane. Following Sydney’s dwelling value growth peak in August 1988 of 67.1%, Brisbane dwelling values peaked at an annual growth rate of 35.3% in February 1989.  Annual growth in Sydney dwelling values also peaked in January 2002 at 20.8% with Brisbane’s rate of growth not peaking until December 2003 at 30.7%.

Moreover, Queensland has historically been a popular migration destination for people from New South Wales. CoreLogic noted that migration from New South Wales to Queensland recently picked-up, with a peak of 13,487 persons over the December 2016 quarter shifting north. Moreover, Cameron Kusher from CoreLogic said, “Since April 2017, annual employment growth in Queensland has been greater than in New South Wales.”

The latest REIQ Queensland Market Monitor reporting on June quarter median price moves has revealed that Brisbane LGA, Gold Coast, and Sunshine Coast are the powerhouse markets driving solid, sustainable capital growth. The Brisbane LGA median house price grew 3.6% in the 12 months to June, to reach a new high of $655,000. The Gold Coast grew a whopping 6.8% over the 12 months to June, reaching an annual median house price of $595,000, while the Sunshine Coast SD grew 6.2% over the year to June, to a median house price of $550,000.

Western Australia real estate review

Perth’s median house price remained steady for a third straight month in September, adjusting back marginally by 1% to $510,000 for the three months to September.

REIWA President Hayden Groves said market conditions had levelled out across the city in the lead up to the traditional ‘spring selling season’, which historically peaks in November. “With the exception of sales and leasing activity, conditions across both the sales and rental market were stable. The median rent price held up at $350 per week, while stock levels in the sales and rental markets fell over the month, noted  Hayden.

Joondalup South was the top performing sub-market in September for sales activity, recording a 24% lift in September, followed closely by Kwinana with a 21% increase in transactions. The Belmont and the Western Suburbs sub-markets also posted strong results, both experiencing an 8% lift in sales,” said Hayden.

South Australia real estate review

The Adelaide market with an average median house price of $519,517 is a friendly starting point for first home buyers, according to the latest Domain State of the Market Report with some of the most affordable properties of all Australian capital cities.

The increasingly popular city still offers investors and buyers the opportunity to achieve a solid return on their investment. Although there was a slight drop this quarter, the house price growth for the previous five quarters is a sign that shouldn’t be ignored. Kate Smith, Principal of Raine & Horne Semaphore, said “We have seen a strong increase in enquiries now that the footy finals and the long weekend are behind us. That said, we’ve had a pretty consistent year – we don’t really experience market lulls.

“At the same time, we’ve seen a spike in in stock levels since the grand final weekend. Because of the balance between supply and demand, we have a very strong market. Basically, from now until Easter, we’ll have a pretty strong market and a strong auction market as well.”

Victoria real estate review

Buyers are often encouraged to purchase the worst house in the best street, however, REIV data suggests the right postcode may be worth more than the street name – and by up to $836,000 more to be exact.

In the year to June 30, apartments on Beach Rd Hampton recorded a median price of $1,361,000. This is $643,000 more than apartments also located on Beach Road but in Black Rock and $836,000 more than those in Mentone.

On Chapel Street apartments in desirable South Yarra recording a median price of $772,000 – $230,000 more than those at the St Kilda end of the famous retail strip. Apartment prices on Dandenong Road also varied significantly depending on the postcode with those classed as Prahran fetching $215,000 more than those in Malvern East.

REIV President Joseph Walton said a home’s postcode, which can change depending on which side of the street you live on, generally adds more value than a street address. “Given there are quite a few Melbourne roads spanning multiple suburbs, a postcode is now often worth more to the value of a home than a street address.

“Suburb rezoning in the past decade has resulted in hundreds of thousands of dollars being added to the value of many homes overnight – particularly at the higher end of the market.”

Tasmania real estate review

Hobart cemented its position as Australia’s best performing housing market in September, said CoreLogic. 

The past twelve months has seen Hobart dwelling values surge 14.3% higher; the highest annual growth rate since 2004. Despite the strong capital gains, the cost of housing remains substantially lower than any other capital city with a typical house value of $412,340 and a median unit value of just under $320,000.

The Domain State of the Market for September supports this outlook for Hobart saying, “Local confidence and a balanced market suggest that Hobart’s growth will continue moving forward.”

Investors should also note that Hobart’s median weekly asking rent this quarter for houses was $375, a huge 4.2% increase compared to last quarter, and units were $320 per week, with no increase from last quarter

Northern Territory real estate review

A 60% surge in the number of groups at weekend open for inspections is a strong indicator the Darwin real estate market is set to surge.

“Compared to 12 months ago, we have double and even tripled the number of groups at each open home on a Saturday,” said Glenn Grantham, General Manager, Raine & Horne Darwin. “Around 75% of buyers are savvy locals, who have been at our open homes regularly over the last 6 months.

“They recognise that a median house price of $445,000 and rental yields of 6-10% means that there is plenty of value in Darwin real estate right now.”

A local buyer, for example, has snapped up a spacious, well-presented 4-bedroom house with a pool at 15 Hodgson Drive Leanyer for $533,000. “The buyer has secured a great deal for a property that would have been worth significantly more at the peak of the market a few years ago,” Glenn said.

On the supply side, Mr Grantham confirmed there are 1,500 properties for sale in Darwin and Palmerston. “However, we only need 1,000 investors from around Australia looking to take advantage of our real estate affordability and robust yields that are better than anywhere else in Australia,” he said. “If we could grab 300 investors from NSW, 200 each from Victoria and Queensland, and 100 buyers from Perth, Adelaide and Canberra to our market, we’d quickly see listings dry up and values start to head north.

“Just a small percentage of property investors from other capital cities would make a significant difference to the relatively small Darwin real estate market in a short period of time.”

Longer-term the economic outlook for Darwin is promising and should flow through to the city’s property markets. “There is talk of another big oil and gas project on the way, while the ongoing troubles on the Korean Peninsula mean that an additional influx of US troops into the Darwin rental market isn’t out of the question.”

Market Report September 2017

October, 2017 by

NSW real estate review

The latest CoreLogic home value index reports that since values started rising in 2012, the value of the typical Sydney dwelling has risen by 75%

This equates to an approximate dollar value gain of $521,000 on the median dwelling valuation. Consequently, Sydney median dwelling values have climbed to almost $910,000.

At the same time, buyers priced out of Sydney’s property market are set to drive up real estate values in towns such as Bathurst, Wagga Wagga and Tamworth this spring. “The much-hyped growth in Sydney’s median dwelling price – which has risen over 13% in the last 12 months to $909,000 – is driving demand for property in some of NSW’s major regional growth centres,” said Angus Raine, Executive Chairman, Raine & Horne.

“Towns such as Bathurst, Wagga and Tamworth offer real estate prices that are significantly below the Sydney median, while rental returns above 5% compare favourably to those generated by properties in the capital city, he said. “These robust regional cities appeal to owner-occupiers and investors who are prepared to look further afield, because of quality schools and hospitals, employment, diverse economies, and a comfortable way of life.” Click here to read more about the property buying opportunities in regional NSW.

Queensland real estate review

With the beginning of the spring selling season approaching fast, leading property group, Raine & Horne has identified Mackay, Ipswich and Springfield as Queensland property markets to watch.

“There are signs that real estate markets in regional Queensland will enjoy a robust spring selling season with Mackay set to be a stand out,” said Steve Worrad, General Manager, Queensland, Raine & Horne.

“Queensland’s affordability is a major appeal for owner-occupiers and investors with values starting from less than $200,000 in some regional centres. This is significantly less than the stamp duty impost on some properties in Sydney and Melbourne.

“With a median dwelling price of $490,000 and improved vacancy rates, Brisbane will attract more southern state investors too as the selling season clicks into gear.”

Mackay is a maintenance hub for Adani Carmichael mine in Central Queensland and the gateway to primary industries such as sugar cane and ethanol, said Des Besanko, a director of seven Raine & Horne offices in Brisbane and regional Queensland. There are 4 sugar cane mills and many farms, which employ many locals in the Mackay region. Despite the positive longer-term outlook for the Mackay economy, Mr Besanko, a Fellow of the Institute of Public Accountants (IPA), said that some property oversupply needs to be absorbed.  “We’ll get through this absorption phase before transitioning into a growth stage later in the 2017/18 financial year. Consequently, there will be growth of between 2-5% for the Mackay real estate market in the 2017/18 tax year.”

Within the corridor between Goodna and Ipswich, in Queensland’s south-east, there are terrific opportunities for entry-level property buyers over the next year, noted Des. “It’s possible to buy established 3-bedroom homes in the high $200,000s in the Goodna area,” he said.

Springfield, which was built as part of Greater Springfield, Australia’s largest master-planned city, is another suburb worth considering, according to Des.  “The commercial footprint of Springfield is twice the size of the Brisbane CBD,” he noted. You can find more information here about where to find a property hotspot in Queensland this spring.

Western Australia real estate review

The availability of affordable homes south of Perth is the key to the recovery of the city’s property market, according to Craig Abbott, General Manager WA, Raine & Horne.

“There is plenty of news suggesting that Perth’s real estate market is in a rebalancing phase. I think it’s too early to call a market recovery; however, with a number of suburbs recording some of the best value increases in Australia, the signs are good,” said Craig. “There is a tonne of affordable housing in Perth and some of the best rental yields in Australia.” The median value for a Perth dwelling is almost $463,000, according to CoreLogic. This is about half the price of the median dwelling value in Sydney.

