Showing posts with label index. Show all posts
Showing posts with label index. Show all posts

Friday, August 7, 2015

Brisbane Apartments and Units perform poorly

CoreLogic (RP Data) has released its recent monthly housing report.

"According to Mr Lawless, the strongest growth conditions outside of Sydney and Melbourne have been in Brisbane where dwelling values were 3.9 per cent higher over the year. Sydney and Melbourne values continue to boom, the next best performing city, Brisbane, has seen dwelling values rise by just 3.9 per cent over the past twelve months. Based on the median dwelling price, Sydney prices are now 72 per cent higher than Brisbane’s and Melbourne’s are 24 per cent higher,” he said."

However, apartments in Brisbane performed very poorly when compared with houses.  In fact, apartment values have declined in Brisbane.

Brisbane apartment prices (to 31 July 2015):
July 2015 - down 1.9%
Quarter - down 2.3%
Year to Date - down 0.8%
Year on Year - down 2.5%
Median price based on settled sales of Brisbane apartments over the quarter - $380,000


Friday, March 6, 2015

Rental Yields Decreasing as Prices Increase

From RP Data CoreLogic:

"CoreLogic RP Data February Home Value Index results released today showed that Australia’s combined capital cities have seen dwelling values rise by a further 0.3 per cent in February taking home values 8.3 per cent higher over the past twelve months.
According to CoreLogic RP Data head of research Tim Lawless, dwelling values continued their upwards trajectory over the month of February by recording a 0.3 per cent gain over the month. This now takes combined capital city dwelling values 2.5 per cent higher over the rolling quarter and 8.3 per cent higher over the twelve months to the end of February.
Over the past twelve months the CoreLogic RP Data Index shows dwelling values across the eight capital city aggregate index are up 8.3 per cent. Sydney is once again the clear standout with dwelling values 13.7 per cent higher while Melbourne values are 7.4 per cent higher. Australia’s third largest city, Brisbane, recorded the third highest rate of annual capital gain with dwelling values up 5.9 per cent. In contrast, dwelling values have increased by less than four per cent in every other capital city over the year.
Evidence of compressed rental yields is continuing across each of the capital city markets. A year ago the gross rental yield for a capital city dwelling was averaging 4.3 per cent; by the end of February the typical gross yield has been eroded down to just 3.7 per cent - due largely to the consistent high rate of dwelling value growth relative to rental growth."

Brisbane apartment prices (to 28 February 2015):
February 2015 - up 0.5%
Quarter - down 2.3%
Year to Date - up 0.3%
Year on Year - up 0.5%
Median price based on settled sales of Brisbane apartments over the quarter - $385,000

So, Brisbane apartment prices over the past year have barely increased, and increased much less than detached houses in Brisbane.  Brisbane is still under performing compared with Sydney and Melbourne.  And if you purchased at the peak of the market in about 2008, you would still be well underwater.


Monday, November 3, 2014

October is a better month for Brisbane apartment median values

The RP Data CoreLogic Home Value Index registered a 1.0% capital gain across the combined capital cities over the month of October, however the annual rate of growth has continued to trend lower.
According to the RP Data CoreLogic Home Value Index, dwelling values across Australia’s capital cities increased by 1.0 per cent over the month of October. The data highlights that despite a slowdown in growth in September, values continued to rise, increasing by 2.2 per cent over the past three months. Although combined capital city home values were up by 1.0 per cent over the month, only Sydney (1.3%), Melbourne (1.9%) and Brisbane (0.6%) actually recorded value rises over the month.
Dwelling values rose by 2.2 per cent over the three months to October 2014 however, only half of the capital cities actually recorded an increase in values. According to Mr Lawless this result highlights weaker housing market conditions outside of Australia’s largest cities.
According to Mr Lawless, Sydney, Melbourne, Brisbane and Adelaide (which happen to be four of the five largest capital cities), were the only capital cities to record an increase in home values over the past three months. [Note - this does not apply to Brisbane apartments, which recorded a decline for this three month period.]  Sydney continues as a standout with home values increasing at a rate of more than 1 per cent a month, up 3.9 per cent over the past three months. He said that Perth and Canberra have clearly moved through the peak of their growth cycles.
Brisbane apartment prices (to 31 October 2014):
October 2014 - up 1.6%
Quarter - down 0.4%
Year to Date - up 2.6%
Year on Year - up 4.5%
Median price based on settled sales of Brisbane apartments over the quarter - $380,000

Saturday, August 9, 2014

Property Indices

RP Data's blog had a post responding to a Fairfax criticism of the RP Data property index,  It is worth reading.  One interesting graph shows property price index v. ASX index is included below.


Saturday, August 2, 2014

Brisbane Apartments outperforming Brisbane Houses

According to RP Data:

"Capital city dwelling values were 1.1 per cent higher over the three months ending July, taking the aggregate capital gain to 5.0 per cent for the year to date across the combined capital cities. The gain was mostly centred in Sydney, Melbourne and Canberra where dwelling values rose 2.0 per cent, 1.8 per cent and 2.1 per cent respectively over the rolling quarter to offset the falls recorded in other capital cities. The Darwin market also recorded a capital gain over the past three months (+0.8%) while the remaining capital cities all recorded a drop in values (Brisbane -0.4%, Adelaide -2.6%, Perth -0.1%, Hobart - 1.2%)."



