PRDnationwide Research Report

Prepared by PRDnationwide Research. For further details contact:

Aaron Maskrey, Residential Research Director Australian Railway Suburbs P: (07) 3370 1702 E: [email protected] Real Estate Analysis June Quarter 2013

1 Table of Contents

Introduction & Methodology 3

Key Findings 4

Sydney Railway Suburbs, New South Wales 5 Sydney Railway Localities Overview 6 Sydney Individual Railway Localities Overview 7 Sydney Railway Localities Summary Table 9

Melbourne Railway Suburbs, Victoria 10 Melbourne Railway Localities Overview 11 Melbourne Individual Railway Localities Overview 12 Melbourne Railway Localities Summary Table 14

Brisbane Railway Suburbs, Queensland 15 Brisbane Railway Localities Overview 16 Brisbane Individual Railway Localities Overview 17 Brisbane Railway Localities Summary Table 19

Perth Railway Suburbs, Western Australia 20 Perth Railway Localities Overview 21 Perth Individual Railway Localities Overview 22 Perth Railway Localities Summary Table 24

Disclaimer 25 2 Introduction & Methodology

• Most capital cities offer several options of public transportation, but railways are a common option of transportation that is shared across the majority of Australian state capital cities. Sydney and Brisbane may utilise their waterways extensively through ferry transport, while Melbourne and Perth do not offer such an extensive ferry service. Instead, Melbourne operates a thorough light rail network and while the trams manoeuvre through the city in their own lanes, they are not as rapid as trains. All capital cities make use of buses, in which some cities might have bus ways, but the majority of bus transportation across the cities are through use of shared roads which overall tend to get congested through overuse in peak hour. • The aim of this research is to ascertain the difference of property returns from a location within walking distance to a railway station and localities that are of farther distance and do not rely immediately on the use of railways. • The research analyses railway localities that are outside of the central business district (CBD) as this is seen as the main centre for employment. While some localities analysed in the research are specifically catered to an automobile free resident (such as TODs) other locations analysed are considered to be typical outer suburban areas, where residents utilise a reliable and rapid railway network. • A true transit orientated development (TOD) will make use of several alternatives of public transport, one of which will almost certainly be rail. TOD’s are a mixed use location (containing employment nodes) surrounded by medium/high density residential, is pedestrian and cycle friendly, and provides high quality transit options. • The analysis excludes a radius (either 2.5 or 5 kilometres) around the capital cities CBD. Dwellings considered to be within a railway locality in • The research attempts to cluster railway and non-railway localities into comparable regions to determine the greater trends this analysis are within a suburb that contains a railway station. Non- that have occurred over the past decade. These regions may be broken up through natural or man made barriers which are railway localities are classified as suburbs that do not contain a railway easily identifiable (such as large reserves, highways or main roads). station. Dependant on the city analysed, the catchment area for this research varies between 15 kilometres to 20 kilometres. • The historical property analysis conducted in this report takes house and unit sales from 2003 onwards and groups the transactions into 6 monthly periods to ensure the sample sizes are large enough to produce justifiable medians. Sale data is • A mitigating factor of this research may be the park and ride residents up to the most recent period of February 2013, while rental data used is from the most recent quarter ending March 2013. who use railways, but live outside the railway suburb. This variable is acknowledged, but excluded in the analysis as it is perceived that • Median rental data and yields used in this report have been based on the configuration of a 3-bed house or 2-bed unit as residents who desire to use railways as a method of transportation will standard. seek a dwelling within walking distance before searching for a dwelling • Data analysed in this report is sourced from Price Finder, RP Data, RTA, DHS, and REIWA. that requires use of an automobile. In addition, park and ride residents may drive for large distances, often bypassing several railway stations to secure a non-fee car park as close to the city as possible. 3

Key Findings

RAILWAY SUBURBS OVERVIEW INVESTMENT OUTLOOK

 Sydney’s railway suburbs return higher rental yields for both house and unit due The analysis has revealed that in this low vacancy market, typically units located to the lower median prices for railway suburbs city-wide. within railway suburbs provide better investment opportunities through stronger  Melbourne’s median house price is, on average 10.9 per cent higher in railway yields. Observing the macro trends on median price growth also shows that suburbs, remarkably greater than non-railway houses. there is little divergence between median price growth of railway and non-  Brisbane’s Southern railway suburbs have experienced considerable growth in railway suburbs. the housing market, inline with maintaining the most affordable median price at $459,000. Sydney- Railway suburbs provide a great investment option with an affordable  Perth’s Inner 10km railway suburbs experienced a positive divergence in both median price, low vacancy rate of 1.7 per cent, and overall strong rental market. house and unit markets over the past two years. The analysis shows better yields being achieved in railway suburbs than non- railway suburbs.

NON-RAILWAY SUBRBS OVERVIEW Melbourne- Houses located in railway suburbs have consistently maintained a higher median price threshold (at an average 10.9 per cent) than non-railway  Sydney’s non-railway suburbs have consistently outperformed the railway suburbs. Currently the market is transitioning through its stock on the market, localities in median price in both houses and units. with the highest vacancy rate (at 2.7 per cent) of any capital city analysed. This  Melbourne’s non-railway suburbs were outperformed by railway localities, due has resulted in comparably lower yields for would be investors. by and large to a far greater number of sales occurring in railway localities.  Brisbane’s mixture of public transport options has resulted in minimal Brisbane- Units provide a stronger investment option in Brisbane through differences recorded amongst rail and non-rail areas, though sales in railway higher yields. It is no surprise to find the vast majority of units located within areas have performed better than non-railway. railway suburbs. Through the analysis, it was established that there was no  Non-railway suburbs in Perth have recorded a higher median price as well as a significant price growth difference between railway and non-railway suburbs. larger volume of transactions when compared to railway suburbs. Perth- An extremely tight rental market has led to high yields, with unit stock just edging ahead over houses for the most appealing investment type. Through the analysis, it was established that there was no significant price growth difference between railway and non-railway suburbs.

4 Sydney Railway Suburbs, New South Wales

Description of Sydney’s railway regions which have been analysed: • The North region of Sydney is defined by suburbs north of the Parramatta River and to the left of Middle Harbour, stretching out to as far north as the Asquith Railway Station. This region services to four railway lines, including Hornsby, Carlingford, Berowra, and Macquarie Park. • The Inner West region takes suburbs located south of the Parramatta River and through to Strathfield. The furthest west railway station analysed within this region was the Flemington Railway Station. As an inner city area, there are six major lines which all have stops within this region analysed. • The Outer West region analyses suburbs located south of the Parramatta River and west of Rockwood. The furthest west railway station analysed within this study was the Parramatta Railway Station. Four railway lines were included in this region, analysing the Glenfield, Schofields, Richmond, and Penrith lines. • The South region analyses suburbs located south of Strathfield through to the Georges River. The furthest south railway station analysed within this study was the Woolooware station. Three main railway lines were included in this region, analysing the Cronulla, Macarthur/Revesby, and the Glenfield lines.

Analysis from the rental data provided from the aforementioned regions resulted in the following key findings:

• Sydney remains an attractive destination for investment property with the residential market delivering high rental yields and low vacancy rates. Railway suburbs in Sydney while notoriously less desirable in terms of median price provide for the most part greater yields for rental returns suggesting investment in railway suburbs while sometimes uninviting, do provide the thrifty investor greater returns. • The Sydney unit rental market recognises railway outperforms non-railway localities by 0.5 per cent with an average city-wide rental yield of 4.6 per cent. This being said, non-railway localities provide an 18 per cent increase on median price suggesting the less desirable railway localities while positive on investment returns are less desirable areas to live.

