RESIDENTIAL RESEARCH...property was last recorded at 2.9% in June 2016; trending down 30 bps in the last quarter. Knight Frank Residential Research The Reserve Bank of Australia (RBA)

RESIDENTIAL RESEARCH

MARKET ACTIVITY REPORT FOR AUSTRALIAN CAPITAL CITIES & REGIONAL CENTRES

http://www.knightfrank.com.au/

2

The official cash rate target

remained at 1.50% in September

2016. Gross Domestic Product

(GDP) was recorded at 3.3%

annual growth to June 2016

whilst unemployment across Australia remained steady at

5.7% in the quarter to July 2016.

Australian house values rose

1.4% in the month of July 2016 (3.8% annual growth) to a

median of $524,000 while

apartment values were down

0.4% over the month (similarly 3.8% annual growth) to a median

of $484,000.

In the year to July 2016, the

volume of house sales was up 0.3% to 334,068 while 165,471

apartment sales were recorded

(up by 2.3%).

Gross rental yields for Australian houses averaged

4.30% in July 2016 while

Australian apartments achieved

4.56%.

Australian weekly median house

rents were $430 in July 2016

(steady YoY), whilst apartment

rents were $425 per week (up

1.2% YoY).

A weighted average total

vacancy for Australian residential

property was last recorded at 2.9% in June 2016; trending

down 30 bps in the last quarter.

Knight Frank Residential Research

The Reserve Bank of Australia (RBA) left

the target cash rate unchanged at 1.50%

on 6 September 2016. The RBA

continues to support the supervisory

measures introduced by the Australian

Prudential Regulatory Authority (APRA)

encouraging tightened lending practices

for housing finance across the country.

These regulatory measures have resulted

in a lowered level of enquiry from both

local and foreign purchasers and slowed

the rate of annual capital growth across

the country.

In the year to July 2016, houses in

Melbourne saw not only the highest

annual growth in values of all Australian

capital cities (at 8.7%) but the greatest

change in sales volume at 18.6%. Other

housing markets experiencing a high

uptick in sales turnover over this time

include Adelaide (at 12.3%), Brisbane (at

9.4%) and Canberra (at 6.4%). While

capital growth was strongest for housing

markets in Hobart (at 6.6%) and

Canberra (at 4.7%) as shown in Figure 2.

Annual growth for apartment capital

values and sales volume has eased in

July 2016. As new projects come to

market, there has been a lull in enquiry as

housing finance options are reassessed.

Apartments in Sydney continued to see

the most growth in this time at 5.0%

followed by Brisbane at 3.9%.

National Key Economic Indicators

Capital Growth, Australian Capital

Cities, Houses & Apartments Annual % change to July 2016

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Dec-1

5

Mar-

16

Jun-1

6

Jan-1

6

Ap

r-16

Jul-

16

Mar-

16

Jun-1

6

Sep

-16

Jan-1

6

Ap

r-16

Jul-

16

Jan-1

6

Ap

r-16

Jul-

16

GROSS DOMESTIC

PRODUCT

UNEMPLOYMENT RATE CASH RATE TARGET QUARTERLY GROWTH

OF INVESTOR HOUSING

FINANCE, BY VALUE

QUARTERLY GROWTH

OF OWNER OCCUPIER

HOUSING FINANCE,

BY VALUE

(excl. refinancing)

CAN (H)

ADE (H)

BRI (H)

DAR (H)

HOB (H)

MEL (H)

PER (H)

SYD (H)

CAN (A)

ADE (A)

BRI (A)

DAR (A)

HOB (A)

MEL (A)

PER (A)

SYD (A)

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

HOUSES (H)

APARTMENTS (A)

http://www.knightfrank.com.au



3

RESEARCH AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016

Looking at the capital cities compared to

key regional centres around Australia,

those on the periphery of the Greater

Sydney area have continued to

outperform as shown in Figure 3.

