National Media Release

RP Data-Rismark June Hedonic Home Value Index Results
Released: Thursday, August 1 2013
Further information contact: 07 3114 9879 or media@rpdata.com

Housing values continue to move higher in July
Capital city dwelling values rose a further 1.6 per cent in July taking the cumulative recovery in residential home values to 6.5 per cent since the market bottomed out in May last year.
RP Data and Rismark International today released its Index results as at July 31, 2013 July housing market results which shows that capital Change in dwelling values Month Quarter YoY city dwelling values increased by 1.6 per cent over the Region 2.0% 3.7% 6.5% month of July after posting a solid 1.9 per cent capital Sydney Melbourne 2.3% 2.4% 4.3% gain in June. These latest monthly results now takes Brisbane 0.1% -0.7% 0.8% -1.5% -3.1% 1.1% the cumulative recovery to 6.5 per cent since dwelling Adelaide Perth 1.6% 4.4% 8.3% values found their trough at the end of May last year. Hobart 0.9% 2.0% -0.4% The July results also take the rolling quarterly change in capital city dwelling values to +2.3 per cent over the three months ending July and values are 4.9 per cent higher over the past twelve months. According to RP Data research director Tim Lawless, despite the strong headline, the market remains somewhat of a mixed bag. “The housing market is being buoyed by very positive conditions in Sydney, Perth and to a lesser extent Melbourne, with residential values in these cities now 3.7 per cent, 4.4 per cent and 2.4 per cent respectively higher over the past three months alone. At the other end of the scale you have cities like Adelaide, Brisbane and more recently Darwin where conditions are more sedate with dwelling values slipping lower over the past quarter.” “By including rental yields in our assessment of the housing market, some clarity is provided as to why investors are becoming so active,” Mr Lawless said. “The RP Data-Rismark Accumulation Index, which factors in both capital gains and gross rental yields, is up 9.4 per cent over the past year. As noted by RBA Governor Glenn Stevens earlier this week, with an easing in monetary policy one of the expected and intended effects will be that people start to shift their portfolios away from the less risky assets such as cash and in the direction of holding equities and physical assets such as property. According to Rismark CEO Ben Skilbeck an increase in investor activity is highlighted when examining lending commitments data. “While overall outstanding credit to housing only grew 4.4% over the year to May 2013, the dollar value of lending commitments to investors in the month were 24% higher than in May 2012. For owner-occupiers, the May 2013 lending commitments year-on-year increase was 11%.”
Media enquiries contact: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@rpdata.com

Total gross returns
11.2% 8.2% 5.8% 5.7% 13.3% 4.9% 8.0% 9.1% 9.4%

Median dwelling price
$570,000 $492,000 $429,000 $382,000 $494,600 $305,000 $490,000 $500,000 $488,000 $325,000

Darwin Canberra 8 capital city aggregate Rest of state*

2.0% 2.5% 1.6% -0.3%

-0.9% 1.4% 2.3% -1.5%

1.7% 4.1% 4.9% 0.5%

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

Highlights over the quarter
Best performing capital city: Perth +4.4 per cent Weakest performing capital city: Adelaide, -3.1 per cent Highest rental yields: Darwin houses with gross rental yield of 6.2 per cent and Darwin Units at 6.0 per cent Lowest rental yields: Melbourne houses with gross rental yield of 3.6 per cent and Melbourne units at 4.4 per cent Most expensive city: Sydney with a median dwelling price of $570,000 Most affordable city: Hobart with a median dwelling price of $305,000

Recovery in dwelling values from respective market trough

Rolling annual and quarterly change in capital city dwelling values

www.rpdata.com/indices

National Media Release (Cont’d)
The most significant total gross returns were recorded in Perth with the accumulation index up 13.3 per cent over the year. Sydney trailed slightly with a total gross return of 11.2 per cent over the past year. Total returns are now the lowest in Hobart at just 4.9 per cent over the past year. Each of the vendor metrics published by RP Data and Rismark International has continued to strengthen over the month. According to Mr Lawless, a typical capital city dwelling is selling in just 45 days compared with 59 days at the same time a year ago. Vendors are discounting their prices less and clearance rates remain close to 80 per cent in Sydney and slightly lower in Melbourne.” “With the housing market once again showing solid capital gains and rents also rising, the issue of housing affordability is likely to begin attracting more attention. “The recent housing market correction which bottomed in May 2012, where values were down 7.4 per cent from peak to trough across the combined capital cities, together with mortgage rates moving to historically low levels, delivered substantial affordability improvements for Australian housing. However, with Sydney, Perth and Canberra values now back at record high levels and some other capital cities not far off their previous peaks, there are likely to be a growing number of households who find it challenging to enter the housing market,” Mr Lawless said Mr Skilbeck added, “While the highly anticipated interest rate cuts in August will further act to improve housing affordability, if these cuts do eventuate they will likely spur further house price appreciation making the deposit requirements for first home buyers more challenging.” The RP Data Rismark results also show that after some time in the doldrums, the more expensive upper quartile of the market is continuing to underperform the other broader priced segments of the housing market. According to Mr Skilbeck, for the 12 months ended July 2013, the mid-market achieved 1.4 times the growth of the upper quartile. “While the mid-market has largely recovered its peak to trough declines, the upper market still needs to add about 4% before it can claim the same,” he said.

