AUSTRALIAN RESIDENTIAL REVIEW - content.knightfrank.com · Australian apartments achieved 4.55%....

RESIDENTIAL RESEARCH

AUSTRALIAN RESIDENTIAL REVIEW AUGUST 2016

MARKET ACTIVITY REPORT OF AUSTRALIAN CAPITAL CITIES & KEY SUBURBS

2

KEY FINDINGS

The official cash rate target has

been lowered by 25 bps to

1.50% in August 2016. Gross

Domestic Product (GDP) was

recorded at 3.1% annual growth

in March 2016 whilst

unemployment across Australia

rose 10 basis points to 5.8% in

the three months to June 2016.

Australian house values fell by

0.75% in the month of June 2016

(3.8% annual growth) to a

median of $517,000 while

apartment values were up 1.9%

over the month (5.2% annual

growth) to a median of $486,000.

In the year to June 2016, the

Australian house sales volume

was up 5.3% to 346,064 while

169,684 apartment sales were

recorded (up by 4.0%).

Gross rental yields for

Australian houses averaged

4.31% in June 2016 while

Australian apartments achieved

4.55%.

Australian median house rents

achieved a weekly rent of $425 in

June 2016 (down 1.2% YoY),

whilst apartment rents also

achieved $425 per week

(although down 1.2% YoY).

A weighted average total

vacancy for Australian residential

property was last recorded at

2.9% in March 2016; trending

down 30 bps in the last quarter.

MICHELLE CIESIELSKI Knight Frank Residential Research

On 2 August 2016, the Reserve Bank of

Australia (RBA) lowered the cash rate

target by 25 bps, to 1.50%. The

announcement cited slower global

growth, moderating economic growth in

China, a decline in business investment

locally in Australia; although overall

annual growth is continuing at a

moderate pace (3.1% to March 2016).

The decision was encouraged by inflation

remaining muted throughout the June

2016 quarter (at 0.4%); recording an

annual increase of only 1.0%. Given the

current global pressures on production

costs and labour, it’s not likely inflation

would return to target for some time.

The impact of the regulatory measures

introduced by the Australian Prudential

Regulatory Authority (APRA) have seen

tightened lending practices for housing

finance for both local and foreign

purchasers. In the three months to May

2016, investor housing finance was up

0.6%, by value, whilst owner occupier

housing finance had fallen a further 2.6%.

The RBA reported the exacerbating risks

that may come with the easing of

monetary policy have been diminished

given the impact of APRA measures that

have strengthened lending practices.

When utilising growth in sales volume as

a forward leading indicator, there is likely

to be further softening in capital values to

a more sustainable level, especially in

Sydney and Melbourne. The 3-month

Source: Knight Frank Research, ABS, RBA

FIGURE 1

National Key Economic Indicators

AUSTRALIAN RESIDENTIAL FIGURE 2 Change in Sales Volume, Houses &

Apartments 3-month rolling turnover, No. of Apartments

Indexed, 100 = Jun 2015

Source: Knight Frank Research, Residex

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Sep

-15

Dec-1

5

Mar-

16

Dec-1

5

Mar-

16

Jun-1

6

Feb

-16

May-1

6

Aug

-16

No

v-1

5

Feb

-16

May-1

6

No

v-1

5

Feb

-16

May-1

6

GROSS DOMESTIC

PRODUCT

UNEMPLOYMENT RATE CASH RATE TARGET QUARTERLY GROWTH

OF INVESTOR HOUSING

FINANCE, BY VALUE

QUARTERLY GROWTH

OF OWNER OCCUPIER

HOUSING FINANCE,

BY VALUE

(excl. refinancing)

60

70

80

90

100

110

120

130

140

Jun-1

5

Sep

-15

Dec-1

5

Mar-

16

Jun-1

6

DAR (H)

MEL (H)

BNE (A)

SYD (A)

CAN (H)

ADE (A)

CAN (A)

HOB (A)

SYD (H)

ADE (H)

DAR (A)

BNE (H)

MEL (A)

HOB (H)

PER (H)PER (A)

APARTMENTS (A) HOUSES (H)

http://www.knightfrank.com.au



3

RESEARCH AUSTRALIAN RESIDENTIAL REVIEW AUGUST 2016

rolling sales turnover change to June

2016, when compared to December

2015, saw nine of the markets soften

whilst some of the poorer performing

markets for capital growth in the first half

of 2016 have recorded an upswing in

sales volume such as Perth Houses and

Apartments, Adelaide Houses and

Apartments and Darwin Apartments

(figure 2).

