Red Report
hockingstuart.com.au
Issue 1 2018
Contents 01. Insider News Market Update
3
Q & A with David Wood - Flipping Houses
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 & Bellarine Peninsula
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in good faith, it is based on information provided by third parties and it could contain errors, be incomplete, or out of date.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 A lot can change in twelve months, especially when it comes to the property market. This time last year we were coming off the back of a 17.2% annual increase in median dwelling prices, making Melbourne housing affordability a hot topic in the media. In contrast, the first quarter of 2018 saw the state experience a 0.5% decrease in median dwelling price to sit at $720,881, according to CoreLogic data.
While this might appear at first glance as though the market is slowing, what’s actually happening is many buyers – investors included – are seeking more affordable options in greenfield spaces or apartments. This has been helped by the changes to stamp duty and government grants in 2017 that aimed to support first home buyers to find their feet in the property market. The surge in interest in affordable homes is why, for instance, Melbourne units have experienced a 6.6% increase in value over the past 12 months. This is good news for those who previously invested in units, or those looking for an investment option with low initial capital outlay. In terms of options for investors in the market, March saw one of the strongest months on record, with over 3,000 properties going under the hammer in Melbourne. With a healthy supply of stock available, there’s less competition at auctions for investors, with typically 1-2 serious bidders, as opposed to the 3-4 seen during periods of low stock. The northern suburbs of Victoria are sure to see an increase in interest in the coming months with the North East Link expected to ease congestion and reduce travel times between Melbourne’s north and south. This should continue to drive house prices in the surrounding suburbs, with areas like Watsonia North (median price $790,000) and Mill Park (median price $677,000) likely to continue to trending upwards. The strong sales despite the falling median price indicates a healthy market for investors going into the remainder of 2018. For those concerned by talk of a housing crash, experts assure this is unlikely in Melbourne given the tighter lending restrictions, relatively low unemployment rate and strong competition that continues to drive interest in homes throughout Melbourne.
Simon Jovanovic CEO hockingstuart
03
01 . I nsid er News
Q&A with David Wood – Flipping houses Flipping houses has always been seen as a great way for investors to turn a profit in a shorter period, particularly if you don’t have time to wait for capital appreciation. Television shows like The Block show that even everyday investors can renovate a property to gain a profit, so we sat down with winning auctioneer on The Block, hockingstuart Albert Park’s David Wood, to discuss the ins and outs of flipping houses.
What types of property should investors be looking for? If you’re looking to sell, the properties that will offer the greatest potential for high returns are what we call ‘ugly ducklings’ located in a great area. Homes with good bones, such as those built in the 60s, 70s or 80s with solid brick exteriors will allow you to build upon the existing structure without needing to do a complete rebuild. Sticking to interior refurbishments instead of the exterior which can be costly, will ensure that you don’t overcapitalise and will allow you to flip the house faster. Are there any particular areas that you should focus your attention on? Location plays a major role when it comes time to sell. As a general rule of thumb, look for areas with amenities, transport and schools which are always in demand.
04
However, within these areas you’ll need to look for older homes, typically found in Melbourne’s middle ring suburbs, which have greater renovation potential. Remember too, the further out you go, the less capital investment you’ll need to purchase the property. What should everyone do before investing in a house with the intention of flipping it? Do your research. Ensure the area you want to buy in doesn’t have heritage overlays or restrictions that will limit the renovations you can complete. Visit local open inspections to see the types of properties that are drawing a crowd, the types of people walking through and the styling of properties that sell well to make sure you’re on the right track.
It’s also a good idea to look at recent sales and the amount of interest currently in the area to get a feel for the type of returns possible to help you to set realistic expectations. How much time would you need to invest to successfully flip a property? There’s no set amount of time that will equal success. How long it takes you to flip a property will depend on the type of renovations or refurbishments taking place. Anywhere from six months for minor cosmetic changes, to 3+ years for complete rebuilds can be expected to complete your project and get it back on the market. While undergoing your renovations, you will need to keep an eye on the market to see if it is increasing or decreasing or if the type of property you’re hoping to sell is becoming popular to ensure you sell at the right time.
What’s one of the biggest mistakes people make when flipping a house? The number one mistake we see is ‘flippers’ not considering the wider market when doing their renovations. When you’re renovating to sell, you need to disregard your own quirky tastes in favour of the needs of the buyers. For example, removing car parking to add an atrium because it’s what you want isn’t putting the needs of your potential buyers first. If anything, it will limit the number of buyers who would be willing to put their hand up come auction day because car parking is a major selling point as suburbs become more congested.
