Kyneton Property Factsheet 1st Half 2019 OVERVIEW Located around 80km north-west of , * is a town located within the region in . The preferred method of sale in Kyneton is private treaty. This is evident in the low volumes of auctions, with just 4 recorded in Q4 2018 across the entire Shire of Macedon Ranges LGA.

CHANGE FROM HALF YEAR LAST YEAR

House Sales

House Median Price MARKET CONDITIONS House Rental Price Kyneton* recorded a median house price of $562,500 and a median vacant land price Land Sales of $334,000 in Q4 2018. This represents annual (Q4 2017 – Q4 2018) price growth of 6.6% and 51.8% respectively. Such a large spike in vacant land price is attributed to a Land Median Price very low land sales volume, with just 4 sales recorded during Q4 2018. The Kyneton 2nd Half 2018 Property Factsheet recorded annual (Q2 2017 – Q2 2018) price growth Unit Rental Price of 9.8% and 0.0% for houses and vacant land respectively. This means that by comparison, houses have grown at a more affordable level, whilst land has seen a FUTURE DEVELOPMENTS** strong increase in median price. Again, a sharp increase in vacant land price growth is in part reflective of a low sales volume for land in Kyneton*. An estimated $3.5M is to be invested in future development in Kyneton* between Q4 2018 saw the Shire of Macedon Ranges Local Government Area (LGA) record a the 1st half of 2018 and the 1st half of median house price of $670,500 and a median vacant land price of $410,000. This 2019. A majority of this is for commercial represents annual (Q4 2017 – Q4 2018) price growth of 2.2% and 54.7% respectively. projects ($1.5M or 41.6%), as well as Kyneton* is thus positioned as a more affordable market within the Shire of Macedon infrastructure ($1.1M or 30.0%) and Ranges LGA, offering higher capital growth for houses and on par for vacant land. residential projects ($1.0M or 28.3%).

In the 12 months to Q4 2018, vendor discounting for houses in Kyneton* remained in A correctly balanced focus on residential, the buyer’s favour, widening from -2.7% in Q4 2017 to -5.1% in Q4 2018. This means commercial and infrastructure projects is that buyers were able to achieve greater discounts off the initial list price than the vital in order to contribute to a growing, previous 12 months. Now is an ideal time for buyers to act and secure their property. local economy in Kyneton*.

The median house rental price in Kyneton in Q4 2018 was $470 per week, whilst units A key residential project in the area is the recorded a median of $340 per week. This represented rental price growth of 17.5% Kyneton on Riverside – Village Green for houses and -1.4% for units. A vacancy rate of just 1.3% (as of December 2018) Drive project, located on 22 Village was below the wider LGA (1.4%), as well as Melbourne Metro (2.2%). Kyneton* thus Green Drive. This project will deliver 39 presents an ideal opportunity for investors seeking out stable regional returns. lot subdivisions being stages 6 and 14.

A key commercial project in the area is SHIRE OF MACEDON RANGES GROWTH the Kyneton Livestock Exchange and 350 $800,000 Truck Park Upgrade ($970K). This will provide an enhanced environment for 300 $700,000 commercial activity, improving safety for $600,000 both workers and livestock alike. 250 $500,000 200 Example of a key infrastructure project is $400,000 the Kyneton Office and Town Hall Stage 150 1 ($560K), which will improved building $300,000 works to the Kyneton Administration 100 Price Median

Number of of Sales Number $200,000 Centre and Kyneton Town Hall. 50 $100,000 *Kyneton market data and key indicators encapsulates aggregate property market conditions in the suburb Kyneton. 0 $0 **Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2019. House Unit Vacant Land Median House Price Median Unit Price Median Land Price AVERAGE VENDOR DISCOUNT AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT Average vendor discount reflects the House The average vendor discount reflects theaverage averagepercentage percentagedifference differencebetween 0.0% betweenfirst listed theprice first listand pricefinal andsold theprice . A finallower soldpercentage price. A lowerdifference percentagesuggests buyers are willing to purchase close to -1.0% - 1.5% difference (closer to 0) suggests buyersthe first areasking willing toprice purchaseof a closeproperty . - 2.7% to the first asking price of a property. -2.0% - 4.1% - 4.4% MARKET COMPARISON GRAPH - 5.1% -3.0% - 5.5% TheKEY market FACTS comparison UNIT graph provides a comparative trend for the median -4.0% price of houses and units over the past 10 years. Suburbs profiled are chosen based on their proximity to the main -5.0% suburb analysed in this Factsheet, Change from Listing to to Listing Price Sale from Change which is Kyneton. The main suburb is -6.0% shown as a dotted black line in the Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 graphs below.

