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Property Market Update

OTH Capital City and National Overview


Data for the period ending April 30, 2015

Property Market Update


National Overview

The Westpac Melbourne Institute Index of Consumer Sentiment rose by 6.4% in May, from 96.2 in April to 102.4 in May.
This is the first time since February that the Index has been above 100, which is the point where optimists outnumber pessimists,
and it is at its highest level since January last year.
The two driving forces behind the boost in the Index have been the Federal Budget and the latest RBA interest rate cut, both
delivered in May.
It is also encouraging to see that the Westpac Melbourne Institute Unemployment Expectations Index fell by 5.8%, to 147.3. A
lower reading indicates more confidence around the economic outlook.
Confidence in housing has recovered somewhat, with the Index Whether now is a good time to purchase a dwelling increased
by 5.0%. The last interest rate cut would have been a key factor here, however the Index is still 9.4% below its level in February
following the previous rate cut.
The print on the Westpac Melbourne Institute Index of House Price Expectations fell by 3.2%.It is now only 3% above its level
from a year ago. This seems to be consistent with the somewhat cautious sentiment emerging in some housing markets.
Overall, the most likely scenario is for an extended period of steady rates whilst recognising that conditions in the labour market
remain fragile and this latest boost to confidence will need to be sustained.
Property market performance was again lead by growth in Sydney market, where house values increased by 15.09% in the year
to April, and unit values increased by 12.19%. Median Values are now $945,000 and $628,500 for houses and units respectively.
Despite interest rate cuts, unaffordability continues to deteriorate in Sydney and Melbourne. Rate cuts have spurred further
growth in these markets, and it now takes almost 60% and 45% of after tax income to make loan repayments on the median
house in Sydney and Melbourne respectively.
Predicted growth figures in all capital cities for the next 5 years are lower than the long term average (20 years) rates of growth
achieved in each market. Lower rates of growth are a function of our markets becoming more unaffordable.

Houses
Median
Value
ACT
Adelaide
Brisbane
Darwin
Hobart
Melbourne
Perth
Sydney
Australia

$545,000
$425,500
$474,000
$557,500
$380,000
$662,500
$531,000
$945,500
$492,000

Capital Growth
10 Yr
YE Apr 15
Avg. % pa
4.45%
3.13%
4.44%
3.20%
3.77%
1.95%
7.11%
-3.70%
3.23%
4.36%
6.25%
5.55%
5.05%
-1.00%
5.72%
15.09%
4.58%
6.21%

Last Qtr
-2.95%
0.47%
-2.01%
0.68%
1.92%
0.15%
-1.76%
3.76%
1.93%

Rent
Last Month ME Apr 15 ME Apr 15
-0.17%
1.24%
-0.75%
-1.74%
1.45%
-1.51%
1.37%
1.79%
0.57%

4.77%
4.64%
4.91%
5.46%
5.00%
3.61%
4.53%
3.70%
4.57%

$500
$380
$445
$585
$365
$460
$460
$670
$430

Sales
Year
YE Apr 15
Change
1.01%
4,831
4.11%
18,890
0.00%
40,626
-3.31%
1,441
5.80%
2,057
3.37%
50,658
-4.17%
28,462
8.06%
48,414
2.38%
339,551

Prediction

Year
5 Year %pa
Change
2.61%
2%
4.85%
2%
9.47%
3%
-1.10%
3%
4.42%
1%
16.28%
3%
-3.39%
5%
3.11%
4%
5.19%
4%

Units
Median
Value
ACT
Adelaide
Brisbane
Darwin
Hobart
Melbourne
Perth
Sydney
Australia

$394,500
$315,500
$376,500
$418,000
$267,500
$469,000
$455,000
$628,500
$452,000

Capital Growth
10 Yr
YE Apr 15
Avg. % pa
3.07%
-3.97%
4.52%
0.77%
3.99%
3.06%
8.13%
-2.63%
3.27%
-0.07%
5.24%
2.31%
6.04%
-2.06%
5.24%
12.19%
4.15%
5.19%