David Wood Director / Auctioneer, Albert Park
05
02. Melbourne M a r ket
Melbourne at a glance over the past quarter House
Units
Median value
$812,000
Median value
$595,000
% change of median value
1.1%
% change of median value
1.2%
Median rent
$430 /wk
Median rent
$410 /wk
Rental yield
2.7% pa
Rental yield
3.6% pa
Suburbs with the highest median $ value increase over the last 5 years House
Units
Kooyong
$3,160,000
Essendon West
$1,700,000
Toorak
$1,450,000
St Helena
$910,000
East Melbourne
$1,392,500
Wattle Glen
$772,000
Keilor North
$1,375,000
Ashburton
$585,000
Canterbury
$1,180,000
Kew East
$527,500
06
02. Melbourne M a r ket
Suburbs with the highest % of stock These suburbs 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 Heidelberg West 12.8% 18 Houses 14 Units
01
02
04
04 Inner East
02 Inner City Docklands 29.4% 9 Houses 262 Units
03
05
Ashburton 15.1% 22 Houses 8 Units
06 03 Inner West Braybrook 14.1% 30 Houses 29 Units
07
07 Outer Suburbs Officer 23.1% 101 Houses 9 Units
05 Eastern Suburbs Ashwood 15.8% 17 Houses 11 Units
06 Bayside Highett 15.1% 17 Houses 47 Units
Source: RP Data
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
Average Rent
Low price range
Capital Growth
Rental Yield
Last 12 Months
P/A
$293,500 - $506,500
Units
Median Value
Average Rent
Low price range
Capital Growth
Rental Yield
Last 12 Months
P/A
$208,000 - $384,500
Frankston North
$490,000
$320
14.5%
3.4%
Albion
$335,000
$270
13.2%
4.1%
Melton South
$400,000
$320
12.6%
4.1%
Plenty
$325,000
$280
11.8%
4.4%
Diggers Rest
$475,000
$350
11.1%
3.8%
Hoppers Crossing
$375,000
$300
8.4%
4.1%
Werribee
$486,000
$340
10.7%
3.6%
Cranbourne
$370,000
$300
8.4%
4.2%
3.8%
Werribee
$345,750
$300
6.7%
4.5%
Wyndham Vale
$470,000
$345
Low-mid price range Officer
10.4%
$506,500 - $743,000 $524,000
$390
23.1%
Low-mid price range
$384,500 - $506,500
3.8%
Eynesbury
$440,000
$310
27.7%
3.6%
$420,000
$310
22.1%
3.8%
Mickleham
$519,900
$382
21.3%
3.8%
Belgrave
Plumpton
$582,300
$430
20.4%
3.8%
Belgrave Heights
$420,000
$310
22.1%
3.8%
Rockbank
$548,000
$412
15.0%
3.9%
Plumpton
$440,000
$420
21.7%
4.9%
Albion
$725,000
$350
14.9%
2.5%
Officer
$399,900
$370
16.7%
4.8%
Mid-high price range Toolern Vale
$743,000 - $1,090,500 $900,000
$575
15.7%
Mid-high price range
$506,500 - $668,500
3.3%
Chelsea Heights
$644,100
$450
17.3%
3.6%
$518,000
$375
13.4%
3.7%
Braybrook
$760,000
$330
14.1%
2.2%
Burnside Heights
Bayswater
$823,000
$395
14.1%
2.5%
Briar Hill
$660,000
$380
12.0%
2.9%
Croydon South
$820,000
$420
13.8%
2.6%
Ringwood East
$638,000
$360
11.2%
2.9%
Knoxfield
$864,944
$430
13.3%
2.5%
Ringwood North
$661,000
$390
11.1%
3.0%
High price range
$1,090,500 - $2,645,725
High price range
$668,500 - $1,150,000
Docklands
$1,650,000
$500
29.4%
1.5%
Watsonia North
$703,000
$350
16.8%
2.5%
Box Hill
$1,790,000
$450
17.1%
1.3%
Wheelers Hill
$845,000
$430
14.5%
2.6%
Clayton
$1,241,940
$412
16.1%
1.7%
Keilor
$760,000
$380
13.7%
2.6%
$1,071,750
$415
13.1%
2.0%
$1,150,000
$450
13.1%
2.0%
Box Hill North
$1,321,000
$450
15.1%
1.7%
Deepdene
Highett
$1,354,000
$520
15.1%
2.0%
Kew East
Source: RP Data
08
02. Melbou r ne M a r ket
Top suburbs for rental return 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. Source: RP Data