However, looking at the breakdown of the statistics, Brisbane apartments are doing much better than Brisbane houses.

Brisbane apartment prices (to 31 July 2014):
July 2014 - up 1.3%
Quarter - up 0.8%
Year to Date - up 3%
Year on Year - up 7.4%
Median price based on settled sales of Brisbane apartments over the quarter - $390,000

Saturday, February 2, 2013

Capital city dwelling values rebound in January, largely driven by gains across the Brisbane, Sydney, and Perth markets

From an RP Data press release:

Home values across Australia’s capital cities were up 1.2% in January, taking the annual movement in dwelling values back into the black with a 1.8% increase over the past twelve months.  Dwelling values across Australia’s combined capital cities recorded a 1.2 per cent improvement over the month of January, negating the -1.2 per cent drop in values recorded over the final quarter of 2012.

Since bottoming out in May 2012, dwelling values across the combined capital cities have recovered 3.1 per cent.

The year on year results have now moved firmly into positive territory, with capital city dwelling values 1.8 per cent higher over twelve months ending January 31st.

Every capital city, apart from Melbourne (-0.4 per cent), has recorded an increase in dwelling values over the past twelve months. The gains in January were mostly focussed within the Brisbane, Sydney and Perth markets where values were up 2.0 per cent, 1.8 per cent and 1.7 per cent respectively.

According to RP Data’s research director, Tim Lawless, housing market conditions have started the year on a strong footing. “These strong January results are likely to have seen some upwards seasonal bias, however the housing market has been on a clear recovery trend since June last year. Capital gains aren't likely to remain this high over the coming months, however we are likely to see the recovery trend continue through 2013.  Despite the improving market conditions in January, dwelling values across the combined capital cities remain 4.6% below their 2010 peak. The latest housing market data adds weight to the argument that interest rates may be at the bottom of the cycle. The Reserve Bank will be watching the performance of the housing market closely, and the positive trend in housing values will dampen calls for further interest rate cuts,” Mr Lawless said.

Brisbane apartment prices (to 31 January 2013):
January 2013 - up 4.4%
Quarter - up 3.8%
Year on Year - up 3.2%
Median price based on settled sales of Brisbane apartments over the quarter - $350,500.

Wednesday, January 2, 2013

RP Data-Rismark December Hedonic Daily Home Value Index Results

Capital city home values fall over consecutive years, down -3.8% in 2011 and -0.4% in 2012.  With capital city dwelling values falling by -0.3% over the month of December, home values recorded an aggregate decline of -0.4% over the 2012 calendar year.
Highlights over the quarter:

  • Best performing capital city: Darwin +2.5 per cent
  • Weakest performing capital city: Hobart, -3.7 per cent
  • Highest rental yields: Darwin houses with gross rental yield of 6.1 per cent and Darwin Units at 5.9 per cent
  • Lowest rental yields: Melbourne houses with gross rental yields of 3.6 per cent and Melbourne units at 4.4 per cent
  • Most expensive city: Sydney with a median dwelling price of $580,246
  • Most affordable city: Hobart with a median dwelling price of $317,500
According to RP Data Senior Research Analyst, Cameron Kusher, we have now seen two successive years of annual value declines, however the annual rate of declines has improved substantially compared to last year.

“Home values in Brisbane, Perth and Hobart remain below where they were five years ago, whereas the other mainland cities have all recorded significantly lower rates of growth in home values over the past five years than they did over the preceding five year period."

Brisbane apartment prices (to 31 December 2012):
December 2012 - down 2.8%
Quarter - down 0.9%
Year to Date - down 3.5%
Year on Year - down 3.5%
Median price based on settled sales of Brisbane apartments over the quarter - $363,000.

Tuesday, December 4, 2012

Market Flat, according to RP Data

Dwelling values across all of Australia’s capital city housing markets, except Melbourne, rose over November with values now just -0.1 per cent lower over the past 12 months.

Across the 8 capital cities, the month of November saw the RP Data-Rismark Home Value index rise 0.4 per cent during the first two weeks only to relinquish these gains in the last two weeks and finish flat for the month.

As usual, there existed notable dispersions in the returns observed across the individual capital cities.  According to RP Data Senior Research Analyst Cameron Kusher, the November market conditions highlight that the road to a market recovery will not be without pauses and those cities which performed very strongly in 2009 and 2010, like Melbourne, may show continued weakness. “Capital city home values remain -5.6 per cent lower than their historic highs of 15 November 2010, but, up 2% from their low of late May 2012."

Home values in Brisbane and Perth remain below where they were five years ago whereas the other mainland cities have all increased over this period. This has meant that relative to the other capital cities, Brisbane and Perth have experienced affordability improvements and subsequently we may see them become more popular from both an owner occupation and investment perspective.