This divergence in capital growth across

Australian capital cities was also reflected

in Knight Frank’s Global Residential

Cities Index Q1 2015 (figure 4). Placed

28th on the list of global cities in the

mainstream residential (houses and

apartments) market, Melbourne’s capital

growth (at 9.8%) was slightly ahead of

Sydney (9.7%) placed at number 30.

Since this time Melbourne annual capital

growth has eased to 8.9% to June 2016

for houses and 6.2% for apartments,

whilst Sydney remained lower at 8.0%

growth for houses and 7.3% for

apartments over the same period.

The Knight Frank Global Lifestyle Review

released for 2016, compares favourable

tax structures and lifestyle factors in key

global locations. The report considered

the various lifestyle factors that motivate

clients at different stages of life with

Sydney being the only Australian city

included in the survey.

In the ‘Retired Couple’ category, Sydney

ranked first place with factors such as the

annual cost of health care, hours of

sunshine per year, the cost of a

cappuccino, distance to a major

international airport, taken into

consideration, as well as, Mercer’s quality

of life ranking. Malta and Luxemburg

ranked second and third respectively

(figure 3).

An entrepreneur will be more focussed on

political risk, client entertainment and

ease of travel. Sydney also featured in

this ‘The Entrepreneur’ category ranking

equal fourth with Dubai, Geneva and

Vienna; behind first placed Hong Kong,

second-placed London, and third place

being Vancouver.

Further refer to Knight Frank’s Global

Lifestyle Review for a comparison of

favourable global tax locations and

lifestyle factors.

Source: Knight Frank Research, BDO, Mercer, Aviva

*Asking prices **Provisional All data corresponds to 12-month percentage change to Q1 2016 except cities in Austria, Belgium, Chile, Croatia, Cyprus, Denmark, France, Hungary, India, Malaysia and New Zealand where latest available data is published.

