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RESIDENTIAL RESEARCH
A REVIEW OF KEY RESIDENTIAL INDICATORS ACROSS MAJOR AUSTRALIAN CITIES
2
Economic growth was recorded
at 3.1% annual growth in March
2018. Unemployment across
Australia was 5.4% in the June
2018 quarter. The official cash
rate target remained unchanged
at 1.50% on 8 August 2018. In
June 2018 housing finance
annual growth fell 0.4%. Annual
growth for residential building
approvals was up 3.6% in June
2018.
Australian house values were
down 1.0% in the year ending
June 2018 (falling 1.0% in the
last quarter) to $802,000.
Apartment values were down
2.2% over the year ending June
2018 (falling 0.4% in the last
quarter) to $554,500 (excl.
Greater Darwin).
In the year ending June 2018, the
volume of house sales across
Australia fell 8.1% to 317,907;
whilst 96,094 apartment sales
were recorded (falling by 14.2%).
Gross rental yields for
Australian houses were stable in
Q2 2018 averaging 4.20%; whilst
apartments were down 10 bps to
average 4.30%.
Australian house rents rose
1.3% to $400 per week in the
year ending June 2018; whilst
apartment rents rose 5.0% to
$420 per week.
The weighted average total
residential vacancy for
Australian capital cities was last
recorded at 2.6% in March 2018;
down 30 bps over the year.
Knight Frank Residential Research
National Key Economic Indicators
Australian cities remain some of the most
liveable in the world according to The
Economist Intelligence Unit’s Global
Liveability Index in 2018. Four of
Australia’s capital cities ranked in the top
12 out the 140 cities.
The index saw Melbourne rank the
highest in Australia in 2nd place,
performing 0.9 points better (at 98.4) than
in 2017, despite being d isplaced by
Vienna after seven consecut ive years in
the top spot. Sydney moved up to 5th
place, from 11th, with a score of 97.4.
Adelaide (10th place) and Perth (12th)
saw their score remain the same,
although this year many global cities
have seen improvements in their ranking
due to increas ing stability. Brisbane’s
score was slightly elevated at 94.3;
ranking in 22nd position.
For house and apartment price growth,
Hobart continued to be the best
performing capital city, followed by
houses in Canberra and Adelaide. With
an established risk-adverse lending
environment, overall capital values fell
this quarter in Australia. This was
dominated by the cooling Sydney and
Melbourne markets, following doub le-
digit growth in recent years. Given both
cities have strong economies and
significant populat ion growth, it’s likely
by the end of 2019, most new stock will
be absorbed and price growth will return.
Annual Capital Growth & Gross
Rental Yield & Median Capital Value Greater Capital Cities, Gold Coast LGA & Australia
(excl . Greater Darwin), as at 30 June 2018
AU (102)
SYD (64)
MEL (50)
BNE (77)
PER (115)
ADE (95)
CAN (58)
HOB (53)
DAR (137)
GC (82)
AU (101)SYD (66)
MEL (77)
BNE (124)
PER (135)ADE (121)
CAN (86)
HOB (37)
DAR (262)
GC (100)
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
2.50% 3.50% 4.50% 5.50% 6.50%
APARTMENTS
HOUSES
(X) AVE DAYS ON MARKET
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Mar-
17
Sep
-17
Mar-
18
Jun-1
7
Dec-1
7
Jun-1
8
Aug
-17
Feb
-18
Aug
-18
Jun-1
7
Dec-1
7
Jun-1
8
Jun-1
7
Dec-1
7
Jun-1
8
GROSS DOMESTIC
PRODUCT,
ANNUAL GROWTH
UNEMPLOYMENT RATE CASH RATE TARGET HOUSING FINANCE,
ANNUAL GROWTH,
BY VALUE
(excl. refinancing)
TOTAL BUILDING
APPROVALS ANNUAL
GROWTH
(houses & apartments)
3
RESEARCH
Market Trends in Greater Sydney Over the year ending June 2018, capital
growth decreased 4.5% for houses;
falling 1.4% over the past quarter to a
median value of $1,144,000. Apartment
values fell 3.5% over the past year,
decreasing 0.5% in the last quarter to a
median of $737,000.