Suburbs with the highest average rent Here are a list of suburbs which have the highest average rental prices. This is useful to let you know where you can get a higher rental return, especially if your investment strategy is renovating and rental increase. Source: RP Data
Suburbs with the highest demand The average rental property in Victoria has 904 online inspections. Here are the suburbs which currently have the highest number of online inspections on average per property. This is useful for identifying suburbs that will likely obtain high occupancy rates, therefore improving your cash flow. Source: realestate.com.au
% Rental yield Houses Ravenhall
5.39%
Devon Meadows
4.98%
Bacchus Marsh
4.38%
Kurunjang
4.28%
Cranbourne South
4.25%
Units Princes Hill
6.92%
Keilor Downs
6.09%
Notting Hill
6.04%
Melbourne
6.04%
Carlton
5.92%
Highest average rent Houses East Melbourne
$965
Warrandyte South
$950
Parkville
$860
St Kilda West
$825
Elwood
$825
Units Ravenhall
$657
Kilsyth South
$570
Exford
$560
Pearcedale
$530
Eynesbury
$520
Average online views Houses Abbotsford
2,865
Burnley
2,471
Baxter
2,282
Collingwood
2,266
Belgrave Heights
2,194
Units Belgrave South
4,084
Langwarrin South
3,045
Belgrave Heights
2,676
Belgrave
2,676
Narre Warren North
2,319
09
03. Lo cal F o c us
Property market snapshot 01 - Inner City
P.12 Houses
Units
Capital Growth
11.14%
2.45%
Median Value Median Rent Rental Yield
Houses
Units
10.8%
3.6%
$1,407,500 $549,000
Median Value
$976,000
$520,000
$643
$450
Median Rent
$450
$400
2.43%
4.41%
Rental Yield
2.52%
3.88%
P.14 Houses
Units
Capital Growth
11.31%
5.7%
Median Value
$1,001,500 $547,750
Median Rent
$470
Rental Yield
2.44%
04
02
Capital Growth
12.3%
4.6%
Median Value
$1,854,000 $601,000
$400
Median Rent
$650
$400
3.71%
Rental Yield
1.87%
3.62%
P.16
Houses
Units
Capital Growth
12.8%
7.85%
Median Value
$1,001,000 $606,250
Median Rent
$445
Rental Yield
2.39%
07
06 09
P.17 Units
Capital Growth
11.21%
7.1%
Median Value
$650,000 $430,000
$365
Median Rent
$397
$345
3.40%
Rental Yield
3.15%
4.13%
P.20
Houses
Units
Capital Growth
12.07%
5.08%
Median Value Median Rent Rental Yield
05
06 - Outer Suburbs Houses
08 - Greater Geelong & Bellarine Peninsula
P.21
Houses
Units
Capital Growth
7.62%
4.88%
$1,100,000 $588,000
Median Value
$570,500
$360,000
$520
$400
Median Rent
$382
$300
2.58%
3.63%
Rental Yield
3.57%
4.48%
09 - Mornington Peninsula
08
P.15 Units
07 - Bayside
01
04 - Inner East Houses
05 - Eastern Suburbs
03
P.13
Capital Growth
03 - Inner North
10
02 - Inner West
P.22
10 - Regional
P.23
Houses
Units
Houses
Units
Capital Growth
9.3%
3.4%
Capital Growth
8.73%
5.0%
Median Value
$947,500
$455,000
Median Value
$475,000
$362,500
Median Rent
$430
$350
Median Rent
$343
$268
Rental Yield
2.80%
3.74%
Rental Yield
4.02%
4.64%
Source: RP Data
11
03. Local Focus
Inner City
Local offices
Top three trends
Albert Park
9690 5366
Armadale
9509 0411
Downsizers drive demand
Stamp duty changes drive sales
Renters get a rise
Carlton
9942 0083
Many retirees are now looking to sell their family home and downsize to an apartment, opening up opportunities for investors looking to buy larger homes or hoping to sell off an existing apartment.
With the recent changes to stamp duty for properties under $600,000, many young buyers are flocking to apartments in the city where they can benefit from the reduced costs and still maintain their existing lifestyle. This means competition for investors may increase in the CBD.
