RESIDENTIAL RESEARCH
MARKET ACTIVITY REPORT FOR AUSTRALIAN CAPITAL CITIES & REGIONAL CENTRES
2
The official cash rate target
remained at 1.50% in September
2016. Gross Domestic Product
(GDP) was recorded at 3.3%
annual growth to June 2016
whilst unemployment across Australia remained steady at
5.7% in the quarter to July 2016.
Australian house values rose
1.4% in the month of July 2016 (3.8% annual growth) to a
median of $524,000 while
apartment values were down
0.4% over the month (similarly 3.8% annual growth) to a median
of $484,000.
In the year to July 2016, the
volume of house sales was up 0.3% to 334,068 while 165,471
apartment sales were recorded
(up by 2.3%).
Gross rental yields for Australian houses averaged
4.30% in July 2016 while
Australian apartments achieved
4.56%.
Australian weekly median house
rents were $430 in July 2016
(steady YoY), whilst apartment
rents were $425 per week (up
1.2% YoY).
A weighted average total
vacancy for Australian residential
property was last recorded at 2.9% in June 2016; trending
down 30 bps in the last quarter.
Knight Frank Residential Research
The Reserve Bank of Australia (RBA) left
the target cash rate unchanged at 1.50%
on 6 September 2016. The RBA
continues to support the supervisory
measures introduced by the Australian
Prudential Regulatory Authority (APRA)
encouraging tightened lending practices
for housing finance across the country.
These regulatory measures have resulted
in a lowered level of enquiry from both
local and foreign purchasers and slowed
the rate of annual capital growth across
the country.
In the year to July 2016, houses in
Melbourne saw not only the highest
annual growth in values of all Australian
capital cities (at 8.7%) but the greatest
change in sales volume at 18.6%. Other
housing markets experiencing a high
uptick in sales turnover over this time
include Adelaide (at 12.3%), Brisbane (at
9.4%) and Canberra (at 6.4%). While
capital growth was strongest for housing
markets in Hobart (at 6.6%) and
Canberra (at 4.7%) as shown in Figure 2.
Annual growth for apartment capital
values and sales volume has eased in
July 2016. As new projects come to
market, there has been a lull in enquiry as
housing finance options are reassessed.
Apartments in Sydney continued to see
the most growth in this time at 5.0%
followed by Brisbane at 3.9%.
National Key Economic Indicators
Capital Growth, Australian Capital
Cities, Houses & Apartments Annual % change to July 2016
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Dec-1
5
Mar-
16
Jun-1
6
Jan-1
6
Ap
r-16
Jul-
16
Mar-
16
Jun-1
6
Sep
-16
Jan-1
6
Ap
r-16
Jul-
16
Jan-1
6
Ap
r-16
Jul-
16
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)
CAN (H)
ADE (H)
BRI (H)
DAR (H)
HOB (H)
MEL (H)
PER (H)
SYD (H)
CAN (A)
ADE (A)
BRI (A)
DAR (A)
HOB (A)
MEL (A)
PER (A)
SYD (A)
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
HOUSES (H)
APARTMENTS (A)
3
RESEARCH AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016
Looking at the capital cities compared to
key regional centres around Australia,
those on the periphery of the Greater
Sydney area have continued to
outperform as shown in Figure 3.
Throughout the second quarter of 2016,
houses located on the Central Coast saw
capital growth of 3.6% while Wollongong
was close behind at 3.3%. Given the
heated Sydney market for the past two
years, it’s understandable that buyers are
looking for alternative options with a
lower entry point especially when both
regions are still within a commuting
distance to Sydney.
The top performer for the housing market
over Q2 2016 was the NSW South Coast
(at 4.9%) with Surfers Paradise (at 3.2%)
and Newcastle (at 2.8%). These regions
are still desirable for second homes and
future retirement destinations by baby
boomers who are now coming into
retirement age.
Knight Frank’s Global House Price Index
released for Q2 2016 saw global growth
of 4% for the mainstream national
housing markets. Australia was ranked in
16th place with annual growth of 6.8% as
shown in Figure 4. Australia has dropped
from 7th position in Q2 2014 (when
annual growth was recorded at 10.1%).