The volume of sales tallied 44,818
houses (down 11.8%) and 27,707
apartments (down 20.4%) in the year
ending June 2018.
The average days on market for houses
stood at 64 days in the June 2018
quarter. For apartments this was 66 days.
A year earlier, this comparable period
was recorded at 46 days and 54 days,
respectively.
The auction clearance rate for the week
ending 12 August 2018 was 67.6% out of
798 scheduled auctions. This was higher
than the week prior, at 51.9% from 462
scheduled auctions, but lower than the
comparable week a year ear lier when
71.0% (out of 782 auctions) were sold.
Gross rental yields remained steady at
3.10% for houses, but rose 10 bps to
3.90% for apartments over the June
2018 quarter.
Rents remained steady for both houses
and apartments over the year ending
June 2018. Weekly median rents stood at
$550 for both houses and apartments.
Total vacancy was 2.7% as at June
2018; recording 2.8% in the Inner
Suburbs (0-10km from the CBD), 3.0% in
the Middle Suburbs (10-25km) and 2.4%
in the Outer Suburbs (25km+).
Capital Growth, Greater Sydney % annual
Gross Rental Yield & Total Vacancy
Greater Sydney %
Population in Greater Sydney
was estimated at 5.1 million
persons in June 2017,
experiencing annual population
growth of 2.0%. The
population projection is
currently set at 1.4% per annum
until 2036.
Unemployment stood at 4.1%
in Greater Sydney as at June
2018, trending 30 bps lower
than recorded in June 2017.
Gross State Product in New
South Wales (NSW) was
recorded at $557,861 million in
2016/17; 2.9% greater than the
prior year.
The value of NSW housing
finance commitments rose by
4.4% in the year ending June
2018; up from –2.8% recorded
for the previous year.
Building approvals in the year
ending June 2018 totalled
18,330 houses and 35,944
apartments in Greater Sydney.
This was trending 1.7% higher
for houses but 9.1% lower for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Sydney Houses 1,144,000 -1.4 -4.5 44,818 3.10 550 64
Sydney Apartments 737,000 -0.5 -3.5 27,707 3.90 550 66
AUSTRALIAN RESIDENTIAL REVIEW Q3 2018
-10%
-5%
0%
5%
10%
15%
20%
25%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
4
Market Trends in Greater Melbourne Over the year ending June 2018, capital
growth increased 0.5% for houses; but
fell 1.8% over the past quarter to a
median value of $882,000. Apartment
values rose 0.9% over the year, although
fell 0.6% in the past quarter to a median
of $496,000.
The volume of sales tallied 57,547
houses (down 11.0%) and 19,686
apartments (down 16.0%) in the year
ending June 2018.
The average days on market for houses
stood at 50 days in the June 2018
quarter. For apartments this was 77 days.
A year earlier, this comparable period
was recorded at 46 days and 85 days,
respectively.
The auction clearance rate for the week
ending 12 August 2018 was 69.9% out of
955 scheduled auctions. This was higher
than the week prior, at 57.0% from 629
scheduled auctions, but lower than the
comparable week a year ear lier when
72.0% (out of 948 auctions) were sold.
Gross rental yields remained steady at
3.10% for houses, but fell 20 bps to
4.30% for apartments over the June 2018
quarter.
Rents for houses increased 2.4% and
2.5% for apartments over the year ending
June 2018. Weekly median rents stood at
$430 for houses and $410 for
apartments.
Total vacancy was 1.9% as at June
2018; recording 1.8% in the Inner
Suburbs (0-10km from the CBD), 2.4% in
the Middle Suburbs (10-25km) and 1.6%
in the Outer Suburbs (25km+).
Capital Growth, Greater Melbourne % annual
Gross Rental Yield & Total Vacancy
Greater Melbourne %
Population in Greater
Melbourne was estimated at 4.8
million persons in June 2017,
experiencing annual population
growth of 2.7%. The
population projection is
currently set at 1.7% per annum
until 2036.
Unemployment stood at 5.4%
in Greater Melbourne as at June
2018, trending 60 bps lower
than recorded in June 2017.