Sydney Median House Price 3 Bed House* Yield Median Unit Price 2 Bed Unit* Yield • Due to the Sydney Inner West’s proximity to waterfront harbour suburbs, median unit price North Railway Area $935,000 $533 3.0% $493,000 $430 4.5% for non-railway suburbs is remarkably high at $625,000 providing a rental yield of 4.2 per North Non-railway Area $1,025,000 $715 3.6% $564,000 $503 4.6% cent. Alternately, the railway localities recorded a lower median price (-19.2 per cent) South Railway Area $687,500 $543 4.1% $440,000 $380 4.5% despite maintaining comparative rental returns, resulting in an improved yield of 4.6 per South Non-railway Area $770,000 $530 3.6% $490,000 $400 4.2% cent. Outer West Railway Area $500,000 $440 4.6% $337,000 $340 5.2% Outer West Non-railway Area $540,000 $445 4.3% $488,000 $360 3.8% Inner West Railway Area $970,000 $720 3.9% $505,000 $450 4.6% Inner West Non-railway Area $1,035,000 $700 3.5% $625,000 $505 4.2% Prepared by PRDnationwide Research. Source: PDS *Median w eekly rent

5 Sydney Railway Localities Overview “Non-railway localities across Sydney typically maintain a higher median price”

• Sales activity in the Sydney house market has been in steady decline since a minor peak experienced Sydney Railway Localities House Sales Cycle during 2009 (down 25.6 per cent in four years). However, a sustained period of lower interest rates Sydney Railway Sales Sydney Non-railway Sales appears to have sparked growth in values, as what was once a stagnating market has increased at Sydney Railway Median Sydney Non-Railway Median 12,000 $1,000,000 four per cent per annum. This equates to an increase of $190,000 for both railway and non-railway $900,000 suburbs in just four years. $880,000 10,000 • Shifts in the median house price for railway and non-railway localities have reflected each other in $800,000 $750,000 growth over the past decade, reaching a final median house price of $750,000 (railway suburbs) and $700,000 8,000 $880,000 (non-railway suburbs) over the February 2013 six month period. While non-railway localities $600,000 have recorded a steady 4.8 per cent growth in the median price over a 12 month period, railway localities experienced stronger growth of 7.1 per cent. 6,000 $500,000

$400,000 Number of salesof Number • The Inner West region of Sydney recorded the highest median house price at $1,035,000 for non- price sale Median 4,000 railway localities, closely followed by the Northern non-railway localities at $1,025,000. The most $300,000

affordable median house price was registered in the Outer West railway and non-railway suburbs of $200,000 Sydney, with a median of $500,000 (railway) and $540,000 (non-railway). 2,000 $100,000 • While the Outer West region recorded the most affordable median house price, it experienced the highest growth rate over the past five years, at 5.2 per cent per annum (non-railway) and 5.1 per cent 0 $0

per annum (railway). The Northern region of Sydney has recorded the smallest amount of growth in the

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 median house price, at 2.2 per cent (non-railway) and 2.9 per cent (railway) per annum. AUG 2003 Half year period Prepared by PRDnationwide Research. Source: PDS • The peak of activity in the Sydney unit market arrived during 2009 where a total of 13,791 transactions Sydney Railway Localities Unit Sales Cycle occurred within a six month period, with 69.4 per cent of these occurring within a railway area. Since Sydney Railway Sales Sydney Non-Railway Sales this peak, activity has contracted to an average of 8,173 sales per six month period over the past Sydney Railway Median Sydney Non-railway Median couple years, with sales within railway localities amounting to an average 67 per cent of total unit 16,000 $600,000 $550,000 transactions. Over the recent six month period ending February 2013, non-railway localities recorded 14,000 an increase of 13.2 per cent in unit activity, while railway localities experienced a rise of 8.2 per cent. $500,000 • Likened to the Sydney house market, the median unit price has experienced significant growth since 12,000 $455,000 $400,000 2009 (7.1 per cent per annum), and over the past 12 month period ending February 2013 recorded 10,000 further growth of 8.3 per cent (non-railway) and 5.8 per cent (railway). The average price differential between the median railway and non-railway prices has expanded over the past decade from $69,000 8,000 $300,000 to $95,000 (37.7 per cent increase).

Number of salesof Number 6,000 Median sale price sale Median • The Inner West non-railway region recorded the highest median unit price at $625,000, while the Outer $200,000 West railway region recorded the most affordable, at $337,000. 4,000

$100,000 • Over a five year period, the majority of regions experienced a steady growth in their median unit price, 2,000 with the Southern non-railway localities experiencing the largest increase at 6.2 per cent per annum, while the Northern railway localities recorded the smallest increase at 3.4 per cent per annum. 0 $0

2004 FEB 2004 2003 FEB 2003 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2006 AUG 2006 2004 AUG 2004 AUG 2005 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 Half year period Prepared by PRDnationwide Research. Source: PDS

6 Sydney Individual Railway Localities Overview “Non-railway suburbs perform stronger historically in the north and south of the CBD”

• The Sydney North house market has experienced a stable level of North House Sales Cycle Comparison North Unit Sales Cycle Comparison house sales activity over the past decade, with an average of 3,154 sales per six month period. Sales between railway and non-railway 4,500 $1,200,000 Railway Sales Non-railway Sales 6,000 $600,000 localities have tended to be split evenly amongst each locality. Over Railway Sales Non-railway Sales Railway Median Non-railway Median $564,000 4,000 the 12 months ending February 2013, sales activity improved in both $1,025,000 Railway Median Non-railway Median $1,000,000 5,000 $500,000 railway and non-railway localities, with non-railway localities seeing 3,500 $935,000 $493,000

11.4 per cent growth while railway localities saw 8.3 per cent growth. 3,000 $800,000 4,000 $400,000

The median price among railway localities has remained lower than 2,500 non-railway localities, however has been a more stable and arguably $600,000 3,000 $300,000 2,000

more reliable performer. Railway and non-railway localities finished

Number of salesof Number

Median sale price sale Median Number of salesof Number the February 2013 six month period with a price gap of $90,000. 1,500 $400,000 2,000 $200,000 price sale Median 1,000 • The North unit market has averaged 1,447 sales per six month $200,000 1,000 $100,000 period since February 2002, with railway localities amounting to an 500

average 58 per cent of the total unit sales. Both railway and non- 0 $0 0 $0

railway localities have experienced a decline in unit activity over the

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 12 month period ending February 2013, with non-railway localities AUG 2003 Half year period Half year period committing 21.1 per cent, compared to the 10.5 per cent of the Prepared by PRDnationwide Research. Source: PDS railway localities. Likened to the house market, the median unit price Prepared by PRDnationwide Research. Source: PDS for both railway and non-railway localities have tracked on similar paths, with non-railway localities reaching a higher median unit price of $564,000 (up 8.5 per cent from the previous year). Non-railway localities recorded growth at 4.9 per cent, and recorded a lower South House Sales Cycle Comparison South Unit Sales Cycle Comparison median price of $493,000 which represents a median price gap of 4,500 $900,000 6,000 $600,000 Railway Sales Non-railway Sales $71,000. Railway Sales Non-railway Sales Railway Median Non-railway Median 4,000 $800,000 Railway Median Non-railway Median $770,000 5,000 $500,000 3,500 $700,000 $490,000 $687,500 • The Sydney South median house price for both railway and non- $440,000 railway localities have tracked along a similar path. They finished the 3,000 $600,000 4,000 $400,000 February 2013 period with a gap of $82,500 as non-railway localities 2,500 $500,000 3,000 $300,000

achieved a median price of $770,000 (6.2 per cent improvement over 2,000 $400,000

Number of salesof Number

Number of salesof Number

Median sale price sale Median Median sale price sale Median 12 months) and railway localities experienced a median price of 1,500 $300,000 2,000 $200,000 $687,500 (growth of 5 per cent over 12 months). House sales 1,000 $200,000 dropped off in recent times, with non-railway localities experiencing a 1,000 $100,000 6.4 per cent drop in sales over 12 months, while railway localities 500 $100,000 saw a drop of 4.4 per cent. 0 $0 0 $0

• Likened to the house market, railway suburbs in the South unit

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012

2004 AUG 2004 AUG 2009 2003 AUG 2003 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2010 AUG 2011 AUG 2012 market maintain a lower median price however has reflected the Half year period Half year period progress seen in non-railway localities. Over the past 12 months Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS activity in railway suburbs has contracted by a total of 21.4 per cent however has typically accounted for a larger market share.