Knight Frank Global House Price Index Ranked by annual % change to Q2 2016
Capital Growth, Australian Key Regional Centres, Houses & Apartments Ranked by quarterly % change to Q2 2016
**Provisional ***Asking prices ****Island-wide price index for non-landed private properties. Data for Australia, Austria, Belgium, Bulgaria, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Hungary, India,
Israel, Italy, Lithuania, Luxembourg, Morocco, New Zealand, Romania, Slovenia and Spain to Q1 2016; Data for Malaysia to Q4 2015; Data for Chile to Q3 2015
-10%
-5%
0%
5%
10%
15%
Turk
ey
New
Zeala
nd
Canad
a
Chile
**S
wed
en
***M
alta
Austr
ia
Icela
nd
Mexic
o
Germ
any
Isra
el
Mala
ysia
Jers
ey
Lithuania
Co
lom
bia
Austr
alia
Irela
nd
Luxem
bo
urg
Latv
ia
Chin
a
No
rway
Ind
ia
Hung
ary
United
Kin
gd
om
United
Sta
tes
So
uth
Afr
ica
Slo
vakia
Neth
erland
s
Bulg
aria
***C
zech R
ep
ub
lic
Glo
bal
Denm
ark
Belg
ium
Po
rtug
al
Ind
onesia
Ro
mania
So
uth
Ko
rea
Russia
Sp
ain
Esto
nia
Fin
land
Sw
itzerland
Slo
venia
Fra
nce
Cro
atia
Po
land
Jap
an
Bra
zil
Italy
Cyp
rus
****
Sin
gap
ore
Gre
ece
Mo
rocco
**H
ong
Ko
ng
Ukra
ine
Taiw
an
Au
str
alia
Glo
ba
l
4
Market Trends The value of housing finance
commitments in New South Wales in
the three months to July 2016 grew by
11.4% on the previous year, to $22.0
billion.
Building approvals in the three months
to July totalled 4,584 houses and
10,729 apartments in Greater Sydney.
This is trending 1.3% lower for houses
and 2.2% lower for apartment
approvals compared to the same
period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
83.9% out of 578 scheduled auctions
in Greater Sydney. This is higher than
the week prior, at 78.5% from 788
scheduled auctions, and also higher
than the comparable week a year
earlier, when 78.1% (out of 1,080
auctions) were sold.
Sales transacted in the year to July
tallied 47,979 houses (up 2.8% on
previous year) and 46,662 apartments
(up 1.9% on prior year).
House values declined 1.4% in the
month of July (rising 3.9% over the
last year) to a median of $1,057,500.
Apartment values fell 0.1% over the
same month (rising 5.0% over the
year) to record a median of $703,500.
Over the year to July, rental growth fell
5.1% for houses and 0.9% for
apartments. Weekly median rents are
currently achieving $645 for houses
and $555 for apartments.
Greater Sydney total vacancy was last
recorded at 1.9% in July 2016; with
similar results in the inner ring (0-
10km), the middle ring (10-25km) and
outer ring (25km+).
In July 2016, gross rental yields
across Greater Sydney compressed
31 bps (to 3.18%) for houses and 21
bps (to 4.14%) for apartments
compared to the previous year.
Capital Growth, Greater Sydney 12-month rolling
Median Rents & Total Vacancy
Greater Sydney Weekly Rents & Monthly Vacancy
Gross State Product in New
South Wales was recorded at
$506,918 million in the year to
June 2015; 2.4% greater than the prior year.
Unemployment as at July 2016
stood at 4.0% for Greater
Sydney (SA4), trending 176 bps
lower than the 5.8% recorded in
July 2015.
Population in Greater Sydney
was estimated at 4.9 million
persons in 2015. Greater
Sydney experienced population
growth of 1.7% in the year to
June 2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Sydney 1,057,500 1.1 3.9 47,979 645 3.18 Houses -1.4
Sydney 703,500 1.2 5.0 46,662 555 4.14 Apartments -0.1
0%
5%
10%
15%
20%
25%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
$400
$450
$500
$550
$600
$650
$700
$750
$800
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
5
RESEARCH
Market Trends The value of housing finance
commitments in Victoria in the three
months to July 2016 grew by 14.8%
on the previous year, to $16.8 billion.
