Red Report
hockingstuart.com.au
Issue 1 2017
Contents 01. Insider News Market Update
3
Q & A with Dick Karlsson from DIAKRIT
4
02. Melbourne Market Melbourne at a glance
6
Suburbs with the highest % of stock
7
Melbourne’s best performing suburbs
8
Top suburbs from rental yield
9
Suburbs with the best auction clearance rates
9
Suburbs with the highest sales turnover
9
03. Local Focus Property Market Snapshot
11
Inner City
12
Inner West
13
Inner North
14
Inner East
15
Eastern Suburbs
16
Outer Suburbs
17
Bayside
20
Greater Geelong
21
Mornington Peninsula
22
Regional Victoria
23
This Market Report has been prepared by hockingstuart as a general guide to the historical performance of suburbs within particular areas. It is provided for information purposes only and does not constitute advice or recommendations. It does not purport to, and cannot, predict the future performance of particular suburbs or areas. It is by its nature generic and cannot be used to predict the future performance of any particular property or type of property. You should obtain independent professional advice and consider your personal circumstances before making any financial decisions. You should not rely on this Market Report when making investment decisions and hockingstuart disclaims any liability if you seek to do so. While hockingstuart has prepared this Market Report in good faith, it is based on information provided by third parties and it could contain errors, be incomplete, or out of date. hockingstuart has not independently verified the information and makes no express or implied warranty as to the accuracy, adequacy or reliability of the information. hockingstuart accepts no responsibility for the accuracy or completeness of any material contained in this report.
01. Insid er News
Market update. The 2017 selling season has produced exceptional results so far, with auction clearance rates remaining high and property prices soaring. Clearance rates across Melbourne have averaged in the high 70's this year, with demand catapulting above 80% at the end of March. Additionally, the average median house price across the city has been increasing year-on-year. In December 2014, the median was $627,068 – now it’s sitting at $795,447.
For investors with assets in real estate, the strong demand we’re experiencing across the city is great news when it comes to capital appreciation. Experts predict that despite rental yields remaining stable over the past two years, rental returns should increase this year with many Victorians opting to rent instead of buy to reduce their cost of living. There are, however, several changes currently at play which will impact investor lending for the remainder of 2017. The most prominent being that APRA has encouraged major banks to implement restrictions on investor loans. The Victorian Government has also re-introduced stamp duty levies for investors purchasing off-the-plan apartments. Investors should also be aware of government initiatives for first home buyers set to roll out this July. Notably, it has slashed stamp duty for homes under $600,000 and will provide an additional $10,000 first home buyers grant for those in regional cities. Investors are likely to see increased competition from this market, especially for entry level homes and in rural areas. Overall, the buoyant market is positive for those who have invested in bricks and mortar and is set to continue well into 2017. With banks tightening investor loans and property prices soaring, now is the time to hit go if you’ve been considering extending your portfolio.
Simon Jovanovic CEO hockingstuart
03
01 . I nsid er News
Q&A with Dick Karlsson from DIAKRIT Our latest partnership is raising the standards of digital visualisation in the property industry. We sit down with Executive Vice President and Co-Founder of DIAKRIT, Dick Karlsson to discuss what’s new to hockingstuart listings.
Tell us about DIAKRIT and how it came about?
What does DIAKRIT do?
DIAKRIT started over 15 years ago when at the time, I was looking to buy a new home in Sweden and found it extremely unsatisfying sifting through subpar floorplans and low quality photos to decide on one of the biggest life decisions. I realized I wasn’t alone in this search. I could see a clear need for solutions that could help consumers to not only better visualise the layout and space of a property, but also to see the potential for renovation and redecoration plus what it would feel like to live there. This sparked an idea, which has since evolved into what we know as DIAKRIT today.
We offer a full suite of services to help people better market properties from cloud-based software, to 2D & 3D floor plan services, high-end 3D visualisations, interactive decorating and furnishing features, 360 degree and virtual reality tours, and magazine-quality photographs, including lifestyle and dusk photography. Every solution we develop is to empower the buyer or renter to be able to visualise and experience for themselves the complete potential of their new home, all through a real estate professionals' online listing.
Since opening in 2001, we have expanded across northern Europe, America and Australia. DIAKRIT is the global leader in real estate visualisation and photography tools, the sort of engaging and interactive features that you see on sites such as domain.com.au and realestate.com.au when searching for a rental property or place to buy. We are proud to have around 600 members of staff and 500 freelance photographers on our books, servicing more than 2,000 real estate clients internationally.
