Top 10 Boom Suburbs 2014

8/10/2019 Top 10 Boom Suburbs 2014

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Analysis by Leading Property Market Expert

ohn Lindeman


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Australias Top 10 Boom Suburbs for 2014 Page 1.

Property Power Partners Pty Ltd & Results Mentoring Pty Ltd, All Rights Reserved

FOREWORD

It is our privilege to again partner with one of Australias leading property market researchers,John Lindeman, to bring you this exclusive Property Investor Report containing Johns personalselections ofAustralias Top Ten Boom Suburbs for 2014.

About John Lindeman

John Lindeman, director of innovative research firm Property PowerPartners, is widely respected as one of Australia's leading propertymarket analysts.

With well over a decade of experience researching the nature anddynamics of the housing market at major data analysts, John isrenowned as the property market researcher that property experts goto for all their Australian housing market insights.

Johns monthly column on housing market research has featured inAustralian Property Investor Magazinefor over two years. He is a regular contributor to propertyinvestment e-newsletters such as Michael Yardneys Property Update and Alan Kohlers EurekaReport and author of the landmark best-selling book for property investors, Mastering theAustralian Housing Market published by Wrightbooks. John regularly provides presentations,commissioned reports and other research services on the nature and direction of the residentialproperty market for property industry leaders. His extensive property knowledge is complementedby around 40 years' experience as a successful property investor.

Predictions are only as good as the results, so we checked the latest published RP Data figures to

see how Johns Top Ten Boom Suburbs for 2012 have performed since the report wasreleased:

Median sale prices for Marrickville units (NSW), Highgate units (WA) and Roxby Downs

houses (SA) have each grown by more than 25%, providing a potential profit bonanza ofover $390,000 to investors in these three suburbs alone.

Total median sale prices in the ten selected suburbs have increased by more than$500,000!

Average median sale prices in the ten selected suburbs have risen by over 10%, a result

that has met Johns boom market predictions!

Can it get any better? We think so, because John has provided ten new suburbs that are set toboom in 2014 - exclusively for Results Mentoring.

About ResultsMentoring.com

ResultsMentoring.comis the home of Australias premier independent mentoring program forproperty investors, the RESULTS Mentoring Program, and of Australias best property mentors aselect group of hand-picked, highly experienced investors with a passion for teaching strategiesand techniques that can help you make large sums of money from everyday property deals in any

market conditions.


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ResultsMentoring.com offers professionally run mentoring programs for investors seeking toachieve financial freedom through property. Whether you're just getting started, or if you are anexperienced investor wanting to take your success to the next level, ResultsMentoring.com canprovide you with the personal support and in-depth information you need.

ResultsMentoring.comand John Lindemanhave joined forces to bring you this timely and

valuable report onAustralias Top Ten Boom Suburbs for 2014.

We hope that you enjoy and profit from this exclusive resource!

Sincerely,

The Team at


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Australias Top Ten Boom Suburbs for 2014

By John Lindeman

Many years of personal investment experience and extensive research have taught me thatbuying properties in areas with the best growth potential at the right price and selling when the

growth is about to cease is a far more rewarding investment strategy than holding and hoping forlong term growth to occur. The reason is simple. Although the Australian residential housingmarket contains around 15,000 suburbs and localities, only a few hundred have short termgrowth potential at any time, and when growth occurs, it is usually not only sweet, but alsoshort.

Using a short term growth strategy enables renovators and developers to achieve additionalprofit from passive growth by buying in the right areas and allows private investors to make thebest possible gains in the shortest possible time with the least amount of risk. The purpose of thisreport is to provide you with information about housing markets in suburbs and towns aroundAustralia with high growth potential over the next few years.

On the following pages youll find my top house market predictions for areas that have excellentgrowth potential in 2014 and beyond. The stats explain what is about to bring change andgrowth to each of these house markets.

For each suburb or town, Ive included:

Location

Local household demographics

Type of housing market

Snapshot of recent performance

Rent forecast

Price prediction

Wishing you successful investing,

John Lindeman

DirectorProperty Power Partners Pty Ltd


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THE METHODOLOGIES USED INTHIS REPORT

Because housing prices are subject to the same laws of supply and demand as othercommodities, prices change in response to rises and falls in potential buyer and seller numbers.When prices rise they often occur as dramatic growth spurts, especially when stock on the

market is outnumbered by potential buyers. These are known as booms, and growth typicallysubsides as soon as prices have risen to the point where they dampen buyer demand.