7 Sydney Individual Railway Localities Overview Cont. “Non-railway localities are historically stronger in Sydney’s west”

• Analysis of the Inner West house market shows railway localities Inner West House Sales Cycle Comparison Inner West Unit Sales Cycle Comparison typically following the price movements of the median house price for non-railway localities. Non-railway suburbs have maintained a slightly 1,200 $1,200,000 2,500 $700,000 Railway Sales Non-railway Sales higher median price differential of just over $53,000 to railway localities Railway Sales Non-railway Sales Railway Median Non-railway Median $625,000 $1,035,000 Railway Median Non-railway Median during the past decade. The most recent six month period ending 1,000 $1,000,000 $600,000 $970,000 2,000 February 2013 has seen the median price increase by 6.2 per cent for $505,000 $500,000 non-railway suburbs to $1,035,000, while railway suburbs have 800 $800,000 1,500 increased by 2.1 per cent to $970,000. Looking long-term, the Inner $400,000 West median house prices for railways and non-railway localities have 600 $600,000 $300,000

increased at a steady rate of 4.6 per cent per annum over the past five 1,000

Number of salesof Number

Median sale price sale Median Number of salesof Number 400 $400,000 price sale Median years. $200,000

500 • Unit sales in the Inner West increased during 2009 through to 2011. 200 $200,000 Over the second half of 2012 and into 2013 activity has slumped by $100,000

22.5 per cent in railway suburbs and 6.0 per cent for non-railway 0 $0 0 $0

suburbs. This significant decrease in activity in the railway suburbs has

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2005 AUG 2005 2003 AUG 2003 AUG 2004 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012

2004 AUG 2004 2005 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 caused growth in the median price to decline, with a fall of 1.9 per cent AUG 2003 Half year period Half year period in the past six months. Non-railway suburbs have continued to Prepared by PRDnationwide Research. Source: PDS experience growth in the median price, at 1.6 per cent. Railway Prepared by PRDnationwide Research. Source: PDS localities have consistently held a significantly more affordable median price (of on average $127,000 less) than non-railway suburbs. Outer West House Sales Cycle Comparison Outer West Unit Sales Cycle Comparison • The median house price for the Outer West region has surged to new

highs as a result of the low interest rate period directly following the 1,600 $600,000 Railway Sales Non-railway Sales 1,400 $600,000 Railway Sales Non-railway Sales Global Financial Crisis in late 2008. Railway suburbs experienced 31.6 Railway Median Non-railway Median $540,000 1,400 Railway Median Non-railway Median $500,000 1,200 per cent growth in the median house price to $500,000, while non- $500,000 $500,000 $488,000 railway suburbs increased by 36.1 per cent to $540,000. With a 1,200 1,000 $400,000 $400,000 sustained low interest rate period over the first of 2013, growth in 1,000 values are likely to continue. Sales activity has been stable since the 800 $337,000 800 $300,000 peak of the market in 2009, with an average 936 sales per six month $300,000 600

600

Number of salesof Number salesof Number Median sale price sale Median period. price sale Median $200,000 $200,000 400 • The Outer West unit market is primarily confined around railway 400 $100,000 $100,000 suburbs. While growth in the railway median unit price has not been 200 200 spectacular over the past decade, it has remained consistently positive since 2008 and has increased by 4.2 per cent per annum. Non-railway 0 $0 0 $0

suburbs maintain a higher median price, historically averaging over

2006 FEB 2006 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2008 AUG 2008 AUG 2009 2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2010 AUG 2011 AUG 2012 $100,000 more than railway units since 2003. Half year period Half year period Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS

8 Sydney Railway Localities Summary Table

5yr 5yr House Sales Unit Sales 6 Median 1yr Median Unit 1yr 1yr 1yr Growth Growth 6 months to months to House Price Growth Price Growth Growth Growth p.a. p.a. Feb 2013 Feb 2013

North Railway Area $935,000 3.3% 2.9% $493,000 4.9% 3.4% 1,413 8.3% 1,709 -21.1%

North Non-railway Area $1,025,000 4.1% 2.2% $564,000 8.5% 4.9% 1,398 11.4% 1,247 -10.5%

South Railway Area $687,500 5.0% 4.8% $440,000 7.3% 5.9% 1,337 -4.4% 1,823 -21.4%

South Non-railway Area $770,000 6.2% 4.3% $490,000 6.5% 6.2% 1,010 -6.4% 756 -12.4%

Outer West Railway Area $500,000 6.4% 5.1% $337,000 3.7% 4.2% 678 -19.0% 547 -31.5%

Outer West Non-railway Area $540,000 5.9% 5.2% $488,000 8.4% 5.4% 171 1.2% 43 -51.7%

Inner West Railway Area $970,000 7.8% 4.6% $505,000 2.0% 5.0% 297 0.3% 765 -22.5%

Inner West Non-railway Area $1,035,000 0.5% 4.5% $625,000 5.9% 3.5% 366 3.1% 487 -6.0%

Sydney Railway Area $750,000 7.1% 4.1% $455,000 5.8% 4.7% 3,725 -2.9% 4,844 -22.7%

Sydney Non-railway Area $880,000 4.8% 3.5% $550,000 8.3% 5.1% 2,945 3.0% 2,533 -11.6%

Prepared by PRDnationwide Research. Source: PDS

9 Melbourne Railway Suburbs, Victoria

Description of Melbourne’s railway regions which have been analysed:

• The North region of Melbourne is defined by suburbs east of the Maribyrnong River and to the right of the Yarra River, stretching out to as far north as the Somerton Railway Station. This region caters to four railway lines, the Craigieburn, Upfield, South Morang and Hurstbridge tracks. • The West region takes suburbs located south of the Maribyrnong River and through to Port Phillip Bay. The furthest west railway station analysed within this region was the Water Garden Railway Station. Three railway lines were analysed in this region, the Sunbury, Werribee and Melton lines. • The East region analyses suburbs located south of the Yarra River and east of Port Phillip Bay. The furthest east railway station analysed within this study was the Westall Railway Station. Six railway lines were included in this region, analysing the Sandringham, Frankston, Cranbourne, Glen Waverley, Alamein and Ringwood lines.

Analysis from the rental data provided from the aforementioned regions resulted in the following key findings: • Melbourne currently has one the lowest rental yields of any capital city in Australia with houses returning an average gross rental yield of 3.1 per cent and units only slightly better at 4.2 per cent. • Melbourne’s western suburbs provide the best investment return for house (3.75 per cent) and unit (4.75 per cent) sales, markedly higher than the city-wide average due to the comparable rental median prices paired with the overall affordability in western house and unit markets. • Melbourne railway suburbs have registered positive median prices across house and unit sales suggesting railway localities are desirable. Melbourne localities with no railway have provided 0.2 per cent increase in rental yield for both house and unit due to the relative affordability of non-railway localities in Melbourne.

Melbourne Median House Price 3 Bed House* Yield Median Unit Price 2 Bed Unit* Yield North Railway Area $524,500 $363 3.6% $396,000 $320 4.2% North Non-railway Area $465,000 $350 3.9% $380,000 $320 4.4% East Railway Area $830,000 $375 2.3% $498,500 $360 3.8% East Non-railway Area $725,000 $333 2.4% $510,500 $355 3.6% West Railway Area $450,000 $300 3.5% $335,000 $280 4.3% West Non-railway Area $410,000 $315 4.0% $311,000 $320 5.4% *Median w eekly rent

Prepared by PRDnationwide Research. Source: PDS

10 Melbourne Railway Localities Overview “Melbourne’s median house prices have reflected each other in growth over the past decade”

• Typically, house sales within Melbourne have decreased from a peak experienced during the six month Melbourne Railway Localities House Sales Cycle

period ending August 2007 (which registered 17,379 sales).Since 2011, there has been an average 11,000 Melbourne Railway Sales Melbourne Non-railway Sales sales per six month period, with the most recent six month period to February 2013 recording only 8,932 Melbourne Railway Median Melbourne Non-railway Median 20,000 $700,000 sales. This equates to a softening in activity for both railway localities and non-railway areas by 21 and 13.9 18,000 $618,000 per cent respectively from the previous year. $600,000 • The median house price for railway and non-railway localities have tracked each other in growth over the 16,000 $570,000 past decade, albeit with railway suburbs maintaining a price premium at an average $37,000 more. Over the 14,000 $500,000