FIGURE 3

Global Lifestyle Review 2016, Selected Category Winners Q1 2016

FIGURE 4

Global Residential Cities Index Q1 2016, Ranked by annual % change

Source: Knight Frank Research

-20% -10% 0% 10% 20% 30% 40% 50% 60% 70%

Aberdeen, UK

Taipei City TW

Moscow, RU

Sevilla, ES

Thessaloniki, GR

Jaipur, IN

Genoa, IT*

Hong Kong HK**

Darwin, AU

Halifax, CA

Perth, AU

Athens, GR

Trieste, IT*

Calgary, CA

Rome, IT*

Zagreb, HR

Palermo, IT*

Nicosia, CY

Singapore, SG

Edinburgh, UK

Venice, IT*

Marseille, FR

Turin, IT*

Rio de Janeiro BR

Quebec, CA

Helsinki, FI

Tangshan, CN

Larnaca, CY

Napoli, IT*

St. Petersburg, RU

Limassol, CY

Dalian, CN

Milan, IT*

Edmonton, CA

Florence, IT*

Paris, FR

Bologna, IT*

Ottawa Gat., CA

Montreal, CA

Yantai, CN

Ljubljana, SI

Shenyang, CN

Valencia, ES

Tallinn, EE

Lyon, FR

Sao Paulo, BR

Winnipeg, CA

Qingdao, CN

Washington, US

Changsha, CN

Chicago, US

Chongqing, CN

Kochi, IN

Wuxi, CN

Lille, FR

Chengdu, CN

Bratislava, SK

Brussels, BE

New York US

Cleveland, US

Bern, CH

Zurich, CH

Tel Aviv, IL

Adelaide, AU

Jinan, CN

Skopje, MK

Glasgow, UK

Minneapolis, US

Jerusalem, IL

Dublin, IE

Vienna, AT

Seoul, KR

Brisbane, AU

Madrid, ES

Hobart, AU

Charlotte, US

Boston, US

Tokyo, JP

Canberra, AU

Nottingham, UK

Malaga, ES

Rotterdam, NL

Riga, LV

Bogota, CO

Zhengzhou, CN

Lisbon, PT

Phoenix, US

Las Vegas, US

Detroit, US

San Diego, US

Miami, US

Manchester, UK

Haifa, IL

Kolkata, IN

Los Angeles, US

Wellington, NZ

Kuala Lumpur, MY

Atlanta, US

Reykjavik, IS

Hague, NL

Tianjin, CN

Ningbo, CN

Kanpur, IN

Tampa, US

Utrecht, NL

Wuhan, CN

Mexico City MX

Birmingham, UK

Chennai, IN

Barcelona, ES

San Francisco, US

Cape Town ZA

Dallas, US

Victoria, CA

Porto, PT

Toronto, CA

Johannesburg, ZA

Copenhagen, DK

Oslo, NO

Malmo, SE

Sydney, AU

Melbourne, AU

Delhi, IN

Denver, US

Ankara, TR

Ahmedabad, IN

Hamilton, CA

Amsterdam, NL

Santiago, CL

Seattle, US

Mumbai, IN

Hangzhou, CN

Portland, US

Bangalore, IN

Gothenburg, SE

Bristol, UK

London, UK

Guangzhou, CN

Budapest, HU

Durban, ZA

Lucknow, IN

Izmir, TR

Auckland, NZ

Vancouver, CA

Stockholm, SE

Beijing, CN

Nanjing, CN

Istanbul, TR

Shanghai, CN

Shenzhen, CN

Further refer to the Knight Frank Global Lifestyle Review for a comparison of favourable global tax locations and lifestyle factors.

http://www.knightfrank.com/research/global-residential-cities-index-q1-2016-3904.aspx




http://www.knightfrank.com/publications/global-lifestyle-review-2016-3912.aspx






4

Market Trends The value of housing finance

commitments in New South Wales in

the three months to May 2016 grew by

17.3% on the previous year, to $22.6

billion.

Building approvals in the three months

to June totalled 4,293 houses and

9,220 apartments approved in Greater

Sydney. This is trending 0.3% lower

for houses and 9.2% higher for

apartment approvals compared to the

same period in 2015.

The preliminary auction clearance rate

for the week ending 31 July was 80%

out of 494 scheduled auctions in

Greater Sydney. This is higher than the

week prior, at 72% from 473

scheduled auctions, and also higher

than the comparable week a year

prior, when 76% out of 825 auctions

were sold.

Sales transacted in the year to June

tallied 48,336 houses (up 3.3% on

previous year) and 46,978 apartments

(up 1.8% on prior year).

House values rose 2.2% in the month

of June (rising 8.0% over the last year)

to a median of $1,073,000. Apartment

values rose 2.0% over the month

(rising 7.3% over the year) to record a

median of $704,000.

Over the year to June, rental growth

fell 2.9% for houses and remained

stable for apartments. Weekly median

rents are currently achieving $660 for

houses and $560 for apartments.

Greater Sydney total vacancy was last

recorded at 1.8% in June 2016; with

1.6% for the inner ring (0-10km), 1.9%

for the middle ring (10-25km) and

1.9% for the outer ring (25km+).

In June 2016, gross rental yields

across Greater Sydney compressed

39 bps (to 3.20%) for houses and 32

bps (to 4.14%) for apartments

compared to the previous year.

FIGURE 5

Capital Growth, Greater Sydney 12-month rolling

FIGURE 6

Median Rents & Total Vacancy

Greater Sydney Weekly Rents & Monthly Vacancy

Source: Knight Frank Research, Residex, CoreLogic, ABS, REINSW

SYDNEY The New South Wales Gross

State Product was recorded at

$506,918 million in the year to

June 2015; 2.4% greater than

the prior year.

Unemployment as at June

2016 stood at 4.4% for Greater

Sydney (SA4), trending 50 bps

lower than the 4.9% recorded in

June 2015.

The estimated population of

Greater Sydney in 2015 was 4.9

million persons. Greater Sydney

experienced population growth

of 1.7% in the year to June

2015.

TABLE 2

Key Residential Indicators, June 2016

Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Sydney 1,073,000 2.9 8.0 48,336 660 3.20

Sydney 704,000 1.9 7.3 46,978 560 4.14

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

2.2

2.0



0%

4%

8%

12%

16%

20%

24%

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

$400

$450

$500

$550

$600

$650

$700

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS VACANCY




5


Market Trends The values of housing finance

commitments in Victoria in the three

months to May 2016 grew by 18.8%

on the previous year, to $17.9 billion.