Gross State Product in Victoria
was recorded at $399,009
million in 2016/17; 3.3% greater
than the prior year.
The value of Victorian housing
finance commitments rose by
12.7% in the year ending June
2018; up 1.2% recorded for the
previous year.
Building approvals in the year
ending June 2018 totalled
28,468 houses and 34,498
apartments in Greater
Melbourne. This was trending
7.6% higher for houses and
20.2% higher for apartment
approvals compared to a year
earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Melbourne Houses 882,000 -1.8 0.5 57,547 3.10 430 50
Melbourne Apartments 496,000 -0.6 0.9 19,686 4.30 410 77
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
5
RESEARCH AUSTRALIAN RESIDENTIAL REVIEW Q3 2018
103 scheduled auctions. This was higher
than the week prior, at 36.1% from 115
scheduled auctions, and lower than the
comparable week a year ear lier when
54.0% (out of 156 auctions) were sold.
Gross rental yields fe ll 10 bps to 4.60%
for houses, and increased 20 bps to
5.10% for apartments over the June 2018
quarter.
Rents remained steady for houses and
apartments over the year ending June
2018. Weekly median rents stood at $400
for houses and $370 for apartments.
Total vacancy was 2.3% as at June
2018; recording 2.7% in the Inner
Suburbs (0-5km from the CBD), 2.1% in
the Middle Suburbs (5-20km) and 2.0%
in the Outer Suburbs (20km+).
Capital Growth, Greater Brisbane % annual
Gross Rental Yield & Total Vacancy
Greater Brisbane %
Population in Greater Brisbane
was estimated at 2.4 million
persons in June 2017,
experiencing annual population
growth of 2.0%. The
population projection is
currently set at 1.8% per annum
until 2036.
Unemployment stood at 6.2%
in Greater Brisbane as at June
2018, trending 40 bps lower
than recorded in June 2017.
Gross State Product in
Queensland was recorded at
$308,709 million in 2016/17;
1.8% greater than the prior year.
The value of Queensland
housing finance commitments
rose by 0.4% in the year ending
June 2018; up from 3.9%
recorded for the previous year.
Building approvals in the year
ending June 2018 totalled 4,715
houses and 10,620 apartments
in Greater Brisbane. This was
trending 20.4% higher for
houses but 15.5% lower for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Brisbane Houses 566,500 -0.1 2.0 32,469 4.60 400 77
Brisbane Apartments 379,000 -1.2 -6.4 11,013 5.10 370 124
Market Trends in Greater Brisbane Over the year ending June 2018, capital
growth increased 2.0% for houses;
although falling 0.1% over the past
quarter to a median value of $566,500.
Apartment values fell 6.4% over the year,
decreasing 1.2% in the past quarter to a
median of $379,000.
The volume of sales tallied 32,469
houses (down 16.1%) and 11,013
apartments (down 24.4%) in the year
ending June 2018.
The average days on market for houses
stood at 77 days in the June 2018
quarter. For apartments this was 124
days. A year earlier, this comparable
period was recorded at a similar 73 days
and 123 days, respectively.
The auction clearance rate for the week
ending 12 August 2018 was 43.8% out of
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
6
The auction clearance rate for the week
ending 12 August 2018 was 39.1% out of
35 scheduled auctions. This was lower
than the week prior, at 50.0% from 13
scheduled auctions, and lower than the
comparable week a year ear lier when
40.0% (out of 32 auctions) were sold.
Gross rental yields were steady at
4.30% for houses, and up 10 bps to
4.60% for apartments over the June 2018
quarter.
Rents decreased 2.8% for houses but
remained steady for apartments over the
year ending June 2018. Weekly med ian
rents stood at $350 for houses and $300
for apartments.
Total vacancy was 5.0% as at June
2018; down from 7.3% one year earlier.
Capital Growth, Greater Perth % annual
Gross Rental Yield & Total Vacancy
Greater Perth %
Population in Greater Perth was
estimated at 2.1 million persons
in June 2017, experiencing
annual population growth of
1.0%. The population
projection is currently set at
2.5% per annum until 2036.