G1: Australia Growth Trend

Last Qtr
-0.13%
-0.15%
1.48%
0.29%
-0.68%
-0.62%
0.15%
2.65%
0.17%

Rent
Last Month ME Apr 15 ME Apr 15
-1.35%
0.10%
1.56%
0.35%
-1.70%
-0.20%
1.95%
1.40%
0.50%

5.32%
5.15%
5.34%
5.89%
5.38%
4.46%
4.90%
4.61%
4.84%

$400
$310
$385
$470
$275
$400
$425
$555
$420

Sales
Year
YE Apr 15
Change
-4.76%
3,210
1.64%
5,204
0.00%
19,073
-5.05%
671
-3.51%
619
1.27%
39,190
-5.56%
12,291
4.72%
44,784
1.20%
161,836

Prediction

Year
5 Year %pa
Change
-11.76%
1%
10.35%
2%
22.93%
1%
-18.27%
1%
-9.24%
2%
18.36%
3%
-7.50%
4%
-1.41%
3%
6.44%
2%

G2: Sales Volumes

0.80%

35000
Houses

Units

30000

0.60%
25000
0.40%

20000
15000

0.20%

10000
0.00%

5000
Houses
0

-0.20%

-0.40%

onthehouse.com.au

Units

Property Market Update


Adelaide
G1: Growth Trend

Unemployment in South Australia is significantly higher than the


national average, at 7.1%, but it remains below the states long
term median of 7.6%.
Growth in the house market over the last 12 months has been a
moderate 3.20%, however this is below its 20 year long-term
average rate of growth (6.80% per annum).
Growth in the Adelaide unit market failed to keep pace with
inflation over the last 12 months.
Rental yields in the house and unit markets have increased in
the last 12 months, by 4.11% and 1.64% respectively. Yields in
both markets are currently above the national average, but they
are probably not sufficient enough to drive investment activity.
Affordability in Adelaide is amongst the best in the nation, for
home ownership and rent.
It currently takes around 30% of the median households after
tax income to make loan repayments on the median house,
while renting requires 25% of after tax income.
The affordability position is further improved in the unit market,
where the median household uses around 22% of after tax
income to meet home loan repayment.
Calculations estimate that there is an oversupply of housing
stock of about 4,000 dwellings.
5 year predictions indicate that house and unit prices will
struggle to keep pace with inflation.
Overall, this is not a market for investment unless you are able
to identify an attractively priced renovation property.

0.60%

0.40%

0.20%

0.00%

-0.20%

-0.40%
Houses

Units

-0.60%

G2: Sales Volume


2000
1800
Houses

Units

1600
1400
1200
1000
800
600

Affordability

400

Weekly
Loan Payment

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

Houses

$458.51

30.24%

$379.95

25.06%

Units

$339.98

22.42%

$312.75

20.63%

200
0

G3: Cash Rate

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$95,217
Official Cash Rate 2.00%

8.00

Seasonally Adjusted Unemployment


South Australia Unemployment Rate

7.1%

Historical South Australian Unemployment Rate*

7.6%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

$425,500

$315,500

Annual Growth

3.20%

0.77%

Quarterly Growth

0.47%

-0.15%

Median Value

Monthly Growth

1.24%

0.10%

Rental Yield

4.64%

5.15%

Rent Rate
Annual Sales
5 Year Prediction
onthehouse.com.au

$380

G4: Seasonally Adjusted Unemployment

$310

18,890

5,204

2%

2%

8.0

64.0

7.0

63.5

6.0

63.0

5.0

62.5

4.0

62.0

3.0

61.5

2.0

61.0

1.0

60.5
Unemployment Rate

0.0

Participation Rate
60.0

Participation (%)

Units

Unemployment (%)

Houses

Property Market Update


Brisbane
Growth in the Brisbane house market was 1.95% over the last 12
months, however this market has recorded negative growth of
-2.01% and -0.75% in the last quarter and last month
respectively.
This market is likely oversupplied by about 12,000 dwellings,
which is likely to be found in the unit market. This is supported
by the lack of growth in the unit rental market, where dollar
weekly rents have not changed in the last 12 months.
Sales in the unit market have picked up in the last year,
recording the highest increase in transactions (22.93%).
From an investment point of view, Brisbane offers some of the
highest rental yields in the nation. The median rental yield in the
house market is 4.91%, while units offer a yield of 5.34%.
Despite speculation that growth in the Sydney market would
spill north to Brisbane, devastating weather conditions and the
deterioration of commodity prices mean that the greater
Brisbane region has seen subdued growth so far in 2015.
The Brisbane market remains affordable, and affordability in
this market is significantly better than Sydney and Melbourne.
There is currently little difference between renting and making
mortgage repayments in this market. The median family is just
$63 per week better off renting a house rather than paying off a
mortgage. The affordability position is further improved in the
unit market, with there being just $19 per week difference
between renting and making mortgage payments.