Wellard, in the City of Kwinana, is a potential Perth property hotspot, noted Craig. He also nominated Jarrahdale, a small historic town 45 km south-east of Perth, and Byford in the city’s south-east, as locations to watch. “The beauty of these locations is that they offer first home buyers the opportunity to secure 3-bedroom houses for under $500,000,” said Mr Abbott. The median price for a 3-bedroom house is $420,000 in Wellard, and $480,000 in Jarrahdale.

In Perth’s south-east, Byford, with a median house price of $420,000, is red-hot due to its location, improved infrastructure and affordability, according to Paul Curran, Principal of Raine & Horne Rockingham. “Byford now has a new country club, a Coles supermarket, a 7-Eleven, Krispy Kreme, Hungry Jacks and there is an Aldi on the way. This is a sure sign that major retailers believe that Byford is genuinely on the real estate map,” said Paul. “Byford’s proximity to the Perth CBD and south-western WA will also help underpin property values long term. In the short term, we expect Byford to be on the radar of savvy buyers this spring.”

South Australia real estate review

The Adelaide market has remained stable over the past few years, according to the August Month-In-Review report from valuation firm, Herron Todd White.

Investors are generally seeking yields and longer-term capital gains, according to Herron Todd White. There are also investors seeking properties in areas undergoing in-fill development with many holding properties to develop in the medium to long term.

There has been ongoing activity in areas such as Morphett Vale, Campbelltown, Prospect and Windsor Gardens. This appears to be due to investors purchasing newly built group style dwellings.

According to the August CoreLogic Home Value Index, Adelaide house values have grown by 0.2% over the past month and are up 5.2% on this time last year. Adelaide’s median house price is currently sitting at $455,000 and houses on average are delivering total gross returns (growth and income) of 10.2%.

Victoria real estate review

Homes zoned for some of Melbourne’s top performing schools are delivering six-figure dividends for property owners, compared to neighbouring homes outside the catchment.

New REIV data shows the median house price in highly sought after public school catchments are up to $500,000 more expensive than homes that border the zone.

In the year to June 30, the largest price difference was recorded for homes located within the catchment area for South Yarra Primary School. Homes within the zone had a median price of $2 million while homes within a 1- kilometre radius of the school zone had a median of $1,435,000 – a difference of $565,000.

Homes in the Fitzroy Primary School zone also achieved higher prices than those just outside the catchment area. The median house price for homes within the zone was $1.6 million while those bordering the zone fetched $300,000 less.

A difference of $289,000 was evident in Bentleigh East with homes zoned for Valkstone Primary School significantly more expensive than those within one kilometre of the catchment area.

Tasmania real estate review

The Hobart real estate market is gathering momentum, according to the August CoreLogic Home Value Index.

While the trend in capital gains has eased in some of Australia’s larger cities, in Hobart the market has gathered some momentum with the annual pace of capital gains, at 13.6%, which is the highest of any capital city.

“The annual growth rate for Hobart hasn’t been this high since 2004,” said, Tim Lawless, Head of Research at CoreLogic. “The sheer affordability of housing is likely one of the key drivers for Hobart’s values appreciation.” With a median house value of just $403,174, Hobart houses are approximately half the value of Melbourne and almost two thirds lower than Sydney house values.

In addition to robust capital gains, Hobart rental rates have also risen, providing solid yields and pushing average total returns well beyond the other capital cities. Houses are generating gross yields of 5.1% and apartments are generating returns of 5.3%.

Northern Territory real estate review

A recent realestate.com.au report revealed that Darwin’s northern suburbs are a haven of activity with sales and interest “turning a corner” in 2017.

This comes as nine of the top 10 online in-demand Territory suburbs were in Darwin’s northern suburbs, with.

The figures, which came from REA Group’s Property Demand Index for June, showed northern suburbs underdog Nakara was the most in demand suburb, with Anula in second and Wanguri in third. Marlow Lagoon was the only Palmerston suburb to make it in the top 10. Other suburbs in the Top 10 included Jingili, Alawa, Tiwi, Moil, Wulagi and   Wagaman.

Real estate news from Raine & Horne for August 2017

September, 2017 by

NSW real estate review

With apartment prices on Sydney’s Lower North Shore now topping the $1 million mark, Greenwich, remains one of the city’s best kept real estate secrets.

“If you’re seeking long-term growth on the Lower North Shore, then ‘unfashionable Greenwich, with a median apartment price of $760,000 represents great value,” said David Hill, Principal of Raine & Horne Crows Nest. “Moreover, once the new Gore Hill Business Park is completed on the site of the old ABC studios, it’s fair to expect this will create thousands of new jobs, which will necessitate improved public transport for the Greenwich area.

“More jobs and better transport add up to long-term capital growth on par with other Lower North Shore suburbs such as St Leonards, Crows Nest, Naremburn, Wollstonecraft and Waverton.” The median apartment price for Wollstonecraft is $950,000 and $1.1 million in Waverton. In St Leonards, the median apartment price is $910,000 and $935,000 in Naremburn, according to Raine & Horne.

The traditionally cooler July market conditions failed to take the heat out of Inner West real estate. “Vendors still achieved robust results if they were prepared to price their properties sensibly to meet buyer demand, noted Paul Pettenon, Principal Raine & Horne Concord.

Paul said more off-market sales, and slightly fewer numbers at Saturday open for inspections proved dominant trends. “All the same, there are still at least 2 buyers interested in every property, with sought-after houses and apartments selling well,” he said.

Queensland real estate review

The REIQ quarterly rental vacancy rate data for the June quarter has revealed a tightening in inner Brisbane, as well as a tightening through much of regional Queensland, indicating a recovery is on the cards in the state’s flatter markets.

The Brisbane LGA’s vacancy rate fell from 3.7% in the March quarter to 3.3%, moving to a healthy range. Inner Brisbane, which is overwhelmingly dominated by apartments, fell from its all-time high of 4.4% in March to 3.5% in the June quarter.

Elsewhere, the Logan market tightened from 2.8% to 2.2%. Redland eased a sliver, from 2.5% to 2.6%, which underscores its reputation as a healthy investment market.

The Gold Coast (1.7%) and the Sunshine Coast (1.2%) remained tight, while Toowoomba eased slightly, from 2.9% to 3.2%. However, this is still a strong market.

Bundaberg tightened from 4.6% to 3.6%, which is another sign economic fortunes for the coastal town are improving. Gladstone eased slightly from March to June, with the vacancy rate at 6.5%. This is good news because it confirms last quarter’s dramatic tightening from 9.9% in December to 6.4% in March, is a genuine trend.

Mackay improved sharply, dropping from 6.4% in March to 4.5% June on the back of employment growth according to REIQ.

Western Australia real estate review

Perth upgraders have more opportunity in affluent suburbs such as Peppermint Grove, Applecross and North Coogee, according to a report from Real Estate Institute of Western Australia (REIWA).

Peppermint Grove recorded the biggest annual average change in its median house price over the past five years, shifting from $3,750,000 (year to April 2012) to $3,350,000 (year to April 2017).

“Buyers are looking for opportunities in areas with a good lifestyle scene, cafes and restaurants. We are seeing buyers placing more importance on proximity to good public schools,” said Hayden Groves, President of REIWA. “Suburbs such as Applecross, Nedlands and Peppermint Grove are within the catchment for some of Perth’s best public schools. Due to the easing in median house prices of these suburbs, the opportunity is there to secure your ideal family home if you have the means,” said Hayden.

There’s also good news for sellers in Applecross, City Beach, Nedlands and Peppermint Grove, as properties are selling quicker than five years ago.
In 2012, it took on average 120 days to sell a property in Peppermint Grove for instance. Now, average days-on-market for these suburbs is 90 days.

South Australia real estate review

Sales have significantly rebounded across metropolitan Adelaide and regional South Australia in the second quarter of 2017, according to a recent report from Real Estate Institute of SA.

Following the release of the Valuer-General’s median house price data for the 2017, REISA said that sales were up across the entire state with metropolitan Adelaide recording a solid 6.9% increase in sales over the last three months.

“These results indicate that Adelaide continues to be Australia’s steadiest and possibly most reliable real estate market,” said Michael McDonald, General Manager, SA, Raine & Horne. Moreover, the Adelaide median dwelling price is $434,000, which was up 0.1% in the 3 months to 31 July, according to CoreLogic.

In the June Quarter, 4,458 houses settled in the Adelaide metropolitan area, which is significantly up from the previous quarter and almost the same as the June quarter in 2016. Sales across the entire state were significantly better than the previous quarter, and only slightly down against the same quarter last year. “This a great result, given the cooler months are not usually a time when the real estate markets in South Australia shine,” said Michael. “However, with the potential stock that normally comes onto the market before the start of spring, we expect the positive trend for Adelaide house prices to continue.”

Suburbs that have recorded the largest growth over the last 12 months include Gulfview Heights, Kensington Gardens and Sellicks Beach. Clarence Park, Glenunga and Daw Park, are other big movers, noted the REISA research.

Victoria real estate review

Large homes in Melbourne’s middle ring suburbs were standout performers in the June quarter, with the chase for space driving buyers further from the city, according to the latest Real Estate Institute of Victoria data.

Four-bedroom homes in Melbourne’s middle ring outpaced other property types and regions in June, increasing 6.5% to a median of $1,150,000. Reservoir and Mill Park in the city’s north experienced some of the strongest quarterly price growth for this property type, up 8.2 and 7.7% respectively.