Unemployment stood at 6.0%
in Greater Perth as at June
2018, trending 40 bps higher
than recorded in June 2017.
Gross State Product in
Western Australia was recorded
at $233,152 million in 2016/17;
2.7% lower than the prior year.
The value of Western Australian
housing finance commitments
fell by 8.9% in the year ending
June 2018; improving on the
–10.2% recorded for the
previous year.
Building approvals in the year
ending June 2018 totalled
11,075 houses and 4,738
apartments in Greater Perth.
This was trending 10.7% lower
for houses and 9.3% lower for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Perth Houses 556,500 -0.4 -1.0 26,325 4.30 350 115
Perth Apartments 379,000 3.4 1.7 3,309 4.60 300 135
Market Trends in Greater Perth Over the year ending June 2018, capital
growth decreased 1.0% for houses
falling 0.4% over the past quarter to a
median value of $556,500. Over this
year, apartment values increased 1.7%,
rising 3.4% in the past quarter to a
median of $379,000.
The volume of sales tallied 26,325
houses (down 7.6%) and 3,309
apartments (down 6.0%) in the year
ending June 2018.
The average days on market for houses
stood at 115 days in the June 2018
quarter. For apartments this was 135
days. A year earlier, this comparable
period was recorded at 116 days and 143
days, respectively.
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
7
RESEARCH AUSTRALIAN RESIDENTIAL REVIEW Q3 2018
Market Trends in Gold Coast LGA Over the year ending June 2018, capital
growth increased 2.1% for houses; also
rising 0.8% over the past quarter to a
median value of $625,000.
Apartment values rose 1.7% over the
year, also rising 0.7% in the past quarter
to a median of $427,000.
The volume of sales tallied 9,569 houses
(falling by 17.4%) and 8,504 apartments
(down 17.2%) in the year ending June
2018.
The average days on market for houses
stood at 82 days in the June 2018
quarter. For apartments this was 100
days.
A year earlier, this comparable period
was recorded at 77 days and 100 days,
respectively.
Gross rental yields were down 10 bps to
4.80% for houses, but remained steady
at 5.80% for apartments over the June
2018 quarter.
Rents increased 6.4% for houses and
rose 4.9% for apartments over the year
ending June 2018. Weekly median rents
stood at $500 for houses and $430 for
apartments.
Total vacancy was 2.0% as at June
2018 up from 1.7% one year ear lier.
Capital Growth, Gold Coast LGA % annual
Gross Rental Yield & Total Vacancy
Gold Coast LGA %
Population in the Gold Coast
LGA was estimated at 576,900
persons in June 2017,
experiencing annual population
growth of 2.4%. The
population projection is
currently set at 2.2% per annum
until 2036.
Unemployment stood at 4.6%
for the Gold Coast LGA as at 31
March 2018, trending 70 bps
lower than recorded a year
earlier.
Gross State Product in
Queensland was recorded at
$308,709 million in 2016/17;
1.8% greater than the prior year.
The value of Queensland
housing finance commitments
rose by 0.4% in the year ending
June 2018; up from 3.9%
recorded for the previous year.
Building approvals in the year
ending July 2018 totalled 2,614
houses and 3,258 apartments in
the Gold Coast LGA.
Key Residential Indicators, 30 June 2018
LGA Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Gold Coast Houses 625,000 0.8 2.1 9,569 4.80 500 82
Gold Coast Apartments 427,000 0.7 1.7 8,504 5.80 430 100
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
8
Market Trends in Greater Adelaide Over the year ending June 2018, capital
growth increased 3.1% for houses;
although falling 0.5% over the past
quarter to a median value of $535,000.
Apartment values rose 0.9% over the
year, but fell 1.9% in the past quarter to a
median of $313,000.
The volume of sales tallied 19,618
houses (up 1.2%) and 4,209 apartments
(up 10.5%) in the year ending June 2018.
The average days on market for houses
stood at 95 days in the June 2018
quarter. For apartments this was 121
days. A year earlier, this comparable
period was recorded at 93 days and 125
days, respectively.
The auction clearance rate for the week
ending 12 August 2018 was 69.0% out of
88 scheduled auctions.
