National Media Release

RP Data-Rismark March Hedonic Daily Home Value Index Results

Released: Monday 2 April, 2012 (Embargo: 10:00am EST)
Further information contact: Rismark Ben Skilbeck 0403 138 172 or rpdata.com 1300 734 318

National housing market stabilises in first quarter of 2012

Capital city home values were up 0.2% over the month of March 2012 leaving the market flat (0.0%) for the first quarter of 2012.
Australias housing market is showing signs of stabilising after home values rose 0.2 per cent in March. Not only has the market remained unchanged for the quarter ending 31 March 2012, it is also level with the 31 November 2011 home values across the combined capital cities. The flat result over the quarter is the strongest result since March 2011 when values increased by 0.7 per cent. RP Datas research director, Tim Lawless points out that while the quarterly result was an improvement on recent quarters, the Sydney housing market has been the primary growth driver. Looking at the quarterly results on a more granular basis, the improved conditions over the March quarter can largely be attributed to the performance of Australias largest housing market, Sydney, where values rose 1.1 per cent over the quarter. Values were down across many of the other capital cities over the quarter with the most significant drop recorded in Adelaide where dwelling values were down 1.5 per cent, Mr Lawless said. According to the managing director of Rismark International, Ben Skilbeck, While the housing market remains soft, the zero per cent change over the first quarter of 2012 demonstrates that it is consolidating its position following the decline seen in calendar year 2011. This month it was the resource rich states which delivered the strongest gains with Perth, Darwin and Brisbane up 1.4 per cent, 1.1 per cent and 0.8 per cent respectively. Over the twelve months ending March 31, capital city home values are down 4.4 per cent with the largest falls being recorded in Hobart (-7.3 per cent), Brisbane (-6.1 per cent), Adelaide (-5.7 per cent) and Melbourne (-5.4 per cent). Despite the fall in Melbourne home values they are still up 45.5 per cent since the start of 2007. At the other end of the spectrum, Canberra continues to show the most resilience with values down just -0.3 per cent over the year. According to Mr Skilbeck there are a number of factors pointing towards an improvement in housing market conditions over recent months. Index results as at March 31, 2012
Region Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra 8 Capital city aggregate Rest of state Change in dwelling Month Quarter 0.4% 1.1% -0.2% -0.8% 0.8% -0.4% -1.4% -1.5% 1.4% -0.7% 1.4% 7.3% 1.1% 3.9% -0.3% 0.0% 0.2% 0.0% -0.2% -0.8% values YoY -3.2% -5.4% -6.1% -5.7% -3.5% -7.3% -3.9% -0.3% -4.4% -2.5% Total gross returns 1.1% -2.0% -1.8% -1.6% 0.5% -2.4% 1.7% 4.5% -0.4% na Median dwelling price $525,000 $465,000 $400,000 $370,000 $445,000 $340,000 $470,000 $529,975 $445,000 $324,450

* Rest of state change in values are for houses only to end of February

Highlights over the quarter

Best performing capital city: Hobart +7.3 per cent over the three
months to 31 March 2012

Weakest performing capital city: Adelaide, -1.5 per cent over the
three months to 31 March 2012

Highest rental yields: Darwin houses with gross rental yield of 5.7 per
cent and Darwin Units at 5.9 per cent

Lowest rental yields: Melbourne with gross rental yields of 3.6 per cent
for houses and 4.3 per cent for units

Year on year change in dwelling values

0.0% -1.0%
-2.0%

-0.3%
-2.5%

-3.0% -4.0% -5.0% -6.0%

-7.0%

-3.9% -5.7%
-5.4%

-3.5%

-3.2%
-4.4%

-6.1% -7.3%
Hobart

-8.0%
Brisbane Adelaide Melbourne Darwin Perth Sydney Canberra Combined 8 capitals Rest of state

Source: RP DataRismark * Rest of state data based on results for houses to end of February