With high rental demand and low vacancy rates, the rental market within the CBD has remained strong - thanks in part to Melbourne’s growing population and the number of international students wanting easy access to tertiary education facilities.
Commercial
9690 6000
Melbourne
9600 2192
Richmond
9421 7100
South Yarra
9868 5444
Predictions We’re currently seeing low stock numbers combined with high demand from first home buyers and investors alike, especially for entry level properties such as apartments, townhouses and small homes. As such, the market will see moderate growth over the next twelve months as buyers and renters continue to seek inner city living and the convenience of having everything at their fingertips.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Fitzroy
14.9%
Capital growth for investors looking to benefit from long term property price increase.
1
Carlton
6.8%
Capital Growth
Median Price
2 North Melbourne
14.2%
$1,425,000
3 Princes Hill
13.9%
$1,800,000
4 West Melbourne
12.9%
$1,320,000
5 Prahran
12.6%
$1,500,000
2 Carlton North
6.0%
$615,000
3 Burnley
3.9%
$486,250
4 Windsor
3.7%
$549,500
5 Prahran
3.4%
$561,600
Rental Yield
Median Weekly Rent
2 Parkville
3.1%
$860
3 Kensington
2.8%
$570
4 Collingwood
2.7%
$640
5 Richmond
2.7%
$670
2 Melbourne
6.0%
$530
3 Carlton
5.9%
$450
4 Southbank
5.2%
$570
5 Docklands
5.2%
$560
Median Price
1
Fitzroy
$1,567,500
1
Carlton
$395,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Melbourne
1
4.6%
1
Princes Hill
6.9%
12
Median Price
Melbourne
$450
1
Princes Hill
$400
03. Local Focus
Inner West
Local offices
Top three trends
Altona
9398 8044
Commercial
9690 6000
Spotswood is heating up
Owner occupiers moving in
It’s a monthly market
Sunshine
9311 4550
With its close proximity to the CBD via the West Gate Bridge and strong community amenities, Spotswood is fast dominating as a hotspot in the west, with strong demand pushing house prices well beyond expectations.
Owner occupiers are flocking from the east for affordability reasons, creating more competition with local investors and first home buyers for the available properties.
Clearance rates have stayed steady at about 80% for the past few months, with the average time on market being 30 days for most properties in the area.
Williamstown
9393 0000
Yarraville
8387 0555
Predictions A combination of the spring selling season and burgeoning property developments are leading to an influx of new stock throughout the western suburbs to meet strong buyer demand. Over the next six months, experts predict that given the increase in stock, prices should steady. While we don’t expect to see the 15% year-on-year growth we have seen previously, moderate growth and ongoing demand it’s good news for investors.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Braybrook
14.1%
Capital growth for investors looking to benefit from long term property price increase.
1
Altona
8.8%
Capital Growth
Median Price
2 Essendon West
13.3%
$1,325,000
3 Niddrie
13.0%
$1,149,000
4 Moonee Ponds
11.8%
$1,303,850
5 Essendon North
11.8%
$1,100,000
2 Brooklyn
8.7%
$565,000
3 Braybrook
8.1%
$520,000
4 Tottenham
8.1%
$520,000
5 West Footscray
8.1%
$438,900
Rental Yield
Median Weekly Rent
2 Williamstown Nth
2.8%
$600
3 Maidstone
2.6%
$415
4 Brooklyn
2.6%
$408
5 Maribyrnong
2.6%
$530
2 Strathmore Hts
5.2%
$450
3 Essendon North
4.8%
$370
4 Maidstone
4.5%
$400
5 Footscray
4.4%
$350
Median Price
1
Braybrook
$760,000
1
Altona
$640,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Seddon
Median Price
1
2.8%
1
Travancore
5.8%
Seddon
$525
1
Travancore
$400
13
03. Local Focus
Inner North
Local offices
Top three trends
Carlton
9942 0083
Commercial
9690 6000
No time to wait
Investors heading north
Infrastructure drawing the crowds
Ivanhoe
9499 5611
With an average of 28 days on the market, homes in the north are being snapped up quickly.
With the influx of first home buyers and families, many investors are moving further north to areas like Lalor, Epping and Thomastown.
Areas with existing infrastructure like Preston are gaining popularity as buyers look to plan for the future. This includes homes near schools and proposed shopping districts.