Meanwhile, four-bedroom homes in the outer suburb of Keysborough experienced the largest price growth citywide, up 17.1% to a median of $900,000 – an increase of more than $130,000 on March figures.

“There’s no doubt that the Melbourne real estate market is enjoying a purple patch with annual growth currently running at 15.9%, which is easily outperforming Sydney,” said Randolph Clements, Managing Director, Raine & Horne Victoria. “At the epicentre are suburbs within a 6 kilometre radius of the CBD, while demand for family homes in the middle ring suburbs makes plenty of sense too. This housing market appeals to buyers as it is significantly more affordable than inner city suburbs where the median house price is closer to $2 million,” said Randolph. “Moreover, lot sizes for houses are often larger than the inner suburbs, and you won’t be left wanting for infrastructure and amenities, as Melbourne’s middle ring suburbs are every well-established.”

Randolph noted that some regions outside a 15 kilometre radius of the CBD are not as hot as suburbs closer to the city. “There’s a saying ‘The nearer the bone, the sweeter the meat’ and this applies to Melbourne real estate.”

Tasmania real estate review

The Tasmanian property market is on track to exceed last year’s results, with the number of sales in the first half of the year 17.5% stronger than the same period in 2016, according to the REIT.

At the same time, CoreLogic reports that capital values in Hobart are up 6.5% over the past year. Only growth results in Sydney (12.4%), Melbourne (15.9%) and Canberra (12.9%) have been stronger.

Indeed, the REIT says median prices increased across all regions with Launceston up 4.3% in the June Quarter, while values in North West Centres grew by 4.2%.

Northern Territory

Darwin real estate has turned the corner, according to Glenn Grantham, General Manager of Raine & Horne Darwin, with the latest data from the Real Estate Institute of Northern Territory (REINT) showing the market recorded sales growth in the June 2017 quarter.

This is a second quarter in a row of sales growth, which demonstrates that confidence is returning to the Darwin market,” said Glenn.

The REINT’s Northern Territory Real Estate Local Market Report (RELM) Report shows that residential house sales increased across the Greater Darwin region by a healthy 3.9%, which is up by 15.9% compared to last year. In addition, the median house price jumped 1.9% to $540,000 for the quarter.

Inner Darwin led the recovery with a massive jump of 57.1% in sales volumes for the quarter and the Darwin North Coastal region, which saw volumes go up by 6.2%.

The unit results were even better with sales volumes up 16.8% for Greater Darwin, while the median price rose by 9.3% from the previous quarter. Inner Darwin sales led the way with volumes up by 44.8%, with then median up by 17.2%.

Away from the capital, Palmerston house volumes slipped a little in the June quarter dropping by 2.5%, but this is still 23% better than twelve months ago. In Alice Springs, house volumes increased by 18.3% from the March Quarter and 47.9% compared to the same time in 2016.

Market Report: July 2017

July, 2017 by

NSW real estate review

In NSW, auction clearance numbers fell in June, yet buyer demand remains strong and vendor expectations remain predictably high, according to Angus Raine, Executive Chairman, Raine & Horne.

“The revamped first home buyer grant is seeing buyer demand surge in many regional centres,” said Angus. From 1 July, stamp duty on all homes up to $650,000 was abolished, while there’s stamp duty relief for properties up to $800,000. For those first timers building a new home, there’s a $10,000 grant for properties valued up to $600,000. Insurance duty on lenders mortgage insurance was also abolished.

Raine & Horne Bathurst Principal Michelle Mackay welcomed the subsidy changes, saying it would provide a real boost for local first homebuyers. “I think it’s absolutely terrific, it will bring a lot of people into the market,” she said. “It will certainly give first homebuyers a helping hand. “That sort of money goes a long way.” The median house price in Bathurst is $347,500.

In Tamworth, first home buyers are flocking into the market, according to Bryan Bolitho, Principal Raine & Horne Tamworth. “We are finding that the cut to stamp duty means that first home buyers are able to buy a little more with their money,” said Bryan. “We had a young couple, who bought a house in South Tamworth for $370,000. They wanted to build a shed on the property for some of their toys. The stamp duty saving allowed them to buy the property and build the shed.”

Queensland real estate review

The March 2017 quarter has delivered the Brisbane LGA’s first $2 million suburb, as Teneriffe reached a median house price of $2.075 million, according to the REIQ’s March Quarter Queensland Market Monitor.

Additionally a record number of $1 million-plus suburbs as 15 suburbs (including Teneriffe) hit the median milestone, up from 10 suburbs in the December quarter.

House prices annually have grown 4% in the Brisbane LGA, taking the annual median to $650,000. REIQ CEO Antonia Mercorella said the Brisbane house market had once again proven itself to be a solid performer. “This market consistently performs well for property owners, while maintaining its affordable status,” she said.

Outside the capital, the Gold Coast and Sunshine Coast were the two strongest performing markets in Queensland again in the March quarter, outperforming Brisbane (as they did last quarter). “The Gold Coast has benefited from the investment delivered for the 2018 Commonwealth Games and this has significantly improved the infrastructure in the region, transforming it into an international hub,” Ms Mercorella said.

The Sunshine Coast continues to grow and, along with the Gold Coast, these centres formed the top two most popular migration destinations for people moving within Australia in 2016. More than 12,000 people moved to these two coastal destinations (excluding overseas immigration) last year, according to ABS data.

Noosa was the top annual median house performer with an annual growth of 9.2% compared with March 2016. This has positioned Noosa as the second-most expensive house market with an annual median sale price of $615,000.

The housing market in Fraser Coast, Bundaberg and Cairns held steady for the 12 months to March 2017.

Victoria real estate review

Melbourne’s reputation as the auction capital of the world remains intact with a record number of homes going to auction and selling under the hammer in 2017.

REIV data shows more than 17,630 homes were auctioned in Melbourne in the first six months of 2017 – smashing the previous record set in 2014 when 16,654 auctions were held. Of those that went to auction, a record-breaking 13,980 homes sold under the hammer, 7% more than in 2015 when 13,092 sold.

REIV Acting President Richard Simpson said 2017 is shaping up to be the biggest on record with the current 79% clearance rate on par with 2015 and 2010 – both of which were notable years for price growth. “It’s been a remarkable year for the state’s property sector, particularly in Melbourne, with more homes going to auction than ever before,” he said. “Solid price growth has been recorded across the city this year, driven by strong buyer demand and unprecedented population increases.

“This year also marks the first time we’ve seen more than 10,000 auctions held in metropolitan Melbourne in the June quarter.”

Auction volumes and sales were also up statewide with more than 1,400 homes going under the hammer in regional Victoria in the first half of the year – more than 840 of which were in the June quarter.

Western Australia real estate review

A resurgent jobs market in Western Australia is good news for the local property market, according to Craig Abbott, General Manager WA, Raine & Horne.

The latest ABS employment figures show that WA’s unemployment rate fell to 5.5% in May, the second lowest in Australia after New South Wales at 4.8%. “Lower unemployment is sure to impact consumer confidence in Western Australia, which could encourage some people to jump into real estate,” said Mr Abbott.

Underscoring the improving economic news, Western Australia’s Consumer Sentiment Index remained constant in May, at 91.9. “In addition, the ‘Family Finance’, ‘Economic Conditions’ and ‘Time to Buy Major Household Items’ indexes increased above 100 in May,” said Craig. “The Deloitte Access Economics report predicts that economic conditions in Western Australia will stabilise from 2018,” he said. “In combination, these elements will underpin real estate activity.”

Craig is tipping Morley, which is about 8 kilometres north east of Perth, to be a suburb to watch over the next 12 months. “Morley is close to everything and has good schools, and is just one bus ride into the city.”

Moreover, with a median house price of $515,000, Morley is affordable for entry- level buyers and upgraders. The suburb has good turnover, while price discounting is down, which means current values are realistic, noted Craig.

South Australia real estate review

Adelaide flies under the radar screen of most real estate investors, according to the Money Magazine real estate guide.

But according to Money, Adelaide markets have been busy in the past couple of years and some pockets have delivered good price growth. “There is also solid infrastructure spending especially on major road links around the Adelaide metropolitan area. There are prospects for improved economic performance from defence projects, energy developments and a revival in the resources sector.”

At the same time, while Adelaide’s median dwelling price is an affordable $440,000, is it growing at a steady annual pace of around 2.4%. As a result, Adelaide still offers many properties around $500,000, according to valuation firm Herron Todd White. “Popular areas that offer properties around $500,000 include suburbs such as Pasadena, Hope Valley and Croydon Park.”

Tasmania real estate review

Hobart continues to perform strongly, recording the highest growth of any capital city in June.

The Tasmanian capital produced growth of 2.8%, faster than Melbourne with 2.7% and Canberra with 2.6% growth in June, according to the latest CoreLogic Home Value Index.

Kingston is reported to be Tasmania’s fastest growing region, according to valuation firm, Herron Todd White, and is a 25 minute commute to Hobart via the southern outlet. It is a self-contained satellite centre with major and local shopping centres, public and private schools and recreational facilities.

Recent sales in Kingston indicate that purchasers with $500,000 to spend could expect to buy an older style home with a living area ranging from 120 to 160 square metres. If you can push the budget closer to $600,000 you could purchase a modern, 200 square metre home on a 900 square metre block.

For those wanting to be in Central Launceston residential homes can still be purchased for around $500,000 however such homes tend to be on the periphery, require renovation and are often in very steep locations.