Throughout the second quarter of 2016,

houses located on the Central Coast saw

capital growth of 3.6% while Wollongong

was close behind at 3.3%. Given the

heated Sydney market for the past two

years, it’s understandable that buyers are

looking for alternative options with a

lower entry point especially when both

regions are still within a commuting

distance to Sydney.

The top performer for the housing market

over Q2 2016 was the NSW South Coast

(at 4.9%) with Surfers Paradise (at 3.2%)

and Newcastle (at 2.8%). These regions

are still desirable for second homes and

future retirement destinations by baby

boomers who are now coming into

retirement age.

Knight Frank’s Global House Price Index

released for Q2 2016 saw global growth

of 4% for the mainstream national

housing markets. Australia was ranked in

16th place with annual growth of 6.8% as

shown in Figure 4. Australia has dropped

from 7th position in Q2 2014 (when

annual growth was recorded at 10.1%).

Knight Frank Global House Price Index Ranked by annual % change to Q2 2016

Capital Growth, Australian Key Regional Centres, Houses & Apartments Ranked by quarterly % change to Q2 2016

**Provisional ***Asking prices ****Island-wide price index for non-landed private properties. Data for Australia, Austria, Belgium, Bulgaria, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Hungary, India,

Israel, Italy, Lithuania, Luxembourg, Morocco, New Zealand, Romania, Slovenia and Spain to Q1 2016; Data for Malaysia to Q4 2015; Data for Chile to Q3 2015

-10%

-5%

0%

5%

10%

15%

Turk

ey

New

Zeala

nd

Canad

a

Chile

**S

wed

en

***M

alta

Austr

ia

Icela

nd

Mexic

o

Germ

any

Isra

el

Mala

ysia

Jers

ey

Lithuania

Co

lom

bia

Austr

alia

Irela

nd

Luxem

bo

urg

Latv

ia

Chin

a

No

rway

Ind

ia

Hung

ary

United

Kin

gd

om

United

Sta

tes

So

uth

Afr

ica

Slo

vakia

Neth

erland

s

Bulg

aria

***C

zech R

ep

ub

lic

Glo

bal

Denm

ark

Belg

ium

Po

rtug

al

Ind

onesia

Ro

mania

So

uth

Ko

rea

Russia

Sp

ain

Esto

nia

Fin

land

Sw

itzerland

Slo

venia

Fra

nce

Cro

atia

Po

land

Jap

an

Bra

zil

Italy

Cyp

rus

****

Sin

gap

ore

Gre

ece

Mo

rocco

**H

ong

Ko

ng

Ukra

ine

Taiw

an

Au

str

alia

Glo

ba

l

http://www.knightfrank.com.au/research/global-house-price-index-q2-2016-4055.aspx

4

Market Trends The value of housing finance

commitments in New South Wales in

the three months to July 2016 grew by

11.4% on the previous year, to $22.0

billion.

Building approvals in the three months

to July totalled 4,584 houses and

10,729 apartments in Greater Sydney.

This is trending 1.3% lower for houses

and 2.2% lower for apartment

approvals compared to the same

period in 2015.

The preliminary auction clearance rate

for the week ending 4 September was

83.9% out of 578 scheduled auctions

in Greater Sydney. This is higher than

the week prior, at 78.5% from 788

scheduled auctions, and also higher

than the comparable week a year

earlier, when 78.1% (out of 1,080

auctions) were sold.

Sales transacted in the year to July

tallied 47,979 houses (up 2.8% on

previous year) and 46,662 apartments

(up 1.9% on prior year).

House values declined 1.4% in the

month of July (rising 3.9% over the

last year) to a median of $1,057,500.

Apartment values fell 0.1% over the

same month (rising 5.0% over the

year) to record a median of $703,500.

Over the year to July, rental growth fell

5.1% for houses and 0.9% for

apartments. Weekly median rents are

currently achieving $645 for houses

and $555 for apartments.

