Introduction

WWW.MMO.COM.AU Introduction

We’re mortgage professionals, not property experts. However, as part our ongoing commitment to understand the Canberra market, we spend a lot of time analysing property data for our own purposes.

We’ve decided to share our analysis here in an easy-to-understand format, so you too can gain some insight into what property prices are doing in your area.

We have conducted this analysis using publicly available data from allhomes.com.au.

Specifically, we wanted to answer the following questions:

 Which Canberra regions have the highest value of land per square metre?

o Specially we compare the Median 2018/19 Unimproved Land Value (UV) per square metre across suburbs of Canberra

 How have Canberra Land Values changed since last year?

o Specifically, we report the change in Median Unimproved Land Value (UV) per square metre from 2017/18 to 2018/19

 Is the change in Median Land Values from 2017/18 to 2018/19 reflected in the change in Median House Prices over the same time?

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MO’R Mortgage Options Pty Ltd ACN 607 858 53. MO’R Mortgage Options Pty Ltd is a Corporate Credit Representative (Credit Representative Number 487437) of BLSSA Pty Ltd (Australian Credit Licence Number 391237) Terms to Understand

The Unimproved Land Value (UV) of a property is the value of a block of land before any improvements are made to it. In other words, it's the value the land is reportedly worth before any buildings, fences, driveways or anything else is added to it.

Why is UV important? When you purchase property, you’re paying for the land and the house on that land. This means the higher the UV, the higher the likely purchase price.

The UV almost provides a starting point to work upwards from. The gap between the purchase price of the property and the UV of the land, increases as the perceived value of the home increases.

The UV is also what your Government Rates are based on. The higher the UV of your land, the higher your quarterly Rates bills.

Methodology

We looked at 1099 individual property sales from allhomes.com.au, which roughly equates to the ten most recent house sales in each Canberra suburb. We noted the 2016/17 UV, 2017/18 UV, 2018/19 UV and land size of each property.

From this data set, we calculated the $UV per square metre for each property; the median $UV per square metre for each suburb; and the median $UV per square metre for each region. Please note these Median figures are based on the ten most recent sales for each suburb.

We also noted the Median Non-Unit Sales Price for each suburb in 2018 and 2017, as well as the respective sales for each year. This information is sourced from Allhomes records and data provided by the ACT Government.

The proceeding analysis excludes analysis of units and townhouses. We also excluded suburbs with insufficient sales records for 2018, due to the likelihood this would distort figures.

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Our UV maps are useful if you are looking for specific information to help with your property search. They are also useful if you want to know how the Unimproved Land Value per square metre in your suburb compares to nearby areas.

This report does not tell you which suburb to buy property in, nor does it indicate how much your current property is worth. (If you would like to ascertain the value of your own home, please let us know as we can assist with this.)

Please note, this report does not predict what property prices are likely to do, nor does it identify ‘hot spots’ to keep an eye on. This report merely presents data that is readily and publicly available, in a different way.

Notes/ Limitations

Data was obtained from allhomes.com.au over a period of time from 19 November 2018 to 30 November 2018.

Please note the data is ‘live.’ For example, as a property transaction settles, the 2018 Median Non-Unit Sales price per suburb is affected, as is the number of property transactions recorded. As such, there may be changes to the 2018 Median Non-Unit Property price over the next month.

Significantly increasing the data set would improve the accuracy and reliability of results.

As with any analysis of data, it is imperative you make your own enquiries before making any purchasing decisions.

Whilst all care has been taken to ensure figures presented here are recorded and collated from reliable sources, MO’R Mortgage Options Pty Ltd provides no assurance of their completeness or accuracy. This publication is not a guide to individual property assessments and should not be relied upon. As such, MO’R Mortgage Options accepts no responsibility for any reliance placed on commentary and generalised information.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Barton, Deakin, Forest, Griffith, Kingston, Narrabundah, Red Hill, Yarralumla

Size of Data Set for UV Analysis: 60 sales

UV Map: Showing Median 2018/19 $ UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ Change in Median Non-Unit square metre from Price from 2017 to 2018 2017/18 to 2018/19

Barton * 0%

Deakin 13% -6%

Forrest 3% -9%

Griffith 9% 2%

Kingston * 2%

Narrabundah 4% -1%

Red Hill 6% 4%

Yarralumla 10% 0%

*Insufficient sales to calculate the change in Median $UV/ square metre.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Ainslie, Braddon, Campbell, Dickson, Downer, Hackett, Lyneham, O’Connor, Reid, Turner, Watson

Size of Data Set for UV Analysis: 98 sales

UV Map: Showing Median 2018/19 $ UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square Change in Median Non-Unit price metre from 2017/18 to 2018/19 from 2017 to 2018

Ainslie 6% 23%

Braddon * 11%

Campbell 6% -6%

Dickson 10% 3%

Downer 10% -2%

Hackett 5% 6%

Lyneham 5% -3%

O’Connor 7% 19%

Reid 5% -3%

Turner 9% 4%

Watson 12% 8%

*Insufficient sales to calculate the change in Median $UV/ square metre.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Amaroo, Bonner, Casey, Crace, Forde, Franklin, Gungahlin, Harrison, Moncrieff, Ngunnawal, Nicholls, Palmerston

Size of Data Set for UV Analysis: 220 sales

UV Map: Showing Median 2018/19 $ UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square Change in Median Non-Unit Price metre from 2017/18 to 2018/19 from 2017 to 2018