Because such growth is sweet but short, only a small percentage of the 15,000 housing marketsuburbs are booming at any one time. By buying in suburbs where prices are set to rise andselling before the growth stops, investors can make significantly higher returns than those whohold and hope, even with the high entry and exit costs that such short term investments tend toincur.

Our research has shown that the only accurate leading suburb level price change indicators aresales and listings as they reflect the true changing nature of supply and demand. By tracking theratio of listings to sales in a suburb and measuring the changing trend between supply and

demand it is possible not only to predict the direction of change in price, but also its likelyoccurrence and intensity. By analysing the relationship between rental demand and supply andmeasuring the trend over time, it is also possible to generate a working methodology to forecasthouse or unit rent changes up to a year ahead.

Putting the theory into practice for investors

In order to test the practical effectiveness and accuracy of short term housing price and rentpredictions produced from the above research, we developed the Property Power Database torecord and track the leading price change indicators. Although there are many ways to identifygeographic areas, we used suburbs as the base geographic unit. We also used houses (usuallyincluding townhouse and duplexes) and units (including flats and apartments) to cover all types

of housing in line with how the major data providers, the ABS and government sales data isprovided.

The Property Power Database collates and analyses the changing relationships between demandindicators such as asking prices, sales, listings, asking rents and rental vacancies in combinationwith demand dynamics such as population, demographic, finance, economic and climaticinformation in every one of 10,000 suburbs with houses and 5,000 suburbs with units to measureand interpret the intending behaviour of buyers, sellers and investors in housing markets andthen predict how, when and where these are likely to affect housing prices and rents in the shortterm.

The database employs predictive and patented algorithms developed by John Lindeman toprovide highly accurate short term rent and price change predictions for houses and units in anysuburb in Australia. We tested and refined the predictive algorithms for several years and it wasnot until we had achieved a consistent short term accuracy rate of over 90% in the rent or pricedirection forecast that we released the first of our highly popular and successful best 30 and best20 predictive reports for states, capital cities and regions around Australia.

Before we release these reports, we apply a series of filters to improve their accuracy andusefulness to investors by removing suburbs which we have identified as outliers, that is, wherelocal housing market conditions are such that the predicted change in prices or rents is less likelyto occur, or where the opportunities for investors are otherwise impeded in some way.


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HOW WEDESCRIBE THE VARIOUS TYPESOF HOUSING MARKETS

The Property Power Database output tables categorise the current and predicted types of housingmarkets in each suburb into one of five possible types of markets called stressed, buyer, neutral,seller orboom. It is the ratio of listings to sales that determines the current real time type of

market and it is the way in which this ratio changes over time, or trend that determines thepredicted change in direction.

Not only does this apply to any housing market anywhere in Australia, the database alsocalculates both the degree of potential price change and the period of time during which suchchanges are expected to occur. The Property Power Database also utilises an adaptation of thissystem to provide rental forecasts for houses or units in any suburb.

The five types of buyer/seller markets

Each suburb has a current type of buyer/seller housing market and a predicted type ofbuyer/seller housing market which can both be placed somewhere on the following scale:

Stressed markets are suburbs characterised by many potential sellers and few intendingbuyers. Prices are likely to be falling by more than 10% per annum and changes tend to takeseveral years to occur because of the large surplus of properties in the market waiting to be sold.If the prediction is for stressed market conditions to continue, prices will keep falling by morethan 10% per annum until and if the market eventually changes to a buyer market.

Buyer marketsare suburbs where there are more potential sellers than intending buyers andtheres a tendency for prices to fall by 10% or less per annum. Due to the surplus of propertieslisted for sale on the market, these markets are slow moving and the change to a neutral orstressed market can take up to a year or more to occur.

Neutral marketsare suburbs where the numbers of potential sellers and intending buyers isequally balanced, and there is little opportunity for other than small price falls or rises to occurwhile such conditions continue. It usually takes from six months to a year for neutral markets tochange to buyer or seller markets.

Seller marketsare suburbs characterised by fewer potential sellers than intending buyers andthere is continual pressure on prices to rise, although the rise is usually 10% per annum or less.

Because of the low numbers of properties listed for sale on the market, these suburbs canchange to boom markets or revert to neutral markets in six months or less if conditions change.

