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Second Quarter │2012

ARARAT AREA Property Watch®

Acacia Tourist Park, Ararat

MARKET INDICATORS

Change from Last Year Half Year

HOUSE SALES

HOUSE MEDIAN

UNIT SALES

UNIT MEDIAN

LAND SALES

LAND MEDIAN The indicators depicted above are based on the twelve

months ending February 2012.

KEY HIGHLIGHTS

Strong capital growth has been seen

for well positioned units in Ararat

In spite of a moderate decrease in the

median for February 2012, the ten

year growth rate for houses stands at

a very strong 9.5%

ARARAT AREA MARKET OVERVIEW

The following Property Watch report is the result of an investigation into the

historic and current market trends of the Ararat Local Government Area, which

encompasses approximately 4,230 square kilometres in the south west of

Victoria. Ararat, the largest centre in the LGA with a population of just over 7,000

is situated to the North of the region, other townships include Moyston, Warrak,

Buangor, Willaura, Wickliffe and Lake Bolac.

The six months to February 2012 saw some of the lowest transaction levels over

the last ten years across all property types in the Ararat LGA. Volumes across

Victoria have been almost universally lower, and the Ararat region was no

exception. It appears that media reports of greater levels of caution, and higher

levels of saving across Australian consumers are major contributors to the

general slow down in property markets.

The February 2012 six months saw only 57 houses transact. This figure is 29.6%

lower than the 81 transactions for the same period to February 2011. Unit sales

are always at very low levels compared to other regions, with only one

transaction having occurred outside of Ararat in the last ten years. Unit sales

have averaged 11 transactions for a six month period over the five years to

February 2011. The February 2012 six months saw 7 transactions recorded.

Vacant land sales have averaged 26 transactions for a six month period in the

five years to February 2011, with transaction numbers ranging from 15 to 45. The

February 2012 six months saw only 12 transactions recorded, a 53.8% decrease

on the five year average. Transactions were spread across the region with Ararat

(4) and Lake Bolac (3) followed by one transaction each at Elmhurst, Maroona,

Moyston, Tatyoon and Wickliffe.

ARARAT AREA HOUSE & UNIT SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

$165,000

$242,500

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

0

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House Sales Unit Sales House Median Unit Median

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 │Mark Corboy P (0400) 520 717 E markcs4u@gmail.com.au

PRDnationwide Ararat │Branch Manager David Jennings P (03) 5352 2555 F (03) 5352 2511 E ararat@prd.com.au

In spite of numerous

short term fluctuations

the vacant land ten

year growth rate

stands at a solid

8.9%

HOUSE PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

VACANT LAND PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

Given the lower transaction levels it is not surprising that prices generally

softened across the region as well. The median house price for the six months to

February 2012 closed at $165,000, down 4.1% on the close from twelve months

earlier, although it was significantly higher than the $156,000 posted for the six

months to August 2011. Local PRDnationwide Branch Manager David Jennings

reports that recent interest and sales have been strong up to $200,000 with

houses over $250,000 generally spending a little more time on the market.

The house price points table shows the strength of the $100,000 to $199,999

bracket which has increased its share of sales from 56% of the market for the

twelve months to February 2009 to 63% of all sales for the same period in 2012.

Sales under $100,000 have decreased from a significant 20% of all sales to only

9% over this same period. Sales over $200,000 have remained relatively stable

at around 25% of the market over this period.

Unit prices defied the lower volumes to record a much stronger median price of

$242,500. Given that there were only seven transactions, not too much should be

read into this figure. The majority of the properties that were sold are centrally

located, newer stock, it would appear that for this period, most of the sales came

from the higher bracket of properties. Having said that, the August 2012 six

months closed with an even higher median of $275,000 culminated from 6

transactions, with a very similar pattern of well located units selling.

Two of the 13 sales mentioned above had been previously purchased in the last

ten years. Held for periods of four and six years, these two units returned capital

growth of 15.8% and 8.0% per annum.

The vacant land median price closed the February 2012 six months at $70,000

down a significant 11.4% on the close from twelve months earlier. With low sales

volumes, the median price has tended to be relatively volatile and the current

movement appears to be a continuation of that trend. The ten year growth rate

stands as 8.9% showing a strong upwards trend through the numerous short

term price fluctuations.

The vacant land price points table shows the emergence of the over $150,000

price bracket in recent years. The twelve months to February 2012 saw only 7%

of sales achieve a price of $150,000 or greater, the next two twelve month

periods have seen this section of the market grow to a substantial 32%.

ARARAT AREA VACANT LAND SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

20%

16%

7%

9%

34%

31%

31%

33%

22%

28%

27%

30%

14%

14%

18%

15%

0% 20% 40% 60% 80% 100%

Feb 09

Feb 10

Feb 11

Feb 12

Percentage of Settled Sales

Less than $100,000 $100,000 to $149,999

$150,000 to $199,999 $200,000 to $249,999

$250,000 to $299,999 At least $300,000

29%

37%

28%

32%

55%

56%

40%

35%

10%

7%

19%

19%

0% 20% 40% 60% 80% 100%

Feb 09

Feb 10

Feb 11

Feb 12

Percentage of Settled Sales

Less than $100,000 $100,000 to $149,999

$150,000 to $199,999 $200,000 to $249,999

$250,000 to $299,999 At least $300,000

$70,000

$0

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$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

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Number of sales Median