burleigh heads area property watch 2013 q2
DESCRIPTION
Burleigh Heads Area Property Watch 2013 Q2TRANSCRIPT
www.prdresearch.com.au Your home of property knowledge
Second Quarter │2013
BURLEIGH HEADS AREA Property Watch®
MARKET INDICATORS
Change from Last Year Half Year
HOUSE SALES
HOUSE MEDIAN
HOUSE RENTS
UNIT SALES
UNIT MEDIAN
UNIT RENTS
The indicators depicted above are based on the year
ending January 2013, except for aggregate rental
indicators which reflect quarterly data up to March
2013.
The price gap between houses and
units represents excellent value for
money opportunities on offer in the
Burleigh Heads Area unit market
BURLEIGH HEADS AREA MARKET OVERVIEW
The following Property Watch report is the result of an investigation into the
historic and current market trends of the Burleigh Heads Area, defined by the
suburbs of Burleigh Heads, Burleigh Waters, Miami and Varsity Lakes.
Sales in the Burleigh Heads Area house market have been on a steady decline
since stimulus packages propped the market up through the second half of 2009
into the first half of 2010. While the back half of 2012 saw more activity in the
market, the six months to January 2013 saw sales come back 11 per cent.
During this period there were 190 transactions recorded. With the Gold Coast
City Council attempting to facilitate construction with their Construction Kickstart
initiative (commenced 1st October 2012), it is hoped this stimulus promotes small
to medium-sized businesses and creates short-term construction jobs.
The median house price over the past 12 months has strengthened in the
Burleigh Heads Area with a notable nine per cent increase over the year to
January 2013, rising in a similar vain to that seen from 2009 to 2010. During this
time the House Price Points charts notes that there has been a notable
contraction of sales activity of approximately seven per cent in the $400,000 to
$499,999 price range. Concurrently, the $600,000 plus price range grew seven
per cent to account for a total 28 per cent of sales. Although lower priced
property still occupies the majority of the market, the expansion of the higher
priced properties transacting is a likely sign of the increased mortgage
affordability coupled with the development of more flexible options when it comes
to mortgage products. However as sales have continued to decline it may be a
sign that the latest price rise is unsustainable, with sellers needing to be realistic
if they wish to sell their property in a timely manner.
BURLEIGH HEADS AREA HOUSE SALES CYCLE
Prepared by PRDnationwide Research. Source: PDS
$505,000
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
0
50
100
150
200
250
300
350
400
450
500
200
3 J
AN
200
3 J
UL
200
4 J
AN
200
4 J
UL
200
5 J
AN
200
5 J
UL
200
6 J
AN
200
6 J
UL
200
7 J
AN
200
7 J
UL
200
8 J
AN
200
8 J
UL
200
9 J
AN
200
9 J
UL
201
0 J
AN
201
0 J
UL
201
1 J
AN
201
1 J
UL
201
2 J
AN
201
2 J
UL
201
3 J
AN
Med
ian
sale
pri
ce
Nu
mb
er
of
sale
s
Half year period
Number of sales
Median
Prepared by PRDnationwide Research. Source: PDS, ABS, Residential Tenancy Authority. PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2013
Your home of property knowledge www.prdresearch.com.au
Research Analyst │Matt Ballam P (07) 3026 3356 F (07) 3166 0456 E [email protected]
PRDnationwide Burleigh Heads │ P (07) 5535 4544 F (07) 5576 1382 E [email protected]
HOUSE PRICE POINTS
Prepared by PRDnationwide Research. Source: PDS
UNIT PRICE POINTS
Prepared by PRDnationwide Research. Source: PDS
MEDIAN RENTS – 4220 PC
Prepared by PRDnationwide Research. Source: PDS
Sales in the Burleigh Heads Area unit market have been steady and plateaued as
median price has contracted and is beginning to stabilise. In the six month period
ending January 2013, there were 242 recorded unit transactions, representing a
minimal one per cent drop from the previous six months; however represents a
nine per cent increase over 12 months. Over the same time the median price
has come back four per cent over the 12 months (and one per cent over the
previous six months) to round out the January 2013 period at $345,000. With the
median price beginning to level off at its lowest point in six years, now represents
a good time for buyers to enter the market. With a very limited amount of new
unit supply occurring in the Burleigh Heads Area (approximately 31 units), and
none of it due in 2013, median price can be expected to plateau and perhaps rise
provided demand remains stable. Given the price gap between houses and units
is currently at its greatest, the affordability and value for money offered in the unit
market cannot be ignored.