G1: Growth Trend


0.80%
Houses

0.40%
0.20%
0.00%
-0.20%
-0.40%

-0.60%
-0.80%

G2: Sales Volume


4000
3500
3000
2500
2000
1500

Affordability

1000

% of A/T
Income

Houses

$510.77

32.90%

Units

$405.71

26.14%

Annual Income
$97,490
Official Cash Rate 2.00%

Weekly
Rent Payment

% of A/T
Income

$447.49

28.83%

$386.50

24.90%

500

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

8.00

Queensland Unemployment Rate

6.7%

Historical Queensland Unemployment Rate*

7.4%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

Units

$474,000

$376,500

Annual Growth

1.95%

3.06%

Quarterly Growth

-2.01%

1.48%

-0.75%
4.91%

5.34%

Rent Rate

$445

$385

5 Year Prediction
onthehouse.com.au

40,626

19,073

3%

1%

8.0

68.5

7.0

68.0

67.5

1.56%

Rental Yield

Annual Sales

G4: Seasonally Adjusted Unemployment

Unemployment (%)

Houses

Monthly Growth

Units

G3: Cash Rate

Seasonally Adjusted Unemployment

Median Value

Houses

6.0
67.0

5.0

66.5

4.0

66.0

3.0

65.5
65.0

2.0
64.5
1.0
Unemployment Rate
0.0

Participation Rate

64.0
63.5

Participation (%)

Weekly
Loan Payment

Units

0.60%

Property Market Update


Canberra
The Canberra unit market was the worst performing market in
Australia over the last year.
Units in Canberra lost value by 3.97% in the last year, weekly
rents declined $20 (-4.76%) per week, sales transactions
dropped by 11.76% and this market is not expected to keep
pace with inflation over the next 5 years.
The unit market has been losing value since its peak value of
$438,000 in August 2011. Today, the market is valued at
$394,450, which is $43,000 less than its peak value.
Performance in the house market over the last year has also
been undesirable.
While house values increased by 3.13% in the last 12 months,
this market has produced negative growth in the last quarter
and last month, of -2.95% and -0.17% respectively.
The calculated stock position in the ACT is about 3,000 dwellings
in surplus to need. This is a significant oversupply as the market
is relatively small.
Wages in the ACT are the highest in the nation and affordability
in this market is amongst the best in the nation. It currently
takes about 30% of after tax income for the median family to
meet mortgage repayments on the median house. The position
is further improved in the more affordable unit market, taking
just under 22% of after tax income to make loan repayments on
the median unit.
Predicted growth over the next 5 years is 2% for houses and 1%
for units.

G1: Growth Trend


0.80%
0.60%

0.20%

0.00%
-0.20%
-0.40%
-0.60%
-0.80%

G2: Sales Volume


700
600
500

400
300
200

Weekly
Loan Payment

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

Houses

$587.28

29.98%

$499.88

25.52%

Units

$425.11

21.70%

$403.45

20.59%

100
Houses

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

G3: Cash Rate


8.00

Unemployment Trend
ACT Unemployment Rate

4.3%

Historical ACT Unemployment Rate*

5.2%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics
Key Statistics

Cash Rate
0.00

Units

$545,000

$394,500

Annual Growth

3.13%

-3.97%

Quarterly Growth

-2.95%

-0.13%

Monthly Growth

-0.17%

-1.35%

Rental Yield

4.77%

5.32%

Rent Rate

$500

$400

Annual Sales

4,831

3,210

2%

1%

G4: Seasonally Adjusted Unemployment

Unemployment (%)