Amaroo 5% -1%

Bonner 10% -5%

Casey 10% -14%

Crace 16% -18%

Forde 14% 5%

Franklin 16% -10%

Gungahlin 14% -2%

Harrison 16% 7%

Moncrieff 16% 32%*

Ngunnawal 15% 2%

Nicholls 6% 2%

Palmerston 14% -6%

*The significant increase in 2018 Median Non Unit Sales Price for Moncrieff could be due to 2018 sales figures likely including a greater proportion of houses, as opposed to just vacant land sales.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Chifley, Curtin, Farrer, Garran, Hughes, Isaacs, Lyons, Mawson, O’Malley, Pearce, Torrens

Size of Data Set for UV Analysis: 206 sales

UV Map: Showing Median 2018/19 $UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square metre Change in Median Non-Unit price from 2017/18 to 2018/19 from 2017 to 2018 Chifley 5% 1%

Curtin 5% 8%

Farrer 4% 16%

Garran 4% 8%

Hughes 5% 4%

Lyons 6% 10%

Isaacs 6% -2%

Mawson 5% -5%

O’Malley 10% 23%*

Pearce 9% 16%

Torrens 7% 8%

*At 26 November 2018, Allhomes reports a total of 9 property sales in O’Malley for 2018. In 2017, there were 22 sales reported.

Interestingly, the 2017 Median House Price for O’Malley fell by 20% from the previous year. The increase in O’Malley 2018 Median House Price corrects the 2017 decline.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Aranda, Bruce, Charnwood, Cook, Dunlop, Evatt, Florey, Flynn, Fraser, Giralang, Hawker, Higgins, Holt, Kaleen, Latham, Macgregor, Macquarie, McKellar, Melba, Page, Scullin, Spence, Weetangera

Size of Data Set for UV Analysis: 230 sales

UV Map: Showing Median 2018/19 $UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square metre Change in Median Non-Unit price from 2017/18 to 2018/19 from 2017 to 2018 Aranda 5% 12% Bruce 8% -3% Charnwood 4% -2% Cook 4% 60%* Dunlop 6% -3% Evatt 6% 10% Florey 8% 2% Flynn 5% 3% Fraser 7% 14% Giralang 7% 31% Hawker 2% 0% Higgins 3% -2% Holt 9% -32%** Kaleen 6% 6% Latham 10% 4% Macgregor 6% 8% Macquarie 8% 3% McKellar 8% -9% Melba 5% -5% Page 5% 0% Scullin 4% 2% Spence 8% 3% Weetangera 7% -4%

*At 26 November 2018, there was a total of 42 property sales reported for Cook, as opposed to 80 sales in 2017 and 67 in 2016. With the Median Unit price for Cook increasing by 6%, it’s difficult to ascertain whether there’s an underlying reason for the reported 2018 Median increase (other than buyer demand/ perceived value). Suspecting it could be a case of larger properties being sold in 2018, we looked further into the individual property sales for Cook in 2017 and 2018. However, with a similar proportion of properties being sold with land parcels above 900m2 in both years, this does not appear to be a contributing factor.

**RP Data also confirms housing prices in Holt have declined this year. We analysed Holt’s individual sales transactions available for 2018, suspecting that perhaps a high volume of Mr Fluffy vacant block sales affected the figures. However, this does not appear to be the case.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Chapman, Duffy, Fisher, Holder, Rivett, Stirling, Waramanga, Weston

Size of Data Set for UV Analysis: 80 sales

UV Map: Showing Median 2018/19 $UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square metre Change in Median Non-Unit price from 2017/18 to 2018/19 from 2017 to 2018

Chapman 4% 19%

Duffy 2% 1%

Fisher 3% -1%

Holder 1% -2%

Rivett 1% 8%

Stirling 3% 28%*

Waramanga 3% 12%

Weston 3% 1%

*We looked more closely at individual property transactions for Stirling in 2018 and 2017, suspected that the significant increase in 2018 Median Non0Unit Price may have been impacted by a higher proportion of larger properties being sold in this year. However, in 2017 and 2018, a similar proportion of houses with land sizes above 900square metres comprised the data set.

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Suburbs Included: Banks, Bonython, Calwell, Chisholm, Conder, Fadden, Gilmore, Gordon, Gowrie, Isabella Plains, Kambah, Macarthur, Monash, Oxley, Richardson, Theodore, Wanniassa

Size of Data Set for UV Analysis: 170 sales

UV Map: Showing Median 2018/19 $UV per square metre

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au

Change in Median UV/ square metre:

Suburb Change in Median $UV/ square Change in Median Non-Unit price from metre from 2017/18 to 2018/19 2017 to 2018

Banks 2% 4%

Bonython 2% 11%

Calwell 3% 9%

Chisholm 1% 8%

Conder 5% 0%

Fadden 5% -1%

Gilmore 0% 11%

Gordon 0% 8%

Gowrie 0% 14%

Isabella Plains 3% 6%

Kambah 6% 3%

Macarthur 4% 3%

Monash 3% 3%

Oxley 5% -2%

Richardson 0% 13%

Theodore 0% 1%

Wanniassa 3% 0%

Level 2, 19 Barry Drive, Turner, ACT, 2612 | Ph: (02) 6286 6501 | www.mmo.com.au