04
Offered exclusively by hockingstuart in Victoria through to 1st December, hockingstuart is also the first real estate agency in Australia to leverage DIAKRIT’s services across their whole franchise network, which confirms they are a progressive business looking to use innovative technologies to support their agents and offer compelling propositions to their customers.
Why is real estate visualisation technology important to buyers and renters? One of the most important things for people is being able to imagine themselves living in the property: entertaining in the kitchen, watching the kids play in the living room. We get great feedback in other global markets on our furnishing, styling and renovation software tools which enables users to digitally furnish and alter the layout of an online property listing. Being able to add their own furniture to the space and imagine themselves and their family living in it is inspirational! They’re able to really understand what’s on offer and develop an emotional connection with the property before coming to an open house for inspection. How can the technology benefit hockingstuart vendors and landlords? This new technology offers transparency to clients, giving them access to accurate, to-scale information about the property they’re interested in. The photographs used in a listing are true representations of a home: they’re not overexposed or taken with a fish-eye lens to give an unrealistic perception of space and light, helping to market the property to its full potential.
With rental returns remaining steady in many markets across Melbourne, giving clients access to this information is one way for landlords to ensure their property stands out from the competition. In fact, our research shows that our 3D floor plan technology can generate up to 17 percent more leads than a 2D plan, thanks to this emotional connection buyers and tenants develop with the property. Part of the reason for that is that when the client walks through the door of the property at an open house, it’s a space they recognise. They have already built an emotional and rational connection to the property, making them a qualified lead who is closer to making a decision. By enhancing their experience, our products can cut the time it takes for them to close in on a sale or lease agreement. The best part about hockingstuart’s DIAKRIT offering is that it’s the same price as regular marketing photography you would engage when listing a property through an agent. Your property will stand out from the crowd without having to increase your marketing spend. It’s a win, win! To find out more about DIAKRIT’s visualisation tools, contact your nearest hockingstuart office.
05
02. Melbourne M a r ket
Melbourne at a glance over the past 12 months. House
Units
Median value
$718,677
Median value
$513,565
% change of median value
10.70%
% change of median value
5%
Number of listings
63,067
Number of listings
27,275
Median rent
$400 /wk
Median rent
$385 /wk
Rental yield
3.32% pa
Rental yield
4.13% pa
Median combined dwelling value by suburb
% change in median combined dwelling value over the last 12 months
Median Value
Growth per annum
$1.2m+
16%+
$1.0 - $1.2m
12% - 16%
$800k - $1.0m
8% - 12%
$600k - $800k
4% - 8%
$0 - $600k
Less than 4%
No data
No data
Source: Residex
06
02. Melbourne M a r ket
Suburbs with the highest % of stock. Here is a list of suburbs which top their respective regions for the level of stock that’s available in respect to a total number of dwellings. These suburbs represent pockets in Melbourne whereby there are high levels of stock available, perhaps representing a good opportunity for investors to compete in a more balanced marketplace.
01 Inner North Houses Heidelberg West 5.50%
01
Units Kingsbury 5.10%
02
02 Inner City Houses South Melbourne 5.30% Units Docklands 5.50%
04 04 Inner East
03
05
Houses Deepdene 7.10% Units Malvern East 4.60%
06
03 Inner West
05 Eastern Suburbs
Houses Essendon West 7.90%
07
Units Travancore 8.90%
Houses Notting Hill 6.40% Units Huntingdale 7.60%
07 Outer Suburbs
06 Bayside
Houses Point Cook 8.80%
Houses Frankston South 6.60%
Units Kurunjang 10.50%
Units Frankston South 7.00%
Source: RP Data (last 12 months)
07
02. Melbourne M a r ket
Melbourne’s best performing suburbs. Capital Growth is one of the main indicators of how your property investment is performing. The suburbs are broken up into four price brackets, houses vs units and ranked on percentage increase in property value in the last quarter.
