Median Value

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<p><span>Bravo Eliza Owen of </span><em>On the House</em><span> for this fabulous time lapse video presentation of Sydney median house values over the past 35 years. </span></p>
<p>You can watch it <a href="https://www.youtube.com/watch?v=cC0xL24ecs0" target="_blank">here</a>.</p>
<div>There are a number of fascinating aspects to this piece, which suggested to me that home buyers and investors seeking long term capital growth should aim to buy in the best-located suburb that they can afford, and should also look for scarcity value.</div>
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<div>Bellevue Hill had a median price which broke through $200,000 in 1980 - around double Sydney's median house price at that time - yet the median house price in the suburb has exploded to $4.2 million today, more than four times the median house price in the harbour city.</div>
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<div>How so? A combination of a lack of new building - the result being scarcity value - combined with gross income and equity growth, with buyers and wealthy residents at the premium end of the market rarely reliant upon linear salary income for their house purchases. </div>
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<div>Other well located inner suburbs have demonstrated massively strong price growth as they have gentrified. </div>
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<div>Note how housing booms and corrections have been recurrent and have repeatedly been characterised by massive boosts in price in locations close to the city, with suburbs on the north shore and close to the water leading price booms and the western suburbs lagging behind.<br><br>Being located near a train line with a direct city link can help, particularly it seems on the north shore (cf. Killara, Gordon, which have historically led price growth in previous cycles).<br><br>On the other hand being in an industrial suburb under a flight path, historically at least, has been a negative, with inner western suburbs such as Mascot having lagged through the cycle. </div>
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<div>Due to this disparate nature of capital growth which has favoured suburbs closer to the city, the <em>On the House</em> figures show that today there is a significantly wider range of median house price values by suburb across Sydney than there was in the past.<br><br>I expect this widening of prices to continue. </div>
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<div>With a good deal of building having taken place on Sydney's outer south western fringe, median home values have increased sharply in that sub-region since 2011.</div>
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<div>However, recent auction results (or more accurately, should one say, the dearth of positive results at auction, with the outer south west recording a worrying preliminary clearance rate of "n/a" this week) suggest that a sharp correction could be in the post for that sub-region.</div>
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<div>Very interesting stuff.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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35 years of Sydney house prices: Pete Wargent

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<p>The median lot value in Australia rose by another 3.3 percent in the September 2016 quarter.</p>
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<div>The Housing Industry Association (HIA) reported that the median lot value hit at a record high of $243,585. </div>
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<div>Since June 2012, the median lot value has increase by 28 percent or nearly $54,000.<br><br>
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<div><a href="https://www.propertyobserver.com.au/images/2017/02/16/HIA.jpg" target="_blank">Click to enlarge </a></div>
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<div class="separator">Source: (HIA)</div>
<br><div>The picture around the country was mixed.</div>
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<div>Land values in the Kimberley have well and truly crashed by 74 percent from the prior comparative period, for example.</div>
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<div>At the other end of the scale Sydney's <strong><em>median</em></strong> lot value is not approaching $1,000 per square metre. </div>
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<div>Perhaps this is not all that surprising given that volumes were down by nearly 30 percent in Sydney year-on-year, with a dearth of shovel-ready land being made available. </div>
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<div>The next most expensive city for vacant land prices is Perth at $701/sqm.</div>
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<div>The volume of lot sales increased to 1,121 in the quarter, following some low volumes in previous quarters. </div>
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<div>Indeed, volumes were still some 7 percent below their 2015 peak, according to the HIA. </div>
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<div>Overall, capital city land sales rose by about 10 per cent in the year to September 2016, reflecting higher demand and generally stronger economic conditions, while volumes across regional Australia posted a gain of just 1.1 percent. </div>
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<em>PETE WARGENT is the co-founder of </em><a href="https://allenwargent.com/"><span class="s2"><em>AllenWargent</em></span></a><em> property buyers (London, Sydney) and a best-selling author and </em><a href="https://petewargent.blogspot.com/"><span class="s2"><em>blogger</em></span></a><em>. </em>
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Where the capital city land prices are rising the most: Pete Wargent

