maitland lga property watch q2 2013
DESCRIPTION
Maitland LGA Property Watch Q2 2013TRANSCRIPT
www.prdresearch.com.au Your home of property knowledge
Second Quarter │2013
MAITLAND LGA Property Watch®
A house in Walter Parade, Black Hill
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 March 2013.
KEY HIGHLIGHTS
The impact of softer resource
prices has so far mainly affected
the rental market, as the median
house price continued to grow in
the 12 months to March 2013.
The median house price
recorded solid gains since March
2009, with a short period of
consolidation in September 2011.
Most suburbs recorded median
selling period between 60 and 90
days.
This report is the result of an investigation into the house and unit markets of the
Maitland Local Government Area (LGA). Located in the Hunter Valley, the LGA’s
property market has historically been buoyed by a strong coal industry,
generating employment and demand for new and existing houses. However, a
recent decline in coal prices has slowed mining activity and increased market
uncertainty. Property investors who bought in anticipation for a steady supply of
mining-related tenancies have experienced extended vacancy periods and little
growth in rent prices in the past six to nine months.
The impact of softer resource prices has so far mainly affected the rental market,
as the median house price continued to grow in the 12 months to March 2013.
The decline in house activity in the year to March was mostly due to strong
performance in the corresponding 2012 period. The 533 transactions recorded in
the six months to March represented a 24 per cent decline from the March 2012
half year but only 10 per cent softening from the five year average. Over the
same period strata-titled dwellings’ activity remained unchanged.
House enquiries came from upgraders and retirees, with some seeking lifestyle
lots in the top end of the market. Anecdotal evidence pointed to buyers preferring
homes in established suburbs over new land estates. This was seen by the falling
stock on the market in existing areas and soft sales activity in many new
subdivisions.
The median house price increased by 2.8 per cent in the 12 months to March
2013, closing the period at $370,000. The price recorded solid gains since March
2009, with a short period of consolidation in September 2011. A capital growth
analysis conducted by PRDnationwide Research measured the annual gains
achieved by vendors who sold in the six months to March 2013. The investigation
revealed a moderately lower average capital growth of 4.6 per cent per annum
compared to 5.0 per cent per annum in March 2012.
MAITLAND LGA HOUSE AND UNIT SALES CYCLE
Graph prepared by PRDnationwide Research. Source: PDS
796
987
659 651
547584
658621 640 623
565493
666
752
521 549515
644704
574533
58
129
7557
6362
85 106 79 119
91
99
83
101
85103
81
83
68
69
68
$370,000
$273,750
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
0
200
400
600
800
1,000
1,200
200
3 M
AR
200
3 S
EP
200
4 M
AR
200
4 S
EP
200
5 M
AR
200
5 S
EP
200
6 M
AR
200
6 S
EP
200
7 M
AR
200
7 S
EP
200
8 M
AR
200
8 S
EP
200
9 M
AR
200
9 S
EP
201
0 M
AR
201
0 S
EP
201
1 M
AR
201
1 S
EP
201
2 M
AR
201
2 S
EP
201
3 M
AR
Me
dia
n s
ale
pri
ce
Nu
mb
er
of
sa
les
Half year period
House Sales Unit Sales House Median Unit Median
This report was prepared by PRDnationwide Research. Source: PDS, ABS, Housing NSW, SQM, RP Data.
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 │Oded Reuveni-Etzioni P (02) 9947 9160 E [email protected]
PRDnationwide Hunter Valley │ Principal Rhonda Nyquist P (02) 4934 2000 E [email protected]
HOUSE PRICE POINTS SIX MONTHS TO MARCH 2013
Graph prepared by PRDnationwide Research. Source: PDS
The long term increase
in rent prices equated
6.1 per cent per annum
in March, acting as a
reminder to the strong
growth the area has
experienced in the past
five years
MEDIAN RENT PRICE 3 BEDROOM HOUSE
Table prepared by PRDnationwide Research. Source: PDS
When observing the House Price Points chart, a large share of transactions in the
$300,000 to $399,999 price point was noted. The entry-level price range in the
region remained between $200,000 and $299,999 and accounted for 18 per cent
of the overall sales. In the most active suburbs of East Maitland and Rutherford
affordable stock accounted for 17 and 31 per cent of transactions respectively.
The number of days on the market measured how long it took to sell residential
product in the Maitland region. In the three months to May 2013 over 400
properties were advertised for sale (several of which were sold over the period).
A days-on-market analysis revealed that 25 per cent of the stock was advertised
for a period of 30 days or less, while one third (33 per cent) was listed for 120
days or more. The Days on Market graph below illustrates the number of
properties advertised in each price point. The graph confirmed that most
properties advertised were in the $300,000 to $399,999 price point and
suggested that properties toward the bottom end experienced short selling
periods. Residences in this price bracket accounted for only nine per cent of the
properties represented in the ‘120 days plus’ bar.
Most suburbs recorded median days-on-the-market between 60 and 90 days.
Morpeth, Gillieston Heights and Telarah recorded a longer median selling period
while Metford’s median was below 30 days.
MAITLAND LGA DAYS ON MARKET
The investment market
Recent figures confirmed market stability, with the median weekly rent for a three-
bedroom house increasing by 2.8 per cent in the 12 months to March 2013. That
said, the figure remained steady at $350 per week in the past three quarters,
signalling equilibrium between supply and demand. The long term increase in rent
prices equated 6.1 per cent per annum in March and acted as a reminder to the
strong growth the area has experienced in the past five years.
Attached dwellings performed well, recording an 8.7 per cent increase in the 12
months to March, equating to a five-year average growth of 8.6 per cent per
annum. Similarly, the unit rental market returned a median weekly rent of $280
since September 2012, with vacancies increasing as several of the crews working
on the Hunter Expressway left the region. After bottoming at two per cent in
August 2012, vacancy levels increased to 2.4 per cent in April 2012, with 77
vacant properties reported for the 2323 postcode. A number of properties
purchased by investors in new land estates were experiencing long leasing
periods, with a fierce competition which is expected to soften rent prices in the
short term.
Graph prepared by PRDnationwide Research. Source: RP Data
Less than $200,0004%
$200,000 to$299,999
18%
$300,000 to$399,999
35%
$400,000 to$499,999
26%
$500,000 to$599,999
9%
$600,000 to$699,999
4%
At least $700,0004%
0 20 40 60 80 100 120 140
30 days or less
30 to 60 days
60 to 90 days
90 to 120 days
120 days plus
Numer of properties
Days o
n m
ark
et
$200,000 or less
$200,000 to $299,999
$300,000 to $399,999
$400,000 to $499,999
$500,000 plus
260270
280290
300
320330
340350
0
50
100
150
200
250
300
350
400
Ma
r-0
8
Ju
n-0
8
Se
p-0
8
De
c-0
8
Ma
r-0
9
Ju
n-0
9
Se
p-0
9
De
c-0
9
Ma
r-1
0
Ju
n-1
0
Se
p-1
0
De
c-1
0
Ma
r-1
1
Ju
n-1
1
Se
p-1
1
De
c-1
1
Ma
r-1
2
Ju
n-1
2
Se
p-1
2
De
c-1
2
Mar-
13
Me
dia
n w
ee
kly
re
nt
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Quarter