February 2013 six month period a final median house price of $618,000 (railway regions) and $570,000 12,000 (railway regions) was established. While railway localities have recorded a nominal 0.5 per cent growth in $400,000 the median price over a 12 month period, non-railway localities experienced stronger growth of 1.8 per 10,000 $300,000

cent. 8,000

Number of salesof Number Median sale price sale Median

• The Eastern region of Melbourne recorded the highest median house price of $830,000 for railway localities 6,000 $200,000

and $725,000 for non-railway localities. The most affordable median house prices were registered in the 4,000 Western region of Melbourne, with a median of $410,000 for non-railway localities and $450,000 for railway $100,000 localities. 2,000 • Over a long-term period of five years, the Western region experienced the largest increase of 5.8 per cent 0 $0

per annum for non-railway localities, while railway suburbs also increased at 5.3 per cent per annum. The

2004 FEB 2004 2003 FEB 2003 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2006 AUG 2006 2004 AUG 2004 AUG 2005 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 Eastern region recorded the least amount of growth with railway localities recording only 0.7 per cent growth AUG 2003 Half year period per annum and non-railway localities registering two per cent growth per annum. Prepared by PRDnationwide Research. Source: PDS Melbourne Railway Localities Unit Sales Cycle • The peak of activity in the Melbourne unit market arrived during 2007 where a total of 12,272 transactions Melbourne Railway Sales Melbourne Non-railway Sales occurred, with 84 per cent of these occurring within a railway area. Since this peak, activity has contracted to Melbourne Railway Median Melbourne Non-railway Median an average of just over 6,000 sales per six month period over the past couple years. Over the course of a 12 14,000 $600,000 month period, significant declines in activity were felt in both non-railway localities (down by 27.7 per cent) 12,000 and railway localities (down 26.6 per cent). $500,000 $460,000 • A median price peak was recorded during the August 2010 six month period, when non-railway localities 10,000 registered $485,000 for a unit, while railway localities established a median unit price of $455,000. Since this $400,000 peak, both median prices have contracted, with the railway localities recording a slightly higher median price 8,000 of $460,000, compared to $450,000 for non-railway localities. $300,000

• Over the course of a 12 month period, railway localities registered a marginal change in the median unit 6,000

Number of salesof Number Median sale price sale Median price, increasing by 0.9 per cent, while non-railway localities experienced an increase of 0.4 per cent. $200,000 4,000 • The Eastern region of Melbourne registered the highest median unit price at $510,500 for non-railway $100,000 localities and $498,500 for railway suburbs. The most affordable median unit price was registered in the 2,000 Western region where non-railway localities reached $311,000 and railway localities registered $335,000. • Over a long-term period of five years, the Western region experienced the largest increase of 5.2 per cent 0 $0

per annum for railway localities, while non-railway suburbs also increased at 5.0 per cent per annum. The

2007 FEB 2007 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2010 2005 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2011 AUG 2012 Eastern region recorded the least amount of growth with non-railway localities recording only 2.9 per cent AUG 2004 growth per annum. Half year period Prepared by PRDnationwide Research. Source: PDS

11 Melbourne Individual Railway Localities Overview “The North railway suburbs have historically maintained a higher median price”

• Similar to most Melbourne property markets, the Melbourne North North House Sales Cycle Comparison North Unit Sales Cycle Comparison house market experienced a rapid median price increase over 2010, North Railway Sales North Non-railway Sales North Railway Sales North Non-railway Sales but has since plateaued. The North railway suburbs have maintained North Railway Median North Non-railway Median North Railway Median North Non-railway Median a higher median price over the past decade, averaging just under 7,000 $600,000 4,000 $450,000 $396,000 $524,500 3,500 $400,000 $38,000 more than non-railway suburbs. The most recent six month 6,000 $500,000 $380,000 period ending February 2013 observed an expansion in this price $465,000 $350,000 3,000 5,000 difference to $59,500, with railway localities registering a final median $400,000 $300,000 price of $524,500 (non-railway recorded $465,000). Over the past 12 2,500 4,000 $250,000 months the median price for railway localities has softened by 0.1 per $300,000 2,000

cent while the non-railway median has contracted by 5.1 per cent. 3,000 $200,000 Number of salesof Number

Number of salesof Number 1,500

Median sale price sale Median price sale Median $200,000 $150,000 2,000 • The Melbourne North unit market has experienced a rapid fall in the 1,000 $100,000 level of sales over the past 12 months, decreasing by over a third for $100,000 1,000 both railway and non-railway localities. The median prices for both 500 $50,000 railway and non-railway suburbs have shifted closely together over 0 $0 0 $0

the past decade. However over the longer-term, railway suburbs

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2005 AUG 2005 2004 AUG 2004 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 have recorded a stronger growth rate of four per cent per annum, AUG 2003 Half year period Half year period compared to only three per cent for non-railway suburbs. Railway Prepared by PRDnationwide Research. Source: PDS suburbs recorded a median price of $396,000, compared to non- Prepared by PRDnationwide Research. Source: PDS railway, at $380,000.

• Melbourne East shows a significant price difference between railway East House Sales Cycle Comparison East Unit Sales Cycle Comparison and non-railway suburbs, with railway maintaining a higher house median by just over an average of $105,000. For the six month East Railway Sales East Non-railway Sales East Railway Median East Non-railway Median East Railway Sales East Non-railway Sales East Railway Median East Non-railway Median 8,000 $1,000,000 9,000 $600,000 period ending February 2013, railway suburbs registered a median of $900,000 7,000 8,000 $510,500 $830,000 (fall of 2.4 per cent in 12 months) compared to non-railway $830,000 $500,000 $800,000 7,000 at $725,000 (down 0.3 per cent in 12 months). 6,000 $725,000 $700,000 6,000 $400,000 5,000 • Unit sales in Melbourne East have contracted significantly, down 18.9 $600,000 5,000 per cent for railway suburbs and 22.1 per cent for non-railway 4,000 $500,000 $300,000 suburbs. Non-railway localities have maintained a higher median unit 4,000

$400,000 Number of salesof Number

Number of salesof Number 3,000

Median sale price sale Median price sale Median price over the past decade (at an average $24,736 difference) but 3,000 $200,000 $300,000 2,000 have recently contracted to just $12,000 as at the February 2013 six 2,000 $200,000 month period. Railway localities registered positive growth of 0.7 per $100,000 1,000 1,000 cent in the median unit price over the past 12 months, compared to $100,000

non-railway localities, which declined 3.7 per cent. 0 $0 0 $0

2003 FEB 2003 FEB 2004 FEB 2005 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 Half year period Half year period Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS

12 Melbourne Individual Railway Localities Overview Cont. “Unit sales in the Western region of Melbourne have subsided considerably”

• Observing the Western House Sales Cycle, it becomes evident Western House Sales Cycle Comparison Western Unit Sales Cycle Comparison that there is an increasing divergence in the median price between railway and non-railway localities, with railway suburbs recording a West Railway Sales West Non-railway Sales West Railway Sales West Non-railway Sales West Railway Median West Non-railway Median West Railway Median West Non-railway Median $40,000 premium in price over the six month period ending 4,000 $600,000 1,400 $400,000

3,500 $350,000 February 2013. Railway localities recorded a median house price 1,200 $500,000 $335,000 of $450,000 (up 2.3 per cent in 12 months) while non-railway $450,000 3,000 $311,000 $300,000 $410,000 1,000 localities recorded a median of $410,000 (up 1.2 per cent in 12 $400,000 months). Overall, there is a strong and consistent trend of long- 2,500 $250,000 800 term growth in the median price over the past decade. 2,000 $300,000 $200,000

600 Number of salesof Number

Number of salesof Number 1,500 $150,000 Median sale price sale Median • Unit sales in the Western region of Melbourne have subsided price sale Median $200,000 considerably, down 70 per cent from its peak in 2009 and down 400 1,000 $100,000

over a third in just the past 12 months alone. The median price of $100,000 200 railway units has softened by 4.3 per cent over the past 12 months 500 $50,000

to $335,000, but still remains higher than the median of non- 0 $0 0 $0

railway units which recorded $311,000 (down 0.6 per cent). Long-

2010 FEB 2010 FEB 2006 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 term growth over the past five years has observed a steady rate of AUG 2003 Half year period Half year period just over five per cent per annum for both railway and non-railway Prepared by PRDnationwide Research. Source: PDS suburbs. Prepared by PRDnationwide Research. Source: PDS