Houses

onthehouse.com.au

Units

6.0

74.0

5.0

73.0

4.0

72.0

3.0

71.0

2.0

70.0

1.0

69.0
Unemployment Trend

0.0

Participation Trend
68.0

Participation (%)

Annual Income
$123,031
Official Cash Rate 2.00%

5 Year Prediction

Units

0.40%

Affordability

Median Value

Houses

Property Market Update


Darwin
Overall, Darwin is the worst performing market in the nation.
Growth in values, rent and sales numbers are all in negative
territory for the last 12 months, in both the house and unit
markets.
The unit market has been losing value since its peak of
$437,000 in November 2011, while the house market has been
dropping in value since its peak of $587,000 in January 2014.
Sales in the Darwin unit market have experienced the biggest
decline in the nation, dropping 18.27% in the last year.
Calculations indicate that this market is oversupplied by about
2,000 dwellings.
As a result of the stock overhang, dollar weekly rentals have
been falling.
Rent for the median house has dropped $20
(-3.31%) per week in the last 12 months, while rent for the
median unit has dropped $25 (-5.05%) per week in the same
time period.
There is little to no benefit of renting compared to buying in
this market. The difference between renting and buying a
house is just $16 per week, while you would in fact save $23 a
week by paying off a mortgage on a unit rather than renting
one.
Predicted growth in the Darwin house market is an average of
3% per year over the next 5 years, while the unit market is
unlikely to keep pace with inflation.

G1: Growth Trend


1.50%

1.00%

0.50%

0.00%

-0.50%

-1.00%
Houses
-1.50%

G2: Sales Volume


160
140
120
100
80
60

Affordability
% of A/T
Income

Houses

$600.75

35.16%

Units

$450.43

26.36%

Weekly
Rent Payment

40

% of A/T
Income

$585.18

34.25%

$473.81

27.73%

20

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$107,296
Official Cash Rate 2.00%

8.00

Northern Territory Unemployment Rate

4..5%

Historical Northern Territory Unemployment Rate*

5.6%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

Units

$557,500

$418,000

Annual Growth

-3.70%

-2.63%

Quarterly Growth

0.68%

0.29%

Monthly Growth

-1.74%

0.35%

5.46%
$585

$470

Annual Sales

1,441

671

3%

1%

onthehouse.com.au

6.0

77.0
76.0

5.0

5.89%

Rent Rate

5 Year Prediction

G4: Seasonally Adjusted Unemployment

Unemployment (%)

Houses

Rental Yield

Units

G3: Cash Rate

Unemployment Trend

Median Value

Houses

75.0
4.0

74.0

3.0

73.0
72.0

2.0

71.0
1.0

70.0
Unemployment Trend

0.0

Participation Trend
69.0

Participation (%)

Weekly
Loan Payment

Units

Property Market Update


Hobart
G1: Growth Trend

The unemployment rate in Tasmania is worse than any other


state/territory in Australia. However, while it is higher than the
national average, it remains significantly lower than its long-term
median.
It is calculated that this market has a potential housing stock
surplus of about 2,000 dwellings.
Growth in the Hobart house market exceeded its long-term
average (3.23%) in the last year, recording 4.36% growth in
values.
Rent for the median house saw a healthy increase over the last
year, up $20 per week (5.80%).
The Hobart unit market has performed poorly in the last 12
months. Capital growth is in negative territory, with values
dropping 0.07%, 0.68% and 1.70% in the last year, quarter and
month respectively.
Rent for the median unit has dropped $10 (-3.51%) per week in
the last year, while sales transactions have fallen away by 9.24%.
The average salary in Tasmania is the lowest in Australia, but
affordability in this market is the best in the nation.
There is currently little cash benefit between renting and buying
in this market. You are just $44 per week better off if you are
renting a house, and only $12 better off if you are renting a unit.
This market will struggle to keep pace with inflation over the
next 5 years.