Northern Territory

Raine & Horne has recorded a staggering 75% more sales in Darwin in June, than the same time in 2016.

“A large number of sellers are investors, which could suggest end-of- financial year tax planning might have accounted for some of the early June sales, however many of the properties that sold were on the market for some time,” said Glenn Grantham, General Manager, Raine & Horne Darwin. “To get these properties moving, we introduced the vendors to the reality of the Darwin market place, which for many agents can be a difficult conversation to have with owners. However, the proof of our direct approach is in the pudding, as our early June sales results demonstrate.”

Three of the properties sold by Raine & Horne Darwin in the first week of June were located in the Palmerston area. “Palmerston is a competitive market with plenty of properties for sale. It’s a price driven market, with entry-level properties available from the low $300,000s,” said Glenn. For example, a 2-bedroom villa at 8/14 Duwun Road, Roseberry went to the market for offers above $315,000. At this price, it went immediately under contract.

“These pricing levels didn’t exist at the start of 2017 but at this price point, this villa found a buyer very fast,” he said. “The sweet selling spot for entry level homes in Palmerston is between $300,000 and $450,000 and $400,000 – $600,000 in the popular northern suburbs of Darwin.”

Market Report: June 2017

July, 2017 by

NSW Real Estate Overview

Low interest rates make winter a good time to sell in Sydney. After rollicking along for the best part of 5 years, the NSW real estate market recorded a dip in property exchanges and settlements in April, according to data from Raine & Horne.

However, it’s far from a doom and gloom scenario, with the sales statistics counterbalanced by robust Sydney real estate values. The median dwelling price in the NSW capital is up by than 11% over the past year, according to CoreLogic. “Also our offices reported a surge in buyer enquiry with auction numbers, as a result of the premiums currently being achieved,” said Angus Raine, Executive Chairman, Raine & Horne. “This result underlines that taking a property to auction is still the preferred method of sale for many vendors.”

Often vendors choose not to list their homes for sale in the colder months, a scenario reflected by a 15% fall in appraisals in April compared to the same time in 2016.  “However, with interest rates expected to remain unchanged over the next quarter, we are anticipating relatively robust buyer demand throughout winter,” said Angus. “It’s for this reason, if you’ve decided to move house, a winter sale in Sydney will prove a worthwhile exercise for owners.”

In other news, NSW first home buyers will save more many thousands of dollars on a property purchase due to new concessions set to take effect on July 1. In May, the NSW Government announced that all first home buyers would be exempted from paying stamp duty on properties up to $650,000. The new stamp duty exemption will apply to both new homes and existing properties and is designed to help first-time buyers compete with property investors.

The announcement will prove a boon for home buyers outside of Sydney, Raine & Horne Bathurst Principal Michelle Mackay told the Western Advocate. “It’s absolutely terrific, it will bring a lot of people into the market,” she said. “It will certainly give first homebuyers a helping hand.”

Queensland Real Estate Overview

Inner Brisbane suburbs offer affordability and the prospect of growth. Traditional near-city Brisbane suburbs are the best for long-term growth, according to valuation firm, Herron Todd White.

Camp Hill is a case in point. Camp Hill, Coorparoo and surrounding suburbs are being serviced by newly minted Raine & Horne Coorparoo led by Principal Mark Evans. “Camp Hill and surrounding suburbs are very desirable as they offer affordability while still being close to the city,” said Mark. The median house price in Camp Hill is $791,000 and $560,000 for apartments. Camp Hill is only 6 kilometres south east of the Brisbane CBD.

The Gold Coast market is continuing to rumble along, said Raine & Horne. “Well-positioned and highly sought after locations such as Main Beach, Surfers Paradise and Broadbeach are very popular with buyers,” said Angus Raine, Executive Chairman, Raine & Horne.

Victoria Real Estate Overview

Hot auctions warm the winter market While temperatures cooled across the city, Melbourne’s auction market remained hot, with a record number of homes selling under the hammer this autumn.

Real Estate Institute of Victoria (REIV) data showed that more than 9,160 homes sold at auction from 1 March to 31 May – a 7.6% increase on the previous record set in autumn 2015 when 8,517 homes sold. REIV President Joseph Walton said Melbourne’s top performing auction suburbs this autumn were predominantly located in the city’s north.

Reservoir and Craigieburn, which are serviced by Raine & Horne Roxburgh Park, experienced the strongest auction results this autumn with 138 and 116 sales respectively. “Despite these suburbs occupying vastly different price points in the market, both recorded autumn clearance rates of more than 84%, signalling ongoing buyer demand in these areas,” said Joseph.

More than 100 homes also sold under the hammer in Mount Waverley and Glen Waverley, followed by Epping (97), Kew (89) and Preston (89).

In outer Melbourne, Werribee recorded the highest growth in auction sales with 52 homes selling under the hammer this autumn, up from just five for the same period last year.

Western Australia Real Estate Overview

Is Perth property the answer for eastern state millennials? With Swiss investment bank UBS attempting to scare the life out of first home buyers in Sydney with its claim that it’ll take them 40 years to save for a property, Raine & Horne is offering a more straightforward solution.

Paul Curran, Principal of Raine & Horne Rockingham Beach told real estate publication Smart Property Investment that first home buyers on the east coast of Australia could potentially solve their housing affordability issues by purchasing Perth investment property.

“The trouble is that the median house price in Sydney is around $1 million and around $830,000 in Melbourne. In contrast, the median price in my patch of Rockingham is just $425,000,” said Paul. “Therefore, buying an investment property in Perth could be a good strategy for young Sydney and Melbourne millennials wrestling to buy into the real estate market.”

Paul added that owning an investment in one state may not necessarily bar first home buyers from available grants for buying a first home in another state. “For example, if you buy an investment property in Perth, this won’t affect your eligibility for the first home owners grant in Queensland,” he said.

South Australia Real Estate Overview

Steady as she goes for Adelaide real estate. The Adelaide property market has experienced a small lift in values over the past few couple of months, according to Michael McDonald, General Manager, Raine & Horne SA.

With buyer demand continuing to react positively to market strength, the Adelaide market has recorded steady capital growth of 2.2% in the 12 months to the end of April 2017. This reflects a 2.0% year-on-year increase in the number of settled dwelling sales, despite some so-called experts citing a bleak future for Adelaide.

The negativity has been driven by the Holden plant closure and other economic challenges for the state. However, commentators have failed to see the raft of capital investments across South Australia made by the government and private sectors, said Michael.

“Despite the focus of the state’s economy, Adelaide’s property market has been doing a good job of ensuring that demand meets supply,” he noted. “South Australia remains very affordable for buyers, whether they are first home buyers, novice investors or experienced professionals.” The median house price in Adelaide is $460,000 and $365,000 for apartments, according to CoreLogic.

Michael nominates Christies Beach and Port Noarlunga in Adelaide’s south as suburbs to watch. “They are showing very obvious signs of improvement with new developments and enhancements happening at a very good rate,” he said.

Adelaide rentals have remained relatively consistent over the past year, which will continue to catch the attention of yield-focused investors. “With the Reserve Bank expected to leave rates on hold for the remainder of the year, this should result in continued steady growth for the South Australian market,” said Michael.

Tasmania Real Estate Overview

Affordability set to lure mainland investors. Housing affordability in Tasmania improved in the March 2017 quarter, according to the latest Adelaide Bank/REIA Report, with the proportion of income required to meet home loan repayments decreasing to 23.6%

This represents a decrease of 0.6 percentage points over the March quarter and a decrease of 0.7 percentage points compared to the March quarter 2016. It helps that Tasmania is Australia’s most affordable state. The median house price in Hobart, for example, is $381,000 and the median for home units is $311,500, according to the latest statistics from CoreLogic. In comparison, the median house price in Sydney is more than a $1 million.

While Tasmania’s real estate affordability is good news for first home buyers, it is set to attract mainland investors, noted the latest Month-In-Review report from valuer, Herron Todd White. “Investors do seem to be on the increase and there is a strong possibility investors will dominate the market, especially with the increase in property prices throughout mainland Australia, which could drive investors to Tasmania.”

Northern Territory Real Estate Overview

The Northern Territory’s generous first home owner subsidies are influencing more aspiring buyers to take a first step onto the property ladder in Darwin, according to Raine & Horne.

“Around 25% of the sales of established properties in Darwin involve first home buyers, while about 90% of land sales in some developments are to first timers,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

A first home buyer who is building, or buying, a new home in the Northern Territory is eligible for a $26,000 first home owner’s grant. In addition, there is $2,000 first timers can use to buy household goods. There is up to $23,000 in stamp duty relief for first home buyers purchasing an established home valued up to $650,000. “The first home buyer segment is the most active part of the marketplace because of Darwin’s combination of real estate affordability and substantial government subsidies,” said Glenn.

Raine & Horne Darwin is currently marketing blocks of land in Zuccoli, an outer suburb of Palmerston from $149,000 as part of Stages 2A and 2C of the Zuccoli Aspire development. “Stage 2A is due for practical completion early in the 3rd quarter of 2017, and we have just 6 sites left for sale from the original 80 blocks,” said Glenn. “We’re not releasing Stage 2B until later in 2017, and we have only 32 in Stage 2C left for sale with first home buyers leading the charge.

Surging first home buyer numbers is having a knock-on effect for Darwin real estate. “The March 2017 Quarter recorded stronger property sales volumes than the corresponding period 12 months before,” said Glenn. “The strength of Darwin’s entry-level market has enabled quality properties in desirable upgrader suburbs to the north of the city such as Leanyer, Tiwi and Alawa to maintain their values.”