Boom markets are suburbs with few potential sellers and many intending buyers. Prices arelikely to be rising by more than 10% per annum and will continue to rise at this rate if theprediction is for boom conditions to continue. Because there are typically few properties listed forsale in such suburbs, they have the most price volatility and can revert to seller markets withinthree months if buyer demand decreases.

Notethat these five types of buyer/seller housing markets can apply either to house or to unitmarkets which should always be considered separately. A suburb may simultaneously have ashortage of houses on the market and a surplus of units listed for sale and they could be trending

in different directions. All the suburbs in this report have been analysed for their house marketsonly, and their unit markets may not perform in the same way.


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The three types of rental markets

Every suburb has a current type of rental market and a predicted type of rental market which canboth be placed somewhere on the following scale:

Surplus rental marketshave a surplus of investor owned stock compared to the number ofrenters in the suburb. This means that there will be more private rental vacancies than thedemand from renters for them, indicating that rents may fall unless there is a change in thenumber of renters or investors in the suburb.

Balanced rental marketsare suburbs where there are equal numbers of investor owned stockand renters. This indicates that there is no pressure on rents to rise or fall while the equilibrium

is maintained.

Shortage rental marketsare where the demand for rental properties exceeds the supply ofinvestor owned stock, leading to rent rises.

Note that these three types of rental housing markets can apply either to house or to unitmarkets which should always be considered separately. A suburb may simultaneously have ashortage of house rentals and a surplus of unit rentals and they could be trending in differentdirections. All the suburbs in this report have been analysed for their house markets only, andtheir unit markets may not perform in the same way.

HOWTO USE THIS REPORT

There are three tables contained in this report for each of the ten selected suburbs. This sectionexplains how to understand and use the information that is provided for each suburb.

Snapshot of recent performance table

The columns in this table provide the estimated current median selling price, estimated weeklymedian asking rent and rental yield for houses in each suburb and their percentage changes overthe last year.

Rental market forecasts table

The columns in this table provide the current weekly median asking rent, current private rentsupply, change in asking rent over the last year, current rental yield, rental stock forecast and theshort term rent growth potential for houses in each suburb.

Capital growth predictions table

The columns in this table provide the estimated current median selling price, current type ofhouse market, number of months before this is likely to change and the predicted direction of thechange.


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Estimated current median selling price

This is the estimated median of house prices currently being sold in each suburb, which is theprice that an investor would be expected to pay for an average house. Unlike published datawhich can be months old by the time it is available, this is a real time estimate of the medianselling price at the time the analysis is conducted.

Estimated number of properties for sale

This is an estimate of the total number of houses for sale in each suburb at the time the analysisis conducted.

Current housing market

This column shows you that the current type of housing market in each suburb for houses isneutral.

Number of months before any change is likely

This shows you the number of months before the change from neutral to boom is likely tooccur in each suburb.

Housing market prediction

This column shows you that the predicted type of housing market in each suburb for houses isboom.

BEWELL INFORMED

In theory, if the numbers told the entire story our predictions would be always 100% accurate,but in fact just over 90% of the suburbs we have analysed moved in the direction forecast. Whilecomputational errors could account for a small number of these anomalies, and we removeknown outliers from consideration to improve the accuracy of our predictions, there are manyother factors which can impact actual housing market growth and the performance of yourproperty investments which you should take into account as part of your due diligence. Some ofthe most common traps that investors may fall into when choosing an area, narrowing down theirsearch and then buying a property are:

Buying with your heart instead of your head Assuming that units will perform in the same manner

Assuming that nearby suburbs will perform the same as the suburb in the report Not checking the causes of local housing demand Using information that is out of date

Relying on hearsay and biased opinion Buying in an atypical part of the suburb Buying the wrong type of property for rental, renovation or resale Buying a property whose price is far higher or lower than the suburb median Paying more than fair market value for the property Selling at the wrong time

While many of these can be avoided with some common sense, you should always satisfy

yourself that you have conducted your own on the ground research as the consequences couldseriously impact the success of your investment.


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THE CAUSES OF POTENTIALGROWTH INTHE TOP TENSUBURBS

There are three key dynamics which cause housing price changes. The movement of people intoa suburb increases the demand for housing and it is the availability, need for and cost of housingfinance that transforms such demand into purchases or rentals. If there are shortages of housing

stock for sale where people want to buy, then prices will rise and if there shortages of rentalvacancies where they prefer to rent, then rents will rise. These three key demand dynamicsdetermine why, where and when housing prices will rise or fall. To narrow down the list ofpossible price growth candidates from the 15,000 suburbs with houses and units, we haveisolated those suburbs where the key dynamics are showing the highest potential for pricegrowth to occur.