Houses
Median Value
- Capital Growth Last Quarter
Low price range
Last 12 Months
Rental Yield P/A
$293,500 - $506,500
Units
Median Value
- Capital Growth Last Quarter
Low price range
Last 12 Months
Rental Yield P/A
$208,000 - $384,500
Mickleham
$373,250
16.6%
N/A
5.3%
Seabrook
$380,000
5.8%
10.5%
4.2%
Ardeer
$502,000
10.3%
32.1%
3.3%
Junction Village
$260,000
5.1%
4.0%
N/A
Burnside
$501,000
9.5%
20.7%
4.0%
Cranbourne West
$342,000
4.9%
16.2%
4.9%
Kealba
$470,500
8.2%
17.6%
3.9%
Eumemmerring
$335,000
4.7%
3.5%
4.5%
Delahey
$455,000
7.8%
13.8%
4.0%
Melton South
$230,000
4.5%
7.5%
5.9%
Low-mid price range Belgrave
$506,500 - $743,000 $537,000
11.2%
10.7%
Low-mid price range
$384,500 - $506,500
4.1%
Hadfield
$410,000
10.8%
9.3%
4.2%
$500,000
10.0%
11.7%
3.7% 3.7%
Brooklyn
$673,500
9.0%
16.4%
2.9%
Avondale Heights
Seaford
$570,500
6.4%
21.4%
3.4%
Ripponlea
$495,000
8.5%
6.5%
Chirnside Park
$634,000
5.7%
15.0%
3.4%
Chelsea Heights
$456,700
7.1%
9.3%
4.3%
Sunshine
$670,000
5.5%
25.7%
2.6%
Noble Park North
$406,000
5.2%
N/A
4.2%
Mid-high price range Research
$743,000 - $1,090,500 $865,000
16.5%
28.8%
Mid-high price range
$506,500 - $668,500
2.8%
Moorabbin
$592,450
19.7%
21.3%
3.6%
$540,000
11.9%
3.9%
3.2% 3.8%
Narre Warren North
$853,000
13.0%
9.0%
3.0%
Murrumbeena
South Kingsville
$862,500
11.7%
16.7%
2.8%
Wantirna South
$535,000
11.3%
12.6%
Brunswick West
$995,000
9.3%
16.9%
2.7%
Bentleigh
$608,500
11.1%
6.8%
3.5%
Avondale Heights
$775,000
9.2%
19.2%
2.6%
Coburg North
$513,500
8.1%
4.8%
3.7%
High price range
$1,090,500 - $2,645,725
High price range
$668,500 - $1,150,000
Parkville
$1,828,000
28.3%
42.8%
1.3%
Ivanhoe East
$815,000
29.4%
N/A
Williamstown North
$1,135,500
26.2%
37.2%
2.5%
Caulfield South
$850,000
20.9%
15.6%
2.6%
St Kilda
$1,171,000
14.4%
27.9%
2.3%
Ringwood North
$720,000
14.3%
23.7%
2.6%
Black Rock
$1,672,500
11.2%
9.0%
2.8%
Templestowe
$824,750
13.1%
18.7%
2.5%
Burnley
$1,225,505
9.5%
22.7%
2.8%
Kew East
$725,000
10.7%
0.7%
3.0%
Source: RP DATA
08
2.5%
02. Melbou r ne M a r ket
% Rental yield
Top suburbs for rental yield Here are the suburbs in Melbourne which had the highest rental yield for the past 12 months. This is useful for identifying where you can make the most of rental income, therefore minimising mortgage repayments.
Houses Rockbank
5.60%
Mickelham
5.30%
Melton
5.20%
Melton South
5.10%
Melbourne
5.00%
Units
Source: RP Data Carlton
6.40%
Melton
6.20%
Roxburgh Park
5.90%
Melton South
5.90%
Notting Hill
5.90%
Clearance rates
Suburbs with the best auction clearance rates Auction clearance rates are the percentage of properties sold, usually calculated weekly. A high auction clearance rate indicates a seller’s market or a hot market. The hottest markets in Melbourne are shown here. Source: REIV Results are based on data from Sep 16 - Feb 17 Includes suburbs with more than 40 auctions
Thomastown
94.60%
Heidelberg West
91.70%
Macleod
91.70%
Coburg North
91.70%
Montmorency
91.30%
Mill Park
90.70%
Forest Hill
90.20%
Heidelberg Heights
90.20%
Dingley Village
90.20%
Chelsea
90.00%
Highest sales turnover
Suburbs with the highest sales turnover Suburbs with the highest sales turnover are those that have had more properties on the market in the past 12 months than any other suburbs. This information is vital for identifying areas that may potentially be a buyer’s market. Source: RP Data
Houses Mickelham
9.40%
Sandhurst
9.30%
Cranbourne East
9.10%
Cranbourne South
9.00%
Rockbank
8.90%
Units Tarneit
8.90%
Carrum Downs
8.80%
Kurunjang
8.60%
Doveton
8.10%
Brooklyn
7.90%
09
03. Lo cal Focus
Property market snapshot. P.12
01 - Inner City Houses
Units
01 02
2.20%
Capital Growth
14.60%
76.72%
76.72%
Clearance Rate
81.30%
81.30%
Median Value
$1,228,475 $534,548
Median Value
$927,557
$492,210
Median Rent
$607
$432
Median Rent
$447
$355
Rental Yield