Greater Sydney total vacancy was last

recorded at 1.9% in July 2016; with

similar results in the inner ring (0-

10km), the middle ring (10-25km) and

outer ring (25km+).

In July 2016, gross rental yields

across Greater Sydney compressed

31 bps (to 3.18%) for houses and 21

bps (to 4.14%) for apartments

compared to the previous year.

Capital Growth, Greater Sydney 12-month rolling

Median Rents & Total Vacancy

Greater Sydney Weekly Rents & Monthly Vacancy

Gross State Product in New

South Wales was recorded at

$506,918 million in the year to

June 2015; 2.4% greater than the prior year.

Unemployment as at July 2016

stood at 4.0% for Greater

Sydney (SA4), trending 176 bps

lower than the 5.8% recorded in

July 2015.

Population in Greater Sydney

was estimated at 4.9 million

persons in 2015. Greater

Sydney experienced population

growth of 1.7% in the year to

June 2015.

Key Residential Indicators, July 2016

Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Sydney 1,057,500 1.1 3.9 47,979 645 3.18 Houses -1.4

Sydney 703,500 1.2 5.0 46,662 555 4.14 Apartments -0.1

0%

5%

10%

15%

20%

25%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$400

$450

$500

$550

$600

$650

$700

$750

$800

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS VACANCY




5

RESEARCH


commitments in Victoria in the three

months to July 2016 grew by 14.8%

on the previous year, to $16.8 billion.



8,248 apartments in Greater

Melbourne. This is trending 12.5%

higher for houses but 2.8% lower for

apartment approvals compared to the

same period in 2015.



79.3% out of 748 scheduled auctions

in Greater Melbourne. This is higher

than the week prior, at 77.4% from

1,060 scheduled auctions, and also

higher than the comparable week the

year earlier, when 77% (out of 1,158

scheduled auctions) were sold.




(up 3.8% on the prior year).

House values declined by 0.1% in the

month of July (growth of 8.7% over

the last year) to a median of $742,500,

while apartment values fell 1.5% over

the month (growth of 2.8% over the

year) to record a median of $499,000.

Over the year to July, rental growth

fell by 1.1% for houses but rose 2.5%

for apartments. Weekly median rents

are currently achieving $450 for

houses and $415 for apartments.

Six-month average total vacancy

trend was recorded at 2.6% in July

2016 for Greater Melbourne; with

2.3% in the inner ring (0-10km), 3.2%

in the middle ring (10-20km) and 2.5%

in the outer ring (20km+).


across Greater Melbourne

compressed 30 bps (to 3.18%) for

houses and 3 bps (to 4.33%) for

apartments compared to the previous

year.


Greater Melbourne Weekly Rents & Monthly Vacancy

Gross State Product in Victoria was recorded at $355,580

million in the year to June 2015;

2.5% greater than the prior year.



Melbourne (SA4), trending 134

bps lower than the 6.7%

recorded in July 2015.

Population in Greater

Melbourne was estimated at 4.5

million persons in 2015. Greater

Melbourne experienced

population growth of 2.1% in

the year to June 2015.


Greater Region Type

Median

Capital Value

($)

Capital

Growth

Last Month

(%)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Melbourne Houses 742,500 -0.1 1.2 8.7 57,417 450 3.18

Melbourne Apartments 499,000 -1.5 2.5 2.8 40,878 415 4.33

AUSTRALIAN RESIDENTIAL REVIEW SEPTEMBER 2016

Capital Growth, Greater Melbourne 12-month rolling

0%

2%

4%

6%

8%

10%

12%

14%

16%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

$360

$380

$400

$420

$440

$460

$480

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16





6


commitments in Queensland in the

three months to July 2016 grew by


billion.



3,631 apartments in Greater Brisbane.

This is trending 6.5% higher for

houses but 34.7% lower for apartment

approvals compared to the same

period in 2015.