With banks increasingly willing and able to provide low cost housing finance, the number ofhomeowners upgrading to more suitable homes in a better preferred suburb has already drivenhouse prices upwards in many capital city suburbs, but we have discovered some suburbs for thisreport where price growth is imminent, but has yet to take place. We have also uncovered some

first home buyer suburbs where increasing demand is likely to lead to house price growth.

Growth is already underway in those parts of our nation which are now fully recovered from thelast drought, particularly in the irrigated agricultural regions along the Murray/Darling andGoulburn River catchments. The main industries in these regions are horticultural, such asirrigated orchards, vineyards along with dairy farming and recovery from drought has given manytowns a new lease of life which is being assisted by the lower Australian dollar exchange rate.

The tourism industry is also becoming a growth industry in many regional areas. Away from thecoast, increasing numbers of houseboats and restored paddle steamers ply the mainwatercourses, while smaller craft explore the rivers and lakes. New life is being breathed intomany coastal resorts by the growing numbers of Chinese middle class tourists, cashed up andready to discover Australia. Restaurants, hotels, motels, caravan parks, shops, clubs, touristdevelopments and recreational enterprises are starting to receive the benefits.

One fifth of Australias households are comprised of people over 55, living in well-establishedsuburbs where their final housing repayments were made years ago. The majority of boomersare now reaching the point at which they are making some hard decisions about their futures.Retirement age is creeping up for more and more each year and boomers born in the immediatepost-war years are already aged 65 and over. Many will move soon and wherever they relocateto, the impact on local housing prices is likely to be substantial. These are likely to have excellentretail, recreational and entertainment facilities and their new homes will be attractively priced byway of comparison to the selling price of their old family homes. As each new destination isdiscovered, a few arrivals will be followed by many more, until prices become too high and thesucceeding waves of retirees move to nearby cheaper locations causing a price ripple effect.

In each of the following ten suburbs one of more of these fundamental changes in demand, suchas increased numbers of first home buyers or upgraders, rural recovery, growth in tourism ornew retiree destinations has the potential to cause high house price growth over the next yearand beyond.

The benefit to readers of this report is that an explanation of what is likely to cause house pricegrowth over the next year or two is provided for each suburb. By conducting your own on theground research, you can confirm whether the potential for price increases is justified, and then

decide whether to invest before the growth starts and ride the wave of price rises as they occur.


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SUBURB 1:COFFS HARBOUR, NEWSOUTH WALES HOUSES

Location

According to the CSIRO, Coffs Harbour has one of the most liveable climates in the world. The

city is located on the north coast of New South Wales, about 540 km from Sydney.


Coffs Harbour has a population of around 25,000, with the median age of 42 being a few yearshigher than the state median age. The main industries of the area are semi-tropical horticulture,particularly bananas and tourism, with a higher than average percentage of residents employedin the recreational and accommodation sectors. There has also been a noticeable rise in thenumber of people in the 55 to 65 age group in recent years, indicating the growing popularity ofthe region as a retirement destination. It is this change which is the key to the citys house pricegrowth potential as the median house price is extremely affordable for retirees.


Around 80% of the dwellings are houses and townhouses and there is a high percentage ofrental accommodation in Coffs Harbour with 40% of all dwellings being rented. Few of these areholiday lettings, as the unoccupancy rate of housing is lower than the state average.


Rental forecast

Price prediction

Suburb or town

houses (includes

duplexes, townhouses

etc on Torrens Title)

Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

COFFSHARBOUR 2450 370,000$ 6% 370$ 3% 5.3% 5.2%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rentfor houses

Current

private house

rental supply

Percentage

change in

house asking

rent over thelast year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

COFFSHARBOUR 2450 370$ 45 3% 5.2% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

COFFSHARBOUR 2450 370,000$

302 neutral over

12 boom


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SUBURB 2:YOUNG, NEWSOUTHWALES HOUSES

Location

Young is marketed as the Cherry Capital of Australia, hosting the annual National Cherry Festival.

The city is situated about 380 km south-west of Sydney and 130 km north-west of Canberra.


