Buderim Property Factsheet 2nd Half 2018 OVERVIEW Buderim is a major suburb of the Sunshine Coast Region and comprises 63.0% of the town of Buderim’s urban population. According to ABS Census 2016 only 8.0% of private dwellings were unoccupied, lower than Queensland average of 10.6%. Further, the number of private dwellings grew by 7.7% during this time, signalling a healthy rental market for investment. CHANGE FROM HALF YEAR LAST YEAR House Sales House Median Price MARKET CONDITIONS House Rental Price Buderim* recorded a median house price of $665,000 and $412,500 for units in Q3 2018, which represented an annual (Q3 2017 – Q3 2018) price change of Unit Sales 3.5% and stable at 0.2% respectively. In comparison to the Buderim 1st Half 2018 Research Factsheet, which reported an annual (Q1- 2017- Q1 2018) Unit Median Price price change of 4.0 % (house) and 2.5% (units), properties in Buderim have experienced a slight softening and is now more affordable for first time buyers. Unit Rental Price The Sunshine Coast Regional Local Government Area (LGA) recorded median prices of $610,000 for houses and $420,000 for units, signifying annual (Q3 FUTURE DEVELOPMENTS* 2017- Q3 2018) price growth of 2.3% and -1.8% respectively. When compared Buderim is set to invest approximately to the LGA, houses in Buderim* reflect a premium market, both from an entry $68.6M worth of developments in 2018, price point perspective and higher capital growth. Units in Buderim* are more the majority ($46.8M or 68.0%) dedicated affordable however have shown more resilience to market changes, making it to commercial projects. This is followed by an ideal investment opportunity. residential projects ($19.1M or 28.0%) and mixed-use developments (4.0% or $2.7M). Average vendor discount in Buderim* have remained relatively stable over the past 12 months to Q3 2018, with a slight advantage towards sellers. Average A significant commercial project due to vendor discount for houses tightened slightly from -2.9% in Q3 2017 to -2.7% in commence in 2018 is the Buderim Retail Q3 2018, as did units, from -2.3% in Q3 2017 to -2.2% in Q3 2018. This Centre ($30.0M). This project will include suggests that there is high negotiation activity between sellers and buyers, due shops, cafes, restaurants, and mixed use to a supply and demand balance of property stock in the market. amenities. This major project will deliver great opportunity for the area as it will Median house rental prices have slightly strengthened over the past 12 months increase commercial activity and create to Q3 2018 in Buderim*, by 0.9% to $535 per week. It significantly increased for employment opportunities. units, by 8.3% at $390 per week. Investors are assured of quick rental uptake in this high-demand market, with low vacancy rates of 2.0% in June 2018. This A total of 39 units/apartments and 42 is well below that of Brisbane Metro vacancy rate (3.0%). townhouses are planned for 2018. Burnett St Mixed-Use Development ($2.7M) is the SUNSHINE COAST REGIONAL GROWTH main mixed-use project, set to deliver 7 2000 $800,000 units and retail space. A major residential project in 2018 is the 1500 $600,000 Jorl Court Townhouses ($10.0M), to construct 35 townhouses. Other residential 1000 $400,000 projects include: Box Street Apartments ($4.3M, 17 apartments), Stringybark Road Median Price Median Number of of Sales Number Units ($3.0M, 15 units), and Jorl Court 500 $200,000 Townhouses ($1.9M, 7 townhouses). *Market data and key indicators for Buderim encapsulates property 0 $0 market conditions in the following suburb: Buderim Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018 *Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re- House Unit Vacant Land sale value. Source: APM Pricefinder, realestate.com.au. © Median House Price Median Unit Price Median Land Price Copyright PRDnationwide 2018. AVERAGE VENDOR DISCOUNT* AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT House Unit AverageAverage vendorvendor discountdiscount reflectsreflects the the 0.0% averageaverage percentagepercentage differencedifference between -0.5% betweenfirst listed firstprice list priceand andfinal finalsold soldprice . A price.lower Apercentage lower percentagedifference differencesuggests -1.0% 1.7% - (closerbuyers toare 0) willingsuggeststo buyerspurchase are close to 2.0% 2.2% - 2.3% 2.3% - - - willingthe first to purchaseasking priceclose toof thea firstproperty . 