2.70%
4.34%
Rental Yield
2.50%
3.83%
P.14 Houses
Units
Capital Growth
12.20%
1.75%
Clearance Rate
83.38%
83.38%
Median Value
07
Units
Capital Growth
4.50%
0.81%
Clearance Rate
81.01%
81.01%
$1,009,827 $527,404
Median Value
$1,894,437 $692,872
Median Rent
$471
$363
Median Rent
$673
$412
Rental Yield
2.50%
3.67%
Rental Yield
1.90%
3.23%
P.16
P.17
06 - Outer Suburbs
Houses
Units
Houses
Units
Capital Growth
7.20%
2.53%
Capital Growth
11.39%
4.90%
Clearance Rate
79.19%
79.19%
Clearance Rate
79.86%
79.86%
Median Value
$995,768
$633,425
Median Value
$584,484
$392,893
Median Rent
$447
$392
Median Rent
$385
$331
Rental Yield
2.40%
3.31%
Rental Yield
3.62%
4.48%
P.20
P.21
08 - Greater Geelong
Houses
Units
Houses
Units
Capital Growth
11.10%
3.94%
Capital Growth
8.50%
1.72%
Clearance Rate
79.79%
79.79%
Clearance Rate
81.45%
81.45%
Median Value
$1,199,700 $592,126
Median Value
$483,505
$344,928
Median Rent
$584
$398
Median Rent
$357
$289
Rental Yield
2.70%
3.62%
Rental Yield
4.10%
4.70%
P.22
P.23
10 - Regional
05 06
09
P.15
04 - Inner East Houses
09 - Mornington Peninsula
08
2.59%
14.00%
07 - Bayside
04
Units
Clearance Rate
05 - Eastern Suburbs
03
Houses
Capital Growth
03 - Inner North
10
P.13
02 - Inner West
Houses
Units
Houses
Units
Capital Growth
12.10%
15.60%
Capital Growth
4.14%
0.67%
Clearance Rate
76.90%
76.90%
Clearance Rate
N/A
N/A
Median Value
$777,867
$492,844
Median Value
$384,757
$267,165
Median Rent
$448
$349
Median Rent
$319
$255
Rental Yield
3.10%
3.84%
Rental Yield
4.45%
5.06%
Source: RP Data and REIV
11
03. Local Focus
Inner City
Local offices
Top three trends
Albert Park
9690 5366
Armadale
9509 0411
Downsizers drive demand
Townhouses in hot demand
Head north
Commercial
9690 6000
Strong demand from downsizers for lock-and-leave living and a low maintenance lifestyle in the inner city.
Townhouses and small houses in South Yarra and Parkville are highly valued by renters who wish to live the inner-city life without having to purchase.
The inner north is still incredibly strong with buyers and renters wishing to be as close to the city as possible. Many investors are buying now and leasing their property, with the aim to occupy it themselves in years to come.
Melbourne
9600 2192
Richmond
9421 7100
South Yarra
9868 5444
Predictions Thanks to Melbourne’s surging population, demand for rental properties has gone gangbusters. Vacancy rates in the inner city are low and rental returns have grown in the last 12 months. With more demand for inner city living, competition for rental properties has increased, some open for inspections are even receiving up to 60 groups in one day. For those who already have investment properties in the inner city, this demand will drive up rental returns in the long-term.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Parkville
42.8%
1
Clifton Hill
12.0%
Capital Growth
Median Price
2 Windsor
39.4%
$1,450,000
3 Abbotsford
32.9%
$1,176,500
4 Burnley
22.7%
$1,225,505
5 West Melbourne
20.4%
$885,000
2 Windsor
10.2%
$530,000
3 Abbotsford
8.6%
$570,000
4 North Melbourne
5.2%
$527,250
5 Southbank
5.1%
$578,000
Rental Yield
Median Weekly Rent
2 Collingwood
3.3%
$565
3 Cremorne
3.3%
$630
4 West Melbourne
3.2%
$550
5 North Melbourne
3.1%
$560
2 Melbourne
5.6%
$480
3 West Melbourne
5.0%
$460
4 Docklands
5.0%
$550
5 Southbank
4.9%
$540
Median Price
1
Parkville
$1,828,000
1
Clifton Hill
$665,000
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Melbourne
1
5.0%
1
Carlton
6.4%
12
Median Price
Melbourne
$695
1
Carlton
$400
03. Local Focus
Inner West
Local offices
Top three trends
Altona
9398 8044
Commercial
9690 6000 9311 4550
Over the bridge
Shift to developments
Jam-packed OFIs
Sunshine
Buyers from traditionally popular inner city suburbs like South Yarra and Prahran are heading to the inner west in search of stronger land value.