Market Report: May 2017

May, 2017 by

NSW Real Estate Overview

The latest report from CoreLogic says the average dwelling price in Sydney has climbed by 16% over the past year to $860,000.

That said, the latest Herron Todd White Westpac Residential Report revealed there are still suburbs in Sydney offering reasonable entry prices with good capital growth prospects. For example, suburbs close to rail links are always popular among Inner West buyers, according to Herron Todd White. The valuation firm says that good choices for those on a tight budget are 1- or 2-bedroom units dating from the 1960s and 1970s. These types of property can be found in Dulwich Hill (median unit price $716,000) and Ashfield (median unit price $661,000), which also have high tenant demand due to their transport options and affordability.

In Western Sydney, Herron Todd White recommends the outskirts of the south-west growth corridor as suitable. They include Leppington, Oran Park and the recently released Austral. Three-bedroom house and land packages in Austral are priced from $615,000, while in the more established (though still new) suburb of Oran Park, the median house price is $690,000 – well below the Sydney-wide median of $860,000, according to the valuation firm.

However, prices in Western Sydney are unlikely to remain this low in these areas for long, Peter Diamantidis, Sales Manager, Raine & Horne St Marys recently told the Sydney Morning Herald. “We are finding more owner occupiers [and] first-home buyers now moving into these areas compared to 12 months ago which is now getting close on exceeding $500,000,” he said. Peter recently broke a suburb record in Sydney’s cheapest suburb, Willmot, with a $592,000 sale at the end of 2016. The same home last sold for $385,000 in 2014.

Queensland Real Estate Overview

With affordability a major issue in the southern capitals, the Raine & Horne Group is reporting that regional towns in Queensland are starting to enjoy a surge in real estate activity.

“Apart from the great lifestyle on offer, regional Queensland towns such as Bundaberg offer excellent affordability,” said Steve Worrad, General Manager, Queensland, Raine & Horne. “In Bundaberg and north to Gladstone, it’s possible to buy entry-level houses for under $200,000, which can generate gross yields above 5% for investors.”

Smaller acreages located between central Bundaberg and the coast are proving to be the region’s most active real estate market, according to Josh Rub, Principal of Raine & Horne Bundaberg. “Properties between 1-3 acres with 3-4 bedrooms are proving highly desirable with local upgraders, especially given they are selling for between $340,000-$450,000,” said Josh. “The sweet spot for this market is properties located halfway between Bargara on the coast and the town centre. Bargara is 15 minutes from the centre of Bundaberg.

In Gladstone, a combination of shorter days on market for homes for sale and rental are a sure-fire sign local real estate values are set to bounce, according to Mark Patton, Principal, Raine & Horne Gladstone. “We’ve seen that days on market for both private treaty sales and rental vacancy rates have fallen by as much as 15% since the start of the year,” said Mark. “There is also evidence of investors from outside the region snapping up properties valued around $150,000, especially with vacancy rates falling significantly.”

Western Australia Real Estate Overview

The recent sale at auction of a 4-bedroom family home in Baldivis, south of Perth, for a price above the reserve, is one of several strong signs the local real estate market is starting to lift.

“The auction attracted 4 registered bidders and up to 90 interested parties,” said Patrick Holmes of Raine & Horne Rockingham Beach, who sold the property with his colleague Louise Dickenson. “Six months ago, we would have only about 10 people at an auction in Baldivis.”

In another encouraging sign for the Perth property market, the auction result followed 7 vacant land sales in one week in mid-April, which was the highest weekly number of land sales in more than a year. Eleven houses were also sold during the week. “There is life in the market, which is an indication that people are discovering that Baldivis is one of Perth’s best-kept secrets,” said Louise. “It’s about 40 minutes from Perth by car, it has a railway station, and values are still very affordable, with a median house price of $445,000 compared to Perth’s overall median dwelling price of $475,000.”

Victoria Real Estate Overview

The $4 billion investment in regional Victoria – including $1.45 billion for regional rail services announced in the recent Victorian budget, will increase buyer demand for homes across the state, according to the Real Estate Institute of Victoria (REIV).

“Greater road and rail infrastructure will not only improve the desirability of regional Victoria, but will also result in higher property prices in these areas in the long-term,” said REIV Chief Executive Officer Gil King. “We’re already seeing strong price growth in towns within commuting distance of Melbourne, especially in Geelong where the median house price is now $701,000.”

In addition, the Victorian Government will invest almost $2 billion in the state’s roads, which includes $700 million over four years to upgrade the M80 Ring Road and $300 million to build the Mordialloc Bypass. A further $879.5 million will be invested in public transport for metropolitan Melbourne with eight additional train services on the Werribee line and new bus services in a number of outer suburbs, according to REIV.

“Improved transport services in Melbourne’s outer suburbs will drive continued buyer interest in these suburbs, which have experienced strong price growth in the past two quarters,” said Gil. “With estimated population growth of around 100,000 people each year, infrastructure investment in these new growth areas is essential.” According to the latest data from CoreLogic, the Melbourne real estate market is growing at 15.3% year-on-year.

Northern Territory Real Estate Overview

With property values starting to improve, astute empty nesters in Darwin are realising that now is the perfect time to downgrade from a redundant family home into a modern apartment, according to Glenn Grantham, General Manager of Raine & Horne Darwin.

“Some Darwin retirees have recognised the challenges faced by empty nesters in the southern states, where spiralling real estate values and charges such as stamp duty make it difficult to downsize from larger properties into more appropriate housing,” said Glenn. “With these southern state lessons in mind, Darwin locals have recognised that in terms of paying lower fees, charges and taxes, it’s generally better to sell and buy in a less robust market, which we have now.”

Retirees living in larger properties in Darwin’s desirable northern suburbs are starting to enquire about downsizing to apartments in the CBD, according to Glenn. “One retiree has decided to move to take advantage of lower apartment prices in the Darwin CBD,” he said. “The empty-nester is confident that by downsizing into the city now, she’ll pay a more realistic price of around $750,000 for a 3-bedroom apartment, as well as lower transactional charges such as stamp duty.”

South Australia Real Estate Overview

The median dwelling price in Adelaide continues to grow, with the latest from CoreLogic indicating it hit $430,000 in April.

At the same time, the Real Estate Institute of South Australia (REISA) revealed recently that the suburbs which have seen the largest growth over a 12 month period were Largs Bay, Malvern and Vale Park. Other big movers included Prospect, North Plympton and Belair.

Top selling suburbs in terms of recorded sales over the March quarter were the perennial Number 1 Morphett Vale, Paralowie and Aldinga Beach. Other performing suburbs included Hallett Cove, Mawson Lakes and Parafield Gardens.

“Morphett Vale and Paralowie will always be sterling performers because they are affordable, have terrific infrastructure and offer prime opportunities for development,” said Alex Ouwens, President of REISA. “Location is also key, and that is why the suburbs close to the beach will always be winners as they offer lifestyle and recreational choices for those wishing to downsize, undertake a sea change or be closer to nature.”

Tasmania Real Estate Overview

Tasmanian real estate is enjoying a purple patch with the Real Estate Institute of Tasmania (REIT) March Quarterly results confirming that over the first 3 months of 2017 the market has continued to strengthen and recorded its highest number of sales since 2004.

Over the period 2,886 sales amounting to $955,721,525 occurred, which is up 296% on the same time last year, according to REIT. Launceston outperformed all other regions recording 440 sales, an increase of 34.6% over last year. Hobart sales increased 20.2% and the North West by 20.9%.

Launceston was the only region to record a decrease in median sale price a result by a large number of transactions at the mid to lower end of the market.

Significant movement in unit/townhouse sales was also a highlight of the quarter that recorded its highest number of transactions (385 sales) for many years. Unit/townhouse transactions were up 27% in Hobart, 22% in Launceston and 4% on the North West Coast.

Twenty five sales were recorded during the period for properties priced above $1 million. 23 of these were in Hobart and 2 in Launceston. Meanwhile, Tasmania’s rental market continues to offer strong investment returns on the back of high demand and historically low vacancy rates. Investor activity grew by 50% over the same time last year, according to REIT.

Head of CoreLogic Research Tim Lawless said that based on the rolling quarterly change in dwelling values, Hobart is Australia’s strongest housing market, where home values have risen 5.1% over the past three months. Hobart’s housing market has staged a solid improvement over the past two years and is now the third best performing capital city on an annual basis, with dwelling values moving almost 14% higher over the past twelve months alone.

Market Report: April 2017

April, 2017 by

NSW Real Estate Overview

The Sydney real estate market continues to motor along, recording annualised growth of 18.9%, according to the latest CoreLogic Hedonic Home Value Index.

While CoreLogic attributes the pace of growth in Sydney to low interest rates and a rebound in investor activity, James Pratt, Director of Auctions, Raine & Horne, says low listing levels remain a factor. “There are fewer homes for sale in Sydney than this time last year, and this is fuelling strong auction clearance rates,” said James. “The strength of demand for property is also illustrated by the large numbers of properties that are selling prior to auction.” About 25% of properties in Sydney’s Inner West are selling before auction day. Moreover, about 40% of properties slated to sell under the hammer in Sydney’s northern and eastern suburbs are selling prior.