13 Melbourne Railway Localities Summary Table

5yr 5yr House Sales Unit Sales 6 Median 1yr Median Unit 1yr 1yr 1yr Growth Growth 6 months to months to House Price Growth Price Growth Growth Growth p.a. p.a. Feb 2013 Feb 2013

North Railway Area $524,500 -0.1% 4.1% $396,000 0.5% 4.0% 2,492 -16.7% 996 -31.3%

North Non-railway Area $465,000 -5.1% 3.6% $380,000 -3.8% 3.0% 859 -15.4% 224 -35.4%

East Railway Area $830,000 -2.4% 0.7% $498,500 0.7% 3.6% 2,578 -21.4% 2,312 -18.9%

East Non-railway Area $725,000 -0.3% 2.0% $510,500 -3.7% 2.9% 1,252 -10.4% 440 -22.1%

West Railway Area $450,000 2.3% 5.3% $335,000 -4.3% 5.2% 1,174 -28.2% 355 -34.3%

West Non-railway Area $410,000 1.2% 5.8% $311,000 -0.6% 5.0% 577 -18.7% 39 -36.1%

Melbourne Railway Area $618,000 0.5% 3.1% $450,000 0.9% 3.7% 6,244 -21.0% 3,549 -26.6%

Melbourne Non-railway Area $570,000 1.8% 3.7% $460,000 0.4% 4.2% 2,688 -13.9% 703 -27.7%

Prepared by PRDnationwide Research. Source: PDS

14 Brisbane Railway Localities

Description of Brisbane’s railway regions which have been analysed: • The North region is defined by suburbs north of Mount Coot-tha and the CBD, stretching out to as far north as the Carseldine Railway Station. This region caters to four railway lines including Shorncliffe, Ferny Grove, Doomben and Caboolture lines. • The West region takes suburbs located south of Mount Coot-tha and west of the Oxley Creek. The furthest west railway station analysed within this region was the Darra Railway Station. Only one railway line was analysed in this region, the Rosewood line which continues through to Ipswich. • The South region analyses suburbs located east of the Oxley Creek through to the southern side of Old Cleveland Road. The furthest south railway station analysed within this study was the Runcorn Railway Station. Only the Beenleigh Railway line was included in this region, despite the rail track continues to the Gold Coast. • The East region includes suburbs north of Old Cleveland Road through to the Brisbane River. The furthest east railway station analysed was the Manly Railway Station. Suburbs with stations along the Cleveland Railway line were analysed in this region.

Analysis from the rental data provided from the aforementioned regions resulted in the following key findings; • Brisbane remains an attractive investment destination with the residential market delivering high rental yields and low vacancy rates. The Brisbane house and unit rental markets remain similar across railway and non-railway localities, with only +0.1 and -0.2 per cent differentiating the rental returns between house and unit investments. • Brisbane’s initiative to expand its alternate public transport networks with bus Brisbane Median House Price 3 Bed House* Yield Median Unit Price 2 Bed Unit* Yield and ferry has resulted in a negligible result for railway and non-railway North Railway Area $504,500 $445 4.6% $395,000 $365 4.8% investment. North Non-railway Area $530,000 $430 4.2% $368,000 $383 5.4% • The Brisbane unit rental market seeing strong returns, in particularly the North East Railway Area $540,000 $435 4.2% $375,000 $360 5.0% non-railway localities returning yields of 5.4 per cent due to the positive rental East Non-railway Area $572,000 $450 4.1% $434,500 $370 4.4% capability of desirable suburbs including Red Hill and Bardon, as well as South Railway Area $459,000 $375 4.2% $388,000 $340 4.6% Brisbane Northern Busway localities, Aspley, Chermside and Stafford. South Non-railway Area $511,000 $390 4.0% $385,000 $340 4.6% West Railway Area $630,000 $470 3.9% $405,000 $385 4.9% West Non-railway Area $507,000 $385 3.9% $352,000 $400 5.9% *Median w eekly rent Prepared by PRDnationwide Research. Source: PDS

15 Brisbane Railway Localities Overview “Brisbane house and unit median price has historically maintained parity”

• The Brisbane house market has experienced a stable level of house sales activity since a decline during Brisbane Railway Localities House Sales Cycle 2010, averaging 5,116 transactions per six month period. Of this, railway localities typically amount to just Brisbane Railway Sales Brisbane Non-railway Sales under 60 per cent of total house sales. From the previous year house activity has improved in railway Brisbane Railway Median Brisbane Non-railway Median 12,000 $600,000 localities (up 0.3 per cent) while transactions within non-railway areas have decreased (down 1.5 per cent) $526,000 • The median house price for railway and non-railway localities has mirrored each other in growth over the 10,000 $500,000 past decade, reaching a final median house price of $17,500 (railway suburbs) and $526,000 (non-railway suburbs) over the February 2013 six month period. While non-railway localities have recorded a nominal 0.1 8,000 $400,000 per cent growth in the median price over a 12 month period, railway localities experienced stronger growth of 2.2 per cent. 6,000 $300,000

• The Western region of Brisbane recorded the highest median house price at $630,000 for railway localities, Number of salesof Number while non-railway localities in the West recorded a more affordable median price of $507,000, equating to price sale Median the city’s third most affordable median house price. The most affordable median house price was registered 4,000 $200,000 in the Southern railway suburbs of Brisbane, with a median of $459,000, followed by the railway localities of Northern Brisbane at $504,500. 2,000 $100,000 • Over a long-term period of five years, the majority of regions experienced negligible change in their median price, with the Western non-railway and Southern railway localities experiencing the largest increase, at 1.6 0 $0

per cent per annum each, while the Western railway localities recorded a marginal 0.2 per cent per annum

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2005 AUG 2005 2004 AUG 2004 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 decline. AUG 2003 Half year period Prepared by PRDnationwide Research. Source: PDS • The peak of activity in the Brisbane unit market arrived during 2007 where a total of 3,679 transactions Brisbane Railway Localities Unit Sales Cycle occurred, with 81 per cent of these occurring within a railway area. Since this peak, activity has contracted to Brisbane Railway Sales Brisbane Non-Railway Sales an average of 2,229 sales per six month period over the past couple years, with sales within railway Brisbane Railway Median Brisbane Non-railway Median localities amounting to an average 78.9 per cent of total unit transactions. 4,000 $450,000

• Over the course of a 12 month period, non-railway localities recorded a steep decline of 32.8 per cent in unit 3,500 $400,000 $390,000 activity, while railway localities experienced a decline of 11.5 per cent. $369,500 $350,000 3,000 • It appears the median price has plateaued after peaking in the August 2010 six month period, when non- $300,000 railway localities registered $415,000 for a unit, while railway localities established a median unit price of 2,500 $417,000. Since this peak, both median prices have slightly contracted, with the railway localities recording $250,000 a higher median price of $390,000, compared to $369,500 for non-railway localities. 2,000 $200,000

Number of salesof Number 1,500 • Over the course of a 12 month period, railway localities registered a softening in the median unit price of 3.7 price sale Median per cent, while non-railway localities experienced a contraction of 5.3 per cent. $150,000 1,000 • The Eastern region of Brisbane registered the highest median unit price at $434,500 for non-railway $100,000

localities while recording the largest price premium on the Eastern railway localities median (at a difference 500 $50,000 of $59,500). The most affordable median unit price was registered in Western non-railway area, at $352,000. 0 $0 • Over a five year period, the majority of regions experienced a slight change in their median unit price, with

the Western non-railway localities experiencing the largest increase, at 2.9 per cent per annum, while the

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 Northern non-railway localities recorded a 1.4 per cent per annum decline. AUG 2003 Half year period Prepared by PRDnationwide Research. Source: PDS