With plenty of competition from owner-occupiers for established homes, investors are looking towards apartment developments or housing estates.
Open for inspections are seeing plenty of people coming through the doors from owner-occupiers and investors, driving competition for homes.
Williamstown
9393 0000
Yarraville
8387 0555
Predictions Still the most affordable pocket within 10km of the CBD, the inner west is seeing huge amounts of development in terms of apartment developments and house and land packages, attracting investors and owner occupiers equally. With many homes in the inner west built during the middle of the last century, investors will continue to preference developments over ďŹ xer-uppers so they can lease out immediately.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Williamstown Nth
37.2%
1
South Kingsville
Capital Growth
Median Price
2 Travancore
31.5%
$1,288,500
3 Essendon North
27.3%
$875,000
4 Avondale Heights
19.2%
$775,000
5 Kingsville
17.5%
$925,000
2 Aberfeldie
14.4%
$497,500
3 Strathmore
13.4%
$675,000
4 Niddrie
13.3%
$617,500
5 Avondale Heights
11.7%
$500,000
Rental Yield
Median Weekly Rent
2 Brooklyn
2.9%
$375
3 Altona North
2.9%
$400
4 Footscray
2.9%
$420
5 Seddon
2.8%
$485
2 Spotswood
4.6%
$393
3 Kingsville
4.4%
$300
4 Maidstone
4.4%
$360
5 Essendon North
4.4%
$340
Median Price
1
Williamstown Nth
$1,135,500
1
33.6%
South Kingsville
$552,500
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Maidstone
Median Price
1
3.1%
1
Travancore
5.4%
Maidstone
$395
1
Travancore
$380
13
03. Local Focus
Inner North
Local offices
Top three trends
Coburg
9350 5333
Commercial
9690 6000
Period homes on point
Alphington picks up
Café culture
Ivanhoe
9499 5611
Families from Melbourne’s East are moving to Preston and Reservoir, where beautiful family homes are within their budgets.
Buyers pushed out of Northcote and Westgarth have trickled into Alphington, lifting the median house price by 21% in the suburb.
Trendy cafes, hip bars and restaurants emerging in the north are attracting buyers to Preston and Coburg.
Pascoe Vale
9350 5333
Preston
9471 1100
Reservoir
9470 2525
Predictions Our offices are seeing many enquires for families from the eastern suburbs seeking out affordable family homes. They predict the established home market will be highly competitive for investors in the next six months. Investors with assets in apartment developments in the north will be content with rental returns which have increased, especially in Heidelberg Heights, Brunswick West and Preston. With many more developments under construction, especially in Brunswick East and Collingwood, time will tell if rents will stabilise.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to benefit from long term property price increase.
Alphington
21.1%
1
Heidelberg West
Capital Growth
Median Price
2 Coburg North
19.6%
$771,500
3 Fairfield
18.7%
$1,270,500
4 Thornbury
17.2%
$1,075,000
5 Brunswick West
16.9%
$995,000
2 Fairfield
19.5%
$561,500
Median Price
1
Alphington
$1,540,000
1
21.6%
Heidelberg West
$497,500
3 Pascoe Vale South
10.2%
$520,000
4 Alphington
10.0%
$650,000
5 Reservoir
6.7%
$416,000
Rental Yield
Median Weekly Rent
2 Brunswick East
3.1%
$570
3 Brunswick
3.0%
$540
4 Coburg
2.9%
$480
5 Coburg North
2.8%
$420
2 Heidelberg Heights
4.4%
$380
3 Brunswick West
4.3%
$330
4 Preston
4.2%
$360
5 Reservoir
4.1%
$330
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Kingsbury
1
3.1%
1
Kingsbury
4.5%
14
Median Price
Kingsbury
$360
1
Kingsbury
$330
03. Local Focus
Inner East
Local offices
Top three trends
Armadale
9509 0411
Balwyn
9830 7000 9557 7733
Hawthorn hits the $2M mark
Rental demand in Caulfield
Buyers seek fixer-uppers
Bentleigh
Median house prices in Hawthorn have catapulted by 30% over the last twelve months, increasing above $2,000,000.
Rents for apartments in Caulfield North and Caulfield East have skyrocketed.
Homes with renovation potential, especially in Caulfield, are receiving interest from second home owners and investors.
Carnegie
9569 3666
Caulfield
8532 5200
Commercial
9690 6000
Glen Iris
9818 1888
South Yarra
9868 5444
Predictions The apartment developments settling this year in the inner east will increase the amount of stock for investors – a lucrative investment that offers high rental returns. Investors should avoid looking for established homes, as stock is low. Owner-occupiers are remaining in their homes for longer, and opting to renovate instead of move house. Caulfield East and Glen Huntly will be up and coming hotspots for the next few years, as buyers trickle out of Elsternwick.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to benefit from long term property price increase.
