Buninyong Property Factsheet 1st Half 2018 OVERVIEW * is a suburb located approximately 11km south of Ballarat in . The town experienced a population increase of 14.5% between 2011 and 2016, yet the number of residential stock increased by 9.3%. While housing stock has increased, the population is growing faster, which points to an urgent need for more stock to cater for the population growth. CHANGE FROM HALF YEAR LAST YEAR

House Sales

House Median Price MARKET CONDITIONS The Buninyong* property market recorded a median house price of $496,000 and House Rental Price $266,600 for vacant land in Q1 2018, which represents an annual price change of 19.2% and 40.3% respectively. Over the same period of time, house prices in Land Sales the Local Government Area# (LGA) grew by 8.9% to $361,000 and vacant land prices decreased by -4.6% to $145,000. Compared to the LGA, Land Median Price houses and land command premium prices in the Buninyong* property market, with annual capital growth of houses being double that of other surrounding Unit Rental Price suburbs. This suggests a strong demand for property (particularly houses) indicating the need for more residential development in the area. Now is the time FUTURE DEVELOPMENTS** for first home buyers and investors to enter the market before prices get out of reach. Buninyong* is set to see approx. $12.6M of new projects commencing in the 1st Over the same period of time, houses have taken fewer days to sell (70 days), half of 2018. Residential accounted for down from 97 days in the previous year, further confirming strong demand in the the majority of development value at Buninyong* market. Average vendor discounting for houses has tightened to $12.3M (98.0%) and infrastructure follows -2.6% over the past 12 months to Q1 2018, suggesting sellers are achieving at $250K (2.0%). closer to their first asking price and benefitting from a high demand market. That A significant residential project due to said, at present buyers’ still have room to negotiate the final sale price when commence in the 1st half of 2018 is the securing their dream house, which is encouraging from an affordability Alfred Street Townhouses, estimated at perspective. $6.3M. This involves the construction of 21 dwellings with 32 car parking spaces Median rent in Buninyong* has been sluggish for both houses and units over the and associated landscaping. The project past 12 months to Q1 2018, currently at $350 per week (houses) and $235 per is scheduled to start in May 2018. week (units). Investors are benefiting from rental yields of 3.1% (houses) and 6.0% (units) which is well above that of Metro’s rental yields. Thus, Another important residential project is Buninyong* offers keen investors looking to climb the property ladder more the Yarraowee Street Dwellings project, affordable options beyond the metro areas. which will add 18 townhouses to the market, with associated car parking and CITY OF BALLARAT LGA GROWTH landscaping. This development has an 800 $400,000 approx. value of $2.7M and is scheduled to commence in January 2018. 600 $300,000 Although there is a focus on increasing residential stock, infrastructure projects 400 $200,000 are also being developed to improve connectivity within the area. Other spill- Median Price Median over benefits will include job creation and Number of of Sales Number 200 $100,000 increased economic activity.

*Buninyong market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Buninyong. 0 $0 # Although Buninyong sits in 2 LGAs (City of Ballarat and Shire of Moorabool LGA) only City of Ballarat is used because most of Buninyong sits within the City of Ballarat LGA. Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018^ ^Q1 2018 quoted data represents both settled transactions (i.e. government data) and agents' advice. **Estimated values are based on construction value provided by the relevant data House Unit Vacant Land authority and does not reflect commercial and/or re-sale value. Quoted construction dates Median House Price Median Unit Price Median Land Price are estimate only, as per relevant data authority. Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2018. AVERAGE VENDOR DISCOUNT AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT House AverageAverage vendorvendor discountdiscount reflectsreflects the the 0.0% averageaverage percentagepercentage differencedifference between betweenfirst listed firstprice list priceand andfinal finalsold soldprice . A -0.5% price.lower Apercentage lower percentagedifference differencesuggests (closerbuyers toare 0) willingsuggeststo buyerspurchase are close to willingthe first to purchaseasking priceclose toof thea firstproperty . -1.0% - 1.6% asking price of a property. - 2.3% - 2.5% - 2.6%

-1.5% - 2.7% MARKET COMPARISON GRAPH - 3.3% -2.0% TheKEY market FACTS comparison UNIT graph provides comparative trend for median price of -2.5% house and units over the past 10 years. Suburbs profiled are chosen based on -3.0% proximity to the main suburb analysed

Change from Listing to to Listing Price Sale from Change in the factsheet, which is Buninyong. -3.5% The main suburb is highlighted through Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018* a dotted black line graph.