Melbourne. This is trending 16.9%

higher for houses and 8.2% lower for






Greater Melbourne. This is higher than

the week prior, at 72% from 572

scheduled auctions, but lower than the

comparable week the year prior, when

77% out of 787 scheduled auctions

were sold.




(up 8.7% on the prior year).

House values fell by 1.3% in the

month of June (growth of 8.9% over

the last year) to a median of $743,000,

while apartment values rose 1.9% over

the month (growth of 6.2% over the

year) to record a median of $506,500.


fell by 1.1% for houses but rose 5.0%

for apartments. Weekly median rents

are currently achieving $450 for


Six-month average total vacancy trend

was recorded at 2.7% in June 2016 for

Greater Melbourne; with 2.4% for the

inner ring (0-10km), 3.3% for the

middle ring (10-20km) and 2.4% for

the outer ring (20km+).


across Greater Melbourne

compressed 33 bps (to 3.17%) for

houses and 9 bps (to 4.31%) for

apartments compared to the previous

year.

FIGURE 7

Capital Growth, Greater Melbourne 12-month rolling

FIGURE 8


Greater Melbourne Weekly Rents & Monthly Vacancy

Source: Knight Frank Research, Residex, CoreLogic, ABS, REIV

MELBOURNE The Victorian Gross State

Product was recorded at



the prior year.



Melbourne (SA4), trending 90

bps lower than the 5.8%

recorded in June 2015.


Greater Melbourne in 2015 was

4.5 million persons. Greater

Melbourne experienced

population growth of 2.1% in

the year to June 2015.

TABLE 3


Greater Region Type

Median

Capital Value

($)

Capital

Growth

Last Month

(%)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Melbourne Houses 743,000 -1.3 2.3 8.9 57,634 450 3.17

Melbourne Apartments 506,500 1.9 2.3 6.2 41,632 420 4.31



0%

2%

4%

6%

8%

10%

12%

14%

16%

Jun

-14

Sep

-14

Dec-1

4

Mar-

15

Jun

-15

Sep

-15

Dec-1

5

Mar-

16

Jun

-16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

$360

$380

$400

$420

$440

$460

$480

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6





6


commitments in Queensland in the

three months to May 2016 grew by


billion.




Brisbane. This is trending 12.2%

higher for houses and 26.0% lower for






Greater Brisbane. This is higher than


scheduled auctions, and lower than

the comparable week the year prior,

when 58% out of 140 scheduled

auctions were sold.






of June (with growth of 5.9% over the

last year) to a median of $509,000

while apartment values rose 0.1% over

the month (with growth of 3.2% over

the year) to record a median of

$386,500.


grew by 2.2% for houses and rose

1.3% for apartments. Weekly median



Total vacancy was last recorded at

3.0% in March 2016 for Greater

Brisbane; with 3.3% for the inner ring

(0-5km), 2.5% for the middle-outer

ring (5-20km) and 2.0% for the

surrounds.


across Greater Brisbane compressed

21 bps (to 4.70%) for houses and 12



FIGURE 9

Capital Growth, Greater Brisbane 12-month rolling

FIGURE 10


Greater Brisbane Weekly Rents & Quarterly Vacancy

Source: Knight Frank Research, Residex, CoreLogic, ABS, REIQ

BRISBANE The Queensland Gross State

Product was recorded at



the prior year.



Brisbane (SA4), trending 30 bps


June 2015.


Greater Brisbane in 2015 was


Brisbane experienced



TABLE 4


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Brisbane 509,000 2.9 5.9 44,191 460 4.70

Brisbane 386,500 0.0 3.2 21,180 385 5.17

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

2.5

0.1



0%

1%

2%

3%

4%

5%

6%

7%

8%

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

$300

$320

$340

$360

$380

$400

$420

$440

$460

$480

Jun

-14

Sep

-14

Dec-1

4

Mar-

15

Jun

-15

Sep

-15

Dec-1

5

Mar-

16

Jun

-16





7



commitments in Western Australia in

the three months to May 2016 fell by


billion.