16 Brisbane Individual Railway Localities Overview “North Brisbane localities experience negligible price differences”

• The Brisbane North house market has experienced a stable level of North House Sales Cycle Comparison North Unit Sales Cycle Comparison house sales activity since the six month period ending February 2011, with an average 1,994 transactions per six month period. Of this, North Railway Sales North Non-railway Sales North Railway Sales North Non-railway Sales North Railway Median North Non-railway Median North Railway Median North Non-railway Median railway localities typically amounted to 66 per cent of total house 4,500 $600,000 1,800 $450,000

sales. House activity has slightly declined in railway localities (down 4,000 $530,000 1,600 $400,000 $500,000 $395,000 0.7 per cent), while non-railway suburbs improved by 7.3 per cent $504,500 $368,000 3,500 1,400 $350,000 from the previous year. While the median house price for railway and 3,000 $400,000 1,200 $300,000 non-railway localities has mirrored each other in growth over the past 2,500 1,000 $250,000 decade, non-railway suburbs have maintained a higher price by an $300,000

average $20,000. The final median house price of the February 2013 2,000 800 $200,000

Number of salesof Number salesof Number

Median sale price sale Median price sale Median six month period was $504,500 for railway localities, and $530,000 for 1,500 $200,000 600 $150,000

non-rail localities. However, over the long-term railway localities have 1,000 400 $100,000 $100,000 recorded higher growth in the median price at 6.9 per cent growth per 500 200 $50,000 annum compared to non-railway suburbs at 6.7 per cent. 0 $0 0 $0

• The North unit market has averaged 943 sales per six month period

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2008 AUG 2008 AUG 2005 2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 since February 2011, with railway localities amounting to an average AUG 2003 Half year period Half year period 83 per cent of the total unit sales in the region. Both railway and non- Prepared by PRDnationwide Research. Source: PDS railway localities have experienced a decline in unit activity over the Prepared by PRDnationwide Research. Source: PDS 12 month period ending February 2013, with non-railway localities contracting the most at 25 per cent, compared to 13 per cent for railway localities. Likened to the house market, the median unit price for both railway and non-railway localities have tracked on similar East House Sales Cycle Comparison East Unit Sales Cycle Comparison

paths, with railway localities reaching a slightly higher median unit East Railway Sales East Non-railway Sales East Railway Median East Non-railway Median East Railway Sales East Non-railway Sales East Railway Median East Non-railway Median price of $395,000 (down 0.8 per cent from the previous year). Non- 3,000 $700,000 1,000 $600,000 railway localities recorded a 5.6 per cent decline and lower median 900 $600,000 2,500 $500,000 $572,000 800 price of $368,000. $540,000 $434,500 $500,000 700 2,000 $400,000 $375,000 600 • The Brisbane East median house price for both railway and non- $400,000 railway localities reached a price peak during 2010, experiencing only 1,500 500 $300,000 $300,000

400

Number of salesof Number salesof Number Median sale price sale Median minute growth over the past 12 months at 0.9 per cent (railway price sale Median 1,000 $200,000 localities) and a fall of 1.5 per cent (non-railway localities). Non-railway $200,000 300 200 suburbs have maintained a higher median price, at an average of 500 $100,000 $100,000 $42,500 over the past decade. Both railway and non-railway suburbs 100 have recorded a contraction in activity over 12 months, by 3.2 per cent 0 $0 0 $0

(railway) and 6.4 per cent (non-railway).

2004 FEB 2004 FEB 2009 FEB 2006 2003 FEB 2003 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 • Likened to the house market, non-railway suburbs in the East unit Half year period Half year period market maintain a higher median price with an average divergence of Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS $48,755. Over the past 12 months activity in non-railway suburbs has contracted by over half of the unit market (54.9 per cent drop).

17 Brisbane Individual Railway Localities Overview Cont. “Western Brisbane localities provide the largest median price differential”

• Analysis of the Southern house market shows non-railway localities Southern House Sales Cycle Comparison Southern Unit Sales Cycle Comparison typically maintaining a higher median price of just over $60,000 to railway localities during the past decade. Since the peak of the South Railway Sales South Non-railway Sales South Railway Sales South Non-railway Sales South Railway Median South Non-railway Median South Railway Median South Non-railway Median market in 2010, the median price has steadily declined in non-railway 2,500 $600,000 600 $450,000

localities, while rail suburbs have experienced a recent growth surge $511,000 $400,000 $385,000 $500,000 500 of 8 per cent. Long-term railway suburbs have increased in value at a 2,000 $459,000 $350,000 higher rate of 8.1 per cent per annum than non-railway suburbs, at $400,000 400 $300,000 6.8 per cent. 1,500 $250,000 • By observing the Southern Unit Sales Cycle it is determined that over $300,000 300 $200,000

1,000

Number of salesof Number salesof Number Median sale price sale Median the past couple years both unit sales activity and median price have price sale Median been fairly stable in the Brisbane South market. There was no $200,000 200 $150,000 $100,000 500 change to the median unit price for non-railway suburbs, remaining at $100,000 100 $385,000 over 12 months, while railway suburbs decreased $50,000

marginally by 0.3 per cent to $388,000. Long-term railway suburbs 0 $0 0 $0

have increased in value at a higher rate of 9.9 per cent per annum

2010 FEB 2010 FEB 2006 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 than non-railway suburbs, at 7.6 per cent. AUG 2003 Half year period Half year period Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS • When observing the house sales cycle of the Western region, it can be observed that this location has the largest price difference between railway and non-railway suburbs, at an average $123,000 divergence in favour of railway suburbs. At the markets peak during Western House Sales Cycle Comparison Western Unit Sales Cycle Comparison

2010, this price difference was up to $150,000, but has since West Railway Sales West Non-railway Sales West Railway Sales West Non-railway Sales retracted to the average $123,000 as at the recent six month period West Railway Median West Non-railway Median West Railway Median West Non-railway Median 2,500 $800,000 700 $500,000 ending February 2013. Over the past 12 months both railway and $450,000 $700,000 600 non-railway suburbs recorded a decline in the median price of 1.2 per $405,000 2,000 $630,000 $400,000 cent and 2.5 per cent respectively. Sales activity in railway localities $600,000 500 $350,000 $352,000 has softened on the previous year by 4.4 per cent, while non-railway $500,000 1,500 $507,000 $300,000 localities have decreased by 9.5 per cent. Over the past decade, 400 railway localities only amount to an average 45 per cent of total $400,000 $250,000 300

1,000 $200,000 Number of salesof Number

Number of salesof Number $300,000 Median sale price sale Median house sales. price sale Median 200 $150,000 • Likened to the Brisbane West house market, railway suburbs in the $200,000 500 $100,000 100 West unit market also maintain a higher median price than non- $100,000 railway localities, through an average price difference of $56,000 $50,000 over the past decade. For the most recent February 2013 six month 0 $0 0 $0

period, the railway median unit price was $405,000 - $53,000 more

2006 FEB 2006 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 than the non-railway median unit price of $352,000. Railway localities Half year period Half year period have experienced a noticeable decline in the median price by 3.6 per Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS cent while non-railway suburbs have increased by 2.0 per cent. Activity has contracted in railway localities by 16.8 per cent while non-railway unit activity has fallen by 41.2 per cent.

18 Brisbane Individual Railway Localities Summary Table

5yr 5yr House Sales Unit Sales 6 Median 1yr Median Unit 1yr 1yr 1yr Growth Growth 6 months to months to House Price Growth Price Growth Growth Growth p.a. p.a. Feb 2013 Feb 2013

North Railway Area $504,500 0.9% 0.8% $395,000 -0.8% 1.0% 1,292 -0.7% 723 -12.8%

North Non-railway Area $530,000 2.1% 1.0% $368,000 -5.6% -1.4% 672 7.3% 151 -25.2%

East Railway Area $540,000 0.9% -0.1% $375,000 -9.6% 0.0% 805 -3.2% 345 -12.2%

East Non-railway Area $572,000 -1.5% 0.3% $434,500 -7.2% 1.4% 363 -6.4% 46 -54.9%

South Railway Area $459,000 8.0% 1.6% $388,000 -0.3% 1.8% 473 15.4% 135 11.6%

South Non-railway Area $511,000 0.2% 0.6% $385,000 0.0% 0.1% 544 -1.1% 83 -18.6%

West Railway Area $630,000 -1.2% -0.2% $405,000 -3.6% 0.0% 387 -4.4% 233 -16.8%

West Non-railway Area $507,000 -2.5% 1.6% $352,000 2.0% 2.9% 427 -9.5% 50 -41.2%

Brisbane Railway Area $517,500 2.2% 0.5% $390,000 -3.7% 0.5% 2,957 0.3% 1,436 -11.5%

