carina area property watch 2012 q3
DESCRIPTION
Sales activity across the Carina Area unit market has improved considerably in the April 2012 half year period, however sales remain stagnant for the house market.TRANSCRIPT
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Third Quarter │2012
CARINA AREA Property Watch®
Westfield Carindale Redevelopment
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 April 2012, except for
aggregate rental indicators which reflect
quarterly data up to June 2012.
CARINA AREA MARKET OVERVIEW
The following Property Watch report is the result of an investigation into the
historic and current market trends of the Carina Area, defined by the suburbs of
the 4152 post code; Carina, Carina Heights, Camp Hill and Carindale.
Sales activity across the Carina Area house market remains subdued for the April
2012 half year period, with sales improving a marginal 1.6 per cent from the
previous year to register a total of 206 settled transactions. The median price of
$667,760 recorded for the April period reflects the markets appetite for more
affordably priced houses. Long term median price growth has been very modest,
with notable corrections experienced during 2008 and 2011 resulting in a five
year average annual growth rate of just 3.4 per cent.
The House Price Points chart indicates a marked expansion in the level of sales
activity within the sub $500,000 market over the past three years, as vendors
discount their properties to meet the market causing a shift into the lower price
range. A contraction in sales activity has been evidenced within the $800,000
plus price range, reiterating the current markets sensitivity to high prices and
expectation for better value in the marketplace. Increased mortgage affordability
resulting from consecutive interest rate cuts since November 2011 (on hold at 3.5
per cent as at August 2012) also appears to have made a positive impact to
impeding a further decline in activity during the April 2012 period, as lenders
continue to pass on these rate cuts (mostly in part) and develop more flexible,
better value mortgage products. With that being said, the lack of listings across
the Carina Area house market will continue to anchor sales volumes for the rest
of 2012, as vendors remain reluctant to list their properties or meet current buyer
expectations until market fundamentals improve.
CARINA AREA HOUSE SALES CYCLE
Prepared by PRDnationwide Research. Source: PDS
$557,750
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
0
100
200
300
400
500
600
200
2 A
PR
200
2 O
CT
200
3 A
PR
200
3 O
CT
200
4 A
PR
200
4 O
CT
200
5 A
PR
200
5 O
CT
200
6 A
PR
200
6 O
CT
200
7 A
PR
200
7 O
CT
200
8 A
PR
2008
OC
T
200
9 A
PR
200
9 O
CT
201
0 A
PR
201
0 O
CT
201
1 A
PR
201
1 O
CT
2012
AP
R
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. © 2012
Your home of property knowledge www.prdresearch.com.au
Research Analyst │Robert Matta P (07) 3026 3357 F (07) 3166 0457 E [email protected]
HOUSE PRICE POINTS
Prepared by PRDnationwide Research. Source: PDS
UNIT PRICE POINTS
Prepared by PRDnationwide Research. Source: PDS
MEDIAN RENTS – 4152 PC
Prepared by PRDnationwide Research. Source: PDS
The Carina Area unit market has demonstrated a remarkable 78.6 per cent uplift
in sales activity during the year to 30 April 2012, registering a total of 100
transactions during the April 2012 half year period. Whilst the unit market remains
quite small in the Carina Area, comprising mostly townhouse product, the median
price differential that exists between the house and unit market is perhaps driving
many to consider purchasing the latter. The median price recorded for the unit
market was $472,500 for the April 2012 period, representing a marginal softening
of 3.6 per cent from the April 2011 period. The long term median price trend has
been rather stagnant over the past five years though still managed to achieve
positive average annual growth of 3.4 per cent, likened to the house market.
The Unit Price Points chart indicates a modest increase in buyer activity within
the sub $350,000 price range over the past three years, with the $450,000 to
$499,999 remaining the most transacted price range. There was also a notable
contraction in activity for premium unit stock, with the $650,000 plus price range
accounting for only 2 per cent of sales.
CARINA AREA UNIT SALES CYCLE
Prepared by PRDnationwide Research. Source: PDS
Investor activity across the Carina Area property market remains subdued,
despite moderate to high median rental price escalations over the past three
years. Four bedroom houses outperformed during the June 2012 quarter,
commanding an additional $50 rent (12 per cent) from the level recorded in June
2010. The unit market also faired reasonably well with three bedroom
townhouses recording an extra $40 rent (10 per cent) from the level recorded in
June 2010. While rents have increased across the board, high purchase prices
are transpiring to comparatively weak investment yields, encouraging many
investors to look to seek alternative property markets. Enquiry levels from end
users have increased since the beginning of 2012 with increased mortgage
affordability and an improvement in confidence likely to underpin further activity.
MOST ACTIVE SUBURBS FOR THE APRIL 2012 HALF YEAR
House market No. House Sales Unit Market No. Unit Sales
HY
Apr-12
Annual
Change
HY
Apr-12
Annual
Change
Camp Hill 105 9% Carina 39 34%
Carindale 81 8% Carina Heights 25 92%
Carina 52 -13% Carindale 21 163%
Carina Heights 22 -12% Camp Hill 15 150%
Prepared by PRDnationwide Research. Source: PDS
18%
17%
10%
9%
11%
9%
6%
21%
18%
13%
14%
12%
10%
9%
7%
18%
23%
19%
10%
8%
7%
9%
5%
18%
31%
15%
13%
8%
6%
8%
7%
13%
29%
18%
13%
9%
5%
6%
5%
15%
0% 20% 40% 60% 80% 100%
Less than$500,000
$500,000 to$549,999
$550,000 to$599,999
$600,000 to$649,999
$650,000 to$699,999
$700,000 to$749,999
$750,000 to$799,999
At least$800,000
Portion of total sales
Pri
ce
po
ints
2010 APR 2010 OCT 2011 APR 2011 OCT 2012 APR
6%
6%
12%
32%
29%
3%
10%
3%
4%
9%
20%
26%
14%
9%
8%
10%
5%
13%
18%
30%
16%
2%
7%
9%
7%
11%
23%
27%
17%
10%
4%
10%
5%
22%
35%
14%
9%
3%
2%
0% 20% 40% 60% 80% 100%
Less than$350,000
$350,000 to$399,999
$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
At least$650,000
Portion of total sales
Pri
ce
po
ints
2010 APR 2010 OCT 2011 APR 2011 OCT 2012 APR
$410
$510
$330
$400
$420
$530
$350
$425
$420
$570
$350
$440
$-
$1
00
$2
00
$3
00
$4
00
$5
00
$6
00
3 Bed(House)
4 Bed(House)
2 Bed(Unit)
3 Bed(Townhouse)
Median rent
Dw
ellin
g t
yp
e
2010 JUN 2011 JUN 2012 JUN
$472,500
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
0
20
40
60
80
100
120
140
160
180
200
2 A
PR
200
2 O
CT
200
3 A
PR
200
3 O
CT
200
4 A
PR
200
4 O
CT
200
5 A
PR
200
5 O
CT
200
6 A
PR
200
6 O
CT
200
7 A
PR
200
7 O
CT
200
8 A
PR
200
8 O
CT
200
9 A
PR
200
9 O
CT
201
0 A
PR
201
0 O
CT
201
1 A
PR
201
1 O
CT
201
2 A
PR
Med
ian
sale
pri
ce
Nu
mb
er
of
sale
s
Half year period
Number of sales
Median