This was slightly higher than the week
prior, at 67.3% from 57 scheduled
auctions, but lower than the comparable
week a year earlier when 72.9% (out of
87 auctions) were sold.
Gross rental yields remained steady at
4.50% for houses, and 5.20% for
apartments over the June 2018 quarter.
Rents increased 4.2% for houses and
rose 3.4% for apartments over the year
ending June 2018. Weekly median rents
stood at $375 for houses and $300 for
apartments.
Capital Growth, Greater Adelaide % annual
Gross Rental Yield
Greater Adelaide %
Population in Greater Adelaide
was estimated at 1.3 million
persons in June 2017,
experiencing annual population
growth of 0.7%. The
population projection is
currently set at 1.0% per annum
until 2036.
Unemployment stood at 5.5%
in Greater Adelaide as at June
2018, trending 110 bps lower
than recorded in June 2017.
Gross State Product in South
Australia was recorded at
$101,791 million in 2016/17;
2.2% greater than the prior year.
The value of South Australian
housing finance commitments
fell by 2.6% in the year ending
June 2018; down from 3.3%
recorded for the previous year.
Building approvals in the year
ending June 2018 totalled 6,808
houses and 4,271 apartments in
Greater Adelaide. This was
trending 10.2% higher for
houses and 17.4% higher for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Adelaide Houses 535,000 -0.5 3.1 19,618 4.50 375 95
Adelaide Apartments 313,000 -1.9 0.9 4,209 5.20 300 121
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
9
RESEARCH AUSTRALIAN RESIDENTIAL REVIEW Q3 2018
Market Trends in Canberra Over the year ending June 2018, capital
growth increased 6.2% for houses; rising
3.2% over the past quarter to a median
value of $750,000. Apartment values fell
2.1% over the year, falling 1.2% in the
past quarter to a median of $415,500.
The volume of sales tallied 5,319 houses
(down 4.9%) and 3,905 apartments
(down 20.7%) in the year ending June
2018.
The average days on market for houses
stood at 58 days in the June 2018
quarter. For apartments this was 86 days.
A year earlier, this comparable period
was recorded at 53 days and 98 days,
respectively.
The auction clearance rate for the week
ending 12 August 2018 was 87.0% out of
56 scheduled auctions. This was higher
than the week prior, at 62.8% from 46
scheduled auctions, and the same as the
comparable week a year ear lier when
87.0% (out of 57 auctions) were sold.
Gross rental yields remained steady at
4.30% for houses, and 5.80% for
apartments over the June 2018 quarter.
Rents increased 10.0% for houses and
rose 7.1% for apartments over the year
ending June 2018. Weekly median rents
stood at $550 for houses and $450 for
apartments.
Total vacancy was 0.5% as at March
2018; falling from 1.7% one year ear lier.
Capital Growth, Canberra % annual
Gross Rental Yield & Total Vacancy
Canberra %
Population in the Australian Capital Territory (ACT) was
estimated at 410,300 persons in
June 2017, experiencing annual
population growth of 1.7%.
The population projection is
currently set at 1.6% per annum
until 2036.
Unemployment stood at 3.2%
in the ACT as at June 2018,
trending 150 bps lower than
recorded in June 2017.
Gross State Product in the
ACT was recorded at $37,566
million in 2016/17; 4.6% greater
than the prior year.
The value of ACT housing
finance commitments rose by
11.4% in the year ending June
2018; up from 2.9% recorded
for the previous year.
Building approvals in the year
ending June 2018 totalled 1,195
houses and 4,449 apartments in
the ACT. This was trending
13.4% higher for houses and
0.5% lower for apartment
approvals compared to a year
earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Canberra Houses 750,000 3.2 6.2 5,319 4.30 550 58
Canberra Apartments 415,500 -1.2 -2.1 3,905 5.80 450 86
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
10
Market Trends in Greater Hobart Over the year ending June 2018, capital
growth increased 15.9% for houses;
rising 4.2% over the past quarter to a
median value of $461,500. Apartment
values rose 22.6% over the year, and
rose 6.1% in the past quarter, to a
median of $370,000.