HOUSE MARKET COMPARISON

$600,000

$500,000

$400,000

$300,000

$200,000

House House Price Median $100,000

$0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Buninyong Mount Helen Mount Clear Sebastopol

VACANT LAND MARKET COMPARISON

$250,000

$200,000

$150,000

$100,000

$50,000

Vacant Land Median Price Median Land Vacant $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Buninyong Mount Helen Mount Clear Sebastopol

Source: APM Pricefinder. © Copyright PRDnationwide 2018. AVERAGE DAYS ON MARKET** 120 HOUSE KEY FACTS Q1 2018

100 Median Sale Price: $496,000 Annual Growth: 19.2%*** Average Days on Market: 70 80 % Change between First Listed Price and Sold Price: -2.6% 60

97 LAND KEY FACTS Q1 2018

40 79 71 70 KEY FACTS UNIT* Average Days Market on Days Average

57 Median Sale Price: $266,600 Median Sale Price : $785,000 20 Annual Growth: 40.3%*** Annual Area Growth: 11% 30 Average Days on Market: N/A Average Days on Market: 36 % Change between First Listed % Change between First Listed Price and 0 Price and Sold Price: N/A Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018* Sold Price: -0.1% House

SALES AND MEDIAN PRICE**

25 $600,000

$500,000 20

$400,000

15

20 $300,000

10 Price Median

Number of of Sales Number 16 $200,000 15 13 12 5 10 $100,000 7 6

1 2 0 $0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018*

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

*Annual growth represents price growth for property transactions between Q1 2017 to Q1 2018 (inclusive). **Buninyong market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Buninyong. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. SALES PRICE POINT COMPARATIVE ANALYSIS

HOUSE PRICE POINT 2016 HOUSE PRICE POINT 2017 3.8% 3.8% 0.0% 5.0% 8.8% 3.3% 8.3% 16.7% 7.5% Less than $249,999 7.5% $250,000 to $349,999 $350,000 to $449,999 30.0% $450,000 to $549,999 $550,000 to $649,999 23.3% 25.0% 20.0% $650,000 to $749,999 $750,000 to $849,999 $850,000 and above 18.8% 18.3%

LAND PRICE POINT 2016 LAND PRICE POINT 2017 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% 0.0% 10.0% 11.1% Less than $99,999 15.0% $100,000 to $199,999 33.3% $200,000 to $299,999 40.0% $300,000 to $399,999 5.0% $400,000 to $499,999 $500,000 to $599,999 $600,000 to $699,999 $700,000 and above 55.6% 25.0%

KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS - LAND A number of changes have occurred in the Buniyong* Land sales in 2017 has reflected a significant shift in the property market signaling a significant shift in affordability availability of stock. The proportion of land sold in conditions. The upper end of the market has recorded the Buninyong* in 2017 was mostly within the $200-$300K largest changes in the number of sales. For example, the price segment (55.6%). The most affordable price bracket $550-$650K price bracket tripled to 23.3%, from 7.5% in in 2016 (less than $100K) disappeared in 2017. This 2016. Further, in 2017 the most affordable price segment signals aAVERAGE major shift in the affordability DAY ON of land MARKET prices in in 2016 (less than $100K) has disappeared. Buninyong*, when compared to 2016. Although Buninyong* is shifting towards a more premium Buninyong* experienced a significant drop in the number market, budget-friendly opportunities are still available. of sales in all price brackets above $400K, and in fact For example, $250-$450K is still accessible to 41.7% of disappeared in 2017. This suggests stock entering the the market. This is great news for first home buyers and Buninyong residential land market are still budget friendly, investors, although they need to act quickly to secure particularly for first home buyers looking for attractive their dream property. opportunities to build their dream home.