Meanwhile, the Illawarra region continued to deliver the highest value growth for property owners, according to the latest CoreLogic Regional Report for the quarter to December. Over the March quarter, CoreLogic research confirmed, Illawarra recorded the largest annual increase in values for both houses (15.2%) and units (14.8%). The state’s Central West is another region to watch. Raine & Horne Bathurst director Michelle Mackay told the Western Advocate that Bathurst’s affordability compared to places like Sydney is drawing attention to the regional centre and helping it to become a hot spot. “I think it is the amount of work that is available and how affordable houses are,” she said. “The median house price is about $360,000 and units are around $285,000.”

Queensland Real Estate Overview

Regional Queensland’s property affordability, high-yielding returns and low vacancy rates mean it’s time for investors from Sydney and Melbourne to sit up and take notice.

“March was very challenging for Queenslanders in the wake of Cyclone Debbie but taking a longer-term view, regional centres in the state represent excellent value for investors,” said Steve Worrad, General Manager, Queensland, Raine & Horne. “places like Nanango have quality rental properties as low as $145,000, which is a fraction of the price of a Sydney or Melbourne apartment. Many regional markets have low vacancy rates and properties delivering returns of 7-8%.

“The biggest problem for these regional centres is that the great investment opportunity remains a secret to Australia’s biggest audience of investors in NSW and Victoria.”

Steve urges investors to consider buying into regional Queensland towns with strong, diversified economies that provide plenty of job opportunities.

Western Australia Real Estate Overview

In a strong signal that Perth real estate is starting to rebound, research from the Real Estate Institute of WA (REIWA) shows that some suburban markets in the city are selling faster than during the heady days of the boom in 2013 and 2014.

In southern Perth, Rossmoyne experienced the biggest improvement in average selling days, with REIWA data revealing it is now 22 days quicker to sell in the area than it was in the year to January 2014. “Churchlands, Glen Forrest and Dalkeith are also experiencing faster selling times, with each suburb improving by 15 days in the year to January 2017 compared to the year to January 2014,” said REIWA President Hayden Groves.

Interestingly, eight of the 10 suburbs on the list have an annual median house price (for the year to January 2017) above $750,000, with four of those above the $1 million mark.

“These results show the quickest sales are happening in the suburbs that predominantly cater to the trade-up sector of the residential property market. Buyers looking to take the next step in their property journey clearly recognise there is good opportunity in the current market to take advantage of more affordable house prices to upgrade to a new home,” said Hayden.

Victoria Real Estate Overview

Real Estate Institute of Victoria (REIV) President Joseph Walton said the 2017 auction market is one of the strongest in recent years, with volumes up 13% on the same period last year. 

“Multiple auction records fell in February when more than 3,200 homes went to auction and close to 2,570 sold under the hammer,” he said. “High auction volumes have continued throughout March with the current clearance rate of 79% signalling ongoing buyer and vendor confidence.”

Mr Walton added that the solid start to the year followed the strongest December in the state’s history – in terms of both auction volumes and sales.

“The 2016 auction market remained buoyant right up until Christmas eve with low interest rates and high clearance rates encouraging more vendors to sell their homes well after the traditional spring selling season.”

Northern Territory Real Estate Overview

Demand for Darwin rental properties is booming, with leading property specialist Raine & Horne Darwin finalising leases on more than 60 properties in February. 

“This result follows the 60 properties we leased to tenants in January,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

“Consequently, rental yields for Darwin houses have improved and are currently 5.1%, which is the highest in Australia. The Darwin apartment market is also starting to pick up some pace.”

The Darwin rental market is still above the 2% vacancy rate sweet spot achieved a few years ago, with vacancies running at more than 7%.

“That said, the vacancy rate for properties managed by Raine & Horne Darwin is only 4%, which is well below the city’s average,” said Glenn. “Investors need to be sensible about presentation and pricing to ensure a vacant investment property is tenanted as quickly as possible. It seems our landlords are listening.”

Rental days-on-market have fallen to an average of about 32 days in Darwin, according to Glenn. “Vacancies are headed in the right direction, which is a good sign. However, it means investors shouldn’t be complacent about pricing and presentation,” said Glenn.

For first home buyers seeking to exit the rental treadmill, Raine & Horne Darwin recently held the launch of the Zuccoli Aspire display village. “There are 22 homes in the village, making it the biggest display ever in the Northern Territory,” said Glenn.

South Australia Real Estate Overview

In Adelaide, demand for character homes near the CBD is pushing up prices in suburbs such as Goodwood, Unley and Millswood, according to Herron Todd White’s Month in Review April 2017.

As a result, neighbouring city-fringe suburbs are heating up as home buyers widen their search. Clarence Gardens and the nearby suburbs of Cumberland Park and Daw Park are particularly attractive to buyers, as they are only about 8 kilometres from the CBD, and offer good transport and shopping. Detached homes are in short supply in these city-fringe suburbs, especially in Clarence Gardens, and if that situation continues, prices are likely to start heading higher, says Herron Todd White.

Across the Adelaide market generally, buyers continue to have their sights set on detached housing in the $500,000 to $800,000 range. In areas where in-fill development is under way, owner-occupiers are competing for properties with developers.

Turning to regional South Australia, in Mount Gambier, the unit market has seen a significant increase in activity. Sales volumes have been rising in the past 2 years, with almost double the amount of sales in 2016 than in 2014. Herron Todd White foresees that the higher-than-average level of interest in units is likely to continue, thanks to low interest rates and good yields for investors.

Mount Gambier agents have also reported increasing confidence in the house market in the past 9-10 months. According to RP Data figures, the greatest activity in the past 12 months has been in the $200,000 to $250,000 price range, with investors seeing gross rental returns of 6-7%.

Tasmania Real Estate Overview

Hobart has been the fastest-growing capital-city real estate market in Australia for three months in a row, according to CoreLogic RP Data’s Home Values Index.

In the quarter ending March 31, houses and units in Hobart both rose in value by 5.6%. Zooming out to look at the past 12 months, Hobart’s property market is up 10.2% compared to this time last year, Tim Lawless, RP Data’s head of research.

Tim told realestate.com.au that the strong performance can be attributed at least in part to the city’s affordability. Hobart’s median price of $355,000 is $84,000 less than the next most affordable capital, Adelaide, where the median is $439,000. And Hobart clocks in at less than half the median price of the most expensive state capital, Sydney, which sits at $805,000.

The RP DATA figures show that Hobart and Darwin share the honours of having the nation’s strongest rental markets, with a gross rental yield of 5% for houses and 5.6% for units. “This high-yield profile is very attractive for investors. Hobart also has a real ‘lifestyle’ appeal about it,” Tim said.

Market Report March 2017

March, 2017 by

NSW Real Estate Overview

The latest CoreLogic Hedonic Home Value Index indicated that Sydney’s current housing growth cycle is into its 58th month. Since dwelling values started to rise in June 2012, the city’s average dwelling values have increased by 74.9%.

Sydney has remained at the top of the capital gain tables over the past two cycles. Since the beginning of 2009, Sydney dwelling values have more than doubled, rising by 104.5% compared to Melbourne where values are 87.7% higher. The next best performing capital city over the same period was Canberra where dwelling values have risen by a comparatively modest 37.4%.

CoreLogic Head of Research Tim Lawless, “The strong growth conditions across Sydney have provided a substantial wealth boost for home owners.”

On the rental front, REA Group’s Property Demand Index found that the Northern Beaches and Sutherland Shire suburbs continue to be popular with renters, with beaches, lifestyle and greater affordability the key drivers.

Interestingly suburbs on the New South Wales/Queensland border also featured strongly, because of their links to the popular Gold Coast.

A list anomaly in terms of geography is Wetherill Park, which is 34 kilometres west of the Sydney CBD. Other favoured rental suburbs in New South Wales are close to the coast. That said, Wetherill Park is home to a major shopping centre and offers good rental affordability.

Queensland Real Estate Overview

With the Brisbane property marketing beginning to turnover, Anthony Steinberg, Principal of Raine & Horne Mermaid said that the Gold Coast real estate market has returned to pre-Global Financial Crisis levels.

“In Mermaid Beach and surrounding suburbs, we saw significant price value falls in 2008 and 2009, however, it’s becoming increasingly difficult to find an entry level home in the area under $700,000.”

“Over the past few years, values have risen incrementally by 4-5% annually thanks to the economic impact of infrastructure developments supporting the 2018 Commonwealth Games, along with changes to local council planning regulations and fees, which have made it easier for developers to construct a residential building.

“In 2010, there wasn’t a crane in the sky, and now the Gold Coast skyline is littered with up to 30 cranes on any given day. Cranes are a great indicator of the health of the Gold Coast economy.” Given the strong buyer interest in Gold Coast property, Mr Steinberg is tipping price growth of 5-10% in 2017.

Central Queenslanders are starting to breathe a sigh of relief after Queensland’s latest coal mine proposal, the Olive Downs project near Moranbah, moves a step closer to approval, according to a report in CQ News.

Managing Director of Raine & Horne Mackay and Raine & Horne Moranbah Des Besanko said that Moranbah real estate had already experienced the ripple effects of increased activity in the mining sector. “Leading into the end of the last calendar year we saw a bit of activity, this announcement will increase that activity again,” he said.

Des said he could see a correlation between houses selling and increased coal prices, noting that mine job openings were already bringing more people to the area. “Moranbah is very affordable now. Given how cheap houses are, workers are choosing to relocate and have family close by instead of living away from them,” he said.

Western Australia real estate overview

Sales activity in the Perth metropolitan area increased in February, with reiwa.com data showing volumes were up 8% compared to January.