Brisbane apartment prices (to 30 November 2012):
November 2012 - up 2.3%
Quarter - up 1.2%
Year to Date - down 0.7%
Year on Year - down 0.8%
Median price based on settled sales of Brisbane apartments over the quarter - $360,000.

With interest rates falling again this month, the improvement seen in November may continue through the summer months.  BOQ has passed on a 0.2% rate cut, effective 21 December 2012.

Wednesday, October 3, 2012

Brisbane Apartment Prices Still Going Backwards

Australian capital city home values continue to rise with a 1.4% jump in September.

The September RP Data Rismark Home Value Index results marked the fourth consecutive month-on-month rise in home values, further cementing the fact that a housing market recovery is underway.

Capital city dwelling values rose by 1.4 per cent over the month of September, the largest month-on-month rise recorded since March 2010.  Adelaide led the way with the strongest results where values were up 2.4 per cent, followed by Perth at 1.6 per cent over the month, Sydney at 1.5 per cent, Melbourne at 1.4 per cent and Brisbane values up 1.1 per cent.

Highlights over the quarter
Best performing capital city: Darwin
Weakest performing capital city: Hobart
Highest rental yields: Darwin houses with gross rental yield of 6% and Darwin Units at 6%
Lowest rental yields: Melbourne houses with gross rental yields of 3.6% and Melbourne units at 4.3%
Most expensive city: Sydney with a median dwelling price of $522,000

However, Brisbane apartments did not do so well.

Brisbane apartment prices:
September 2012 - down 0.8%
Quarter - down 0.8%
Year to Date - down 2.7
Year on Year - down 4.5%
Median price based on settled sales of Brisbane apartments over the quarter - $385,000.

Monday, June 4, 2012

Brisbane Doing Better Than Melbourne

"As at the end of May, Melbourne dwelling prices are off about 5% this year. But most of this decline has materialised since the middle of April. Specifically, home values in Melbourne have declined by 4.2% since the 15th of April.



In contrast, the Sydney housing market, which is denoted by the black line, has rebounded nearly 1% since the second week of May. In seasonally-adjusted terms, this would be an even stronger outcome. Likewise, we can see some recent stabilisation in raw Brisbane dwelling values, which are illustrated by the orange line in the chart above."

See Property Observer article, by Chris Joye.

Friday, June 1, 2012

Brisbane Apartment Values Up Slightly in May

Residential property values have continued to slide across the capital cities, with the RP Data-Rismark Home Value Index recording a -1.4 per cent fall in dwelling values over the month of May.

The latest drop brings the cumulative decline to -2.2 per cent over the first five months of 2012 and overall values are down -5.3 per cent over the past twelve months.

Much of the weakness is confined to the detached housing market rather than apartments. According to RP research director Tim Lawless, unit values have been much more resilient to value falls compared to houses.  It is clear that the market is becoming increasingly price point driven. Unit values across the combined capitals increased in May and they are up by 1.3 per cent over the first five months of the year. Based on median prices, unit prices are generally around 15 to 20 per cent lower than house prices.

Investment yields also tend to be higher and units are often located more strategically compared with their detached Mr Lawless said.

Another hurdle for the property market is the large number of properties currently being advertised for sale. Based on RP Data estimates, there were approximately 308,500 homes advertised for sale across Australia during May which is almost 9 per cent more than at this time last year.  While stock levels have reduced since the latter part of 2011, Mr Lawless said that this result still represents a larger than normal pool of homes available for sale at a time when transaction volumes are running well below their five year average.

Brisbane Apartment Capital Growth/Losses to 31 May 2012 (RR Data Rismark Index)
Month 0.3%
Quarter -2.1%
Year to Date -3.9%
Year on Year -4%

Friday, March 2, 2012

Daily House Price Index

RP Data and Rismark have launched a daily house price index for Australian residential property.

"The RP Data-Rismark Daily Home Value Index aims to measure daily movements in the value of Australian housing markets. Rather than relying solely on transacted sale prices to provide a measure of housing market conditions, the RP Data-Rismark Daily Home Value Index is based on a ‘hedonic’ methodology which includes the attributes of properties that are transacting as part of the analysis. Understanding factors such as the number of bedrooms and bathrooms, the land area and the geographic context of the property allows for a much more accurate analysis of the true value of movements across specific housing markets."

RP Data website and The Australian and ASX website and Press Release.  And see this interesting article by Chris Joye, who was involved in developing the index.

For Brisbane apartments, the February monthly index is 380.90, which is down 5% year on year, and up 0.55% month on month.

Looking at the daily index for the past year, for Brisbane apartments, here are some index values:
  • 1 July 2011 - 393.61
  • 1 January 2012 - 391.58
  • 1 February 2012 - 385.43
  • 29 February 2012 - 386.68
Some of the lowest values of the index for Brisbane apartments over the past 12 months are as follows:
  • 19 August 2011 - 385.66
  • 25 January 2012 - 385.14
  • 12 February 2012 - 382.57