58.4% out of 77 scheduled auctions in

Greater Brisbane. This is higher than


scheduled auctions, and also higher

than the comparable week the year

earlier, when 58.2% (out of 158

scheduled auctions) were sold.





House values declined 1.5% in the

month of July (with growth of 2.9%

over the last year) to a median of

$501,500 while apartment values rose

0.4% over the month (with growth of

3.9% over the year) to record a

median of $388,000.


grew by 1.1% for houses and rose

1.3% for apartments. Weekly median

rents are currently achieving $455 for


Total vacancy was last recorded at

2.8% in June 2016 for Greater

Brisbane; with 3.4% for the inner ring

(0-5km) and 2.3% for the middle-outer

ring (5-20km).

In July 2016, gross rental yields across

Greater Brisbane compressed 12 bps

(to 4.73%) for houses and 12 bps (to

5.20%) for apartments compared to

the previous year.


Greater Brisbane Weekly Rents & Quarterly Vacancy

Gross State Product in

Queensland was recorded at $300,270 million in the year to

June 2015; 0.5% greater than

the prior year.



Brisbane (SA4), trending 106



Population in Greater Brisbane



Brisbane experienced




Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Brisbane 501,500 0.5 2.9 44,027 455 4.73 Houses -1.5

Brisbane 388,000 1.3 3.9 21,091 385 5.20 Apartments 0.4

Capital Growth, Greater Brisbane 12-month rolling

0%

1%

2%

3%

4%

5%

6%

7%

8%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

$300

$320

$340

$360

$380

$400

$420

$440

$460

$480

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16





7

RESEARCH


commitments in Western Australia in

the three months to July 2016 fell by


billion.



1,429 apartments in Greater Perth.

This is trending 32.8% lower for

houses and 36.7% lower for

apartment approvals compared to the

same period in 2015.




Greater Perth. This is lower than the

week prior, at 34.8% from 29

scheduled auctions, and lower than

the comparable week the year earlier,

when 66.7% were sold. Sales transacted in the year to July

tallied 22,902 houses (down 9.3% on


(down 10.4% on prior year).

House values were recorded at a

median of $502,500, falling 0.8% in

the month of July and 3.4% over the

last year. Apartment values fell 0.9%

over the month, down 6.3% over the

year, to record a median of $424,000.


was down 5.7% for houses and 4.9%


are currently $415 for houses and

$385 for apartments.

Across the Greater Perth area, total

vacancy was recorded at 6.0% in

June 2016; remaining stable over the

past six months.


across Greater Perth compressed 15

bps (to 4.29%) for houses but was up

5 bps (to 4.72%) for apartments



Greater Perth Weekly Rents & Quarterly Vacancy


Western Australia was recorded at $276,312 million in the year to


the prior year.


stood at 7.3% for Greater Perth

(SA4), trending 77 bps higher

than the 6.6% recorded in July

2015.

Population in Greater Perth was

estimated at 2.0 million persons

in 2015. Greater Perth

experienced population growth

of 1.6% in the year to June

2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Perth 502,500 -1.9 -3.4 22,902 415 4.29 Houses -0.8

Perth 424,000 -2.0 -6.3 10,008 385 4.72 Apartments -0.9


Capital Growth, Greater Perth 12-month rolling

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

$300

$350

$400

$450

$500

$550

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16


-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS




8


commitments in South Australia in the

three months to July 2016 grew by


billion.


to July totalled 1,640 houses and 965

apartments approved in Greater

Adelaide. This is trending 11.6%

higher for houses and 52.0% higher

for apartment approvals compared to

the same period in 2015.




Greater Adelaide. This is greater than


scheduled auctions, and higher than

the comparable week the year earlier,

when 64.8% (out of 100 scheduled

auctions) were sold.





House values were up 0.3% in the

month of July (rising by 3.9% over the

last year) to a median of $444,000.