Preston
9471 1100
Reservoir
9190 9988
Predictions Following a period of increased interest in the north that saw a significant rise in sale prices (including a 13% increase in Northcote’s median house price), the market appears to be steadying with clearance rates averaging 71% across Coburg, Preston and Reservoir – slightly lower than the Melbourne average of 73.7%. Demand for rental properties is increasing, which is good news for investors. The median rent paid for houses in Thornbury and Coburg is currently sitting higher than Melbourne’s average ($430), and rental yields are averaging 2.5%.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Bellfield
13.4%
Capital growth for investors looking to benefit from long term property price increase.
1
Rosanna
Capital Growth
Median Price
2 Fairfield
13.1%
$1,421,500
3 Heidelberg West
12.8%
$720,000
4 Alphington
12.7%
$1,725,000
5 Rosanna
12.6%
$1,192,500
2 Reservoir
8.8%
$545,500
3 Viewbank
8.4%
$626,750
4 Heidelberg Heights
7.9%
$654,750
5 Pascoe Vale South
7.5%
$625,000
Rental Yield
Median Weekly Rent
2 Coburg
2.7%
$520
3 Brunswick East
2.6%
$580
4 Brunswick
2.6%
$580
5 Heidelberg West
2.5%
$350
2 Rosanna
4.5%
$420
3 Bellfield
4.1%
$430
4 Ivanhoe
4.1%
$355
5 Fairfield
4.1%
$420
Median Price
1
Bellfield
$906,000
1
8.9%
Rosanna
$745,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Coburg North
1
2.8%
1
Heidelberg
5.4%
14
Median Price
Coburg North
$450
1
Heidelberg
$460
03. Local Focus
Inner East
Local offices
Top three trends
Armadale
9509 0411
Balwyn
9830 7000
Rental market running hot
New hotspots emerging
Family homes at the forefront
Bentleigh
9557 7733
With modern properties and apartments in high demand coupled with low vacancy rates (2% in the City of Boroondara, for instance), the rental market is looking strong.
Due to its close proximity to a number of primary and secondary schools, public transport options and Chadstone shopping centre, the small suburb of Hughesdale is emerging as a hotspot, particularly among families.
While houses that offer improvement opportunities and the potential to subdivide will continue to be popular, there has been increase in demand for 3, 4, and 5-bedroom family homes.
Caulfield
8532 5200
Commercial
9690 6000
Glen Iris
9818 1888
Richmond
9421 7100
South Yarra
9868 5444
Predictions The increased activity in building and construction within the area, particularly multi-unit development sites in key areas such as Carnegie, Murrumbeena and Caulfield, will increase the amount of stock on the market. With these areas in extremely high demand, we expect strong market growth and steady competition at auctions over the next 12 months, even as stock levels increase.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Kooyong
28.8%
Capital growth for investors looking to benefit from long term property price increase.
1
Mont Albert North
9.6%
Capital Growth
Median Price
2 Ashburton
15.1%
$1,815,000
3 Caulfield East
14.4%
$1,469,000
4 Caulfield
13.8%
$1,785,000
5 Hughesdale
13.8%
$1,380,000
2 Balwyn North
8.2%
$960,000
3 Surrey Hills
7.8%
$830,000
4 Hughesdale
7.2%
$675,000
5 Carnegie
7.0%
$601,000
Rental Yield
Median Weekly Rent
2 Glen Huntly
2.0%
$477
3 Caulfield
2.0%
$695
4 Kew East
1.9%
$705
5 Armadale
1.9%
$800
2 Hawthorn
3.9%
$400
3 Glen Huntly
3.7%
$390
4 Kooyong
3.7%
$550
5 Armadale
3.7%
$450
Median Price
1
Kooyong
$4,400,000
1
Mont Albert North
$1,020,500
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Caulfield East
Median Price
1
2.1%
1
Caulfield East
4.5%
Caulfield East
$600
1
Caulfield East
$389
15
03. Local Focus
Eastern Suburbs
Local offices
Top three trends
Balwyn
9830 7000
Blackburn
9894 8788
Established properties win out
Opportunities for strong capital growth
Land is in demand
Commercial
9690 6000
With the apartment market remaining stagnant, we’re seeing many investors moving back to the established market instead of buying off the plan.
Entry level houses in the area have seen a boost in prices from $500k to $600k. The increase in high rise towers and multilevel developments in the area are creating opportunities for first-time investors.