*Disclaimer: Buninyong market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Buninyong. Source: APM Pricefinder. © Copyright PRDnationwide 2018. INVESTMENT ANALYSIS HOUSE KEY FACTS Q1 2018 Median Rent Price: $350 per week Rental Yield: 3.1% HOUSE UNIT Average Days on Market: 18 Bedroom Breakdown: 2 Bed: 11%, 3 Bed: 78%, 4+ Bed: 11% 2 Bedroom 1 Bedroom UNIT KEY FACTS Q1 2018 3 Bedroom 2 Bedroom Median Rent Price: $235 per week 4+ Bedroom 3+ Bedroom Rental Yield: 6.0% Average Days on Market: 20 Bedroom Breakdown: 1 Bed: 0%, 2 Bed: 50%, 3+ Bed: 50%

KEY COMMENTS OverviewBuninyong* is a high demand market, recording 940 online visits per property. Rental demand improved over the past 12 months to Q1 2018 with houses being rented within an average of 18 days and 20 days for units. That said, Buninyong* median rental prices of $350 per week (houses) and $235 per week (units) represents a softening of -12.5% and -2.1% respectively. The rental market has been both promising and frustrating for new property investors. Buoyed by the rise in rental yields, investors are assured that the apparent slowed growth in rental prices is due to an adjustment to market conditions.

MEDIAN RENT AND AVERAGE DAYS ON MARKET*

14 450

400 12

350 10 300

8 250 13

6 200 11 11 Number of of Number Rentals 9 9 150 4 8 8 100 Median Rent ($) / Average Days Market on Days / Rent ($) Average Median 2 4 3 50 2 2 2 0 0 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent

*Disclaimer: Buninyong market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Buninyong. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. RENTAL PERFORMANCE 2017* KEY COMMENTS Median House Rent P/W Annual Change Buoyed by increasing demand for $450 15.0% rented homes, Buninyong* investors 12.5% are receiving great rental returns of $400 3.1% (houses) and 6.0% (units). These 8.2% are well above that of Melbourne Metro, $350 10.0% -6.2% at 2.9% (houses) and 3.8% (units). $300 Furthermore, the unit rental yield is 5.0% above other surrounding suburbs in the $250 0.0% City of Ballarat, which sit at 5.4%. $200 $405 0.0% 4+ bedroom houses provide the highest $150 $330 annual rental growth at 12.5%, with a $258 median rent of $405 in 2017. $100 -5.0% With a low vacancy rate of 1.8%, $50 investors looking to enter the market $- $- -10.0% can expect rewarding rental returns in One Bedroom Two Bedrooms Three Bedrooms Four + the future, especially as it is trending Bedrooms below Melbourne Metro’s 2.1%.

VACANCY RATES 2017 RENTAL YIELD 2017 6.0% Suburb/ House Unit 5.0% Postcode/ Rental Rental LGA Yield Yield 4.0%

3.0% Buninyong 3.1% 6.0%

2.0%

1.0% City of Ballarat 4.4% 5.4%

0.0% Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17

Melbourne Metro 2.9% 3.8% Buninyong City of Ballarat Melbourne

KEY HOUSING DEMOGRAPHICS

Buninyong Ballarat City LGA Victoria

Median weekly household income $1,573 $1,160 $1,419 Median monthly mortgage repayments $1,517 $1,350 $1,728 Unemployed 4.8% 7.1% 6.6% Professionals 29.3% 21.8% 23.3% Owned outright 42.1% 32.1% 32.3% Owned with mortgage 40.7% 33.0% 35.3% Rented 14.9% 31.4% 28.7%

*Rental performance graph represents aggregate house median rent prices in the following suburbs: Buninyong. Annual change is a comparison between 2016 and 2017 median rent figures. Source: APM Pricefinder, SQM Research, ABS Census 2016. © Copyright PRDnationwide 2018. PROJECT DEVELOPMENT MAP 1st HALF 2018*

2.0%

98.0%

Residential Infrastructure

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

1 Bell Avenue Dwellings (5 dwellings) Residential $500,000 05/02/2018

2 Yarrowee Street Dwellings (18 dwellings) Residential $2,700,000 02/01/2018

3 Albert Street Dwellings (6 dwellings) Residential $1,000,000 22/04/2018

4 Albert Street Dwellings (5 dwellings) Residential $800,000 05/03/2018

5 Alfred Street Townhouses (21 townhouses) Residential $6,300,000 15/05/2018

6 Kossuth Street Dwellings (4 dwellings) Residential $1,000,000 12/01/2018

7 Birdwood Avenue Shoulder Reconstruction Infrastructure $250,000 07/05/2018

*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 of Mount Helen and Sebastopol. ***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 Environment, Land, Water and Planning, The City of Ballarat Council. © Copyright PRDnationwide 2018. 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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