1.00%

0.50%

0.00%

-0.50%

-1.00%
Houses

Units

-1.50%

G2: Sales Volume


250
Houses

Units

200

150

Affordability

100

Weekly
Loan Payment

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

Houses

$409.48

28.35%

$365.28

25.29%

Units

$288.25

19.96%

$276.57

19.15%

50

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$90,708
Official Cash Rate 2.00%

G3: Cash Rate

Seasonally Adjusted Unemployment

8.00

Tasmania Unemployment Rate

7.3%

Historical Tasmania Unemployment Rate*

8.6%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Quarterly Growth
Monthly Growth
Rental Yield
Rent Rate

Annual Sales
5 Year Prediction
onthehouse.com.au

Units

$380,000

$267,500

4.36%

-0.07%

1.92%
1.45%
5.00%
$365

G4: Seasonally Adjusted Unemployment

-0.68%
-1.70%
5.38%
$275

2,057

619

1%

2%

10.0

62.5

9.0

62.0

8.0

61.5
61.0

7.0

60.5

6.0

60.0

5.0

59.5

4.0

59.0

3.0

58.5

2.0
1.0
0.0

58.0
Unemployment Rate

Participation Rate

57.5
57.0

Participation (%)

Annual Growth

Houses

Unemployment (%)

Median Value

Cash Rate
0.00

Property Market Update


Melbourne
The unemployment rate in Victoria is currently higher than the
states long-term median, at 6.2%.
House and unit price growth in Melbourne was 5.55% and 2.31%
in the last 12 months respectively, however both markets have
recorded negative growth in the last month.
Sales transactions in the house market increased by 16.28% in
the last 12 months, which is the highest volume increase for
houses across all capital cities. Unit sales also increased, by
18.36% over the same time period.
Rental yields in this market are the lowest in the nation.
Currently, the rental yield on the median house is just 3.61%
while the rental yield on the median unit is at 4.46%.
Affordability in Melbourne is amongst the worst in Australia,
second only to the Sydney market. It currently takes just over
44% of a median familys household income to make home loan
repayments on the median house, leaving just $903 per week
(after tax) to spend on necessities.
The unit market just remains in affordable territory, requiring
just over 31% of the median familys after tax income to service
loan repayments. Families are left with $1,112 per week to use
for necessities.
Calculations indicate that the surplus stock situation in this
market has increased. It is estimated that this market is now
oversupplied by around 16,000 dwellings.
The average predicted growth outcome per year over the next 5
years is 3% for both houses and units.

G1: Growth Trend


1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
-0.20%
-0.40%
-0.60%

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

Houses

$713.90

44.15%

$460.42

28.47%

Units

$505.39

31.25%

$402.68

24.90%

6000

6.2%

Historical Victorian Unemployment Rate*

6.1%

National Average

6.2%

3000
2000

1000
0

G3: Cash Rate


8.00

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

$662,500

$469,000

Annual Growth

5.55%

2.31%

Quarterly Growth

0.15%

-0.62%

-1.51%

-0.20%

Monthly Growth
Rental Yield

3.61%

4.46%

Rent Rate

$460

$400

50,658

39,190

3%

3%

Annual Sales
5 Year Prediction
onthehouse.com.au

G4: Seasonally Adjusted Unemployment


8.0

66.5

7.0

66.0

6.0

65.5

5.0
65.0
4.0
64.5

3.0
64.0

2.0

63.5

1.0
Unemployment Rate
0.0

Participation Rate
63.0

Participation (%)

Units

Unemployment (%)

Houses
Median Value

Units

4000

Seasonally Adjusted Unemployment


Victorian Unemployment Rate

Houses

5000

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$101,561
Official Cash Rate 2.00%

Units

G2: Sales Volume

Affordability
Weekly
Loan Payment

Houses

-0.80%

Property Market Update


Perth
The median values of Perth houses and units have dropped in
the last year, by -1.00% and -2.06% respectively.
House values have been dropping since their peak of $543,500
in July 2014, while unit values have been declining since
November 2014 from a value of $471,000. Today, the median
Perth house is valued at $531,000, while the median unit is
worth $455,000.
This market has a calculated housing surplus of approximately
9,000 dwellings.
Rental yields in Perth have experienced the worst declines
across all capital cities, in both the house and the unit markets,
which further confirms a stock overhang.
Rent for the median house and the median unit has dropped
4.17% ($20) per week and 5.56% ($25) per week respectively
compared to this time last year.
Sales activity in this market has also declined. House sales have
dropped 3.39% in the last 12 months, while unit sales declined
7.50% during the same time period.
The Perth market remains in affordable territory. It currently
takes the median household just under 33% of after tax income
to make loan repayments on the median house. The position is
further improved in the unit market, which requires just under
28% of after tax income to make loan repayments.
Predictive figures for this market are better than all other capital
cities. The average predicted growth outcome per year over the
next 5 years is 5% for houses and 4% for units.