Brisbane Non-railway Area $526,000 0.1% 0.6% $369,500 -5.3% -1.1% 2,006 -1.5% 330 -32.8%

Prepared by PRDnationwide Research. Source: PDS

19 Perth Railway Localities

Description of Perth’s railway regions which have been analysed: • The Inner 10km Suburbs incorporate all suburbs within a 10km radius of the Perth CBD excluding the immediate 2.5km measured from Perth Station. This area caters to all five railway lines servicing Perth, including the Fremantle, Midland, Armadale, Joondalup and Mandurah lines. • The North region takes into account the coastal suburbs north from Carine and Hamersley outside the 10km radius from Perth CBD and continues either side of the Joondalup railway line concluding at Edgewater Station. • The South region encompasses all land east of the Mandurah railway line within the 20km radius of Perth’s CBD. The area of analysis concludes to the south at the Cockburn Central rail interchange. • The East region analyses suburbs located east of the 10km radius of the Perth CBD through to John Forrest National Park and east of the Mandurah railway line. Three main railway lines were included in this region, analysing the Mandurah, Armadale and Midland railway lines.

Analysis from the rental data provided from the aforementioned regions resulted in the following key findings; • Perth continues to provide very high rental yields city-wide with high median prices complemented with rental prices. This has led to the railway and non-railway localities remaining competitive in the Inner 10km of Perth’s CBD as well as along the coastlines North and South of the city. • The Eastern railway localities rental yield has outperformed non-railway house and units by 0.5 per cent and 1.0 per cent respectively. Eastern units have performed particularly strong as the median rent surpasses that of non-railway suburbs despite a median 7.5 per cent lower than railway localities.

Perth Median House Price 3 Bed House* Yield Median Unit Price 2 Bed Unit* Yield • South non-railway suburbs provide the highest median price for house and unit sales North Railway Area $550,000 $478 4.5% $387,500 $470 6.3% with $630,000 and $440,000 respectively. The higher than average median is due to the geographical location as well as close proximity to railway lines into the Perth CBD. North Non-railway Area $480,000 $480 5.2% $391,000 $408 5.4% East Railway Area $417,500 $410 5.1% $335,000 $350 5.4% East Non-railway Area $500,000 $440 4.6% $362,500 $308 4.4% South Railway Area $545,000 $480 4.6% $450,000 $420 4.9% South Non-railway Area $630,000 $520 4.3% $440,000 $400 4.7% Inner 10km Railway Area $650,000 $613 4.9% $435,000 $400 4.8% Inner 10km Non-railway Area $575,000 $500 4.5% $390,000 $380 5.1% Prepared by PRDnationwide Research. Source: PDS *Median w eekly rent

20 Perth Railway Localities Overview “Perth rail and non-railway localities have experienced negligible historical median price differences”

• The Perth house market has seen a recovery in sales since the historic low experienced during the Perth Railway Localities House Sales Cycle

August 2011 six month period. Sales in railway localities have accounted for a higher number of sales Perth Railway Sales Perth Non-railway Sales compared to non-railway localities. While activity in both railway and non-railway localities has softened Perth Railway Median Perth Non-railway Median in the six months to February 2013, sales have picked up when compared to the previous year, with 18,000 $600,000 $550,000 sales in rail localities improving 7.1 per cent and 7.3 per cent in non-rail areas. 16,000 $500,000 $525,000 • The median house price for railway and non-railway localities have generally moved in tandem with each 14,000 other throughout the past decade, with railway localities being more stable in reactions to peaks and troughs. The median house price for railway localities was $525,000 over the February 2013 six month 12,000 $400,000

period and was $550,000 for non-railway localities. These median prices represent a 5.5 per cent 10,000 improvement for railways suburbs and 4.2 per cent growth for non-railway suburbs. $300,000 8,000

• The largest median price seen amongst railway localities in Perth was in the inner 10km region, where a

Number of salesof Number Median sale price sale Median median price of $650,000 was recorded for the February 2013 six month period. The most affordable 6,000 $200,000

railway locality was in the Eastern area which recorded a median price of $417,500. In non-railway 4,000 localities, the highest median price was $630,000 in the South area, and the most affordable median $100,000 price was in the North with $480,000. 2,000 • Over five years, the largest growth in median house price was 2.1 per cent per annum which was 0 $0

experienced in two localities; the North railway locality and the East non-railway locality. Only one

2011 FEB 2011 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 locality experienced negative growth of -0.3 per cent which was the inner 10km railway locality. AUG 2003 Half year period Prepared by PRDnationwide Research. Source: PDS • In contrast to the Perth house market, the unit market appears to favour railway localities, with the Perth Railway Localities Unit Sales Cycle railway localities across the city outperforming non-railway localities in terms of both number of sales as Perth Railway Sales Perth Non-railway Sales well as median price. Similarly to the house market, sales have dropped off in the six month period to Perth Railway Median Perth Non-railway Median February 2013, however are up when compared to 12 months ago. Unit sales in railway localities were 5,000 $450,000 $420,000 up 19.3 per cent over the one year period, while non-railway localities only saw a 1.3 per cent 4,500 $400,000 improvement. $400,000 4,000 $350,000 • The Perth unit market is nearing its median price peak in both rail and non-rail localities. The railway 3,500 locality median price for the February 2013 six month period was $420,000, which is equivalent to the $300,000 3,000 price peak experienced in the August 2010 period. The median unit price for non-rail localities for the $250,000 February 2013 period was $400,000 which is only $5,000 short of the price peak experienced in the 2,500 $200,000

August 2010 period. 2,000

Number of salesof Number Median sale price sale Median • Over the course of a 12 month period, railway localities registered a 5.5 per cent growth in the median $150,000 1,500 unit price, while non-railway localities experienced a growth of 4.2 per cent. $100,000 1,000 • The highest median price for both rail and non-rail localities was in the Southern region, where railway localities experienced a median price of $450,000 while non-rail localities came in $10,000 less with a 500 $50,000 median of $440,000. 0 $0

• Over a long-term period of five years, growth was fairly minimal across the unit market. The largest

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2005 AUG 2005 2004 AUG 2004 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 growth experienced was at 2.2 per cent in the Southern non-rail region, while two regions experienced a AUG 2003 contraction of 0.8 per cent, being North non-railway and the South railway region. Half year period Prepared by PRDnationwide Research. Source: PDS

21 Perth Individual Railway Localities Overview “Railway localities increase the residential median price in Perth’s inner suburbs”

• The Inner 10km house market has seen sales improve and stabilise Inner 10km House Sales Cycle Comparison Inner 10km Unit Sales Cycle Comparison since the historic low in August 2011. Over the ten year period this area

has averaged 4,551 sales per six month period, with approximately 39.5 7,000 $800,000 3,500 $500,000 per cent of total sales coming from railway localities. Sales activity has Railway Sales Non-railway Sales Railway Sales Non-railway Sales Railway Median Non-railway Median Railway Median Non-railway Median $450,000 $700,000 6,000 3,000 $435,000 dropped off in both rail and non-rail localities in the past six month $650,000 $400,000 $600,000 $390,000 period, however has seen an improvement over twelve months. Non- 5,000 $575,000 2,500 $350,000 railway area has seen sales growth of 5.9 per cent while the railway area $500,000 $300,000 has seen a slightly more subdued 4.8 per cent growth. The median 4,000 2,000 price in the Inner 10km area rail and non-rail localities has more or less $400,000 $250,000 3,000 1,500 $200,000

followed trend, with the rail locality consistently outperforming the non- $300,000