Building approvals in the three months
to July totalled 6,907 houses and
8,248 apartments in Greater
Melbourne. This is trending 12.5%
higher for houses but 2.8% lower for
apartment approvals compared to the
same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
79.3% out of 748 scheduled auctions
in Greater Melbourne. This is higher
than the week prior, at 77.4% from
1,060 scheduled auctions, and also
higher than the comparable week the
year earlier, when 77% (out of 1,158
scheduled auctions) were sold.
Sales transacted in the year to July
tallied 57,417 houses (up 18.6% on
previous year) and 40,878 apartments
(up 3.8% on the prior year).
House values declined by 0.1% in the
month of July (growth of 8.7% over
the last year) to a median of $742,500,
while apartment values fell 1.5% over
the month (growth of 2.8% over the
year) to record a median of $499,000.
Over the year to July, rental growth
fell by 1.1% for houses but rose 2.5%
for apartments. Weekly median rents
are currently achieving $450 for
houses and $415 for apartments.
Six-month average total vacancy
trend was recorded at 2.6% in July
2016 for Greater Melbourne; with
2.3% in the inner ring (0-10km), 3.2%
in the middle ring (10-20km) and 2.5%
in the outer ring (20km+).
In July 2016, gross rental yields
across Greater Melbourne
compressed 30 bps (to 3.18%) for
houses and 3 bps (to 4.33%) for
apartments compared to the previous
year.
Median Rents & Total Vacancy
Greater Melbourne Weekly Rents & Monthly Vacancy
Gross State Product in Victoria was recorded at $355,580
million in the year to June 2015;
2.5% greater than the prior year.
Unemployment as at July 2016
stood at 5.4% for Greater
Melbourne (SA4), trending 134
bps lower than the 6.7%
recorded in July 2015.
Population in Greater
Melbourne was estimated at 4.5
million persons in 2015. Greater
Melbourne experienced
population growth of 2.1% in
the year to June 2015.
Key Residential Indicators, July 2016
Greater Region Type
Median
Capital Value
($)
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 742,500 -0.1 1.2 8.7 57,417 450 3.18
Melbourne Apartments 499,000 -1.5 2.5 2.8 40,878 415 4.33
AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016
Capital Growth, Greater Melbourne 12-month rolling
0%
2%
4%
6%
8%
10%
12%
14%
16%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
$360
$380
$400
$420
$440
$460
$480
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
6
Market Trends The value of housing finance
commitments in Queensland in the
three months to July 2016 grew by
9.1% on the previous year, to $10.4
billion.
Building approvals in the three months
to July totalled 3,131 houses and
3,631 apartments in Greater Brisbane.
This is trending 6.5% higher for
houses but 34.7% lower for apartment
approvals compared to the same
period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
58.4% out of 77 scheduled auctions in
Greater Brisbane. This is higher than
the week prior, at 44.3% from 129
scheduled auctions, and also higher
than the comparable week the year
earlier, when 58.2% (out of 158
scheduled auctions) were sold.
Sales transacted in the year to July
tallied 44,027 houses (up 9.4% on
previous year) and 21,091 apartments
(up 5.5% on prior year).
House values declined 1.5% in the
month of July (with growth of 2.9%
over the last year) to a median of
$501,500 while apartment values rose
0.4% over the month (with growth of
3.9% over the year) to record a
median of $388,000.
Over the year to July, rental growth
grew by 1.1% for houses and rose
1.3% for apartments. Weekly median
rents are currently achieving $455 for
houses and $385 for apartments.
Total vacancy was last recorded at
2.8% in June 2016 for Greater
Brisbane; with 3.4% for the inner ring
(0-5km) and 2.3% for the middle-outer
ring (5-20km).
In July 2016, gross rental yields across
Greater Brisbane compressed 12 bps
(to 4.73%) for houses and 12 bps (to
5.20%) for apartments compared to
the previous year.
