ResearchFirst Quarter 2011

Werribee Area Market OverviewIN BRIEF

The median sale price of Werribee houses has surged, closingthe September 2010 six month period at $340,200, culminatedfrom a total of 1,283 transactions.The median sale price of units closed the September 2010 sixmonth period at $260,000, culminated from a total of 179transactions.The median sale price of vacant land closed the September

2010 six month period at $175,000, culminated from a total of792 transactions.

ScopeThis report analyses the current trends and performance of theWerribee Area’s house, unit and vacant land markets. To portray asuccinct overview of the Werribee market, the direct neighbouringsuburbs of Tarneit, Hoppers Crossing, Point Cook, Werribee Southand Wyhdham Vale have been incorporated into the centralsuburbs analysis.

Area CharacteristicsSituated within the Local Government Area (LGA) of Wyndham,Werribee is located on the Werribee River approximately 32

Werribee House Sales Cycle$400 0001 800Werribee is located on the Werribee River, approximately 32

kilometres south-west of Melbourne’s CBD. With the urban sprawlfrom Victoria’s two major cities, Melbourne and Geelongencroaching on the region, Werribee’s property market hasperformed particularly well over the past 10 years and ispositioned for continuing growth. The region is well services by railand the Princes Freeway, both providing direct access toMelbourne in the north-east and Geelong, located 45km south-west.

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Werribee Area House MarketWerribee’s strong central position has placed the region as one ofVictoria’s key performing markets over the past decade. Growth inboth median sale price and the level of sales activity havecontinued on a strong upward trend in the most recent periods.Closing the September 2010 six months at $340,200, the mediansale price for houses in Werribee recorded an annual growth of13 4% hil b t t th t f 9 8%

Prepared by PRDnationwide Research. Source: PDS Live

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13.4%, while a robust ten year growth rate of 9.8% per annum wasmaintained.

The median was culminated from a total of 1,283 housetransactions throughout the six months. This level of activityremained slightly above the regions five year average of 1,249transactions per six month period. The sales were well dispersedthroughout the neighbouring suburbs, with Werribee, Point Cookand Hoppers Crossing accounting for 24%, 22.5% and 21.5% of

Werribee House Price PointsSeptember 2008 to September 2010

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$500,000 +pp g gtotal sales respectively. Tarneit and Wyndham Vale accounted fora further 17.5% and 14.5%, while Werribee South attracted veryfew sales.

The Werribee Area house price points graph to the right highlightsa notable trend toward the higher price brackets in recent years,as house product in the region continues to appreciate in value.The portion of house sales transacting for less than $300,000 hasdiminished 38% since September 2008 while higher priced

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tal s $400,000 to $499,999

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Sydney (02) 9221 2663Brisbane (07) 3229 3344

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diminished 38% since September 2008, while higher pricedproduct transacting for $400,000 plus has increased 19%throughout this period. Prepared by PRDnationwide Research. Source: PDS Live

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ResearchWerribee Area Unit Market Werribee Unit Sales CycleAs the population of the Wyndham LGA continued to grow at arapid pace, the demand and value of well located unit typedwellings has continued to increase. The median sale price forunits in the Werribee Area closed the September 2010 six monthperiod at $260,000. This median figure resulted in an annualgrowth of 5.6% or in dollar terms, a substantial appreciation of$14,000. Looking at the longer term growth rate, unit product hasalmost matched the house market appreciating at a rate of 9.3%per annum over the past decade

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per annum over the past decade.

The September 2010 six month median was achieved from atotal of 179 unit transactions. While this level of activity reflecteda significant softening in comparison to the previous few periods,it remains well aligned with the regions five year average of 183unit sales per six months. The central suburb of Werribeeaccounted for a lion share 46% of total sales, followed byHoppers Crossing, recording a further 21%. The remaining sales

Prepared by PRDnationwide Research Source: PDS Live

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were well dispersed throughout Point Cook, Tarneit andWyndham Vale accounted for 13%, 11% and 8% of salesrespectively.

Similar to house market, the price points graph to the right showsan emerging trend toward the higher price points for Werribeeunits. The portion of unit sales transacting for less than $200,000has declined 26% since the September period of 2008, while thehigher priced product transacting for $300,000 plus has increased

Prepared by PRDnationwide Research. Source: PDS Live

Werribee Unit Price PointsSeptember 2008 to September 2010

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g p p g , p16%. A new $400,000 plus price bracket has also newly emergedonly in the past 18 months. While this shifting price trend canlargely be attributed to the general appreciating value of Werribeeunits, specific economic factors have also resulted in a change inthe typical buyer most predominant in the market.

The 2009 market was heavily characterised as an incentivedriven market, with substantial Government grants to First HomeBuyers and record low interest rates Throughout 2010 however

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Buyers and record low interest rates. Throughout 2010 however,Government grants had been retracted and a number ofconsecutive interest rate rises had made the cost of attainingfinance far less affordable. This change has resulted in thewithdrawal of first home buyers from the market, while at thesame time creating a re-emerging contingency of wealthierinvestors and home-buyers. In the present market, those whoare capable of absorbing the additional costs are generally morewealthy and can generally consider spending a little more in order

Prepared by PRDnationwide Research. Source: PDS Live

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Werribee Vacant Land Sales Cycle

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$200,0003,000Number of salesMediany g y p g

to acquire a higher quality product at a competitive price.

Werribee Area Vacant Land MarketThe Werribee unit market has also performed well throughout theSeptember 2010 period. Closing the six months at $175,000, themedian sale price achieved an annual growth of 15.1% whilemaintaining a strong ten year growth rate of 11.4% per annum.

The level of vacant land sales has softened significantly over the

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Prepared by PRDnationwide Research Source: PDS Live RP Data and ABS For further details contact: Dan O’Halloran Franchise Research Analyst Ph: (07) 3026 3383 or Email:

The level of vacant land sales has softened significantly over thepast twelve months to just 792 sales. This tightening of land salessuggests a possible decline in the number of well located qualityland blocks in the Werribee market. This would also explain therecent surge in the value of land in the Werribee Area.

Prepared by PRDnationwide Research. Source: PDS Live

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Prepared by PRDnationwide Research. Source: PDS Live, RP Data and ABS. For further details contact: Dan O Halloran, Franchise Research Analyst Ph: (07) 3026 3383 or Email:danohalloran@prd.com.au, PRD Jens Gaunt Werribee on (03) 9742 7557, or visit our website at www.prdnationwide.com.au/research.

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 varioussources 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 otherinformation 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. © 2011

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