Number of salesof Number

Median sale price sale Median

Number of salesof Number Median sale price sale Median

rail locality. At the end of the February 2013 six month period, the 2,000 1,000 $150,000 $200,000 median house price gap sat at $75,000. The median price for railway $100,000 1,000 $100,000 500 localities was $650,000 which represents 8.3 per cent growth over 12 $50,000 months, while the median price for non-railway localities was $575,000 0 $0 0 $0

which is an improvement of 7.5 per cent compared with the 12 months

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012

2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 earlier. AUG 2003 Half year period Half year period • The Inner 10km unit market has averaged 2,287 sales since the Prepared by PRDnationwide Research. Source: PDS February 2003 six month period, with railway localities amounting to an Prepared by PRDnationwide Research. Source: PDS average 60.3 per cent of the total unit sales in the region. In the 12 months to the period ending February 2013, railway localities experienced a surge in sales activity of 20.1 per cent, while non-railway localities saw a minimal contraction of 0.1 per cent. The unit median Southern House Sales Cycle Comparison Southern Unit Sales Cycle Comparison price for rail and non-rail localities have generally reflected one another, 2,000 $800,000 Railway Sales Non-railway Sales 700 $600,000 with non-rail localities being less volatile. The February 2013 period Railway Sales Non-railway Sales 1,800 Railway Median Non-railway Median $700,000 Railway Median Non-railway Median closed with a price gap of $45,000 after rail localities saw improvement 600 $500,000 1,600 $630,000 of 7.7 per cent over 12 months while non-rail localities saw 2.6 per cent $600,000 $450,000 1,400 500 $440,000 $545,000 growth. $400,000 $500,000 1,200 400 1,000 $400,000 $300,000

• The South median house price for both railway and non-railway localities 300 800

$300,000

Number of salesof Number salesof Number Median sale price sale Median appears to have stabilised in recent times, experiencing comparatively price sale Median $200,000 600 200 small growth over the past 12 months at 5.6 (non-railway localities) and $200,000 400 2.8 (railway localities) per cent. There is little departure in the median $100,000 $100,000 100 price over the past decade, with the price gap remaining relatively 200 consistent. In the last 12 months however, house activity has been 0 $0 0 $0

strong in railway localities, improving by 10.5 per cent, while improving

2009 FEB 2009 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2010 FEB 2011 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2009 AUG 2009 AUG 2011 2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2012 only by 0.6 per cent in railway locations. Half year period Half year period • The South unit market appears to buck the trend of others with railway Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS and non-railway localities seemingly experiencing no commonality in regard to median price. Non-railway localities have seen more consistency and less volatility in median price, while accounting for 36.8 per cent of sales (on average) per six month period. 22 Perth Individual Railway Localities Overview Cont. “Northern unit market has been dominated by non-railway localities”

• Analysis of the Northern house market shows railway localities have Northern House Sales Cycle Comparison Northern Unit Sales Cycle Comparison typically drawn a price premium when compared to non-railway localities . Since the dip in 2011, the price gap has remained consistent, 3,500 $600,000 600 $500,000 as both have seen similar patterns of growth. Over the 12 months Railway Sales Non-railway Sales Railway Sales Non-railway Sales $550,000 Railway Median Non-railway Median Railway Median Non-railway Median $450,000 ending February 2013, railway localities saw growth of 7.7 per cent, 3,000 $500,000 500 $480,000 $400,000 while non-railway localities saw growth of 6.7 per cent. Sales amongst $391,000 $387,500 2,500 $350,000 the two have been vastly different however, with railway localities $400,000 400 $300,000 experiencing a drop of 1.3 per cent while non-railway localities saw 2,000 sales activity improve 14.7 per cent. $300,000 300 $250,000 1,500 $200,000

• Sales activity in the Northern unit market has been dominated by non- salesof Number

Median sale price sale Median Number of salesof Number $200,000 price sale Median 200 railway localities, likely due to a lack of supply amidst railway localities. 1,000 $150,000

The Northern unit market averages 315 unit sales per six months, with $100,000 $100,000 100 500 only 7.3 per cent coming from rail localities. Due to the comparatively $50,000

smaller market size, the Northern unit market has been subject to a 0 $0 0 $0

more fluctuating median price, with very sharp rises accompanied by

2009 FEB 2009 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 FEB 2003 2004 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2011 FEB 2012 FEB 2013

2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012

2004 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 sharp declines. In the 12 months ending February 2013, railway AUG 2003 localities saw median price improve 14 per cent to $387,500. In the Half year period Half year period same 12 month period, non-railway localities also saw growth, however Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS more subdued at 2.9 per cent to close at $391,000.

• In stark contrast to the Northern region, the Eastern region house Eastern House Sales Cycle Comparison Eastern Unit Sales Cycle Comparison market sales activity has been focused towards railway localities.

5,000 $600,000 Median price has moved in a similar pattern among both rail and non- Railway Sales Non-railway Sales 200 $500,000 Railway Median Non-railway Median Railway Sales Non-railway Sales rail localities, with growth of 6.5 per cent seen in rail localities while non- 4,500 $500,000 180 Railway Median Non-railway Median $450,000 $500,000 rail localities saw growth of 8.7 per cent over 12 months. The price gap 4,000 160 $400,000 $362,500 between railway and non-railway localities has been consistent since 3,500 $417,500 140 $350,000 August 2009, finishing the February 2013 period $82,500 apart. Over $400,000 $335,000 3,000 ten years the Eastern region has averaged 3,116 transactions per six 120 $300,000 month period. Of those, a little over a third (35.8 per cent) have come 2,500 $300,000 100 $250,000

2,000 80 $200,000

Number of salesof Number salesof Number Median sale price sale Median from non-railway localities. price sale Median $200,000 1,500 • Sales activity in the Eastern unit market has been dominated by railway 60 $150,000 1,000 40 $100,000 localities, likely due to lack of supply in non-railway localities. Sales in $100,000 Eastern railway localities grew 29.4 per cent over the 12 months ending 500 20 $50,000 February 2013, while non-railway localities saw almost the opposite with 0 $0 0 $0

sales contracting 17.6 per cent. Of the average 142 sales per six month

2011 FEB 2011 FEB 2010 2003 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2010 FEB 2012 FEB 2013 FEB 2003 FEB 2004 FEB 2005 FEB 2006 FEB 2007 FEB 2008 FEB 2009 FEB 2011 FEB 2012 FEB 2013

2004 AUG 2004 2003 AUG 2003 AUG 2004 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 AUG 2003 AUG 2005 AUG 2006 AUG 2007 AUG 2008 AUG 2009 AUG 2010 AUG 2011 AUG 2012 period, only 22.5 per cent came from non-railway localities. Due to the Half year period Half year period lack of sales activity in non-railway suburbs it has seen higher levels of Prepared by PRDnationwide Research. Source: PDS Prepared by PRDnationwide Research. Source: PDS volatility when compared to railway localities. At the February 2013 six month period, there was $27,500 difference, with non-railway localities having a median price of $362,500 and railway localities a median price of $335,000. 23 Perth Individual Railway Localities Summary Table

5yr 5yr House Sales Unit Sales 6 Median 1yr Median Unit 1yr 1yr 1yr Growth Growth 6 months to months to House Price Growth Price Growth Growth Growth p.a. p.a. Feb 2013 Feb 2013

North Railway Area $550,000 7.7% 2.1% $387,500 14.0% 0.9% 668 -1.3% 30 42.9%

North Non-railway Area $480,000 6.7% 0.9% $391,000 2.9% -0.8% 1,271 14.7% 241 10.0%

East Railway Area $417,500 6.5% 1.4% $335,000 6.3% 1.0% 1,738 11.9% 141 29.4%

East Non-railway Area $500,000 8.7% 2.1% $362,500 5.2% 1.3% 981 5.8% 28 -17.6%

South Railway Area $545,000 2.8% 0.2% $450,000 0.0% -0.8% 644 10.5% 238 8.7%

South Non-railway Area $630,000 5.6% -0.3% $440,000 4.3% 2.2% 507 0.6% 128 -0.8%

Inner 10km Railway Area $650,000 8.3% 0.3% $435,000 7.7% 1.7% 1,583 4.8% 1,097 20.2%

Inner 10km Non-railway Area $575,000 7.5% 0.2% $390,000 2.6% 2.2% 2,474 5.9% 706 -0.1%

Perth Railway Area $525,000 7.1% 1.6% $420,000 5.5% 1.2% 4,633 7.1% 1,506 19.3%

Perth Non-railway Area $550,000 8.5% 1.1% $400,000 4.2% 1.6% 5,233 7.3% 1,103 1.3%

Prepared by PRDnationwide Research. Source: PDS

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