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  • Buxton Property Values Report Spring 2016

    Property Values Report Spring 2016

    Ballarat including suburbs and surrounding areas

  • Buxton Property Values Report Spring 2016Buxton Property Values Report Spring 2016

    At the beginning of 2015, interest rates were at a record low, and in the 18 months since, the Reserve Bank of Australia (RBA) decided to drop the cash rate a further 1.0%. The impact on the Victorian property market has been significant.

    Historically, low and falling interest rates have contributed to increased house prices.

    With cheaper loan finance homebuyers tend to spend more on properties, demand from investors increases, more property developments go ahead and interest from foreign investors rises.

    We’ve seen all of this play out in Victoria over the last 24 months. Despite global economic headwinds, instability in domestic politics, and a national economy in transition, the REIV reports the Regional Victoria House Price Index rising 2.7% over the last 12 months. And, competition between buyers persisted in the first half of 2016 with auction percentage clearance rates across Victoria averaging 73% according to the Real Estate Institute of Victoria.

    The most recent interest rate drops, on 4 May and 3 August, will likely contribute to sustained buyer demand and further price increases. But the RBA has been mindful of stimulatory affect for more than a year and together with governments and banking institutions, they’ve implemented a variety of measures designed to keep a lid on investor activity (particularly from overseas buyers):

    • Higher lending rates and stricter criteria for investor loans

    • Non-lending to non-residents (even Australian citizens)

    • Increased stamp duty and land taxes for foreign purchasers

    • Tightened requirements for, and increased scrutiny of, overseas property investors from the Foreign Investment Review Board

    These initiatives have impacted lending activity in recent times. In a good sign for the overall health of the market, total new lending (owner occupier and investor) has been stable, but investor lending has been shrinking as a proportion since the middle of last year, and has been falling year-on- year in real terms since September.

    The buyer mix has been changing: investors and foreign buyers have retreated from the market a bit and home buyers are playing an increasingly important role in the market.

    Moving into Spring we expect strong demand from home buyers, fuelled by record low interest rates and heightened competition for quality homes.

    Changing buyer mix set to shape Spring property market

    In this fast-changing market, it’s important to seek professional advice from local market experts. Contact Buxton Ballarat (see back page for details) for an obligation free property appraisal or further information on property market conditions in your area.

    Welcome to the Spring edition of our Property Values Report, a summary of property sales and related information, delivered to you exclusively by Buxton. We are committed to providing our clients with accurate, credible, relevant market information and have worked in partnership with independent real estate data specialists Property Analytics* to develop this report. The statistics within are designed to give you a deeper understanding of how the residential real estate market is performing across Regional Victoria, Melbourne and within your specific neighbourhood.

    * Property Analytics (www.propertyanalytics.com.au) provides independent statistical information to real estate professionals throughout Victoria and New South Wales.

    Lending Commitments data sourced from the Reserve Bank of Australia

    Owner Occupied Investor

    68 is the average days on the market for regional Victoria properties and 35 days for metropolitan Melbourne (June 2016. Source: REIV).

    Property ownership data sourced from the Australian Bureau of Statistics (Census 2011)

    27%

    40%

    34%

    29% 33%

    37%

    27%

    40%

    34%

    29% 33%

    37%

    Owned Outright

    Mortgaged

    Rented

    Proper ty ownership in Victor ia

    % owner occupier versus investor lending commitments

    of regional Victoria homes and 71% of metropolitan Melbourne households are owned or mor tgaged (Source: ABS Census 2011)

    60%

    50%

    40%

    30%

    20%

    10%

    0

    Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Oct 15 Mar 16 Jun 16

    73%

    $295

    $250

    Regional Victoria average gross rental yield Houses = 5.0% and Units = 5.2% (Source: CoreLogic RP Data Professional)

    June vacancy rates for regional Victoria were 2.9% and metropolitan Melbourne were 2.7% and (Source: REIV)

    Is the median weekly rent for units or townhouses in regional Victoria and $395 for metropolitan Melbourne (Source: REIV).

    Is the median weekly rent for houses in regional Victoria and $401 for metropolitan Melbourne (Source: REIV).

    people per square kilometre is the population density of Victoria and the state continues to have the fastest population growth rate in Australia.