Perth. This is trending 36.7% lower for

houses and 38.0% lower for






Greater Perth. This is higher than the

week prior, at 33% from 42 scheduled

auctions, and lower than the



were sold.


tallied 22,935 houses (down 10.5% on


(down 12.6% on prior year).

House values were recorded at a

median of $506,500, falling 2.3% in

the month of June and 3.6% over the

last year. Apartment values rose 1.1%

over the month, but still down 7.5%

over the year, to record a median of

$428,000.


was recorded at –5.6% for houses and

–9.5% for apartments. Weekly median

rents are currently $420 for houses

and $380 for apartments.

Across the Greater Perth area, total

vacancy was recorded at 5.6% in

March 2016; down 40 bps on the

previous quarter although an increase

of 120 bps from the same period in

2015.


across Greater Perth compressed 10

bps (to 4.33%) for houses and 10 bps

(to 4.62%) for apartments compared

to the previous year.

FIGURE 11

Capital Growth, Greater Perth 12-month rolling

FIGURE 12


Greater Perth Weekly Rents & Quarterly Vacancy

Source: Knight Frank Research, Residex, CoreLogic, ABS, REIWA

PERTH The Western Australian Gross




the prior year.



Perth (SA4), trending 40 bps


June 2015.


Greater Perth in 2015 was 2.0

million persons. Greater Perth

experienced population growth

of 1.6% in the year to June

2015.

TABLE 5


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Perth 506,500 -1.9 -3.6 22,935 420 4.33

Perth 428,000 -0.8 -7.5 9,986 380 4.62

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

-2.3

1.1



-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

$360

$380

$400

$420

$440

$460

$480

$500

$520

$540

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6





8


commitments in South Australia in the

three months to May 2016 grew by


billion.


to June totalled 1,718 houses and 988

apartments approved in Greater

Adelaide. This is trending 15.1%

higher for houses and 89.3% higher

for apartment approvals compared to

the same period in 2015.




Greater Adelaide. This is greater than


scheduled auctions, and identical to

the comparable week the year prior,

when 72% out of 75 scheduled

auctions were sold.





House values fell 0.7% in the month of

June (rising by 5.5% over the last year)

to a median of $442,500. Apartments

rose 1.8% over the month (up 0.2%

over the year) to record a median of

$316,500.


rose 2.7% for houses and remained

stable for apartments. Weekly median




across Greater Adelaide compressed

16 bps (to 4.47%) for houses and rose

1 bp (to 5.03%) for apartments


FIGURE 13

Capital Growth, Greater Adelaide 12-month rolling

FIGURE 14

Median Rents, Greater Adelaide

Weekly Rents

Source: Knight Frank Research, Residex, CoreLogic, ABS, REIA

ADELAIDE The South Australian Gross




the prior year.



Adelaide (SA4), trending 160




Greater Adelaide in 2015 was


Adelaide experienced



TABLE 6


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Adelaide 442,500 1.5 5.5 21,272 380 4.47

Adelaide 316,500 -0.3 0.2 5,367 305 5.03

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

-0.7

1.8



-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Jun

-14

Sep

-14

Dec-1

4

Mar-

15

Jun

-15

Sep

-15

Dec-1

5

Mar-

16

Jun

-16

HOUSES APARTMENTS

$250

$275

$300

$325

$350

$375

$400

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS




9



commitments in the Australian Capital

Territory (ACT) in the three months to

May 2016 grew by 18.6% on the

previous year, to $1.1 billion.


to June totalled 396 houses and 796

apartments approved in the ACT. This

is trending 25.3% higher for houses

but 41.9% lower for apartment

approvals compared to the same

period in 2015.




Canberra. This is higher than the week

prior, at 69% from 52 scheduled

auctions, and higher than the



were sold.






of June (with growth of 6.1% over the

last year) to a median of $588,000.

Apartment values fell 1.0% over the

month (down 0.4% over the year) to

record a median of $407,000.


grew by 2.0% for houses and 2.5% for

apartments. Weekly median rents are

currently achieving $510 for houses


Total vacancy in Canberra was last

recorded at 1.8% in March 2016;

down 100 bps on the previous quarter

and 150 bps lower compared to the

prior year.


across Canberra compressed 19 bps

(to 4.54%) for houses and grew by 10



FIGURE 15

Capital Growth, Canberra 12-month rolling

FIGURE 16


Canberra Weekly Rents & Quarterly Vacancy


CANBERRA The Australian Capital Territory

(ACT) Gross State Product was

recorded at $34,866 million in

the year to June 2015; 1.4%

greater than the prior year.