The population of Young is currently estimated to be around 11,000, with a median age close tothe state median. A significant proportion of the residents are employed in primary industries,especially sheep, beef and grain farming and the towns rural economy has flourished since theend of the last drought. There has been an increase in the number of local vineyards andorchards and promotion of the localitys fascinating pioneering history and events such as theNational Cherry Festival.


Around 94% of the dwellings are houses, with 30% of the suburbs households having mortgagesbeing paid off by their occupants and another 30% of the households rent their properties. Theunoccupancy rate of 11% is slightly higher than the state average and has been fallingsignificantly since the end of the drought.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

YOUNG 2594 220,000$ 5% 250$ 9% 5.7% 5.9%

Suburb or town

houses (includes



Post

Code

Current

weekly

median


Current

private house

rental supply

Percentage

change in

house asking


Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

YOUNG 2594 250$ 35 9% 5.9% balanced low

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

YOUNG 2594 220,000$

235 neutral over12 boom


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SUBURB 3:LYNBROOK, VICTORIA HOUSES

Location

Lynbrook is an outer suburb of Melbourne, with housing development only commencing in 1994.The suburb is located about 35 km south-east of the city centre and its railway station on theCranbourne line opened in 2012, providing direct commuter access to Dandenong, Cranbourneand the Melbourne CBD.


The population of Lynbrook is over 7,000 and has nearly doubled in size over the last sevenyears. This is a suburb characterised by its high percentage of families with young children.


Virtually all the dwellings in Lynbrook are houses, with only around 14% being rented and over70% being paid off by their occupiers. The suburb is a typical first home buyer suburb.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price forhouses

Percentage

change in

median house

price over thelast year

Current

weekly

median


Percentage

change in

house asking


House

rental yield

one year

ago

Current

house rental

yield

LYNBROOK 3975 400,000$ 0% 370$ 3% 4.7% 4.8%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

LYNBROOK 3975 370$ 12 3% 4.8% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

LYNBROOK 3975 400,000$ 181 neutral upto24 boom


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SUBURB 4:CORRYONG, VICTORIA HOUSES

Location

Corryong is located in north-eastern Victoria about 120 km east of Albury-Wodonga and is the

Victorian gateway to the snowfields of New South Wales.


Between the two Censuses of 2006 and 2011, the population of Corryong grew by over 10% withmost of the new residents being retirees. The median age is 48 and more than a quarter of theresidents are aged 65 and over. Non retired residents are mainly employed in education, healthand transport services, but the majority of residents are retired and no longer active in theworkplace.


All dwellings in Corryong are houses with around 27% being rented and a further 10% beingholiday homes.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

CORRYONG 3707 170,000$ 6% 180$ 6% 5.5% 5.5%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

CORRYONG 3707 180$ 3 6% 5.5% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

CORRYONG 3707 170,000$ 28 neutral over12 boom


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SUBURB 5:BOORAL, QUEENSLAND HOUSES

Location

Booral is a suburb of Hervey Bay, located about 290km north of Brisbane. The area is renowned

for its calm beaches and undeveloped foreshores facing World Heritage Listed Fraser Island, theworlds largest sand island.


Although Hervey Bay has a resident population of around 65,000, Booral is a relatively smallsuburb with around 1,500 residents. Nearly one third of the residents are aged from 50 to 69,making Hervey Bay one of the most popular retirement destinations along the east coast. Theproximity to Fraser Island and other tourist attractions such as game fishing, boating, swimmingand whale watching make this a popular tourist area as well, with most locals employed inrecreational, tourist, hospitality and accommodation services.


All dwellings in Booral are houses, and 17% of these are rented. There are few holiday homes inthe suburb.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price forhouses

Percentage

change in

median house

price over thelast year

Current

weekly

median


Percentage

change in

house asking


House

rental yield

one year

ago

Current

house rental

yield

BOORAL 4655 350,000$ 0% 320$ 0% 4.8% 4.8%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

BOORAL 4655 320$ 4 0% 4.8% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

BOORAL 4655 350,000$ 36 neutral upto24 boom


15/21



SUBURB 6:MOGGILL, QUEENSLAND HOUSES

Location

Moggill is a western suburb of Brisbane, located about 20 km from the CBD.


This is a typical first home buyer suburb, with around 3,700 residents of whom over half arepaying off a mortgage.