    25

    0 2 Million

    2016

    2021

    2026

    4 Million 6 Million

    Population predictions

    Regional Victoria

    Greater Melbourne

    2026 population predictions are 5.586 million for Greater Melbourne and 1.585 million for Regional Victoria.

    Greater Melbourne Regional Victoria

  • Buxton Property Values Report Spring 2016Buxton Property Values Report Spring 2016

    Property values in your neighbourhood Buxton has divided the map on this page into 13 different property value areas. To find out the median house value in your neighbourhood, simply locate your street on this map to discover which area your property is in, then look up the relevant chart at left or on the following page. Data shown is for the financial year ending 30 June, 2016.

    *Median Value 3 years % Change in figure is statistically unreliable due to insufficient sales volumes.

    Howitt Street

    Ballarat-Carngham Road

    Winter Street Sebastopol Street

    D ys

    o n

    D ri

    ve

    Howitt Street

    Sturt Street

    S ut

    to n

    S tr

    ee t

    Rubicon Street

    Wilson Street

    Wirreanda Drive

    Ya nk

    ee F

    la t R

    oa d

    Bells Road

    Rin g R

    oa d

    Mair Street

    1

    2

    3

    5

    6

    7 8

    9

    10

    12

    13

    11

    4

    About median values The median value is a more reliable figure than an average price. This is used as an indicator of price trends in a particular area. That’s why median prices are used by Buxton, the Real Estate Institute of Victoria and the Valuer General. Simply, the average price is obtained by adding up the value of all sales and dividing that figure by the number of sales. The median average is the middle price when all sales are arranged in order from highest to lowest.

    Please note that figures relate to sales of individual residential properties only, and exclude sales of multiple dwellings in single transactions (e.g. blocks of units), vacant land, and commercial real estate. The data on these pages also includes Valuer General data and because of the delay in receiving it, the 2016 data may be missing some sales taking place towards the end of the financial year. Also be aware that if any area has a particularly low number of sales during any period, this may unfairly influence the trend. Whilst every care has been taken to confirm the accuracy of the information presented, neither the authors, editors or publishers can be responsible for errors or omissions or for any consequences from application of the information given.

    Houses: 2015 - 2016

    1 - Wendouree / Miners Rest 1-3 Bed 4+ Bed All Houses

    Number Sold 231 54 285

    Median $247,250 $335,500 $259,000

    Highest $520,000 $670,000 $670,000

    Median 3 year % change 3 3 2

    2 - Ballarat North / Invermay Park / Black Hill 1-3 Bed 4+ Bed All Houses

    Number Sold 96 39 135

    Median $300,000 $450,000 $315,000

    Highest $472,500 $760,000 $760,000

    Median 3 year % change 7 13 0

    3 - Alfredton / Lucas 1-3 Bed 4+ Bed All Houses

    Number Sold 81 121 202

    Median $317,475 $420,000 $367,000

    Highest $751,429 $730,000 $751,429

    Median 3 year % change 0 5 3

    4 - Lake Gardens / Lake Wendouree 1-3 Bed 4+ Bed All Houses

    Number Sold 45 41 86

    Median $490,000 $653,750 $525,000

    Highest $1,750,000 $1,380,000 $1,750,000

    Median 3 year % change 5 9 -4

    5 - Soldiers Hill 1-3 Bed 4+ Bed All Houses

    Number Sold 69 14 83

    Median $300,000 $475,000 $329,000

    Highest $675,000 $780,000 $780,000

    Median 3 year % change -1 12 -1

    6 - Newington / Redan 1-3 Bed 4+ Bed All Houses

    Number Sold 91 18 109

    Median $290,000 $320,000 $295,000

    Highest $633,000 $1,025,000 $1,025,000

    Median 3 year % change 10 -8* 9

    7 - Ballarat Central 1-3 Bed 4+ Bed All Houses

    Number Sold 108 32 140

    Median $320,000 $458,000 $385,000

    Highest $795,000 $880,000 $1,800,000

    Median 3 year % change 7 -23* 20

    8 - Ballarat East / Eureka / Bakery Hill / Golden Point / Mount Pleasant 1-3 Bed 4+ Bed All Houses

    Number Sold 248 49 297

    M

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