2017 End of Year Report
01 Mar 2018
According to the CoreLogic December Hedonic Home Value Index results, national dwelling values slipped lower over the month, led by falls across Sydney, Darwin, Melbourne and Perth
The transition towards weaker housing market conditions has been clear but gradual and is likely to continue throughout 2018 according to CoreLogic head of research Tim Lawless.
Commenting on the results, Mr Lawless said, “From a macro perspective, late 2016 marked a peak in the pace of capital gains across Australia with national dwelling values rising at the rolling quarterly pace of 3.7% over the three months to November.”
“In 2017 we saw growth rates and transactional activity gradually lose steam, with national month-on-month capital gains slowing to 0% in October and November before turning negative in December.”
According to CoreLogic, the 0.3% fall in December was the catalyst for dragging the quarterly capital gains result into negative territory for the first time since the three months ending April 2016. Nationally, dwelling values were 4.2% higher over the 2017 calendar year which is a slower pace of growth relative to 2016 when national dwelling values rose 5.8% and in 2015 when values nationally were 9.2% higher.
Across Australia, Mr Lawless confirmed that the shift to falling national dwelling values is being driven by the capital cities, with the combined capitals tracking half a percent lower over the December quarter, while across the combined regional areas of Australia, values were half a percent higher over the quarter.
Month Quarter Annual return value
Sydney -0.9% -2.1% 3.1% 6.3% $895,342
Sydney dwelling values were down 0.9% over the month to be 2.1% lower over the December quarter and 2.2% lower relative to their August 2017 peak. The city’s annual rate of growth is now tracking at just 3.1%; a stark difference to the recent cyclical peak when values were rising at the annual rate of 17.1% only seven months ago. Despite the reversal in growth rates since August 2017, Sydney dwelling values remain 70.8% higher than their cyclical low point in February 2012.
Across the regional markets of Australia conditions remain diverse. Dwelling values continued to trend lower in 2017 across regional Western Australia (-4.3%) while values were steady across regional South Australia (-0.1%) and up across the remaining ‘rest of state’ areas. Regional New South Wales stands out as offering up the best capital gains, with dwelling values up 7.4% over the calendar year while values across regional Victoria were 4.2% higher.
The Newcastle and Lake Macquarie South Wales has seen the strongest capital gains of any regional market, followed by Southern Highlands and Shoalhaven (+10.3%) and Geelong (9.7%).
With a number of sales records set and broken this past year, Newington continues to be a popular suburb and a good investment. With more than $90,000,000 dollars of real estate sold this this year the number of house versus units sold are very similar in number.
Sales = 99
Highest value House $1,985,000
Highest value Unit $1,200,000
Median House Price $1,357,500
Median Unit Price $743,000
Sydney Olympic Park
This suburb has seen strong and sustained growth this year with a number of notable sales taking place, the park saw just under $120,000,000 in sales this year. As the park continues to be built and more facilities and better infrastructure is added, this suburb will continue to attract home makers and investors alike.
Sales = 159
Highest Value Unit $1,700,000
Median Value Unit $772,500
With building in the suburb continuing in full swing, this Suburb takes the prize for most number of settled sales this year with approx 470 sales and just over $345,000,000 worth of property sold and settled.
The New shopping Centre and a number of new businesses opened just before Christmas as well the public school beginning operation as we speak, this peninsula suburb is becoming a well established community on its own.
Sales = 470
Highest Unit Vale $2,150,000
Median Unit Value $715,000
With only 800 odd residences in the suburb, Cabarita remains one of the lowest volume and tightly held suburbs in the inner west.
Sales = 25
Highest Value House $6,050,000
Highest Value Unit $3,100,000
Median Value House $3,015,000
Median Value Unit $1,860,000
This suburb continues to defy the market trends by continuing to out perform and astound by the values of property in the area. More than $209,000,000 worth of property sold and settled in 2017.
Sales = 173
Highest Value House $7,380,000
Highest Value Unit $3,450,000
Median Value House $2,745,000
Median Value Unit $1,150,000
Some our our notable sales in 2017
1] Record price achieved in Newington for a 3 bedroom home
Sold at auction, [see the video on our facebook page] sold for $1,700,000
21 Henricks Ave Newington
2] Cabarita Record price achieved for a 3bedroom apartment.
Sold for more than $390,000 mare than a similar unit sold at auction with another agent, this sale set the scene for the Summer Season in Cabarita
53/1 Bayside Terrace Cabarita
Property Management Offer
Our property management department continues to out perform the competition with many notable negotiations taking place in 2017. In some cases we have been able to achieve more 15% above similar rentals in the area.
If you are frustrated or disappointed with your property management team, or just feel you might like to test the waters elsewhere, feel free to take advantage of our 3 monthes free management offer by bringing across you management properties during the month of February 2018
If you would like a copy of the full suburb report for your suburb, please email me for details on how to get a copy.
This year I plan to do a weekly video, with notable sales, Property Management information, market forecasts and finally some how to videos surrounding sales and management of your greatest investment. So make sure you friend us on Facebook or subscribe to our Vimeo and YouTube channels to take advantage of our experience and knowledge.
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