Core logic october 2018 property and economic overview

Our Insights.
Your Story.
Property market chart pack
October 2018

Our Insights. Your Story. © 2018 RP Data Pty Ltd t/as CoreLogic Asia Pacific. All rights reserved. Confidential. 2
Residential Real Estate Underpins Australia’s Wealth
As at the end of September 2018
Residential Real Estate
$7.6 Trillion
Australian Superannuation
$2.7 Trillion
Australian Listed Stocks
$1.5 Trillion
Commercial Real Estate
$1.0 Trillion
10.1 million
Number of
dwellings
$1.78 trillion
Outstanding
mortgage
debt
453,316
Total sales
p.a.
$278.7 billion
Gross value of
sales p.a.
54.7%
Household
wealth held in
housing
Source: CoreLogic, APRA, RBA, ASX

© 2018 RP Data Pty Ltd t/as CoreLogic Asia Pacific. All rights reserved. Confidential.Our Insights. Your Story.
The quarterly rate of decline in dwelling values accelerated
over the September quarter
3
Source: CoreLogic
Quarterly change in dwelling values Quarterly change in dwelling values to Sep-18

Sydney has recorded the largest annual fall in dwelling
values, down 6.1% over the past twelve months
4
Source: CoreLogic
Annual change in dwelling values Annual change in dwelling values to Sep-18

Premium dwelling values continue to record much larger
value declines than those for more affordable housing
5
Source: CoreLogic
Quarterly and annual change in dwelling values by deciles,
National as at September 2018
Annual change in dwelling values by decile,
Sep-18

Sydney dwelling
values have fallen
by -1.5% over the 3
months to
September 2018
and they are
-6.1% lower over the
past year with
house values -7.6%
lower and unit
values down -2.6%.
6
Source: CoreLogic
Annual change in dwelling values
Sydney
Combined
capitals

Melbourne
Combined
capitals
Dwelling values
have fallen by -2.4%
over the three
months to
September 2018 in
Melbourne. Over
the past year,
dwelling values are
-3.4% lower and they
are now -4.4% lower
than they were at
their peak in
November 2017.
7
Source: CoreLogic

BrisbaneCombined
capitals
Brisbane home
values increased by
0.1% over the three
months to
September 2018
and they were 0.8%
higher over the past
year. Over the past
year, house values
have increased by
0.8% while unit
values have
increased 0.7%.
8
Source: CoreLogic

AdelaideCombined
capitals
Dwelling values in
Adelaide were flat
over the three
months to
September 2018
and they are 0.7%
year. Adelaide
house values were
0.6% higher over the
past year while unit
values were 1.2%
higher.
9
Source: CoreLogic

Perth
Combined
capitals
Perth dwelling
values fell by -2.0%
over the three
months to
September 2018
and they are
past year. Dwelling
values in Perth are
now -13.2% lower
than they were at
their peak in June
2014.
10
Source: CoreLogic

Hobart
Combined
capitals
Dwelling values in
Hobart rose 0.3%
over the 3 months to
September 2018
and are 9.3% higher
over the past year.
Values remain at a
historic high, but
have edged lower
over two of the past
three months.
11
Source: CoreLogic

Combined
capitals
Darwin dwelling
values edged 0.1%
higher over the
three months to
September 2018
and they are
past year. Dwelling
values in Darwin are
currently -22.1%
lower than their
historic peak.
12
Source: CoreLogic
Darwin

Canberra
Combined
capitals
Dwelling values in
Canberra increased
by 1.0% over the
three months to
September 2018
and they are 2.0%
year. House values
have increased by
3.1% over the year
while unit values are
-1.4% lower.
13
Source: CoreLogic

© 2018 RP Data Pty Ltd t/as CoreLogic Asia Pacific. All rights reserved. Confidential.Our Insights. Your Story. 14
The number of settled sales has reduced by 10% year on
year nationally, with the largest declines recorded across
Sydney and Melbourne
Source: CoreLogic
Number of settled sales, combined capitals Year on year change in annual sales
Note the sales volumes are modelled based on historic levels of revision however, they are still subject to revision. Furthermore, sales volumes do not
account for off-the-plan purchases which upon completion are counted as sales at their contract date.