2016 stood at 2.9% for the ACT,

trending 70 bps lower than the

3.6% recorded in June 2015.

The estimated population of the

ACT in 2015 was 391,000

persons. The ACT experienced



TABLE 7


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Canberra 588,000 1.2 6.1 4,871 510 4.54

Canberra 407,000 0.5 -0.4 3,435 415 5.30

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

1.1

-1.0



-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Jun

-14

Sep

-14

Dec-1

4

Mar-

15

Jun

-15

Sep

-15

Dec-1

5

Mar-

16

Jun

-16

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$350

$375

$400

$425

$450

$475

$500

$525

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6





10


commitments in Tasmania in the three

months to May 2016 grew by 5.9% on

the previous year, to $622 million.




Hobart. This is trending 32.7% lower

for houses and 18.0% lower for





out of 7 scheduled auctions sold in

Greater Hobart.



previous year) and 509 apartments

(down 26.6% on prior year).


June (rising 0.9% over the last year) to

a median of $387,500. Apartments fell

0.7% over the month (up 3.1% over

the year) to record a median of

$285,000.


rose 1.4% for houses and 7.0% for

apartments. Weekly median rents are

currently achieving $365 for houses


Greater Hobart total vacancy was last



and down 20 bps compared to the

prior year.


across Greater Hobart compressed 1

bp for houses (to 4.90%) and rose 19

bps for apartments (to 5.55%)


FIGURE 17

Capital Growth, Greater Hobart 12-month rolling

FIGURE 18


Greater Hobart Weekly Rents & Quarterly Vacancy


HOBART Gross State Product in

Tasmania was recorded at



the prior year.



Hobart (SA4), trending 90 bps

higher than the 6.0% recorded

in June 2015.


Greater Hobart in 2015 was

221,000 persons. Greater

Hobart experienced population

growth of 0.8% in the year to

June 2015.

TABLE 8


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Hobart 387,500 -1.3 0.9 2,131 365 4.90

Hobart 285,000 2.3 3.1 509 305 5.55

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

-2.0

-0.7



-4%

-2%

0%

2%

4%

6%

8%

10%

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

$225

$250

$275

$300

$325

$350

$375

$400

Jun

-14

Sep

-14

Dec-1

4

Mar-

15

Jun

-15

Sep

-15

Dec-1

5

Mar-

16

Jun

-16





11



commitments in the Northern Territory

in the three months to May 2016 fell

by 14.3% on the previous year, to

$300 million.




Darwin. This is trending 27.2% lower

for houses and 3.4% lower for





from 8 scheduled auctions sold in

Greater Darwin.



previous year) and 487 apartments

(also down 14.3% on prior year).


June (down 5.2% over the last year) to

a median of $533,500. Apartments

rose 1.2% over the month (down 6.3%

over the year) to record a median of

$381,500.


was recorded at –6.0% for houses and

–8.6% for apartments. Weekly median



Greater Darwin total vacancy was last



however 230 bps higher compared to

the prior year.


across Greater Darwin compressed 7

bps (to 5.32%) for houses and 14 bps

(to 5.81%) for apartments compared

to the previous year.

FIGURE 19

Capital Growth, Greater Darwin 12-month rolling

FIGURE 20


Greater Darwin Weekly Rents & Quarterly Vacancy


DARWIN The Northern Territory Gross




the prior year.


2016 stood at 3.9% for the

Northern Territory, trending 150




Greater Darwin in 2015 was

142,000 persons. Greater

Darwin experienced population

growth of 1.9% in the year to

June 2015.

TABLE 9


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Darwin 533,500 -1.6 -5.2 1,071 545 5.32

Darwin 381,500 -0.1 -6.3 487 425 5.81

Type

Houses

Apartments

Capital

Growth

Last Month

(%)

-0.3

1.2



-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

$400

$450

$500

$550

$600

$650

Ju

n-1

4

Sep

-14

Dec-1

4

Mar-

15

Ju

n-1

5

Sep

-15

Dec-1

5

Mar-

16

Ju

n-1

6





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advice, consultancy services and forecasting

to a wide range of clients worldwide

including developers, investors, funding

organisations, corporate institutions and the

public sector. All our clients recognise the

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customised to their specific needs.