REIWA President Hayden Groves said it was pleasing to see activity collecting speed. “It’s good to see buyers returning to the market after the festive season. For anyone thinking of trading up to a new home, buying their first home or purchasing an investment, 2017 is the year to take advantage of favourable conditions..,” said Hayden.

Indeed, the latest Adelaide Bank/REIA Housing Affordability Report showed that first home buyers in WA are making a move. According to the report, the number of first timers in Western Australia increased to 3,809 in the December quarter, an increase of 1.3%. Of all Australian first home buyers over the quarter, 16.4% were from Western Australia while the proportion of first home buyers in the state’s owner-occupier market was 21.0%.

In February, Canning Vale was Perth’s bestselling area for house sales, followed by Duncraig and then Ellenbrook. Baldivis, Willetton, Ballajura, Hamilton Hill and Thornlie also enjoyed strong sales.

Victorian real estate report

Stamp duty will be abolished for first home buyers purchasing properties valued below $600,000, a move the Victorian Government is claiming will help thousands into a first home.

Those buying a home valued between $600,000 and $750,000 will also be eligible for a concession, applied on a sliding scale. The exemption and concession will apply to both new and established homes, in a move that is expected to help 25,000 Victorians find their first home.

At the same time, a Vacant Residential Property Tax will address the number of properties being left empty across inner and middle suburbs of Melbourne. Under the changes, owners who unreasonably leave these properties vacant will instead be encouraged to make them available for either purchase or rent.

The Vacant Residential Property Tax will be levied at 1%, multiplied by the capital improved value of the taxable property. For example, if the property has a capital improved value of $500,000, the amount paid will be $5,000. There will be several exemptions, recognising there are some legitimate reasons for a property being left vacant, including holiday homes, deceased estates and homes owned by Victorians who are temporarily overseas.

Northern Territory real estate report

After two consecutive quarters of strong sales activity, Darwin prices are set to head north, according to Glenn Grantham, General Manager, Raine & Horne Darwin.

“There was a bounce in buyer activity in the second half of 2016, which is contributing to a boost in the prices of quality, well-located properties in Darwin’s northern suburbs,” said Glenn. “Desirable houses in Jingili, Karama and Anula, are attracting 30-40 groups to open homes, with many selling within 3 weeks of reaching the market.

“Historically when values in the northern suburbs improve, this creates a ripple effect that eventually flows south to Palmerston,” he said.

Glenn said that while values in Darwin’s north will rise in the medium term, vendors with properties in the city and the south must be patient. “Regardless of where you live, to cash-in on current market activity, a property must be well-presented and priced sensibly to sell,” he said.

Other hurdles to a swift sale might include rental properties with long-term tenants, which are not realising competitive yields. “A Darwin property generating a gross yield of less than 4% will be harder to shift in the shorter-term,” said Glenn. “The bottom line is that properties with a few flies on them will be more difficult to sell now. However, when the momentum picks up across Darwin, they’ll wash through the market too.”

South Australian real estate report

Adelaide’s northern suburbs are offering rental returns of more than 5%, which are proving popular with investors nationally, according to a recent media report.

Andrew Harvey, Principal of Raine and Horne Salisbury told news.com.au that he estimates some 35% of his buyer inquiries come from people seeking investment properties. “We get a good mix (of investors) from around Australia — the north has a name,” he said.

The median unit sale price Adelaide’s outer northern Salisbury and Playford council areas are $249,950 and $145,000 respectively, while in neighbouring Tea Tree Gully it is $265,000.

Andrew warns against anything too bargain basement if you want good and steady tenants. “Look for family homes more so than the low-end properties,” he told news.com.au. “Even though the low-end properties have a better rent ratio, they also have higher vacancy rates and higher rates of default and possible damage too.”

Tasmanian Report

Hobart continues to hold onto the mantle as Australia’s most affordable capital city in the country, new data reveals.

The latest CoreLogic Home Value Index showed Hobart had a median dwelling price of $374,000, despite it producing capital growth a tick under 6% for the three months to the end of February. Incidentally, this result made Hobart the fastest growing capital city real estate market, ahead of Melbourne (5.5%) and Sydney (4.5%). The next most affordable Australian capital city is Adelaide, with a median price of $435,000.

The CoreLogic report confirmed Hobart continues to have the highest rental yields for units (6%). For houses in Hobart, the median gross rental yield is 5.0%, which is behind Darwin, which is generating yields of 5.1%.

Market Report: February 2017

February, 2017 by

NSW Real Estate Overview

Figures from SQM Research revealed that during the 12 months to the start of February, residential housing prices in Sydney increased by 11.5% to $1,249,900 with units growing by 8.5% to $698,300.

In comparison, Melbourne’s house price jumped by 11.4% to $803,200, and unit prices rose 6.7% to $475,700. Moreover, with strong buyer demand and a lack of stock, many Raine & Horne agents are expecting Sydney’s real estate values will continue to soar.

In Sydney’s inner city, Raine & Horne City Living’s Matthew Mifsud told realestate.com.au he expected to see growth rates in the inner city of around the 7 to 10% mark for the first half of 2017.

Meanwhile, Terry Brandtman, Principal of Raine & Horne Randwick, says the housing sales market is very tight in the eastern suburbs. “The market is strong with entry level units selling for $800,000,” said Terry. “It’s the proximity of this region to the CBD and the beaches that make Randwick, Clovelly and Coogee perennial favourites with owner-occupiers and investors.”

Peter Diamantidis, Sales Manager, Raine and Horne St Marys said most properties in his region were selling in less than two weeks. Raine & Horne St Mary’s services the corridor between St Marys and the Blue Mountains in Sydney’s west. “Therefore, stock levels are significantly below the highs of 2009 when there were around 130 on the market at any one time,” said Peter. “Buyers want to move in to this area for its schools, shopping centres and proximity to several major road thoroughfares such as the as the M4 and the Greater Western Highway. The impending opening of the new airport at Badgerys Creek is a major attraction for shrewd investors with a long-term outlook.”

Queensland Real Estate Overview

With the autumn selling season imminent, Steve Worrad, General Manager, Queensland, Raine & Horne believes the outlook is very positive for the state’s real estate markets.

“Brisbane dwelling prices have started 2017 in positive territory,” said Steve, who nominates the Gold Coast and Carindale, which is 8 kilometres from Brisbane, as patches to watch in 2017. “Ipswich is another area to monitor, where it’s possible to buy houses for under $370,000.”

Interstate downsizers are also making their presence felt. “We are seeing more retirees who have sold up in Sydney and Melbourne. They can buy in South East Queensland and have plenty of money left over for a decent retirement lifestyle.

Another regional town to watch in 2017 is Mackay. “Vacancy rates have fallen to single figures, which savvy investors looking for affordable assets and decent returns will duly note.” According to Raine & Horne, the median house price in Mackay is $265,000 with median weekly rents of $275.

Western Australia real estate overview

First home buyers continued to be active in the Perth property market in the December quarter 2016, according to the latest data from the Real Estate Institute of WA (REIWA).

In the traditional first home buyer market, house sale transactions below $500,000 were up 12% compared to the September quarter, lifting from 49% of total house sale transactions to 55%. Similarly, in the unit market, activity below $500,000 increased from 65% of total transactions to 71%.

“Unlike markets on the east coast, WA is still very much the ‘land of opportunity’ for first home buyers, with plenty of affordable housing options available to help prospective buyers take the leap into home ownership,” REIWA President Hayden Groves said.

In more good news for homeowners, stock levels in the Perth metropolitan area fell 2% in the December quarter compared to the September quarter, with 13,886 properties listed for sale. This figure is also down 3% compared to the same time in 2015. “The decline in listings over the quarter can be attributed to a 6% in the number of properties listed for sale in the $360,000 to $500,000 price range,” Hayden said.

It was five days quicker on average to sell a home in Perth the December quarter 2016 than it was in the September quarter 2016, down from 67 in the September quarter to 62 days in the 3 months to December.

At the same time the Western Australian Government has increased the First Home Owners Grant for those building or buying new properties from $10,000 to $15,000 in 2017. The government has relaxed the eligibility criteria for the low deposit Keystart home loans too, in a further boost for first timers seeking a new home in Perth.

Victorian real estate report

CoreLogic Home Value Index results released in early February confirmed Melbourne’s dwelling values posted a 0.8% rise in the first month of 2017.

Over the rolling quarter, the Victorian capital produced a strong growth result of 2.4% in the three months to 31 January. Over the last 12 months, Melbourne dwelling values increased by 11.8%, with only Sydney producing a higher rate of annual growth.

Inner city suburbs such as Port Melbourne, St Kilda, South Yarra, Richmond, Carlton and Fitzroy are worth watching, according to the latest Month In Review report from valuer, Herron Todd White.

Northern Territory real estate report

After two challenging years for the real estate market in Darwin, the number of buyers has increased threefold in the first month of 2017, according to Raine & Horne Darwin.

“We hosted an average of 4.5 groups at every open home in January. We were lucky to attract an average of 1.5 groups over the last two years,” said Glenn Grantham, General Manager, Raine & Horne Darwin. “More significantly, increased enquiries are converting to sales, with one of our agents, Adam Gulliford, selling 4 properties in the first two weeks of 2017,” said Glenn.

Adam’s sales include a unit at 2/2 Coronation Drive, Stuart Park, which is under contract. This property was marketed for offers over $425,000, according to Glenn.

Raine & Horne Darwin sold a 3-bedroom home at 5 Kapok Court, Karama, for a price significantly above the advertised price of $399,000. “This property hit the market on Tuesday, 17 January, and sold 3 days later.”