Apartments rose 2.4% in the month

(up 2.9% over the year) to record a

median of $324,000.


rose 1.3% for houses and 1.6% for





across Greater Adelaide compressed

11 bps (to 4.45%) for houses and 8

bp (to 5.01%) for apartments


Median Rents, Greater Adelaide

Weekly Rents

Gross State Product in South

Australia was recorded at $98,539 million in the year to


the prior year.



Adelaide (SA4), trending 103



Population in Greater Adelaide



Adelaide experienced




Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Adelaide 444,000 0.5 3.9 21,552 380 4.45 Houses 0.3

Adelaide 324,000 2.2 2.9 5,389 310 5.01 Apartments 2.4

Capital Growth, Greater Adelaide 12-month rolling

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

$250

$270

$290

$310

$330

$350

$370

$390

$410

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS




9

RESEARCH


commitments in the Australian Capital

Territory (ACT) in the three months to

July 2016 grew by 19.9% on the

previous year, to $1.2 billion.


to July totalled 420 houses and 1,011

apartments in the ACT. This is

trending 34.2% higher for houses and

19.9% higher for apartment approvals

compared to the same period in 2015.



78% out of 76 scheduled auctions in

Canberra. This is higher than the week

prior, at 71.4% from 61 scheduled

auctions, and higher than the

comparable week the year earlier,

when 61.9% were sold.


tallied 4,726 houses (up 6.4% on previous year) and 3,168 apartments


House values fell 0.6% in the month of

July (with growth of 4.7% over the last

year) to a median of $584,500.

Apartment values fell 1.5% over the

month (down 0.7% over the year) to

record a median of $401,000.


grew by 2.0% for houses and 1.2% for




Total vacancy in Canberra was last

recorded at 1.8% in March 2016;

down 100 bps on the previous quarter

and 150 bps lower compared to the

prior year.

In July 2016, gross rental yields across

Canberra compressed 12 bps (to

4.57%) for houses and grew by 21 bps

(to 5.36%) for apartments compared

to the previous year.


Canberra Weekly Rents & Quarterly Vacancy

Gross State Product in the

ACT was recorded at $34,866

million in the year to June 2015;

1.4% greater than the prior year.


stood at 2.8% for the ACT,

trending 77 bps lower than the

3.6% recorded in July 2015.

Population in the ACT was

estimated at 391,000 persons in

2015. The ACT experienced




Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Canberra 584,500 1.8 4.7 4,726 510 4.57 Houses -0.6

Canberra 401,000 -0.7 -2.0 3,168 410 5.36 Apartments -1.5


Capital Growth, Canberra 12-month rolling

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

$350

$375

$400

$425

$450

$475

$500

$525

$550

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16





10


commitments in Tasmania in the three

months to July 2016 grew by 15.7%

on the previous year, to $697.2 million.


to July totalled 203 houses and 36

apartments in Greater Hobart. This is

trending 20.7% lower for houses and

5.3% lower for apartment approvals





Greater Hobart. This was lower than

the previous week when 66.7% of 3

scheduled auctioned were sold.



previous year) and 950 apartments


House values fell 0.6% in the month

of July (rising 6.6% over the last year)

to a median of $388,000. Apartments

fell 1.6% over the month (down 4.8%

over the year) to record a median of

$269,500.


rose 8.6% for houses but fell 1.7% for




Greater Hobart total vacancy was last



and down 20 bps compared to the

prior year.


across Greater Hobart compressed 10

bp for houses (to 5.09%) and rose 17

bps for apartments (to 5.68%)



Greater Hobart Weekly Rents & Quarterly Vacancy


Tasmania was recorded at $25,419 million in the year to


the prior year.



Hobart (SA4), trending 32 bps

higher than the 5.7% recorded

in July 2015.