Hawthorn
30.8%
1
Caulfield South
15.6%
Capital Growth
Median Price
2 Ormond
19.2%
$1,550,000
3 Toorak
18.1%
$4,169,000
4 Caulfield North
12.2%
$2,020,000
5 Caulfield East
11.6%
$1,300,000
2 Caulfield
15.4%
$725,000
3 Ashburton
15.0%
$1,150,000
4 Hawthorn East
11.7%
$619,950
5 Mont Albert North
9.9%
$930,000
Rental Yield
Median Weekly Rent
2 Caulfield South
2.2%
$638
3 Glen Huntly
2.2%
$550
4 Caulfield East
2.1%
$536
5 Kooyong
2.1%
$1,075
2 Caulfield North
4.1%
$430
3 Glen Huntly
3.9%
$385
4 Glen Iris
3.7%
$390
5 Carnegie
3.7%
$378
Median Price
1
Hawthorn
$2,079,000
1
Caulfield South
$850,000
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Carnegie
Median Price
1
2.2%
1
Caulfield East
4.9%
Carnegie
$555
1
Caulfield East
$400
15
03. Local Focus
Eastern Suburbs
Local offices
Top three trends
Balwyn
9830 7000
Blackburn
9894 8788
Land Land Land
Downsizers drive apt. demand
Schools still a major draw card
Commercial
9690 6000
Investors in particular are seeking out land in the east to either build one or multiple homes on.
Baby Boomers looking to leave their family home but remain in the local area are driving demand for apartments in Kew.
The demand for private and public education continues to be a major factor for demand.
Doncaster
9842 1188
Glen Iris
9818 1888
Glen Waverley
9886 6900
Mooroolbark
9727 7888
Mount Waverley
9807 9522
Ringwood
9876 9001
Predictions The past six months has seen limited supply of homes in the east, subsequently driving up competition, house prices and clearance rates. With stamp duty concessions arriving in July for ďŹ rst home buyers, competition for apartments under $600,000 will intensify, especially as young buyers wish to remain close to their families in the suburbs.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Moorabbin
1
19.9%
1
Ringwood North
23.7%
Capital Growth
Median Price
2 Blackburn South
14.0%
$1,050,000
3 Croydon
13.3%
$680,000
4 Templestowe
12.6%
$1,280,850
5 Wonga Park
11.8%
$821,500
2 Moorabbin
21.3%
$592,450
3 Oakleigh East
20.2%
$730,000
4 Templestowe
18.7%
$824,750
5 Wheelers Hill
16.8%
$725,000
Rental Yield
Median Weekly Rent
2 Warranwood
3.3%
$530
3 Wonga Park
3.2%
$513
4 Croydon South
3.2%
$400
5 Croydon
3.0%
$390
2 Huntingdale
5.1%
$350
3 Oakleigh
4.4%
$385
4 Doncaster
3.8%
$420
5 Croydon North
3.8%
$368
Median Price
Moorabbin
$976,794
1
Ringwood North
$720,000
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Croydon Hills
1
3.5%
1
Notting Hill
5.9%
16
Median Price
Croydon Hills
$490
1
Notting Hill
$350
03. Local Focus
Outer Suburbs
Local offices
Top three trends
Berwick
8768 3800
Caroline Springs
9999 9888 9690 6000
Outside area buyers
Transition to auctions
Growth Growth Growth
Commercial
Suburbs such as Frankston, Cranbourne and Sunshine are seeing an increase in out-ofarea buyers seeking affordable housing.
As demand increases, vendors are opting to sell via auction instead of private sale.
Capital appreciation has skyrocketed in the outer suburbs, with areas such as Albion, Sunshine and Plumpton seeing between 20 to 30% growth.