Median Rents & Total Vacancy
Greater Brisbane Weekly Rents & Quarterly Vacancy
Gross State Product in
Queensland was recorded at $300,270 million in the year to
June 2015; 0.5% greater than
the prior year.
Unemployment as at July 2016
stood at 4.8% for Greater
Brisbane (SA4), trending 106
bps lower than the 5.8%
recorded in July 2015.
Population in Greater Brisbane
was estimated at 2.3 million
persons in 2015. Greater
Brisbane experienced
population growth of 1.6% in
the year to June 2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Brisbane 501,500 0.5 2.9 44,027 455 4.73 Houses -1.5
Brisbane 388,000 1.3 3.9 21,091 385 5.20 Apartments 0.4
Capital Growth, Greater Brisbane 12-month rolling
0%
1%
2%
3%
4%
5%
6%
7%
8%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
$300
$320
$340
$360
$380
$400
$420
$440
$460
$480
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
7
RESEARCH
Market Trends The value of housing finance
commitments in Western Australia in
the three months to July 2016 fell by
10.7% on the previous year, to $6.2
billion.
Building approvals in the three months
to July totalled 3,223 houses and
1,429 apartments in Greater Perth.
This is trending 32.8% lower for
houses and 36.7% lower for
apartment approvals compared to the
same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
16.7% out of 6 scheduled auctions in
Greater Perth. This is lower than the
week prior, at 34.8% from 29
scheduled auctions, and lower than
the comparable week the year earlier,
when 66.7% were sold. Sales transacted in the year to July
tallied 22,902 houses (down 9.3% on
previous year) and 10,008 apartments
(down 10.4% on prior year).
House values were recorded at a
median of $502,500, falling 0.8% in
the month of July and 3.4% over the
last year. Apartment values fell 0.9%
over the month, down 6.3% over the
year, to record a median of $424,000.
Over the year to July, rental growth
was down 5.7% for houses and 4.9%
for apartments. Weekly median rents
are currently $415 for houses and
$385 for apartments.
Across the Greater Perth area, total
vacancy was recorded at 6.0% in
June 2016; remaining stable over the
past six months.
In July 2016, gross rental yields
across Greater Perth compressed 15
bps (to 4.29%) for houses but was up
5 bps (to 4.72%) for apartments
compared to the previous year.
Median Rents & Total Vacancy
Greater Perth Weekly Rents & Quarterly Vacancy
Gross State Product in
Western Australia was recorded at $276,312 million in the year to
June 2015; 3.5% greater than
the prior year.
Unemployment as at July 2016
stood at 7.3% for Greater Perth
(SA4), trending 77 bps higher
than the 6.6% recorded in July
2015.
Population in Greater Perth was
estimated at 2.0 million persons
in 2015. Greater Perth
experienced population growth
of 1.6% in the year to June
2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Perth 502,500 -1.9 -3.4 22,902 415 4.29 Houses -0.8
Perth 424,000 -2.0 -6.3 10,008 385 4.72 Apartments -0.9
AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016
Capital Growth, Greater Perth 12-month rolling
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
$300
$350
$400
$450
$500
$550
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
8
Market Trends The value of housing finance
commitments in South Australia in the
three months to July 2016 grew by
17.6% on the previous year, to $3.4
billion.
Building approvals in the three months
to July totalled 1,640 houses and 965
apartments approved in Greater
Adelaide. This is trending 11.6%
higher for houses and 52.0% higher
for apartment approvals compared to
the same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
80.7% out of 57 scheduled auctions in
Greater Adelaide. This is greater than
the week prior, at 63.3% from 83
scheduled auctions, and higher than
the comparable week the year earlier,
when 64.8% (out of 100 scheduled
auctions) were sold.
Sales transacted in the year to July
tallied 21,552 houses (up 12.3% on
previous year) and 5,389 apartments
(up 3.1% on prior year).
House values were up 0.3% in the
month of July (rising by 3.9% over the
last year) to a median of $444,000.
Apartments rose 2.4% in the month
(up 2.9% over the year) to record a
median of $324,000.