The Unit Price Points chart represents the appetite of buyers for more affordable
property, with the $300,000 to $349,999 accounting for 24 per cent of
transactions, while the sub $350,000 market accounted for 51 per cent of all
transactions for the period. The $550,000 plus market contracted three per cent
over the 12 months to January 2013.
BURLEIGH HEADS AREA UNIT SALES CYCLE
Prepared by PRDnationwide Research. Source: PDS
The rental market in the Burleigh Heads Area has been slow over the past three
years, with the average three year growth rate across all dwelling types sitting at
a very modest 0.49 per cent. For interested investors intent on buying in the
Burleigh Heads Area, three bedroom houses represent the most solid investment
vehicle, with the category receiving a five per cent growth in bonds over three
years, and a one per cent growth in weekly median rent.
MOST ACTIVE SUBURBS FOR THE JANUARY 2013 HALF YEAR
House market No. House Sales Unit Market No. Unit Sales
HY
Jan-13
Annual
Change
HY
Jan-13
Annual
Change
Burleigh Waters 85 -8% Burleigh Heads 103 16%
Varsity Lakes 55 -13% Varsity Lakes 67 8%
Burleigh Heads 29 4% Miami 43 5%
Miami 21 11% Burleigh Waters 29 -6%
Prepared by PRDnationwide Research. Source: PDS
4%
14%
21%
16%
14%
8%
6%
17%
8%
18%
19%
18%
10%
9%
4%
15%
17%
26%
20%
9%
8%
5%
2%
13%
13%
23%
20%
14%
9%
7%
4%
10%
11%
18%
18%
17%
7%
10%
4%
14%
0% 20% 40% 60% 80% 100%
Less than$400,000
$400,000 to$449,999
$450,000 to$499,999
$500,000 to$549,999
$550,000 to$599,999
$600,000 to$649,999
$650,000 to$699,999
At least$700,000
Percentage of total sales
Pri
ce p
oin
ts
2011 JAN 2011 JUL 2012 JAN 2012 JUL 2013 JAN
6%
7%
23%
20%
16%
5%
4%
18%
7%
8%
19%
20%
15%
8%
7%
17%
12%
15%
20%
17%
9%
6%
4%
17%
14%
12%
23%
18%
10%
6%
5%
12%
14%
13%
24%
15%
10%
4%
6%
14%
0% 20% 40% 60% 80% 100%
Less than$250,000
$250,000 to$299,999
$300,000 to$349,999
$350,000 to$399,999
$400,000 to$449,999
$450,000 to$499,999
$500,000 to$549,999
At least$550,000
Percentage of total sales
Pri
ce
po
ints
2011 JAN 2011 JUL 2012 JAN 2012 JUL 2013 JAN
$270
$350
$410
$435
$530
$280
$350
$420
$440
$500
$270
$360
$420
$450
$540
$-
$1
00
$2
00
$3
00
$4
00
$5
00
$6
00
1 Bed Units
2 Bed Units
3 Bed Units
3 Bed House
4 Bed Houses
Median rent
Dw
ellin
g t
yp
e
Mar-11 Mar-12 Mar-13
$345,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
0
100
200
300
400
500
600
700
800
200
3 J
AN
200
3 J
UL
200
4 J
AN
200
4 J
UL
200
5 J
AN
200
5 J
UL
200
6 J
AN
200
6 J
UL
200
7 J
AN
200
7 J
UL
200
8 J
AN
200
8 J
UL
200
9 J
AN
200
9 J
UL
201
0 J
AN
201
0 J
UL
201
1 J
AN
201
1 J
UL
201
2 J
AN
201
2 J
UL
201
3 J
AN
Med
ian
sale
pri
ce
Nu
mb
er
of
sale
s
Half year period
Number of sales
Median