The volume of sales tallied 3,934 houses
(down 9.4%) and 681 apartments (down
13.1%) in the year ending June 2018.
The average days on market for houses
stood at 53 days in the June 2018
quarter. For apartments this was 37 days.
A year earlier, this comparable period
was recorded at 66 days and 75 days,
respectively.
The auction clearance rate for the week
ending 12 August 2018 was 50.0% out of
5 scheduled auctions. This was higher
than the week prior, with 0 from 2
scheduled auctions, and the same as the
comparable week a year ear lier when
50.0% (out of 5 auctions) were sold.
Gross rental yields remained steady at
5.10% for houses, but fell 60 bps to
4.90% for apartments over the June 2018
quarter.
Rents increased 13.9% for houses and
rose 12.5% for apartments over the year
ending June 2018. Weekly median rents
stood at $410 for houses and $360 for
apartments.
Total vacancy was 1.4% as at March
2018; falling from 2.3% one year ear lier.
Capital Growth, Greater Hobart % annual
Gross Rental Yield & Total Vacancy
Greater Hobart %
Population in Greater Hobart
was estimated at 226,900
persons in June 2017,
experiencing annual population
growth of 1.1%. The
population projection is
currently set at 0.6% per annum
until 2036.
Unemployment stood at 5.6%
in Greater Hobart as at June
2018, trending 40 bps higher
than recorded in June 2017.
Gross State Product in
Tasmania was recorded at
$28,577 million in 2016/17;
1.1% greater than the prior year.
The value of Tasmanian
housing finance commitments
rose by 8.1% in the year ending
June 2018, this was down from
13.6% recorded for the previous
year.
Building approvals in the year
ending June 2018 totalled 1,108
houses and 321 apartments in
Greater Hobart. This was
trending 37.6% higher for
houses and 34.3% higher for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Hobart Houses 461,500 4.2 15.9 3,934 5.10 410 53
Hobart Apartments 370,000 6.1 22.6 681 4.90 360 37
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
11
RESEARCH AUSTRALIAN RESIDENTIAL REVIEW Q3 2018
The auction clearance rate for the week
ending 12 August 2018 was 40.0% out of
10 scheduled auctions. This was higher
than the week prior, at 17.0% ( from 7
scheduled auctions) but lower than the
comparable week a year ear lier when
42.0% (out of 22 auctions) were sold.
Gross rental yields were down 10 bps
to 5.00%, for houses, and up 30 bps to
6.20%, for apartments over the June
2018 quarter.
Rents decreased 3.8% for houses but
remained steady for apartments over the
year ending June 2018. Weekly med ian
rents stood at $500 for houses and $400
for apartments.
Total vacancy was 6.5% as at March
2018; falling from 7.1% one year ear lier.
Capital Growth, Greater Darwin % annual
Gross Rental Yield & Total Vacancy
Greater Darwin %
Population in Greater Darwin
was estimated at 146,600
persons in June 2017,
experiencing annual population
growth of 0.5%. The
population projection is
currently set at 1.2% per annum
until 2036.
Unemployment stood at 4.3%
in Greater Darwin as at June
2018, trending 120 bps higher
than recorded in June 2017.
Gross State Product in the
Northern Territory was recorded
at $25,427 million in 2016/17;
4.0% greater than the prior year.
The value of Northern Territory
housing finance commitments
fell by 8.1% in the year ending
June 2018, improving from the
-12.2% recorded for the
previous year.
Building approvals in the year
ending June 2018 totalled 473
houses and 52 apartments in
Greater Darwin. This was
trending 10.4% lower for
houses and 62.9% lower for
apartment approvals compared
to a year earlier.
Key Residential Indicators, 30 June 2018
Greater Region Type
Median
Capital Value
($)
Capital
Growth
Last Quarter
(%)
Capital
Growth
Last Year
(%)
Sales
Volume
Last Year
(no.)
Gross
Rental Yield
(%)
Median
Weekly Rent
($)
Average
Days on
Market
(no.)