Homes sold with a land component are attracting strong competition at auctions, including substantial sized allotments ideal for subdivisions.
Glen Iris
9818 1888
Glen Waverley
9886 6900
Mooroolbark
9727 7888
Mount Waverley
9807 9522
Ringwood
9876 9001
Predictions Low supply of established properties (down 30% in the past year) is resulting in hotly contested auctions in the eastern suburbs, in turn driving extraordinary capital growth in the area. These will be ongoing factors raising the median house price in this ever-popular area.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Ashwood
15.8%
Capital growth for investors looking to benefit from long term property price increase.
1
Wheelers Hill
14.5%
Capital Growth
Median Price
2 Doncaster
14.5%
$1,418,000
3 Doncaster East
14.3%
$1,353,000
4 Croydon South
13.8%
$820,000
5 Mount Waverley
13.6%
$1,400,000
2 Croydon Hills
9.9%
$900,000
3 Templestowe Lower
13.6%
$1,300,000
4 Ringwood East
12.9%
$900,000
5 Ringwood North
11.4%
$981,000
Rental Yield
Median Weekly Rent
2 Warranwood
2.9%
$535
3 Croydon Hills
2.8%
$487
4 Warrandyte
2.7%
$580
5 Croydon
2.6%
$410
2 Mount Waverley
4.7%
$420
3 Blackburn
4.3%
$350
4 Burwood
3.9%
$450
5 Blackburn North
3.5%
$450
Median Price
1
Ashwood
$1,420,000
1
Wheelers Hill
$845,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Warrandyte South
1
3.6%
1
Ashwood
6.0%
16
Median Price
Warrandyte South
$950
1
Ashwood
$360
03. Local Focus
Outer Suburbs
Local offices
Top three trends
Berwick
8768 3800
Commercial
9690 6000
Fast growth on track for Melton
Sydney-siders stepping in
Auction numbers double
Cranbourne
5995 1888
With one of the fastest growing councils in Australia, new estates are popping up and getting filled quickly, leading to population growth of four percent – more than double of that seen in previous years
Interstate investors are getting excited about the opportunities of Melbourne’s outer suburbs, with many bidding on properties sight-unseen. Entry-level units and larger 3-bedroom homes in particular are proving popular thanks to their affordability.
Since stock levels have tightened, more people are choosing auctions over private sales to generate competition and maximise sale prices from the increased demand. As a result, the area is seeing high clearance rates of around 95%.
Epping
8468 9900
Frankston
9781 3366
Melton
9746 6888
Mooroolbark
9727 7888
Point Cook
9395 6888
Ringwood
9876 9001
Sunshine
9311 4550
Werribee
9731 7022
Predictions Housing affordability in the area has allowed for positive growth in the local market, with strong demand helping to drive prices beyond expectations. With bigger homes between $750k - $1m gaining in popularity, the amount of land available in the area compared with more central suburbs is providing a feeling of more value for money.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Officer
23.0%
Capital growth for investors looking to benefit from long term property price increase.
1
Diggers Rest
27.7%
Capital Growth
Median Price
2 Mickleham
21.4%
$522,450
3 Plumpton
20.5%
$585,000
4 Box Hill
17.1%
$1,790,000
5 Clayton
16.2%
$1,247,500
2 Exford
27.7%
$340,000
3 Eynesbury
27.7%
$440,000
4 Belgrave Heights
22.1%
$420,000
5 Belgrave
22.1%
$420,000
Rental Yield
Median Weekly Rent
2 Devon Meadows
4.9%
$450
3 Bacchus Marsh
4.3%
$350
4 Kurunjang
4.2%
$325
5 Cranbourne South
4.2%
$595
2 Kealba
6.0%
$375
3 Junction Village
5.9%
$330
4 Seaholme
5.4%
$495
5 Bacchus Marsh
5.3%
$300
Median Price
1
Officer
$524,000
1
Diggers Rest
$340,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Ravenhall
Median Price
1
5.3%
1
Attwood
24.7%
Ravenhall
$530
1
Attwood
$495
17
18
19
03. Local Focus
Bayside
Local offices
Top three trends
Albert Park
9690 5366
Bentleigh
9557 7733
North Brighton emerging
Renters surging
Boutique apartments on the rise
Brighton
9596 7055
With growing interest from families with long-term planning on their minds, areas close to schools and sporting facilities are emerging as hotspots. North Brighton in particular has seen an increase in interest from investors and homeowners alike.