Rolling annual and quarterly change, Combined 8 capital cities

25%
20%

15% 10%
5%

0% -5% Rolling quarterly change

-10% Mar 97

Rolling annual change Mar 03 Mar 06 Mar 09 Mar 12

Mar 00

Source: RP DataRismark

Media enquiries: Rismark International: Ben Skilbeck 0403 138 172 / rpdata.com 1300 734 318

www.rpdata.com/indices

National Media Release Contd

The ratio of national house prices to household disposable incomes is currently below the decade average. Additionally, according to the ABS housing finance data, both the value and number of loan approvals for the purchase of established dwelling are at levels not seen since November 2009. First home buyers as a proportion of all home loans approved are back to levels not seen for 2 years, Mr Skilbeck said. Yields are also showing modest improvements. According to Mr Skilbeck, rental yields for houses across the combined capital cities have moved from just 3.6 per cent eighteen months ago to 4.1 per cent and gross yields on unit dwellings have improved from a recent low of 4.4 per cent to 4.8 per cent. The most significant rental yield improvements have been recorded in Darwin, Perth and Brisbane where yields have increased by 22 per cent, 21 per cent and 18 per cent respectively from their recent lows. Other market metrics are also showing some improvement. The number of properties available for sale is continuing to moderate from the historic highs which peaked late last year and auction clearance rates have been holding above 50 per cent for most of 2012, Mr Lawless said. Additionally, we have recently seen the Reserve Bank reporting that the rate of mortgage arrears has fallen from a peak of 0.7 per cent to 0.6 per cent, a default rate which is comparably low by international standards. The latest Financial Stability Review from the RBA also highlighted that most mortgage holders are paying down more of their mortgage debt than they are contractually obliged to, a sure sign that Australians are coping with their mortgage debt, Mr Lawless said.

Media enquiries contact: Rismark: Ben Skilbeck, Managing Director on 0403 138 172 bs@rismark.com.au RP Data: 1300 734 318 research@rpdata.com Introduction to the RP Data-Rismark Daily Hedonic Home Value Index methodology: The RP Data-Rismark Hedonic Home Value Index is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property comprising the index into its various formational and locational attributes, differing observed sales values for each property can be separated into those associated with varying attributes and those resulting from changes in the underlying residential property market. Also, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the stock of residential property comprising an index can be accurately tracked through time. RP Data owns and maintains Australia's largest property related database in Australia which includes transaction data for every home sale within every state and territory. RP Data augments this data with recent sales advice from real estate industry professionals, listings information and attribute data collected from a variety of sources. For detailed methodological information please visit www.rpdata.com

Media enquiries: Rismark International: Ben Skilbeck 0403 138 172 / rpdata.com 1300 734 318

www.rpdata.com/indices

Table 1: RP Data-Rismark Daily Home Value Index Results (Actual Results)

Brisbane Melbourne Gold Coast Australia 5 Capitals (ASX) Australia Brisbane 8 Capitals

Capital Growth to 31 March 2012 Table 1A: All Dwellings Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