Darwin Houses 539,500 4.5 -11.8 677 5.00 500 137
Darwin Apartments 326,000 2.7 -17.2 453 6.20 400 262
Market Trends in Greater Darwin Over the year ending June 2018, capital
growth decreased 11.8% for houses;
although r ising 4.5% in the past quarter
to a median value of $539,500.
Apartment values fell 17.2% over the
year, but increased 2.7% in the past
quarter to a median of $326,000.
The volume of sales tallied 677 houses
(down 4.8%) and 453 apartments (down
21.6%) in the year ending June 2018.
The average days on market for houses
stood at 137 days in the June 2018
quarter. For apartments this was 262
days. A year earlier, this comparable
period was recorded at 140 days and 265
days, respectively.
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Jun-1
5
Sep
-15
Dec-1
5
Mar-
16
Jun-1
6
Sep
-16
Dec-1
6
Mar-
17
Jun-1
7
Sep
-17
Dec-1
7
Mar-
18
Jun-1
8
HOUSES APARTMENTS VACANCY
Knight Frank Research Reports are available at KnightFrank.com.au/R esearch
RESIDENTIAL RESEARCH
Michelle Ciesielski
Director, Residential Research, Australia +61 2 9036 6659
[email protected] Ben Burston
Group Director, Research & Consulting +61 2 9036 6756
RESIDENTIAL
SALES, PROJECT MARKETING & PROPERTY MANAGEMENT
Sarah Harding
Head of Residential, Australia
+61 2 9036 6752 [email protected]
RESIDENTIAL SITE SALES
Paul Henley
Head of Commercial Sales, Australia +61 3 9604 4760 Paul.Hen [email protected]
Tim Holtsbaum
Director, Site Sales
+61 2 9036 6615 [email protected]
VALUATIONS & ADVISORY
RESIDENTIAL
Chris Hill
Head of Residential Valuations, Australia
+61 438 807 249 [email protected] MEDIA ENQUIRIES
Rebecca Sands
Director, PR & Communications,
Australia +61 2 9036 6833
Knight Frank Residential Research provides strategic advice, consultancy services and
forecasting to a wide range of clients worldwide including developers, investors,
funding organisations, corporate institutions and the pub lic sector. All our clients
recognise the need for expert independent advice customised to their specific needs.
Important Notice
© Knight Frank Australia Pty Ltd 2018 –
This report is published for general i nformation 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.
Global Residential
Cities Index Q1 2018 Australian Prime
Residential Review
2018
Global House Price
Index Q1 2018
The Wealth Report
2018
Capital Growth, Key Regional Local Government Areas % annual, as at 30 June 2018
Global Liveability Index is compiled by The Economist Intelligence Unit based on 140 cities around the
world. The index is based on 30 factors spread across five areas: stability, infrastructure, education, health
care and environment. https://www.eiu.com/topic/liveability
Note: Unless stated, all references to dollars or $ refer to Australian dollars (AUD).
-20% -15% -10% -5% 0% 5% 10% 15% 20%
GLADSTONE, QLD (H)
TOOWOOMBA, QLD (A)
WAGGA WAGGA, NSW (A)
ROCKHAMPTON, QLD (A)
LAUNCESTON, TAS (A)
TOOWOOMBA, QLD (H)
ROCKHAMPTON, QLD (H)
TOWNSVILLE, QLD (H)
CAIRNS, QLD (H)
WAGGA WAGGA, NSW (H)
WOLLONGONG, NSW (A)
MACKAY, QLD (H)
WOLLONGONG, NSW (H)
SUNSHINE COAST REGIONAL, QLD (A)
SHELLHARBOUR, NSW (H)
CAIRNS, QLD (A)
NEWCASTLE, NSW (H)
SUNSHINE COAST REGIONAL, QLD (H)
LAKE MACQUARIE, NSW (A)
GREATER GEELONG, VIC (A)
LAKE MACQUARIE, NSW (H)
NEWCASTLE, NSW (A)
KIAMA, NSW (H)
LAUNCESTON, TAS (H)
GREATER GEELONG, VIC (H)
KIAMA, NSW (A)
MACKAY, QLD (A)
NOOSA, QLD (A)
(H) HOUSES
(A) APARTMENTS