G1: Growth Trend


2.00%

0.50%

0.00%

-0.50%

-1.00%

G2: Sales Volume


3500
3000

Houses

Units

2500
2000
1500
1000

Weekly
Loan Payment

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

Houses

$572.20

32.64%

$462.98

26.41%

Units

$490.30

27.97%

$428.47

24.44%

500
0

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$110,085
Official Cash Rate 2.00%

G3: Cash Rate


8.00

Seasonally Adjusted Unemployment


Western Australia Unemployment Rate

5.7%

Historical Western Australian Unemployment Rate*

6.6%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

$531,000

$455,000

Annual Growth

-1.00%

-2.06%

Quarterly Growth

-1.76%

0.15%

Monthly Growth

1.37%

1.95%

Rental Yield

4.53%

4.90%

$460

G4: Seasonally Adjusted Unemployment

$425

7.0

70.0

6.0

69.5
69.0

5.0

68.5
4.0
68.0
3.0
67.5
2.0

67.0

1.0

Annual Sales
5 Year Prediction
onthehouse.com.au

28,462

12,291

5%

4%

66.5
Unemployment Rate

0.0

Participation Rate
66.0

Participation (%)

Units

Unemployment (%)

Houses

Rent Rate

Units

1.00%

Affordability

Median Value

Houses

1.50%

Property Market Update


Sydney
Sydney remains the most expensive market in the country, and
it continues to lead the way in growth terms.
Growth in the Sydney house market over last 12 months was
15.09%, or an increase of $124,000. In the last 2 years, prices
have increased by a staggering $261,500. In dollar growth terms,
this is considered boom conditions.
Growth in the unit market has also been extensive. In the last
year, unit values have increased by 12.19% ($68,500) and values
have risen by $135,500 in the last 2 years.
Affordability in Sydney is now at a level where the median family
can no longer afford to buy the median house. It now takes
almost 60% of after tax income to make loan repayments,
leaving families with just $685 per week to live off.
Weekly rent is also pushing the levels of household affordability,
with rent for the median house increasing $50 per week, or
8.06%, in the last year. This is roughly 40% of after-tax income
for the median family.
Rent for the median unit also went up, increasing from $530 to
$555 per week (4.72%).
While both the house and the unit markets experienced the
biggest increase in rental yields, they remain some of the worst
in the nation. Only Melbourne has low yields, in both dwelling
markets.
Extreme care needs to be exercised in this market as price
corrections will come as a consequence of supply issues and
investors being encouraged to pay too much in a market that is
likely to adjust.

G1: Growth Trend


1.60%
1.40%
1.20%

0.80%
0.60%
0.40%
0.20%
0.00%

-0.20%
-0.40%
-0.60%

G2: Sales Volume


6000

5000

Houses

Units

4000
3000
2000
1000

Weekly
Loan Payment

% of A/T
Income

Weekly
Rent Payment

% of A/T
Income

$1,018.85

59.79%

$673.03

39.49%

$677.26

39.74%

$557.40

32.71%

Units

Units

1.00%

Affordability

Houses

Houses

G3: Cash Rate

Assumed Home Load Rate 5.1%


Loan Amount 80%
Assumed Tax Rate 17.2%

Annual Income
$107,021
Official Cash Rate 2.00%

8.00

Seasonally Adjusted Unemployment


NSW Unemployment Rate

6.0%

Historical NSW Unemployment Rate*

6.2%

National Average

6.2%

6.00

4.00

* Median since Feb-1978

2.00

Key Statistics

Cash Rate
0.00

$945,500

$628,500

Annual Growth

15.09%

12.19%

Quarterly Growth

3.76%

2.65%

Median Value

Monthly Growth

1.79%

1.40%

Rental Yield

3.70%

4.61%

Rent Rate

$670

G4: Seasonally Adjusted Unemployment

$555

7.0

70.0

6.0

69.5
69.0

5.0

68.5
4.0
68.0

3.0
67.5
2.0

67.0

1.0

Annual Sales
5 Year Prediction
onthehouse.com.au

48,414

44,784

4%

3%

66.5
Unemployment Rate

0.0

Participation Rate
66.0

Participation (%)

Units

Unemployment (%)

Houses

Property Market Update


Definitions of Terms
Term

What is it?