Sydney

Adelaide

Perth

Hobart

Darwin

Canberra

0.4% 1.1% 1.1% -3.2% 1.1% $525,000

-0.2% -0.8% -0.8% -5.4% -2.0% $465,000

0.4% -0.6% -0.6% -6.6% -2.2% $403,000

-1.4% -1.5% -1.5% -5.7% -1.6% $370,000

1.4% -0.7% -0.7% -3.5% 0.5% $445,000

0.2% -0.1% -0.1% -4.6% -0.6% $440,000

1.4% 7.3% 7.3% -7.3% -2.4% $340,000

1.1% 3.9% 3.9% -3.9% 1.7% $470,000

-0.3% 0.0% 0.0% -0.3% 4.5% $529,975

0.8% -0.4% -0.4% -6.1% -1.8% $400,000

0.2% 0.0% 0.0% -4.4% -0.4% $445,000

Table 1B: Houses Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

0.2% 1.2% 1.2% -3.5% 0.6% $572,000

-0.3% -1.0% -1.0% -5.8% -2.4% $495,000

0.5% -0.5% -0.5% -7.0% -2.7% $425,000

-1.8% -1.9% -1.9% -5.8% -1.8% $385,000

1.4% -0.7% -0.7% -3.2% 0.8% $455,000

0.1% -0.2% -0.2% -4.9% -1.0% $459,000

1.5% 6.5% 6.5% -8.5% -3.6% $350,000

1.6% 4.3% 4.3% -3.4% 2.3% $520,000

-0.6% 0.0% 0.0% -0.2% 4.6% $572,500

0.8% -0.3% -0.3% -6.6% -2.3% $415,000

0.1% -0.1% -0.1% -4.7% -0.8% $464,500

Table 1C: Units Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

1.0% 0.7% 0.7% -1.6% 3.4% $470,000

0.3% 1.4% 1.4% -3.0% 1.1% $420,000

-0.3% -1.7% -1.7% -3.4% 1.7% $352,578

3.1% 2.6% 2.6% -3.6% 1.0% $310,000

1.8% 0.1% 0.1% -7.2% -2.9% $384,000

0.8% 0.6% 0.6% -2.6% 2.1% $400,000

0.6% 15.4% 15.4% 5.6% 11.2% $275,000

-1.3% 2.5% 2.5% -6.2% -0.8% $378,500

2.9% 0.4% 0.4% -1.5% 4.2% $417,500

0.7% -1.2% -1.2% -2.3% 3.0% $357,430

0.9% 0.9% 0.9% -2.5% 2.2% $400,000

Table 1D: Rental Yield Results Houses Units

4.3% 5.0%

3.6% 4.3%

4.6% 5.2%

4.4% 4.7%

4.2% 4.8%

4.1% 4.8%

5.2% 5.0%

5.7% 5.9%

4.8% 5.7%

4.6% 5.4%

4.1% 4.8%

The indices in grey shading have been designed for trading environments in partnership with the Australian Securities Exchange (www.asx.com.au). Indices under blue shading (Hobart, Darwin, Canberra, Brisbane and the 8 capital city aggregate) are calculated under the same methodology however are not currently planned to be part of the trading environment. *The median price is the middle price of all settled sales over the three months to the end of the final month. Median prices are provided as an indicator of what price a typical home sold for over the most recent quarter. The median price has no direct relationship with the RP Data-Rismark Hedonic Index value. The change in the Index value over time reflects the underlying capital growth rates generated by residential property in the relevant region. The RP Data-Rismark Hedonic Index growth rates are not ordinarily influenced by capital expenditure on homes, compositional changes in the types of properties being transacted, or variations in the type and quality of new homes manufactured over time. The RP Data-Rismark index values are not, therefore, the same as the median price sold during a given period. See the methodology below for further details. Methodology: The RP Data-Rismark Hedonic Home Value Index is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property comprising the index into its various formational and locational attributes, differing observed sales values for each property can be separated into those associated with varying attributes and those resulting from changes in the underlying residential property market. Also, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the stock of residential property comprising an index can be accurately tracked through time. RP Data owns and maintains Australia's largest property related database in Australia which includes transaction data for every home sale within every state and territory. RP Data augments this data with recent sales advice from real estate industry professionals, listings information and attribute data collected from a variety of sources. For detailed methodological information please visit www.rpdata.com

For more information on the RP Data-Rismark Indices, please go to http://www.rpdata.com Media enquiries contact: Rismark: Ben Skilbeck, Managing Director on 0403-138-172 bs@rismark.com.au RP Data: 1300 734 318 research@rpdata.com
RP Data RP Data is the number one provider of property information, analytics and risk management services in Australia and New Zealand, 100% owned by CoreLogic CLX the worlds largest data and analytics provider. Through its expansive database, it attracts a strong and loyal customer base ranging from real estate agents, finance and banking organisations, government and consumers. RP Data combines public, contributory and propriety data to develop predictive decision-making analytics, coupled with its business services that bring insight and transparency to property markets. Backed by 30years of history, RP Data is the holder of the countrys largest residential and commercial property database; this provides an excellent platform to electronically value very property in Australia on a weekly basis - on average 30 million valuations are generated each month. Recognised as a leader and an established player in the mortgage industry, RP Data continues to work with the Australian Finance and lending community to minimise risk and deliver value to consumers. Rismark International Rismark International ("Rismark") is a funds management and quantitative research business. It is dedicated to the development of intellectual property required to facilitate the creation of financial markets over the residential real estate asset class. Rismark also has a long history of advising Australian and overseas governments on the development of innovative economic policies as they relate to housing and financial markets. As a byproduct of its quantitative research activities, Rismark has developed the technology and intellectual property underlying the market-leading RP DataRismark hedonic property price indices and related automated property valuation models (AVMs), amongst other things. For more information visit www.rismark.com.au.
Media enquiries: Rismark International: Ben Skilbeck 0403 138 172 / rpdata.com 1300 734 318

www.rpdata.com/indices