Media enquiries contact: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@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 attributes data collected from a variety of sources. For detailed methodological information please visit www.rpdata.com

Media enquiries contact: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@rpdata.com

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 July 2013 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

2.0% 3.7% 6.7% 6.5% 11.2% $570,000

2.3% 2.4% 4.4% 4.3% 8.2% $492,000

0.0% -0.3% 0.7% 1.2% 6.2% $425,000

-1.5% -3.1% -0.8% 1.1% 5.7% $382,000

1.6% 4.4% 6.1% 8.3% 13.3% $494,600

1.5% 2.3% 4.5% 4.9% 9.4% $486,000

0.9% 2.0% 4.8% -0.4% 4.9% $305,000

2.0% -0.9% 1.6% 1.7% 8.0% $490,000

2.5% 1.4% 4.7% 4.1% 9.1% $500,000

0.1% -0.7% 0.5% 0.8% 5.8% $429,000

1.6% 2.3% 4.6% 4.9% 9.4% $488,000

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

2.3% 3.9% 7.2% 7.3% 11.9% $645,000

2.5% 2.5% 4.5% 4.4% 8.3% $530,000

0.1% -0.3% 0.7% 1.4% 6.3% $460,000

-1.4% -2.8% -0.6% 1.7% 6.2% $395,000

1.6% 4.6% 6.4% 8.8% 13.8% $510,000

1.7% 2.4% 4.7% 5.3% 9.8% $513,777

0.9% 2.9% 5.3% 0.0% 5.4% $315,300

1.7% -1.8% 2.5% 0.7% 6.9% $520,000

2.8% 1.5% 5.2% 4.5% 9.4% $555,000

0.1% -0.3% 0.6% 1.0% 5.8% $450,000

1.7% 2.5% 4.8% 5.2% 9.7% $513,000

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

0.7% 2.8% 4.8% 3.2% 8.4% $500,000

1.1% 1.2% 4.0% 3.1% 7.8% $435,000

-0.7% -0.4% 0.8% -0.1% 5.4% $353,000

-2.8% -6.2% -2.5% -5.0% -0.3% $332,500

1.9% 1.6% 2.7% 1.6% 6.8% $415,000

0.6% 1.5% 3.7% 2.3% 7.4% $435,000

0.5% -7.0% 0.3% -4.7% 0.2% $270,000

3.7% 3.0% -1.9% 6.0% 12.7% $457,500

-1.6% -0.2% -1.6% -0.8% 4.9% $409,975

-0.5% -3.5% -0.7% -0.3% 5.4% $373,500

0.6% 1.3% 3.5% 2.3% 7.4% $440,000

Table 1D: Rental Yield Results Houses Units

4.1% 4.9%

3.6% 4.4%

4.8% 5.4%

4.4% 5.0%

4.4% 5.0%

4.1% 4.8%

5.2% 5.2%

6.2% 6.0%

4.4% 5.5%

4.8% 5.7%

4.1% 4.9%

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: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@rpdata.com

Media enquiries contact: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices

About RP Data
RP Data is 100 per cent owned by CoreLogic which is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. Today, CoreLogic has more than 6,000 employees globally with 2012 revenues of $1.6 billion and is listed on the NYSE. At RP Data, we continually collect, manage and process property-based data and imagery from over 300 sources across Australia including government agencies, media partners and industry professionals. RP Data is the biggest provider of property information, analytics and risk management services in Australia and New Zealand with a database of 210 million property records. RP Data serves customers ranging from real estate agents and consumers to banks, mortgage brokers, financial planners and governments. We understand that data is most useful when it’s presented as relevant and actionable analytics. Our data provides customers with insights that realise more market opportunities, while simultaneously growing businesses and managing risk. Our results speak for themselves; we’re helping over 100,000 end users including approximately 45,000 real estate agents win more business by providing Australia’s most trusted prelistings comparative market appraisal (CMA) report, as well as industry standard tools that promote transparency and confidence when buying and selling property. In addition, 1 million consumers use RP Data to make important decisions about property they are about to hold, sell or purchase. Our Mortgage Platforms cover more than 90 per cent of the mortgage lending activity in Australia. We estimate the value of every residential property in Australia each week via our automated valuation models which support our industry leading RP Data Rismark Daily Home Value Index. On average, we issue over 30 million automated valuation assessments every month. We’re Australia’s leading source for mobile property information too – with over 500,000 mobile devices accessing our services each month. Using public and proprietary data, we bring insight and transparency to the Australian property market. We employ 330 people at ten locations in Australia and New Zealand and our revenue for 2012 was over $70 million.

About 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 by-product of its quantitative research activities, Rismark has developed the technology and intellectual property underlying the market-leading RP Data-Rismark hedonic property price indices and related automated property valuation models (AVMs), amongst other things. For more information visit www.rismark.com.au.

Media enquiries contact: Mitch Koper , RP Data national communications manager – 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices

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