HOUSE MARKET COMPARISON

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000 Median House House Median Price $100,000

$0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Kyneton (3444) Malmsbury (3446) Tylden (3444) Taradale (3447)

VACANT LAND MARKET COMPARISON

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000 Median Vacant Land Price Land Vacant Median $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Kyneton (3444) Malmsbury (3446) Tylden (3444) Taradale (3447)

Source: APM Pricefinder. © Copyright PRDnationwide 2019. AVERAGE NUMBER OF DAYS ON THE MARKET**

70

60 KEY HOUSE FACTS Q4 2018 Median Sale Price: $562,500 50 Annual Growth: 6.6%* Average Days on Market: 34 40 % Change Between First Listed Price and Sold Price: -5.1%

30 58 KEY LAND FACTS Q4 2018 52 52 51

Average Days Market on Days Average 20 Median Sale Price: $334,000 39

34 Annual Growth: 51.8%* 10

0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

House Overall Market Trend

SALES AND MEDIAN PRICES**

70 $700,000

60 $600,000

50 $500,000

40 $400,000

65 30 $300,000 Median Price Median 52 Number of of Sales Number 43 20 39 $200,000 34 29

10 $100,000 16 10 8 9 6 4 0 $0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

House Sales Vacant Land Sales Median House Price Median Vacant Land Price

*Annual growth represents price growth for property transactions between Q4 2017 to Q4 2018 (inclusive). **Kyneton market data and key indicators encapsulates aggregate property market conditions in the suburb Kyneton. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2019. SALES PRICE POINT COMPARATIVE ANALYSIS

HOUSE PRICE POINT 2017 HOUSE PRICE POINT 2018

11.3% 5.6% 21.6% 6.9% Less than $399,999 26.3% 12.9% $400,000 to $449,999 8.1% $450,000 to $499,999 6.7% $500,000 to $549,999 $550,000 to $599,999 5.2% $600,000 to $649,999 8.8% 19.4% 17.5% $650,000 to $699,999 6.7% $700,000 and above 10.0% 18.0% 15.0%

LAND PRICE POINT 2017 LAND PRICE POINT 2018

7.7% 18.2% 13.6% 2.3% Less than $199,999 26.9% 11.5% $200,000 to $224,999 $225,000 to $249,999 6.8% $250,000 to $274,999 $275,000 to $299,999 2.3% 3.8% $300,000 to $324,999 4.5% 38.6% $325,000 to $349,999 30.8% 13.6% $350,000 and above 15.4%

3.8%

KEY IMPLICATIONS - HOUSES KEY IMPLICATIONS – VACANT LAND The dominant price point for houses sold in Kyneton* in 30.8% of land sold across 2018* in Kyneton* was priced 2018 was $700K and above, with 26.3% of total sales. between $225K-250K, making it the largest price bracket This was an increase from 2017, where it was also the by total sales for the period. In 2017, this title was largest price bracket. The $450K-500K price bracket awarded to the $200K-225K bracket at 38.6% of sales. experienced the largest swing, shrinking by 9.4% to 8.1% There appears to have been a transfer in sales upwards of total sales in 2018. The smallest price bracket of less in the price spectrum between these brackets, which than $400K also declined notably, down from 11.3% to suggests real value increases in vacant land in Kyneton*. 5.6% of all sales in 2018. This idea is further reinforced by growth in the $350K+ These shifts indicate that Kyneton* is becoming a range, increasing by 8.7% to 26.9% of total sales. There premium housing market. Buyers seeking affordable is a growing demand for premium land in Kyneton* while options should act quickly to secure their property while it affordable land is also increasing in price quickly. Buyers is available. Conversely, sellers are able to sell properties who are seeking to purchase affordable vacant land with confidence in Kyneton’s premium market. should thus act soon while it is still possible to do so.

*Disclaimer: Kyneton market data and key indicators encapsulates aggregate property market conditions in the suburb Kyneton. Source: APM Pricefinder. © Copyright PRDnationwide 2019. INVESTMENT ANALYSIS KEY HOUSE FACTS Q4 2018 Median Rent Price: $470 per week Rental Yield: 3.5% HOUSE UNIT Average Days on Market: 17 Bedroom Breakdown: 2 Bed: 12%, 3 Bed: 57%, 4+ Bed: 28% 2 Bedroom 1 Bedroom KEY UNIT FACTS Q4 2018 3 Bedroom 2 Bedroom Median Rent Price: $340 per week 4+ Bedroom 3+ Bedroom Rental Yield: 3.9% Average Days on Market: 48 Bedroom Breakdown: 1 Bed: 16%, 2 Bed: 75%, 3+ Bed: 9%

KEY COMMENTS OverviewInterest in Kyneton* was recorded at an average of 822 online visits per property in December 2018. Q4 2018 saw Kyneton* record median rental prices of $470 per week for houses and $340 per week for units, which represents an increase of 17.5% for houses and a decrease of -1.1% for units over the past 12 months. The number of houses and units rented declined during this time, suggesting that there is room for more investors in Kyneton*. Further, investors within the market are rewarded by average yields of 3.5% (house) and 3.9% (units), which is on par with Melbourne Metro (2.9% and 3.9%). Given the lower median sales entry price of Kyneton* compared to Melbourne Metro, investors should consider Kyneton* as an affordable alternative for investment.