Over the year to July, rental growth
rose 1.3% for houses and 1.6% for
apartments. Weekly median rents are
currently achieving $380 for houses
and $310 for apartments.
In July 2016, gross rental yields
across Greater Adelaide compressed
11 bps (to 4.45%) for houses and 8
bp (to 5.01%) for apartments
compared to the previous year.
Median Rents, Greater Adelaide
Weekly Rents
Gross State Product in South
Australia was recorded at $98,539 million in the year to
June 2015; 1.6% greater than
the prior year.
Unemployment as at July 2016
stood at 7.2% for Greater
Adelaide (SA4), trending 103
bps lower than the 8.2%
recorded in July 2015.
Population in Greater Adelaide
was estimated at 1.3 million
persons in 2015. Greater
Adelaide experienced
population growth of 0.9% in
the year to June 2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Adelaide 444,000 0.5 3.9 21,552 380 4.45 Houses 0.3
Adelaide 324,000 2.2 2.9 5,389 310 5.01 Apartments 2.4
Capital Growth, Greater Adelaide 12-month rolling
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
$250
$270
$290
$310
$330
$350
$370
$390
$410
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
9
RESEARCH
Market Trends The value of housing finance
commitments in the Australian Capital
Territory (ACT) in the three months to
July 2016 grew by 19.9% on the
previous year, to $1.2 billion.
Building approvals in the three months
to July totalled 420 houses and 1,011
apartments in the ACT. This is
trending 34.2% higher for houses and
19.9% higher for apartment approvals
compared to the same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
78% out of 76 scheduled auctions in
Canberra. This is higher than the week
prior, at 71.4% from 61 scheduled
auctions, and higher than the
comparable week the year earlier,
when 61.9% were sold.
Sales transacted in the year to July
tallied 4,726 houses (up 6.4% on previous year) and 3,168 apartments
(down 4.6% on prior year).
House values fell 0.6% in the month of
July (with growth of 4.7% over the last
year) to a median of $584,500.
Apartment values fell 1.5% over the
month (down 0.7% over the year) to
record a median of $401,000.
Over the year to July, rental growth
grew by 2.0% for houses and 1.2% for
apartments. Weekly median rents are
currently achieving $510 for houses
and $410 for apartments.
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.
In July 2016, gross rental yields across
Canberra compressed 12 bps (to
4.57%) for houses and grew by 21 bps
(to 5.36%) for apartments compared
to the previous year.
Median Rents & Total Vacancy
Canberra Weekly Rents & Quarterly Vacancy
Gross State Product in the
ACT was recorded at $34,866
million in the year to June 2015;
1.4% greater than the prior year.
Unemployment as at July 2016
stood at 2.8% for the ACT,
trending 77 bps lower than the
3.6% recorded in July 2015.
Population in the ACT was
estimated at 391,000 persons in
2015. The ACT experienced
population growth of 1.4% in
the year to June 2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Canberra 584,500 1.8 4.7 4,726 510 4.57 Houses -0.6
Canberra 401,000 -0.7 -2.0 3,168 410 5.36 Apartments -1.5
AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016
Capital Growth, Canberra 12-month rolling
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
$350
$375
$400
$425
$450
$475
$500
$525
$550
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
10
Market Trends The value of housing finance
commitments in Tasmania in the three
months to July 2016 grew by 15.7%
on the previous year, to $697.2 million.
Building approvals in the three months
to July totalled 203 houses and 36
apartments in Greater Hobart. This is
trending 20.7% lower for houses and
5.3% lower for apartment approvals
compared to the same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
0% out of 7 scheduled auctions in
Greater Hobart. This was lower than
the previous week when 66.7% of 3
scheduled auctioned were sold.
Sales transacted in the year to July
tallied 2,762 houses (down 1.3% on
previous year) and 950 apartments
(down 2.2% on prior year).
House values fell 0.6% in the month
of July (rising 6.6% over the last year)
to a median of $388,000. Apartments
fell 1.6% over the month (down 4.8%
over the year) to record a median of
$269,500.
Over the year to July, rental growth
rose 8.6% for houses but fell 1.7% for
apartments. Weekly median rents are
currently achieving $380 for houses
and $295 for apartments.
