www.prdresearch.com.au Your home of property knowledge

Second Quarter │2012

KELVIN GROVE UNIT Property Watch®

$320

$460

$275

$385

$270

$360

$-

$5

0

$1

00

$1

50

$2

00

$2

50

$3

00

$35

0

$4

00

$4

50

$5

00

1 Bed

2 Bed

Median rent

Un

it t

yp

e

2010 MAR 2011 MAR 2012 MAR

Kelvin Grove Urban Village Master Plan

MARKET INDICATORS

Change from Last Year Half Year

UNIT SALES

UNIT MEDIAN

UNIT RENTS

The indicators depicted above are based on the year ending

February 2012, with exception to rental indicators which are

based on the year ending March 2012.

KELVIN GROVE RENTS

Prepared by PRDnationwide Research. Source: RTA

KELVIN GROVE UNIT MARKET OVERVIEW

Underlying demand continues to underpin the performance of the Kelvin Grove unit

market, with buyers quick to absorb new stock entering the market. This is

demonstrated in the sales cycle chart by the fluctuations in sales activity over the past

10 years, with the peaks generally coinciding with new injections of stock in the

market and vice-versa. Located within 2kms of the Brisbane CBD, the availability of

land and/or suitable sites for densification is scarce. However, with the inception of the

Kelvin Grove Urban Village precinct and the associated planning mechanisms that

have facilitated high density development in the area, supply over the past five years

has improved dramatically, with developers benefiting from strong take up rates.

The median price recorded in the six months to February 2012 was $485,000,

representing a solid 15.5 per cent increase from the corresponding period in 2011.

The five year average annual growth rate was a notable 6.7 per cent, which is rather

impressive considering softened capital values and the markets general

underperformance subsequent to the Global Financial Crisis. The recent performance

of the market is a testament to the desirability of the suburb, from both a liveability and

investment perspective. Strong rental growth (8.5 per cent average annual growth

over the past three years to March 2012 quarter for 2 bedroom units, and 5.8 per cent

average annual growth over the same period for 1 bedroom units) demonstrates both

the growing demand for accommodation within the suburb and attractive investment

yields for investors.

It is anticipated that activity will be sustained at this level throughout 2012, as

reductions to interest rates and a change in government contribute to improved

confidence in the market. The reinstatement of transfer duty concessions by the State

Government on the 1st of July 2012, may contribute to increased sales volumes in the

successive half year period. This is however unlikely to provide stimulation in the

market, rather accommodate to those would-be buyers who have been prolonging

their purchase until such time the concession is reinstated.

KELVIN GROVE UNIT SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

76

42 4450 49

43

6763

30

4348

78

94

81

40

6359

90

42

33

5953

$485,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

0

10

20

30

40

50

60

70

80

90

100

200

1 A

UG

200

2 F

EB

200

2 A

UG

200

3 F

EB

200

3 A

UG

200

4 F

EB

200

4 A

UG

200

5 F

EB

200

5 A

UG

200

6 F

EB

200

6 A

UG

200

7 F

EB

200

7 A

UG

200

8 F

EB

200

8 A

UG

200

9 F

EB

200

9 A

UG

201

0 F

EB

201

0 A

UG

201

1 F

EB

201

1 A

UG

201

2 F

EB

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median

FHOG

Boost

Unit t

yp

e

Median rent