Population in Greater Hobart

was estimated at 221,000

persons in 2015. Greater Hobart



2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Hobart 388,000 1.0 6.6 2,762 380 5.09 Houses -0.6

Hobart 269,500 -4.6 -4.8 950 295 5.68 Apartments -1.6

Capital Growth, Greater Hobart 12-month rolling

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

$200

$250

$300

$350

$400

$450

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16





11

RESEARCH


commitments in the Northern Territory

in the three months to July 2016 fell by


million.


to July totalled 154 houses and 203

apartments in Greater Darwin. This is

trending 41.2% lower for houses and

1.9% lower for apartment approvals





Greater Darwin. This was lower than

the previous week when 64% of 13

scheduled auctioned were sold.



previous year) and 491 apartments

(also down 10.6% on prior year).

House values fell 1.3% in the month

of July (down 6.2% over the last year)

to a median of $526,500. Apartments

remained steady over the month

(down 5.7% over the year) to record a

median of $381,500.


was down 6.9% for houses and 5.6%


are currently achieving $540 for


Greater Darwin total vacancy was last



however 230 bps higher compared to

the prior year.


across Greater Darwin compressed 5

bps (to 5.35%) for houses and 2 bps

(to 5.82%) for apartments compared

to the previous year.


Greater Darwin Weekly Rents & Quarterly Vacancy

Gross State Product in the

Northern Territory was recorded at $22,450 million in the year to


the prior year.

Unemployment stood at 3.8%

in Greater Darwin as at July

2016, trending 20 bps lower

than the 4.0% recorded in July

2015.

Population in Greater Darwin

was estimated at 142,000

persons in 2015. Greater Darwin



2015.


Greater Region

Median

Capital Value

($)

Capital

Growth

Last Quarter

(%)

Capital

Growth

Last Year

(%)

Sales

Volume

Last Year

(no.)

Median

Weekly Rent

($)

Gross

Rental Yield

(% p.a)

Type

Capital

Growth

Last Month

(%)

Darwin 526,500 -1.6 -6.2 1,069 540 5.35 Houses -1.3

Darwin 381,500 0.5 -5.7 491 425 5.82 Apartments 0.0


Capital Growth, Greater Darwin 12-month rolling

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16

HOUSES APARTMENTS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

$300

$350

$400

$450

$500

$550

$600

$650

Jul-

14

Oct-

14

Jan-1

5

Ap

r-15

Jul-

15

Oct-

15

Jan-1

6

Ap

r-16

Jul-

16





Knight Frank Research provides strategic

advice, consultancy services and forecasting

to a wide range of clients worldwide

including developers, investors, funding

organisations, corporate institutions and the

public sector. All our clients recognise the

need for expert independent advice

customised to their specific needs.

First Home Buyer

Incentives Guide

September 2016

Taxing Foreign

Investors in Australia

July 2016

The Wealth Report

2016

Knight Frank Research Reports are available at KnightFrank.com.au/Research

Global House Price

Index

Q2 2016

Important Notice

© Knight Frank Australia Pty Ltd 2016 – This report is published for general information only and not

to be relied upon in any way. Although high standards have been used in the preparation of the

information, analysis, views and projections presented in this report, no responsibility or liability

whatsoever can be accepted by Knight Frank Australia Pty Ltd for any loss or damage resultant from

any use of, reliance on or reference to the contents of this document. As a general report, this material

does not necessarily represent the view of Knight Frank Australia Pty Ltd in relation to particular

properties or projects. Reproduction of this report in whole or in part is not allowed without prior

written approval of Knight Frank Australia Pty Ltd to the form and content within which it appears.

RESIDENTIAL RESEARCH

Michelle Ciesielski

Director

+61 2 9036 6659

[email protected]

Matt Whitby

Group Director

Head of Research and Consultancy

+61 2 9036 6616

[email protected] RESIDENTIAL AND

PROJECT MARKETING

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Head of Project Marketing, Australia

+61 3 9604 4775

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Head of Residential, Perth (WA)

+61 8 6210 0112

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RESIDENTIAL RESEARCH...property was last recorded at 2.9% in June 2016; trending down 30 bps in the last quarter. Knight Frank Residential Research The Reserve Bank of Australia (RBA)