Many Bayside suburbs are seeing strong demand in the rental market, especially Frankston which is emerging as a rental hotspot with yields hovering between 4-5%.
The surge in interest from downsizers looking to stay in the area has made boutique apartments and premium quality high-rise apartments particularly popular - a trend that should continue throughout the next year.
Caulfield
8532 5200
Commercial
9690 6000
Frankston
9781 3366
Mentone
9583 3246
Sandringham
9521 9800
St Kilda
9593 8733
Predictions From Albert Park to Frankston, the bayside area has seen pockets of great growth as a result of the increased popularity for Melbourne’s beaches among owner occupiers. In fact, house prices for unattached and semi-attached dwellings have risen steeply, with price growth between 8.2% across the City of Port Phillip - in particular in Elwood, St Kilda and St Kilda East. Suburbs where rentals continue to perform well include Port Melbourne, with a vacancy rate of just 1.8%, and St Kilda (2.5%).
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Gardenvale
15.2%
Capital growth for investors looking to benefit from long term property price increase.
1
Chelsea Heights
Capital Growth
Median Price
2 Highett
15.1%
$1,354,000
3 Balaclava
14.5%
$1,410,000
4 Frankston North
14.5%
$490,000
5 Hampton East
13.8%
$1,320,000
2 Hampton East
11.2%
$800,000
3 Aspendale
10.6%
$810,000
4 Bonbeach
10.6%
$600,000
5 Brighton East
9.4%
$985,000
Rental Yield
Median Weekly Rent
2 Frankston North
3.4%
$320
3 Frankston
3.2%
$375
4 Chelsea Heights
3.0%
$450
5 Patterson Lakes
2.9%
$515
2 Gardenvale
4.6%
$297
3 Carrum Downs
4.4%
$350
4 St Kilda
4.2%
$420
5 Albert Park
4.1%
$490
Median Price
1
Gardenvale
$1,880,000
1
17.3%
Chelsea Heights
$644,100
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Carrum Downs
1
3.5%
1
Frankston North
5.9%
20
Median Price
Carrum Downs
$380
1
Frankston North
$330
03. Local Focus
Greater Geelong & Bellarine Peninsula
Local offices
Top three trends
Bellarine
5223 2525
Geelong
5223 2525
Torquay
5261 8888
External buyers leading the charge
Geelong banking on positive sentiment
Jobs are driving change
With more than 50% of buyers coming from outside Geelong, investors are seeing value buying in fringe areas where the median house price is still around $300,000.
Between affordable housing in the area and stamp duty incentives, buyers are confident in the potential for strong yields, which is driving capital growth upwards.
While there are a number of external investors in the area, the increase in jobs, particularly in the building sector, is adding fuel to the property market and attracting more owner-occupiers.
Predictions Following the recently announced changes to stamp duty for regional areas, there has been a spike in land sales for new estates and established properties between $300,000 - $500,000. As a result, the property market in Greater Geelong is expected to continue growing steadily over the next 12 months. Areas 5-10km outside of Geelong, such as Leopold, Clifton Park and Grovedale are gaining interest among investors as emerging hotspots.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
South Geelong
1
11.6%
Capital growth for investors looking to benefit from long term property price increase.
1
Indented Head
Capital Growth
Median Price
2 Connewarre
10.8%
$1,050,000
3 Freshwater Creek
10.8%
$1,235,000
4 Geelong West
10.7%
$659,000
5 Gnarwarre
10.7%
$1,245,500
2 Breakwater
15.4%
$337,500
Median Price
South Geelong
$661,000
1
17.6%
Indented Head
$710,000
3 Ceres
15.4%
$337,500
4 Geelong West
10.3%
$432,070
5 Gnarwarre
10.3%
$432,070
Rental Yield
Median Weekly Rent
2 Barrabool
5.2%
$500
3 Whittington
4.8%
$300
4 Marshall
4.7%
$400
5 Breakwater
4.6%
$300
2 Lovely Banks
6.1%
$270
3 St Albans Park
5.3%
$290
4 Norlane
5.2%
$275
5 Leopold
5.1%
$325
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Anakie
Median Price
1
5.7%
1
Whittington
6.4%
Anakie
$600
1
Whittington
$277
21
03. Local Focus
Mornington Peninsula
Local offices
Top three trends
Blairgowrie
5988 9095
Dromana
5987 1999
Low stock driving high competition
Median prices hitting high
Long term rentals increasing
Mornington
5973 5444
While the current market has seen 20-30% growth in the past few years, low stock levels and increased interest in the area mean investors may see increased competition at auctions.