Greater Hobart total vacancy was last
recorded at 2.7% in March 2016;
down 40 bps on the previous quarter
and down 20 bps compared to the
prior year.
In July 2016, gross rental yields
across Greater Hobart compressed 10
bp for houses (to 5.09%) and rose 17
bps for apartments (to 5.68%)
compared to the previous year.
Median Rents & Total Vacancy
Greater Hobart Weekly Rents & Quarterly Vacancy
Gross State Product in
Tasmania was recorded at $25,419 million in the year to
June 2015; 1.6% greater than
the prior year.
Unemployment as at July 2016
stood at 5.4% for Greater
Hobart (SA4), trending 32 bps
higher than the 5.7% recorded
in July 2015.
Population in Greater Hobart
was estimated at 221,000
persons in 2015. Greater Hobart
experienced population growth
of 0.8% in the year to June
2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Hobart 388,000 1.0 6.6 2,762 380 5.09 Houses -0.6
Hobart 269,500 -4.6 -4.8 950 295 5.68 Apartments -1.6
Capital Growth, Greater Hobart 12-month rolling
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
$200
$250
$300
$350
$400
$450
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
11
RESEARCH
Market Trends The value of housing finance
commitments in the Northern Territory
in the three months to July 2016 fell by
11.2% on the previous year, to $305.6
million.
Building approvals in the three months
to July totalled 154 houses and 203
apartments in Greater Darwin. This is
trending 41.2% lower for houses and
1.9% lower for apartment approvals
compared to the same period in 2015.
The preliminary auction clearance rate
for the week ending 4 September was
48% out of 6 scheduled auctions in
Greater Darwin. This was lower than
the previous week when 64% of 13
scheduled auctioned were sold.
Sales transacted in the year to July
tallied 1,069 houses (down 14.1% on
previous year) and 491 apartments
(also down 10.6% on prior year).
House values fell 1.3% in the month
of July (down 6.2% over the last year)
to a median of $526,500. Apartments
remained steady over the month
(down 5.7% over the year) to record a
median of $381,500.
Over the year to July, rental growth
was down 6.9% for houses and 5.6%
for apartments. Weekly median rents
are currently achieving $540 for
houses and $425 for apartments.
Greater Darwin total vacancy was last
recorded at 8.7% in March 2016;
down 20 bps on the previous quarter
however 230 bps higher compared to
the prior year.
In July 2016, gross rental yields
across Greater Darwin compressed 5
bps (to 5.35%) for houses and 2 bps
(to 5.82%) for apartments compared
to the previous year.
Median Rents & Total Vacancy
Greater Darwin Weekly Rents & Quarterly Vacancy
Gross State Product in the
Northern Territory was recorded at $22,450 million in the year to
June 2015; 10.5% greater than
the prior year.
Unemployment stood at 3.8%
in Greater Darwin as at July
2016, trending 20 bps lower
than the 4.0% recorded in July
2015.
Population in Greater Darwin
was estimated at 142,000
persons in 2015. Greater Darwin
experienced population growth
of 1.9% in the year to June
2015.
Key Residential Indicators, July 2016
Greater Region
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Median
Weekly Rent
($)
Gross
Rental Yield
(% p.a)
Type
Capital
Growth
Last Month
(%)
Darwin 526,500 -1.6 -6.2 1,069 540 5.35 Houses -1.3
Darwin 381,500 0.5 -5.7 491 425 5.82 Apartments 0.0
AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016
Capital Growth, Greater Darwin 12-month rolling
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
$300
$350
$400
$450
$500
$550
$600
$650
Jul-
14
Oct-
14
Jan-1
5
Ap
r-15
Jul-
15
Oct-
15
Jan-1
6
Ap
r-16
Jul-
16
HOUSES APARTMENTS VACANCY
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to a wide range of clients worldwide
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First Home Buyer
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September 2016
Taxing Foreign
Investors in Australia
July 2016
The Wealth Report
2016
Knight Frank Research Reports are available at KnightFrank.com.au/Research
Global House Price
Index
Q2 2016
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
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