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<p><span>An 11% rise in capital city home values nationally has pushed some 437 new suburbs onto CoreLogic RP Data's Million Dollar Club.</span></p>
<p><span>The club comprises suburbs where the median value of a median value of at least $1 million.</span></p>
<p><span>The membership requirement is that a minimum of ten sales above $1 million have to be made over the year.</span></p>
<p><span>According to CoreLogic RP Data head of research, Tim Lawless the rise in values has been strongest in Sydney and Melbourne, with the jump in the number of suburbs on the list is evidence of these strong value rises. </span></p>
<p><span>"The top 20 most expensive suburbs list show that Sydney suburbs clearly dominate the record board and account for 17 of the 20 most expensive suburbs nationally… On the other hand, only 1 Melbourne suburb and 2 Perth suburbs made it to the millionaire suburbs list," Mr Lawless said.</span></p>
<p><span>"There were also significantly more suburbs making the list for houses (424) than units (13). In fact, all of the suburbs listed for units were situated in Sydney and were located adjacent to or on the water. </span></p>
<p><span>"With growth levels potentially moderating over the coming year we aren’t likely to see as substantial a jump in the number of suburbs as what has been seen over previous years."</span></p>
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437 new suburbs make CoreLogic RP Data's Million Dollar Club

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<p>Houses and units across Perth both posted declines in median prices during the September 2015 quarter, according to REIWA president Hayden Groves.</p>
<p>The median house price is down 4.2% from the June quarter to $522,133 with units at $420,125.</p>
<p class="BasicParagraph"><span style="line-height: 1.3em;">Median rental figure fell $20 to now rest at $400 per week, sitting to $420 for houses and $395 for units.</span></p>
<p class="BasicParagraph">REIWA president HaydenGroves said rhe best performing suburb was St James in Perth’s central sub-region, which topped the list with a 5.1% increase to its quarterly annual median, followed by Mount Claremont with 4.5%.</p>
<p>“Baldivis continued to dominate for houses this quarter with 469 house sales, followed by Ellenbrook with 420 sales and then Canning Vale in third place with 413 sales. Renowned for their appeal to first home buyers, these suburbs continue to dominate in a market skewed by weaker trade-up activity and prominent first time buyers," he said.</p>
<p>“For units, East Perth came in at number one with 288 sales for the three months to September, with Scarborough coming in second with 238 and Perth third with 224 sales, showing that the inner urban apartment market continues to entice buyers.</p>
<p>“We estimate that total dwelling sales for the quarter will come in at around 8,600 sales across WA, below the average and fewer than the June quarter, although the winter months normally return a subdued sales volume measure."</p>
<p>Metropolitan sub-regional markets, the top performers:</p>
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<li>North West: Madeley up 3.7%</li>
<li>North East: Wattle Grove up 2.2%</li>
<li>South West: Rockingham up 3.3%</li>
<li>South East: Bedfordale up 1.2%</li>
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Perth houses, units post median September declines: REIWA

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<p>Median values for both vacant residential land as well as house and land packages in the Logan City Local Government Area (LGA) in South East Queensland continue to rise, says Ray White Commercial.</p>
<p>Ray White land marketing director, Jamie Martin, said the Logan City residential land market has been buoyant in the 12 months to March 2016.</p>
<p>Its median value for land reached a new high of $434 per sqm.</p>
<p>Mr Martin said sales rates reached their third highest level since 2008, while house and land packages surged 37.6 per cent from the previous year.</p>
<p>“The results for Logan have shown the strength of the land market,” Mr Martin said.</p>
<p>“While sales volumes have reduced, the continued uplift in median values are encouraging signs for the market.</p>
<p>“Development approval levels have reduced from the highs of 2015, however the stable registration levels underline the depth of the market.</p>
<p>Indicators such as reduction of lot sizes, and strong increases in house and land packages highlight the ongoing demand for housing in this location.”</p>
<p>Mr Martin said the Logan City LGA provides 9,910ha of land suitable for residential development, with potential to deliver up to 104,000 dwellings, representing an important growth corridor of South East Queensland with significant scope for future residential land development opportunities.</p>
<p>“This corridor accounts for 38.5 per cent of South East Queensland’s current developable land,” he said.</p>
<p>Mr Martin said despite the reduction in development approvals, the total number of residential land projects has remained steady.</p>
<p>“This year we have recorded 105 total projects with 13 larger projects with more than 50 lots, which is just behind last year’s result of 108 projects,” he said.</p>
<p>“Lot registration over this period has been stable which highlights the ongoing steady completions of lots in Logan.</p>
<p>Registered lots have recorded a median lot size of between 450 sqm to 534 sqm with the median for the year growing by 2.31 per cent.”</p>
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