Cranbourne
5995 1888
Epping
8468 9900
Predictions
Frankston
9781 3366
Melton
9746 6888
Mooroolbark
9727 7888
Point Cook
9395 6888
Ringwood
9876 9001
Sunshine
9311 4550
Werribee
9731 7022
The next twelve months is extremely positive for those investing in the outer suburbs. Affordable housing, coupled with infrastructure upgrades and improved amenities will draw intense demand from young families and ďŹ rst home buyers. Investors, especially those from Sydney and Brisbane, are continuing to place capital in the growth corridors too, catering for the increased demand for affordable rental homes as the population increases. The major infrastructure projects and school developments underway in the outer suburbs will also help drive capital appreciation in the outer areas.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Plumpton
37.5%
1
Dandenong Nth
Capital Growth
Median Price
2 Ardeer
32.1%
$502,000
3 Research
28.8%
$865,000
4 Sunshine
25.7%
$670,000
5 Albion
24.7%
$580,000
2 Mooroolbark
17.5%
$493,500
Median Price
1
Plumpton
$470,000
1
20.5%
Dandenong Nth
$385,750
3 Wantirna
17.1%
$556,000
4 Cranbourne West
16.2%
$342,000
5 Sunshine West
15.6%
$393,000
Rental Yield
Median Weekly Rent
2 Mickleham
5.3%
$380
3 Melton
5.2%
$280
4 Melton South
5.1%
$280
5 Coolaroo
4.9%
$320
2 Roxburgh Park
5.9%
$320
3 Melton South
5.9%
$260
4 Kurunjang
5.7%
$270
5 Meadow Heights
5.5%
$320
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Rockbank
Median Price
1
5.6%
1
Melton
6.2%
Rockbank
$310
1
Melton
$275
17
18
19
03. Local Focus
Bayside
Local offices
Top three trends
Albert Park
9690 5366
Bentleigh
9557 7733
St Kilda rules the roost
Influx of Sydney-siders
Apartments in high demand
Brighton
9596 7055
House prices have risen steeply in St Kilda, thanks to the suburb’s proximity to the city, lifestyle and range of accommodation options.
With the cost of living rising in Sydney, people are relocating to Bayside Melbourne as it offers a similar beachside lifestyle at a lower cost.
Demand for larger apartments and townhouses has increased as buyers are pushed out of the detached-dwelling market.
Caulfield
8532 5200
Chelsea
9772 7222
Commercial
9690 6000
Frankston
9781 3366
Mentone
9583 3246
Sandringham
9521 9800
St Kilda
9593 8733
Predictions The apartment market in Bayside, from St Kilda right down to Sandringham and Chelsea has grown tremendously, and it will strengthen this year. This can be put down to first home buyers seeking out apartments, second home buyers looking at larger apartments instead of houses, and downsizers wishing to stay in their local area. Investors with apartments in Bayside can be rest assured that capital appreciation will be strong this year. Those looking to sell their apartment's should capitalise on this growing trend and consider listing over the next twelve months.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to benefit from long term property price increase.
St Kilda
27.9%
1
Edithvale
Capital Growth
Median Price
2 Chelsea
22.0%
$825,000
3 Ripponlea
21.6%
$1,702,500
4 Edithvale
21.5%
$890,000
5 Seaford
21.4%
$570,500
2 Bonbeach
18.3%
$515,000
Median Price
1
St Kilda
$1,171,000
1
19.9%
Edithvale
$578,000
3 Mentone
17.8%
$555,000
4 Aspendale
14.2%
$685,000
5 Sandringham
10.6%
$656,500
Rental Yield
Median Weekly Rent
2 Carrum Downs
4.2%
$350
3 Frankston
3.9%
$350
4 Chelsea Heights
3.5%
$435
5 Patterson Lakes
3.4%
$535
2 Frankston
4.6%
$285
3 Patterson Lakes
4.6%
$393
4 Gardenvale
4.5%
$298
5 Chelsea Heights
4.3%
$375
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Frankston Nth
1
4.4%
1
Carrum Downs
5.1%
20
Median Price
Frankston Nth
$295
1
Carrum Downs
$330
03. Local Focus
Greater Geelong
Local offices
Top three trends
Geelong
5223 2525
Torquay
5261 8888
Inner-city Geelong performing
City-goers arrive
Period homes
The inner-city suburbs continue to perform best, with high demand for East Geelong, Manifold Heights, Belmont and Newtown.
The city is seeing enormous interest from city-siders from Melbourne and Sydney looking for a lifestyle change with lower living costs.
Homes with period details and metal work are receiving a lot of attention from city-buyers and upsizers.