MEDIAN RENT AND AVERAGE DAYS ON THE MARKET*

35 500

450 30 400

25 350

300 20

250

15 31 28 200

Number of of Number Rentals 24 24 10 150 17 18 100 Median Rent ($) / Average Days Market on Days / Rent ($) Average Median 5 10 10 8 8 8 50 6

0 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent

*Disclaimer: Kyneton market data and key indicators encapsulates aggregate property market conditions in the suburb Kyneton. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2019. RENTAL PERFORMANCE 2018* KEY COMMENTS Median House Rent P/W Annual Change Rental returns in Kyneton* of 3.5% $500 10.0% (house) and 3.9% (units) remained on- 8.7% par or above the Macedon Ranges $450 9.0% LGA (3.5% for house and 3.8% for 8.0% $400 8.0% units) and Melbourne Metro’s 2.9% 0.6% (house) and 3.9% (units) $350 7.0% $300 6.0% 4+ Bedroom houses provided the highest annual rental growth, at 8.7%. $250 5.0% $473 $200 $405 4.0% A vacancy rate of just 1.3% in Kyneton $360 remained slightly below the Macedon $150 3.0% Ranges LGA (1.4%), and well below $100 2.0% Melbourne Metro’s 2.2%. Furthermore vacancy rates in Kyneton* declined $50 1.0% over the past 18 months, suggesting a $- 0.0% healthier rental demand market – one 2-Bedroom 3-Bedroom 4+ Bedroom that investors should consider.

VACANCY RATES 2018 RENTAL YIELD 2018

4.0% Suburb/ House Unit Postcode/ Rental Rental 3.5% LGA Yield Yield 3.0% Kyneton 2.5% (3444) 3.5% 3.9% 2.0% Malmsbury 1.5% (3446) 3.3% - 1.0% Woodend 3.0% 4.1% 0.5% (3442)

0.0% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Shire of Macedon 3.5% 3.8% Ranges Melbourne 2.9% 3.9% Kyneton* Shire of Macedon Ranges Melbourne Metro Metro

AUCTION CLEARANCE RATES 2018** Q4 18 COMPARISON

100.0% Suburb/ Postcode/ Auction 80.0% LGA Clearance Rate

60.0% N/A (no auctions Kyneton** 40.0% this quarter) Shire of 20.0% Macedon 75.0% Ranges LGA

Auction Rate Clearance Auction 0.0% Melbourne Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 46.3% Metro^ Shire of Macedon Ranges LGA

*Rental performance graph represents aggregate house median rent prices in the following suburbs: Xxx, Xxx and Xxx. **Auction Clearance rates for Xxx are for all residential auctions held in the suburbs Xxx. ^Capital city data obtained by accumulating Domain’s weekly auction clearance results. Annual change is a comparison between 2017 and 2018 median rent figures. Source: APM Pricefinder, Domain, SQM Research. © Copyright PRDnationwide 2019. PROJECT DEVELOPMENT MAP 1st HALF 2018 – 1st HALF 2019*

30.0% 41.6%

28.3%

Commercial Residential Infrastructure

Estimated Commence Location Project** Type Status Value*** Date****

1 Kyneton Saleyards Upgrade Commercial $500,000 12/03/2018 Early Planning

2 Kyneton Livestock Exchange & Truck Park Upgrade Commercial $970,000 05/01/2018 Early Planning

3 Kyneton Office & Town Hall Stage 1 Infrastructure $560,000 26/01/2019 Contract Let

4 Kyneton Campaspe River Trail Infrastructure $500,000 19/04/2018 Contract Let

5 Kyneton on Riverside - Village Green Drive Residential $1,000,000 12/06/2018 DA Submitted

*Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburbs Kyneton. ***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value. ****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date. Source: Cordell Database, ESRI ArcGIS, Department of Planning and Environment NSW, The Hills Shire Council. © Copyright PRDnationwide 2019. ABOUT PRDnationwide RESEARCH PRDnationwide’s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia

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