Rental growth across the combined capital cities is slowing
rapidly largely due to falls in Sydney and slowing in Melbourne
Source: CoreLogic
Annual change in dwelling rents Annual change in dwelling rents to Sep-18

With capital city dwelling values falling as rents continue to
rise, gross rental yields are gradually recovering from recent
record lows
Source: CoreLogic
Gross rental yields Gross rental yields as at Sep-18

As advertised stock levels rise and buyer numbers reduce,
homes are taking longer to sell and vendors are applying
larger discounts in order to make a sale
Source: CoreLogic
Average days on market, Combined capitalsAverage rate of vendor discounting, Combined capitals

Far fewer new properties are being advertised for sale than
a year ago however, in the capital cities, a slower rate of
sale means total listings are much higher than last year
Source: CoreLogic
Number of new and total properties advertised for sale, 28 days to 30 September 2018
Capital city
No of new
listings
12 mth
change (%)
No of total
listings
12 mth
change (%)
Sydney 6,883 -6.3% 28,541 22.2%
Melbourne 7,525 -3.0% 32,961 16.7%
Brisbane 4,358 2.4% 20,143 0.8%
Adelaide 1,866 -10.9% 7,776 -4.9%
Perth 3,242 -9.7% 19,835 0.7%
Hobart 394 12.3% 1,022 -9.1%
Darwin 182 13.8% 1,453 -8.8%
Canberra 665 17.7% 2,098 14.6%
Combined capitals 25,115 -3.8% 113,829 9.5%
State
No of new
listings
12 mth
change (%)
No of total
listings
12 mth
change (%)
NSW 11,745 -3.8% 51,773 11.6%
Vic 10,672 0.7% 49,238 2.4%
Qld 10,201 4.9% 62,472 -1.8%
SA 2,745 -5.9% 16,616 -5.8%
WA 4,503 -8.4% 32,754 -0.6%
Tas 992 5.3% 4,495 -21.1%
NT 241 7.1% 2,069 -6.3%
ACT 689 18.2% 2,191 15.8%
National 41,788 -0.8% 221,608 1.5%

Auction clearance rates have steadied over recent weeks
but they remain well below levels from a year ago
Source: CoreLogic

Housing demand: migration to Australia remains high,
however the trend in population growth is slowing
Source: CoreLogic, ABS
Quarterly change in national population
Net overseas migration Natural increase Annual change in population
Rolling 4 qtr average

Both house and unit approvals are trending lower however,
they remain well above historic average levels
Number of dwellings approved for construction, National
Rolling 6 mth average

Mortgage demand is trending lower due primarily to a
substantial reduction in investment lending
Value of housing finance commitments by borrower type

Source: CoreLogic, APRA, RBA
Previous housing cycles have generally been influenced by
changes in interest rates, the current slowdown has been
heavily influenced by changes in credit availability

Mortgage rates edged higher in September, with the
average discounted rate for owner occupiers rising from
4.50% to 4.55%
Source: CoreLogic, RBA

Disclaimer
25
In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or
completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body
corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it
may have to the amount paid to CoreLogic for the supply of such information.
Queensland Data
Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) 2018. In consideration of the State permitting use of this data you acknowledge and
agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in
negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws.
South Australian Data
This information is based on data supplied by the South Australian Government and is published by permission. The South Australian Government does not accept any responsibility for the
accuracy or completeness of the published information or suitability for any purpose of the published information or the underlying data.
New South Wales Data
Contains property sales information provided under licence from the Land and Property Information (“LPI”). CoreLogic is authorised as a Property Sales Information provider by the LPI.
Victorian Data
The State of Victoria owns the copyright in the Property Sales Data which constitutes the basis of this report and reproduction of that data in any way without the consent of the State of Victoria will
constitute a breach of the Copyright Act 1968 (Cth). The State of Victoria does not warrant the accuracy or completeness of the information contained in this report and any person using or relying
upon such information does so on the basis that the State of Victoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied.
Western Australian Data
Based on information provided by and with the permission of the Western Australian Land Information Authority (2018) trading as Landgate.
Australian Capital Territory Data
The Territory Data is the property of the Australian Capital Territory. No part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be
reproduced, stored in a retrieval system or transmitted without prior written permission. Enquiries should be directed to: Director, Customer Services ACT Planning and Land Authority GPO Box
1908 Canberra ACT 2601.
Tasmanian Data
This product incorporates data that is copyright owned by the Crown in Right of Tasmania. The data has been used in the product with the permission of the Crown in Right of Tasmania. The
Crown in Right of Tasmania and its employees and agents:
a) give no warranty regarding the data's accuracy, completeness, currency or suitability for any particular purpose; and
b) do not accept liability howsoever arising, including but not limited to negligence for any loss resulting from the use of or reliance upon the data.
Base data from the LIST © State of Tasmania http://www.thelist.tas.gov.au

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Core logic october 2018 property and economic overview

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