What does it tell you?

Average Capital Growth

It is the aggregate capital growth amount


over a time frame longer than one year,
expressed as an annual percentage.

Average capital growth figures allow you to


monitor the performance of different areas or
properties over a period of time.
Be aware that the average capital growth figures
are not the total growth figures divided by time.
This method would overstate annual growth as it
would include capitalisation.

Capital Growth

The capital growth is the growth in house


prices over a period of time, expressed in
percentage.

Capital growth figures allow you to monitor the


performance of different areas or properties over
a period of time.

Median Value

Residex holds a current value for every


property in its database. The median value
for any region is the middle value when all
values are arranged in order. Where median
is ascribed to a date range, the value
represents the median at the end date.

The median value tells you what a typical property


is worth in an area. By knowing the cost of a
typical property in the area, you can judge which
areas you can afford to invest in.

Rental Yield

The rental yield is the amount of rent you can Rental yield figures allow you to compare rental
expect to receive in a year, expressed as a
income from areas or properties with different
percentage of a property's value. (The rental property values.
yield is an annual figure.)
Rental yield is the annual rent figure divided
by the property value figure.

Disclaimer
The Parties making available this report to you give no warranties nor accept any liability for any decision made to invest, divest, or not act as a consequence of the use of this
report. The Parties believe the statements, information, calculations, data and graphs contained herein to be correct and not misleading but give no warranty in relation
thereto and expressly disclaim any liability for any loss or damage which may arise from any person acting or deciding not to act partly or wholly on the basis of any such
statements, information, recommendations, calculations, data or graphs.
The Parties acknowledge and operate in a manner which complies with the Privacy Act of 1988, privacy and personal Information Protection Acts relevant for the State
jurisdiction of where this property is located.
The Parties also acknowledge and operate in a manner which complies with any other State's legislation which is applicable to privacy and regulations made under those acts
as amended from time to time. The Parties will not use Licensed Data or Licensed Data Products for Direct Marketing. By receiving this Report you are also obliged to be
governed by these Acts and principles.
Material published in this Report is protected by the same laws of copyright which apply to books, videos and music. The right to 'copy' always remains with the owner of the
material. Unless expressly stated otherwise, you are not permitted to copy, republish or alter anything you find in this Report without the express permission of The Parties.
By receiving this Report you are taken to have acknowledged that it is being prepared with the assistance of products and services supplied by Residex Pty Limited and
Onthehouse.com.au, and you are also taken to not only have agreed to these terms, but also all other terms specified in the websites of The Parties.
NSW Data:
Residex Pty Ltd is authorised as a Property Sales Information provider by the Department of Finance and Services, Land and Property Information. The information provided
in this report contains property sales information provided under licence from the Department of Finance and Services, Land and Property Information. Issue date: April
2015.
Vic Data
To the extent that this report has been developed using information owned by the State of Victoria, the State of Victoria owns the copyright in the Property Sales Data which
constitutes the basis of this report and reproduction of that data in any way without the consent of the State of Victoria will constitute a breach of the Copyright Act 1968 (Cth).
The State of Victoria does not warrant the accuracy or completeness of the information contained in this report and any person using or relying upon such information does
so on the basis that the State of Victoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied.
Qld Data:
The Department of Natural Resources and Mines makes no representations or warranties about accuracy, reliability, completeness or suitability of the data for any particular
purpose and disclaims all responsibility and all liability (including without limitation, liability in negligence) for all expenses, losses, damages (including indirect or
consequential damage) and costs which might be incurred as a result of the data being inaccurate or incomplete in any way and for any reason.

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