Predictions The rental market in inner-city Geelong suburbs has remained solid, however as new land estates hit the market, there’s a large supply of rental homes in the outer areas. Over the next twelve months, rentals in the outer areas are predicted to decrease. The sales market in Greater Geelong is likely to piggy-back off the strong Melbourne market and continue to grow, as families relocate from the city to be near quality schools, a great lifestyle and the amenities Geelong offers. Therefore, capital appreciation will remain solid for investors in the area.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Manifold Heights
1
28.4%
1
Point Lonsdale
Capital Growth
Median Price
2 Rippleside
20.1%
$710,000
3 East Geelong
16.5%
$512,500
4 Queenscliff
15.9%
$800,000
5 Portarlington
14.5%
$472,500
2 Newtown
19.4%
$420,000
3 East Geelong
17.2%
$381,000
4 Drysdale
15.2%
$319,000
5 Geelong West
12.2%
$378,000
Rental Yield
Median Weekly Rent
2 Whittington
5.4%
$290
3 Corio
5.4%
$260
4 Norlane
5.4%
$240
5 Thomson
5.1%
$305
2 Norlane
5.7%
$250
3 Corio
5.7%
$230
4 Newcomb
5.6%
$270
5 Lara
5.5%
$290
Median Price
Manifold Heights
$610,000
1
30.0%
Point Lonsdale
$617,500
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Breakwater
Median Price
1
5.6%
1
Whittington
7.2%
Breakwater
$300
1
Whittington
$240
21
03. Local Focus
Mornington Peninsula
Local offices
Top three trends
Blairgowrie
Owner-occupiers increase
Baby Boomer demand
Rental properties in high demand
Traditionally an area full of holiday rentals, the Peninsula is transforming to be predominantly owneroccupied.
Downsizers are seeking out coastal homes to retire to, or use as a weekend getaway.
With the sales market going strong, the number of investment properties available has decreased, causing rental returns to increase.
5988 9095
Dromana
5987 1999
Mornington
5973 5444
Rosebud
5986 5777
Predictions Due to the strong sales market, more rental properties are being sold, forcing existing tenants to look for new rental accommodations - driving demand and weekly rents. Many vendors are taking advantage of the strong sales market and selling their home. Capel Sound (previously known as Rosebud West), has seen immense change, welcoming young families to the area because it offers affordable housing options.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
St Andrews Beach
30.4%
1
Dromana
46.6%
Capital Growth
Median Price
2 Sorrento
28.5%
$1,112,500
3 Blairgowrie
22.1%
$760,000
4 Mount Eliza
14.5%
$950,000
5 Tootgarook
13.9%
$460,000
2 Safety Beach
18.4%
$473,750
3 Rye
15.4%
$420,000
4 Mornington
12.1%
$520,000
5 Mount Eliza
11.5%
$480,000
Rental Yield
Median Weekly Rent
2 Rosebud
3.7%
$330
3 Mornington
3.4%
$450
4 Rye
3.3%
$350
5 Dromana
3.3%
$365
2 Mount Martha
4.3%
$430
3 Safety Beach
4.1%
$373
4 Rye
3.7%
$295
5 Mornington
3.6%
$360
Median Price
1
St Andrews Beach
$730,000
1
Dromana
$525,000
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Tootgarook
1
3.8%
1
Rosebud
4.4%
22
Median Price
Tootgarook
$340
1
Rosebud
$323
03. Local Focus
Regional Victoria
Local offices
Top three trends
Ballarat
5329 2500
Daylesford
5348 1700
Apartment market lifts in Ballarat
Eateries and cafes rise
Young buyers drive demand
Apartments in Ballarat Central are seeing an 18% rise in capital growth.
New cafes and great places to eat continue to attract weekend renters and younger buyers alike.
Families with young children are relocating to Ballarat thanks to its community vibe and affordable housing.
Predictions Housing estates in regional areas continue to grow in popularity, especially from investors catering to the rental market in these areas. As of the 1st of July, the ďŹ rst home buyer grant will increase for those buying new homes in regional areas, which will drive up competition for new dwellings.
Property value increase In the last 12 months
Un i ts
Houses
Capital Growth
1 Capital growth for investors looking to beneďŹ t from long term property price increase.
Brown Hill
21.2%
1
Ballarat Central
18.2%
Capital Growth
Median Price
2 Mount Macedon
16.8%
$750,000
3 Hepburn Springs
13.0%
$418,000
4 Soldiers Hill
12.2%
$345,000
5 Blackwood
10.9%
$288,000
2 Lake Wendouree
15.1%
$313,000
3 Wendouree
13.6%
$237,500
4 Daylesford
8.0%
$351,000
5 Alfredton
3.5%
$282,000
Rental Yield
Median Weekly Rent
2 Sebastopol
5.5%
$260
3 Clunes
5.4%
$260
4 Creswick
5.4%
$280
5 Miners Rest
5.4%
$340
2 Sebastopol
5.9%
$225
3 Redan
5.8%
$228
4 Canadian
5.8%
$260
5 Ballarat East
5.5%
$240
Median Price
1
Brown Hill
$330,500
1
Ballarat Central
$260,000
Return on your investment In the last 12 months
Uni ts
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Wendouree
Median Price
1
5.5%
1
Mount Clear
6.0%
Wendouree
$260
1
Mount Clear
$250
23
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