2.7% 2.7% -1.5% 2.7% 2.9% - - - - 3.2% asking price of a property. -2.0% - 4.1% - 4.4% -2.5% - MARKET COMPARISON GRAPH -3.0% TheKEY market FACTS comparison UNIT graph provides comparative trend for median price of -3.5% house and units over the past 10 years. -4.0% Suburbs profiled are chosen based on proximity to the main suburb analysed Change from Listing to to Listing Price Sale from Change -4.5% in the factsheet, which is Buderim. The -5.0% main suburb is highlighted through a Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 dotted black line graph. HOUSE MARKET COMPARISON $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 House House Price Median $100,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018** Buderim Mountain Creek Kuluin Maroochydore UNIT MARKET COMPARISON $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 House House Price Median $100,000 $50,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018** Buderim Mountain Creek Kuluin*** Maroochydore *Buderim market data encapsulates property market conditions in the following suburbs: Buderim.. **2018 data is representative of sales up to and inclusive of 30th September 2018, or end of Q3 2018. ***Dashed line in median price graph is due to limited or no sales for the particular period, and is indicative only based on previously known trends. Source: APM Pricefinder. © Copyright PRDnationwide 2018. AVERAGE DAYS ON MARKET** 120 HOUSE KEY FACTS Q3 2018 100 Median Sale Price: $665,000 Annual Growth: 3.5%* 80 Average Days on Market: 81 % Change between First Listed Price and Sold Price: -2.7% 60 104 98 82 40 59 75 81 UNIT KEY FACTS Q3 2018 Average Days Market on Days Average 64 64 63 57 62 56 KEY FACTS UNIT* Median Sale Price: $412,500 20 Median Sale Price : $785,000 Annual Growth: 0.2%* Annual Area Growth: 11% Average Days on Market: 104 Average Days on Market: 36 0 % Change between First Listed % Change between First Listed Price and Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Price and Sold Price: -2.2% Sold Price: -0.1% House Unit Overall Market Trend SALES AND MEDIAN PRICE** 180 $800,000 160 $700,000 140 $600,000 120 $500,000 100 $400,000 80 160 Price Median 152 157 Number of of Sales Number 140 136 $300,000 60 121 $200,000 40 84 67 62 51 50 52 20 $100,000 0 $0 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 House Sales Unit Sales Median House Price Median Unit Price *Annual growth represents price growth for property transactions between Q3 2017 to Q3 2018 (inclusive). **Market data and key indicators for Buderim encapsulates property market conditions in the following suburb: Buderim Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2018. SALES PRICE POINT COMPARATIVE ANALYSIS* HOUSE PRICE POINT 2017 HOUSE PRICE POINT 2018 5.2% 9.8% Less than $499,999 9.7% $500,000 to $549,999 27.2% 26.8% 10.0% $550,000 to $599,999 $600,000 to $649,999 13.6% $650,000 to $699,999 14.9% $700,000 to $749,999 6.7% $750,000 to $799,999 8.9% $800,000 and above 7.1% 15.7% 14.9% 9.1% 9.8% 10.7% UNIT PRICE POINT 2017 UNIT PRICE POINT 2018 10.7% 10.3% 11.8% 5.0% Less than $299,999 8.3% 5.0% 18.0% 14.0% $300,000 to $349,999 $350,000 to $399,999 6.6% 8.7% $400,000 to $449,999 $450,000 to $499,999 10.3% $500,000 to $549,999 10.6% 20.7% 21.9% $550,000 to $599,999 $600,000 and above 17.8% 20.5% KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS - UNIT The dominant proportion of houses sold remain within the The proportion of units sold in 2018 is mostly within the $800K and above price bracket in 2018, increasing from $350 - $400K and $400 - $500K price segments, at 26.8% in 2017 to 27.2%. This is in line with the 3.5% 20.7% and 20.5% respectively. The $400 - $500K annual growth reported over the past 12 months. This is bracket in particular has strengthened, from 17.8% in good news for sellers wanting to capitalize on the market. 2017 to 20.5% in 2018. This signals a stronger mid-range priced unit market and that buyers are being more There has been an increase in the number of sales for all versatile in purchasing within the higher price brackets. upper priced brackets, as well as the mid-range market between $600 - $700K. House sales in the lower priced The upper price bracket of $600K and above have also bracket between $500 - $600K have decreased slightly , strengthened in sales activity, from 10.7% in 2017 to creating less affordable options. Those looking for 11.8% in 2018. The most affordable price bracket of houses below the $499K priced bracket need to act fast, $299K and below has decreased in activity, from 10.3% as this segment of the market has shifted the most, down in 2017 to 5.0% in 2018.