It’s good news for investors looking to sell, with median house prices along the Mornington Peninsula currently sitting at unprecedented levels, such as Blairgowrie which has risen from $650,000 to $900,000 since 2015.
There have been low vacancy rates across the board in rental properties (1-2%), with holiday rentals becoming difficult to find in peak seasons. This is increasing the number of people opting for long term rentals that are only occupied for a fraction of the year.
Mt Eliza
9787 1200
Rosebud
5986 5777
Predictions Demand for the area has never been higher, with homes only sitting on the market for 30-40 days on average. It is predicted that the growth in median house prices will continue to rise by approximately 10 – 20%. With Baby Boomers being the primary buyers in the area and limited opportunities to subdivide, changes to interest rates in the next 12 months will be the only major roadblock to further growth. This could in turn increase stock levels in the area and lower the median price if it were to take place.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Flinders
12.9%
Capital growth for investors looking to benefit from long term property price increase.
1
Balnarring
13.2%
Capital Growth
Median Price
2 Main Ridge
12.7%
$1,460,000
3 Fingal
12.6%
$1,105,000
4 Sorrento
11.5%
$1,300,000
5 St Andrews Beach
11.5%
$855,000
2 Balnarring Beach
13.2%
$2,200,000
3 Blairgowrie
11.6%
$650,000
4 Safety Beach
11.5%
$650,000
5 Shoreham
11.5%
$650,000
Rental Yield
Median Weekly Rent
2 Bittern
3.9%
$430
3 Tyabb
3.7%
$420
4 Crib Point
3.6%
$360
5 Hastings
3.5%
$350
2 Portsea
9.8%
$1150
3 Fingal
6.1%
$385
4 Crib Point
4.6%
$335
5 Merricks Beach
4.6%
$335
Median Price
1
Flinders
$1,512,500
1
Balnarring
$650,000
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Main Ridge
1
5.7%
1
Somers
12.3%
22
Median Price
Main Ridge
$1160
1
Somers
$350
03. Local Focus
Regional Victoria
Local offices
Top three trends
Ballarat
5329 2500
Daylesford
5348 1700
New estates attracting buyers
Properties selling fast
Melburnians making the move
Increases in the first home buyers grant are spurring sales in new housing estates and developments, especially on the fringes of Ballarat.
Increased demand in the local market has seen a substantial decrease in the days on the market with properties being snapped up fast as competition between buyer groups heats up.
There has been an increase in Melbourne-based buyers hoping to capitalise on the continued growth in the area and concessions for those buying regional properties.
Predictions Interest in regional areas has increased significantly thanks to affordable housing as well as the recent changes to stamp duty and the regional first home buyers grant. Expectations are for the market to remain steady throughout the next year as interest in the area continues to grow. Premium areas like central Ballarat and Lake Gardens have been the biggest winners from increased interest in regional areas.
Property value increase In the last 12 months
Un i ts
H o uses
Capital Growth
1
Carlsruhe
13.8%
Capital growth for investors looking to benefit from long term property price increase.
1
Creswick
Capital Growth
Median Price
2 Clunes
13.8%
$300,000
3 Cobaw
13.8%
$772,000
4 Smeaton
11.0%
$434,000
5 Spring Hill
11.0%
$720,000
2 Dereel
19.2%
$215,050
3 Haddon
19.2%
$215,050
4 Invermay
19.2%
$215,050
5 Woodend
12.1%
$471,275
Rental Yield
Median Weekly Rent
2 Newbury
7.1%
$472
3 Barrys Reef
6.5%
$355
4 Sebastopol
5.6%
$280
5 Mount Pleasant
5.5%
$310
2 Creswick
6.2%
$260
3 Dereel
6.2%
$260
4 Haddon
6.2%
$260
5 Invermay
6.2%
$260
Median Price
1
Carlsruhe
$720,000
1
19.2%
Creswick
$215,050
Return on your investment In the last 12 months
Un its
Houses
Rental Yield
1 Rental yield for investors wanting the most out of rental income and to minimise mortgage repayments
Bullarto
Median Price
1
9.4%
1
Miners Rest
8.0%
Bullarto
$700
1
Miners Rest
$300
23
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