“Moving up a level, we sold a modern 5-bedroom home at 194 Hutchison Road, Herbert, valued above $700,000. This property sold well above price expectations,” said Glenn.

Typically, investors from the southern states underpin improved real estate market conditions in Darwin. However, most properties are currently being secured by Territorians rather than New South Welshmen, Queenslanders or Victorians, commented Glenn.

South Australian real estate report

Inner city and suburban fringe suburbs are expected to be Adelaide real estate hot spots in 2017, according to Michael McDonald, General Manager SA, Raine & Horne.

“Inner city suburbs such as Norwood, Beulah Park and Unley on the southern tip of the CBD, which are traditionally high performers, are likely to enjoy decent capital growth this year above 5%,” said Michael. “We also expect that homes priced below $500,000 located on Adelaide’s metropolitan fringes, where first and second time buyers dominate, will enjoy decent liquidity and growth in 2017.”

Already the Adelaide market has produced some gains in 2017 due to a combination of a stronger economic outlook for the city, lower interest rates, its reputation for producing consistent capital growth and competitive yields. “With many new developments and infrastructure projects in progress, people have put behind the closures in the manufacturing sector that dominated headlines over the past few years and are recognising that Adelaide real estate is affordable and capable of producing decent income returns,” said Michael.

Tasmanian Report

Some economic commentators are forecasting increased growth in the property market throughout the greater Hobart and Launceston regions, according the latest Month In Review released by Herron Todd White (HTW) in early February.

Hobart has the tightest vacancy rates in the country, noted the valuation firm, as well as a more controlled housing supply pipeline and increased migration and tourism. These factors have Hobart on track to be Australia’s best performing capital city property market in 2017, said HTW. In fact, Hobart started the year with the largest month-on-month gains of +1.4%, edging out Sydney (+1.0%) and Melbourne (+0.8%), according to the CoreLogic Home Value Index.

A shortage of stock is a key theme in Hobart, and this is driving shorter selling periods and higher sale prices, advised Herron Todd White. As such the valuation firm is tipping that 2017 is the year “we see an increase in properties going to auction due to many properties having multiple offers only a few days after being listed.”

Market Report: December 2016

December, 2016 by

NSW Real Estate Overview

The Sydney real estate market enjoyed growth of 2.3% during the 2016 spring selling season, according to the latest CoreLogic November Hedonic Home Value Index.

Moreover, the Emerald City enjoyed the highest annual growth rate of all Australia’s capital cities, with 13.1%. CoreLogic attributes this result to a steeper upwards trajectory in growth over the second half of the year. While real estate markets in Sydney’s eastern suburbs and north shore recorded strong sales statistics, other regions to enjoy a strong spring included the North West, Inner West and South East.

The NSW Government’s Priority Growth Centre initiative drove demand for developments at Schofields, Riverstone and Marsden Park, according to Arvind Pillay, Principal, Raine & Horne Quakers Hill.

Buyers enthusiastically snapped up Inner West properties throughout the entire 12 weeks of spring, according to Paul Pettenon, Principal of Raine & Horne Concord. “In the last weekend of November, for example, auction clearance rates reached almost 90% in the Inner West, which easily trounced the Sydney average of 79%,” said Paul. However, compared to November 2015, the number of properties for sale was down by 10%. Fuelling the demand-and-supply dilemma, some owners tried to secure a next home before selling an existing asset, said Paul.

Maroubra, Coogee and Malabar enjoyed an excellent November, after a slow start to the spring market, according to Paul Spanoudakis, Principal of Raine & Horne Maroubra. “The later start to the traditional season means we expect to be selling properties right up until Christmas,” he said.

Queensland Real Estate Overview

With real estate in Brisbane slowly gaining speed, it’s was the suburbs of central Gold Coast s that have largely performed as expected during 2016, according to the latest Herron Todd White Month in Review.

Demand for established housing under $1 million was strong, while most suburbs located close to the centre of the holiday Mecca enjoyed capital growth. On the supply side, a lack of stock in some suburbs may be pushing buyers into paying premium prices for properties on the Gold Coast, which is excellent news for current owners.

To Brisbane’s north and the $70 million Knauf plasterboard factory that will reportedly generate 600 jobs for Bundaberg started in 2016 declared Herron Todd White. The Innes Park North and Bargara South beach front residential development is still in the pipeline and should stimulate interest in Bundaberg, which offers excellent real estate affordability.

Western Australia real estate overview

A new set of three interlocking one-bedroom apartments on a 250-square-metre block in Perth is expected to hit the market in March 2017, according to a report in Which Investment Property.

The apartments, located in the new WGV precinct at White Gum Valley in Perth’s southern suburbs, are likely to sell at around $400,000. The aim of the project is to change the way smaller lots are used for multiple homes. The apartments will have a shared outdoor living and green space. “The Gen Y Demonstration Housing Project offers an innovative and unique housing option designed for 21st century living,” LandCorp CEO Frank Marra said.

Targeting the project at young buyers has shaped the demands of the development, which has been designed to reduce running costs by showcasing best-practice design in sustainability and energy efficiency. Craig Abbott, General Manager WA, Raine & Horne, said this is a very interesting development. “White Gum Valley isn’t on the train line but it is close to Fremantle, which is very trendy and popular with Gen Y buyers,” said Craig. “They can take advantage of Fremantle’s restaurants and cafes even if their budgets don’t extend to buying real estate in the port city.

“The lesson from this development is that if housing is designed with a market segment in mind, and are priced correctly to sell, they will find buyers as the Gen Y Demonstration Housing Project is demonstrating.”

Victorian real estate report

The Property Council is urging the State Government to adopt the key recommendations of Infrastructure Victoria’s 30 Year Strategy to lock in the state’s long term success.

Property Council Victorian Executive Director Sally Capp said this is a once in a generation opportunity to objectively plan Victoria’s long term infrastructure needs. “The Property Council’s submission to Infrastructure Victoria supported the three key recommendations of increasing population density, transport network pricing and delivering housing for Victoria’s most vulnerable,” said Sally.

“Transport congestion costs Victorians $4.6 billion per year and its impact is worsening. The side effects of congestion, pollution, and lost productivity are all undermining Victoria’s liveability. It is critical that the State Government take decisive action in this area to maintain our State’s long term prosperity.”

Meanwhile, real estate prices in Victoria kept ticking along with CoreLogic reporting the city’s housing values grew by 11.3% over the 12 months to November 2016.

Northern Territory real estate report

For the first time since February 2015, Darwin’s annual growth rate has moved back into the black and recorded a 1.1% rise in dwelling values over the past year, according to CoreLogic’s November Hedonic Home Value Index.

Tim Lawless, National Research Manager at CoreLogic notes that results for smaller cities such as Darwin, can tend to show higher levels of volatility. He said, “The November results also show a rise in transaction numbers across the Darwin market over recent months, supporting the moderate improvement in market conditions that the hedonic index is showing.”

To demonstrate the Darwin market’s return to form, Raine & Horne Darwin, has amalgamated the rent roll of a major competitor with its existing property management business. The merger has increased the firm’s portfolio by 30%. “We now have 1,500 property managements, which makes us one of the biggest players in Darwin’s property management sector,” said Glenn Grantham, General Manager, Raine & Horne Darwin. “The merger decision was taken after the usual business due diligence was completed, but also recognises that southern state investors are returning to the Darwin real estate market. A national brand such as Raine & Horne is very familiar to investors from Sydney, Melbourne and Brisbane.”

South Australian real estate report

Leading personal finance magazine, Money has nominated Adelaide as a hot spot to watch in 2017.

After a rough period, which includes the announcements of the closures of several vehicle manufacturing plants, including General Motors, Ford and Mitsubishi, Adelaide real estate has begun to flourish with prices up almost 5% to $420,000 for the year to November 2016, according to CoreLogic. Money Magazine says the abolition of commercial stamp duty and the extension on concessions for off-the-plan apartments have combined to drive up prices in the South Australian capital.

Also, underpinning price growth is the fact that there is a continuing issue of limited stock in many suburbs in Adelaide, says valuation firm, Herron Todd White, particularly close to the CBD and the city fringe.

Tasmanian Report

A joint study by Aussie Home Loans and CoreLogic shows that homes in Tasmania are still Australia’s most affordable.

Australia’s three most affordable suburbs are Zeehan with a median house price of $87,662, followed by Queenstown with a median of $90,200. In third place is Rosebery that has a median house price of $91,310.

The towns have plenty in common. They are all located between 100 and 150 kilometres from the nearest capital city, they show little in the way of economic diversity, with local industries generally being dominated by agriculture, mining or tourism, according to the report. To illustrate, Zeehan is 139 kilometres from Burnie, while Queenstown is 154 kilometres from the port city. Roseberry is 109 kilometres from Burnie.

Chief Executive Officer of Aussie, James Symond said, “It is not surprising that the most affordable housing markets with the lowest dwelling values and lowest mortgages are in regions where jobs are scarce, land is plentiful and buyer demand is generally low.

“However, they are in regions rich in history, with close knit communities and low prices offering housing opportunities with price tags and mortgages similar to a deposit required on a house in the large capital cities”, he added.

The Hobart market has also recorded some acceleration in growth rate trends in 2016, with dwelling values up 8.5% in the 12 months to November. Glenorchy and Claremont, approximately ten and fifteen kilometres north-west of Hobart respectively have been strong performers throughout 2016 with most residential sales coming from the $250,000 to $325,000 price range.

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