Although the suburb is bounded on three sides by the Brisbane River the devastating floods of2011 were mostly confined to the open areas of Moggill. Despite this, housing prices have notmoved for over three years and represent excellent value due to the growing buyer demand. Thesuburbs housing is entirely free standing houses, most of which are four bedroom family typehomes, and one quarter of the dwellings are rented.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

MOGGILL 4070 470,000$

2% 390$

7% 4.7% 4.3%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

MOGGILL 4070 390$ 12 7% 4.3% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

MOGGILL 4070 470,000$ 99 neutral upto24 boom


16/21



SUBURB 7:STREAKY BAY, SOUTHAUSTRALIA HOUSES

Location

Streaky Bay is a coastal town on the western side of the Eyre Peninsula about 300 km north-west

of Port Lincoln and 700 km from Adelaide.


The population of Streaky Bay is around 1,700 people and one quarter are aged between 50 and64, reflecting the areas growing popularity as a retirement destination. Most employed peoplework in industries that are involved in or support the regions sheep, beef and grain farming. Inaddition to being the main population centre of the district, there is also a well-established fishingindustry and tourism is growing.


Around 90% of the dwellings in Streaky Bay are houses, and one quarter are usually rented, withapproximately one third of all dwellings being holiday houses. The extreme affordability of houseprices is the main reason that rises are predicted as shortages develop due to rising retireeinterest in the area.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

STREAKYBAY 5680 220,000$ 0% 250$ 4% 5.7% 5.9%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

STREAKYBAY 5680 250$ 3 4% 5.9% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

STREAKYBAY 5680 220,000$ 64 neutral upto24 boom


17/21



SUBURB 8:BEACHPORT, SOUTHAUSTRALIA HOUSES

Location

Beachport is a coastal town located about 380 km south-east of Adelaide. It is best known for its

700 metre jetty, the second longest in the state.


The population of Beachport is around 1,000 and one fifth of the residents are aged between 55and 64 (double the states percentage), mostly recently arrived retirees. Employment in the townis associated with the local farming and fishing industries.


All the dwellings in Beachport are houses, and one fifth are rented. Nearly half of all the dwellingsare holiday houses, and this is likely to form the source of housing stock when demand lifts dueto the number of new retirees seeking to buy a dwelling in the area.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

BEACHPORT 5280 250,000$

0% 220$

5% 4.4% 4.6%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

BEACHPORT 5280 220$ 3 5% 4.6% balanced moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

BEACHPORT 5280 250,000$ 49 neutral upto24 boom


18/21


19/21



SUBURB 10:AUGUSTA,WESTERN AUSTRALIA HOUSES

Location

Augusta is located on the south-west coast of Western Australia, about 300 km south of Perth.


The population of Augusta is around 1,300 of whom 43% are 65 or over. The popularity of thislocation as a retirement destination is enhanced by its cool climate as well as the natural beautyof the area. The main industries are recreational, social and health support services and there isalso a thriving tourist industry, particularly during the holiday season.


Around 90% of the dwellings in Augusta are houses and half of the dwellings are holiday homes.

One third of the dwellings are rented. The large stock of holiday homes is a likely source ofhousing stock to meet the needs of further retiree arrivals.


Rental forecast

Price prediction

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Percentage

change in

median house

price over the

last year

Current

weekly

median

asking rent

for houses

Percentage

change in

house asking

rent over the

last year

House

rental yield

one year

ago

Current

house rental

yield

AUGUSTA 6290 430,000$ 2% 350$ 17% 3.7% 4.2%

Suburb or town

houses (includes



Post

Code

Current

weekly

median

asking rent

for houses

Current

private house

rental supply

Percentage

change in

house asking

rent over the

last year

Current house

rental yield

Rental stock

forecast for

houses

Short term

rent growth

potential

AUGUSTA 6290 350$ 3 17% 4.2% shortage moderate

Suburb or town

houses (includes



Post

Code

Estimated

current

median selling

price for

houses

Estimated

number of

houses

currently for

sale

Current

housing market

for houses

Number of

months before

any change is

likely

Housing

market

prediction for

houses

AUGUSTA 6290 430,000$ 101 neutral upto24 boom


20/21



DATA SOURCES USED INTHISREPORT

Researching the housing market

We continuously analyse potential changes in the nature and dynamics of the housing marketwhich may be caused or influenced by both government and private sector policies, strategies,plans and initiatives and gratefully acknowledge the following sources:

Urban Development Institute of AustraliaState of the Land Report, Urban Development Institute of AustraliaHousing Industry Association of AustraliaHousing Forecasts, HIA Economics GroupSustainable Australia, Sustainable Communities, Department of SEWP&COur Cities our Future, Department of Infrastructure and TransportState of Supply Report, National Housing Supply CouncilRainfall and Temperature Deficiencies and Anomalies, Bureau of Meteorology

Measuring housing market dynamics

We analyse population, demographic, household, housing, finance, economic and resourcerelated data from information provided to the general public by the Housing Industry Association,Australian Bureau of Statistics, Bureau of Meteorology, Australian Bureau of Agricultural andResource Economics. This data is then adapted and aggregated at suburb level to determine howchanges in demand and supply are trending for both rentals and owner occupied housing. Inparticular, we acknowledge the following source:

Australian Bureau of Statistics

House Price Index Eight Capital Cities 6416.0 Released quarterly

Housing Finance Australia 5609.0 Released monthlyAustralian Demographic Statistics 3101.0 Released quarterlyDwelling Unit Commencements Australia 8750.0 Released monthlyABS QuickStats 2011 Census data

Analysing housing market indicators

Many housing market indicators such as sale prices, weekly rents, price and rent movements arelagging indicators. That is, they provide information about past buyer, seller and renter activitiesand while there may be useful lessons or patterns in such behaviour that we can learn from, theydo not point the way to the future because they represent the results, not the causes which

brought about those results. Even if this data were predictively useful, these results are publishedmonths after the events have occurred due to the time it takes to settle contracts and the needfor the data to be collected and collated before it is published. Although this data can be usedfor private purposes, there is also the matter of copyright, which further restricts the manner inwhich such data can be used by third parties.

Our approach is to use only leading indicators to forecast renter and buyer demand trends suchas current median asking rents, current rental vacancies, current median asking prices, estimatedcurrent median selling prices, plus current sales and listings which we aggregate from publicallyadvertised property listings and rental vacancies. Each listing or rental vacancy advertiser onlyhas agreements with certain real estate agents and property managers to advertise theirproperties, so the percentage of the total that they advertise will vary across localities within

states, across states and also with each advertisers reach of the market.


21/21

li 10 S b b f 201 20

We have conducted extensive analyses to estimate the total listings, rental vacancies and salesthat occur at any time in any suburb based on the advertised numbers of each advertiser. Insimilar fashion, we independently calculate current estimated median selling prices and medianasking rents for any suburb by deriving and then aggregating median asking prices and askingrents from currently advertised property listings and rental vacancies and applying adjustments toreflect current market conditions.

UNAUTHORISED DISCLOSURE

Any unauthorised disclosure, use, reproduction, or distribution of the descriptive, analytical orpredictive information provided to you in this report is not permitted and Property Power PartnersPty Ltd and Results Mentoring Pty Ltd assert their joint copyright.

DISCLAIMERS

As the indicators and dynamics on which our forecasts are based can unpredictably change, the

accuracy of the forecasts and predictive data provided in our reports are highly likely toprogressively diminish over time. Therefore, ensure that your report is current and obtain anupdate if you have not used the data within three months of the date of issue of this report.

This report provides general information on the residential property market. It does not claim orintend to provide financial or personal investment advice. Property Power Partners Pty Ltd andResults Mentoring Pty Ltd recommend that you obtain financial advice specific to your situationbefore making any financial investment or decision based on the information contained herein. Italways remains the responsibility and choice of the reader to make their own individual decisionswith regard to their property investments. In providing this report, Property Power Partners PtyLtd and Results Mentoring Pty Ltd rely upon information from a number of external sources.

While Property Power Partners takes every care in the collection of the information containedherein and believes it to be correct at the time of publication, neither Property Power Partners PtyLtd nor Results Mentoring Pty Ltd warrant the accuracy or completeness of the analysis andinformation provided.

Property Power Partners Pty Ltd and Results Mentoring Pty Ltd take no responsibility nor acceptany liability for any loss or damage arising from decisions made as a result of informationcontained in this report and urges readers to make independent inquiries to satisfy themselves asto the accuracy or completeness of the information provided herein.

FINALWORDS...

We trust you have enjoyed reviewing Australias Top 10 Boom Suburbs for 2014 by JohnLindeman!

If youre ready to take your property investing to the next level, and want to capitalise on thesignificant opportunities that lie ahead, then visit:

www.ResultsMentoring.com

We wish you a successful and prosperous year!

- End of Report -

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