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Important Notice

© Knight Frank Australia Pty Ltd 2016 – This report is published for general information only and not

to be relied upon in any way. Although high standards have been used in the preparation of the

information, analysis, views and projections presented in this report, no responsibility or liability

whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from

any use of, reliance on or reference to the contents of this document. As a general report, this material

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written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.

RESIDENTIAL RESEARCH

Michelle Ciesielski Director

+61 2 9036 6659

[email protected]

Bradley Rehn Assistant Analyst

+61 2 9036 6656

[email protected]

Matt Whitby Group Director

Head of Research and Consultancy

+61 2 9036 6616

[email protected] RESIDENTIAL AND

PROJECT MARKETING

Michael Robinson Head of Project Marketing, Australia

+61 3 9604 4775

[email protected]

Neil Kay Senior Director

Head of Residential, Perth (WA)

+61 8 6210 0112

[email protected]

Sam Kandil Head of Project Marketing, Sydney (NSW)

+61 2 9036 6793

[email protected]

Daniel Cashen Director, Melbourne (Vic)

+61 3 9604 4749

[email protected]

Chris Litfin Head of Project Marketing, Qld

& Gold Coast

+61 7 5636 0814

[email protected]

Gillian Bail Director, Brisbane (Qld)

+61 7 3246 8842

[email protected]

INTERNATIONAL

PROJECT MARKETING

Rebecca Pugh Manager, Australia

+61 3 9604 4716

[email protected]

FIGURE 21

Gross Rental Yields by Region, Houses & Apartments

Q1 2016


3.00%

3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

Co

untr

y T

as (A

)

Darw

in N

T (A

)

Riv

erina N

SW

(H

)

Co

untr

y W

A (A

)

No

rth W

est

SA

(H

)

Go

ld C

oast

Qld

(A

)

Gre

ate

r H

ob

art

Tas (A

)

Rockh

am

pto

n Q

ld (H

)

To

wn

svill

e Q

ld (H

)

Bund

ab

erg

Qld

(H

)

Darw

in N

T (H

)

Co

untr

y T

as (H

)

Co

untr

y S

A (A

)

Cair

ns Q

ld (H

)

Can

berr

a A

CT (A

)

Balla

rat

Vic

(H

)

Hunte

r V

alley N

SW

(H

)

Gre

ate

r B

risb

ane Q

ld (A

)

Co

untr

y V

ic (A

)

Mackay Q

ld (H

)

Decep

tion

Bay Q

ld (H

)

Gre

ate

r A

dela

ide S

A (A

)

Co

untr

y N

SW

(A

)

So

uth

Co

ast

NS

W (H

)

Bend

igo

Vic

(H

)

So

uth

East

SA

(H

)

Gre

ate

r H

ob

art

Tas (H

)

To

ow

oo

mb

a Q

ld (H

)

So

uth

po

rt Q

ld (H

)

Pen

insula

Vic

(A

)

Co

untr

y Q

ld (A

)

No

osa Q

ld (H

)

Gre

ate

r B

risb

ane Q

ld (H

)

Gre

ate

r P

ert

h V

ic (A

)

New

castle N

SW

(H

)

Surf

ers

Para

dis

e Q

ld (H

)

Cen

tral C

oast

NS

W (H

)

Austr

alia (A

)

Can

berr

a A

CT (H

)

Gre

ate

r A

dela

ide S

A (H

)

Gre

ate

r P

ert

h V

ic (H

)

Blu

e M

ounta

ins N

SW

(H

)

Geelo

ng

Vic

& S

urr

ound

s (H

)

Austr

alia (H

)

Mo

rnin

gto

n V

ic &

Surr

ound

s (H

)

Wo

llong

ong

NS

W (H

)

Gre

ate

r M

elb

ourn

e V

ic (A

)

Gre

ate

r S

yd

ney N

SW

(A

)

Gre

ate

r S

yd

ney N

SW

(H

)

Gre

ate

r M

elb

ourn

e V

ic (H

)

APARTMENTS (A)

HOUSES (H)



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