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First Quarter │2013

MILDURA AREA Property Watch®

MARKET INDICATORS

Change from Last Year Half Year

HOUSE SALES

HOUSE MEDIAN

HOUSE RENTS

UNIT SALES

UNIT MEDIAN

UNIT RENTS

LAND SALES

LAND MEDIAN

The indicators depicted above are based on the year

ending October 2012, except for rental indicators

which reflect quarterly data up to June 2012.

MILDURA AREA MARKET OVERVIEW

The following investigation looks at the Mildura Area residential real estate market, which

includes the suburbs Mildura, Merbein, Red Cliffs, Irymple, Ouyen, Werrimull, Murrayville,

Walpeup and Hattah to form the Mildura Rural City (LGA).

The Mildura Area house market has recorded a total of 266 settled transactions during the

October 2012 half year period, to uphold three consecutive periods of positive growth

representing a marked increase of 11.7 per cent in sales volume since the March 2011

period.

A price point analysis undertaken for the Mildura Area house market has indicated no

dramatic trends, however did note an increase in the sale of homes between the $100,000-

$199,999 price range (9 per cent increase from October 2011) explaining the current

decrease in median price likely to continue in the short term as buyers maintain appetite for

well-priced entry level property and target heavy price discounts from the higher end. The

absorption of the Mildura Area housing stock should continue into 2013 as buyers indicate

increased activity spurred by successive interest rate cuts and the Victorian government’s

stamp duty discount being increased to 30 per cent (from 20 per cent) as of January 1,

2013. These incentives will provide the Mildura Area house market a solid base to see

another positive shift in sales and median price toward the end of 2013.

MILDURA AREA HOUSE SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

The Mildura Area vacant land market transaction numbers have fluctuated significantly in

the past five years due to the inconsistency of total sales figures and continuing interest to

expand the Mildura area via subdivision & Greenfield development. Having said this, the

median price in Mildura Area for vacant land has remained steady since 2006, peaking

again in October 2012 at $85,000. The current trend toward smaller and more affordable

housing has led to a flattening in median price, however with added incentives for home

buyers and a strengthening environment for developers and buyers alike will see the

Mildura Area increase again in vacant land sales into 2013.

$212,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0

50

100

150

200

250

300

350

400

450

200

2 O

CT

200

3 A

PR

200

3 O

CT

200

4 A

PR

200

4 O

CT

200

5 A

PR

200

5 O

CT

200

6 A

PR

200

6 O

CT

200

7 A

PR

200

7 O

CT

200

8 A

PR

200

8 O

CT

200

9 A

PR

200

9 O

CT

201

0 A

PR

201

0 O

CT

201

1 A

PR

201

1 O

CT

201

2 A

PR

201

2 O

CT

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median

Prepared by PRDnationwide Research. Source: PDS, Residential Tenancy Authority. PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2013

Your home of property knowledge www.prdresearch.com.au

Research Analyst │Angus McLean P (07) 3026 3357 F (07) 3166 0457 E angusmclean@prd.com.au

PRDnationwide Mildura │ P (03) 5022 7750 F (03) 5022 2254 E admin@prdmildura.com.au

HOUSE PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

MEDIAN RENTS – 3500 PC

Prepared by PRDnationwide Research. Source: RTA

MILDURA UNIT PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

MILDURA AREA VACANT LAND SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

Observation of the Mildura Area unit Price Point chart over the October 2012 period has

seen a marked increase in the proportion of sales between $100,000-140,000, accounting

for 17 per cent increase in sales since April 2012. There has also been a contraction in

purchasing activity in the $140,000-180,000 market (showing a 19 per cent decrease of

total sales) which together has led to an acute correction in the median price back to

$137,757. The Mildura Area may now see some shift on the back of strengthening unit

rental market and strong shift towards a more affordable product; this will lead to an

increase in gross rental yield in turn increase investment into the Mildura Area unit market.

.

MILDURA AREA UNIT SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

The Mildura Area rental market has performed consistently since June 2010 with median

rents in the house and unit markets increasing on average by 9 & 6.5 per cent respectively.

Citing this evidence along with the Mildura Area’s vacancy rate (currently at 1 per cent) and

investment yields strengthening in house and unit markets, buyers and investors alike will

become increasingly attracted to the capital growth which is predicted to be seen in the

Mildura Area in 2013.

4%

10%

27%

25%

19%

7%

5%

3%

2%

10%

23%

29%

19%

10%

6%

2%

10%

27%

26%

17%

8%

5%

6%

1%

10%

22%

29%

17%

11%

7%

4%

3%

12%

28%

26%

16%

7%

3%

5%

0% 20% 40% 60% 80% 100%

Less than$100,000

$100,000 to$149,999

$150,000 to$199,999

$200,000 to$249,999

$250,000 to$299,999

$300,000 to$349,999

$350,000 to$399,999

At least$400,000

Proportion of total sales

Pri

ce p

oin

t

2010 OCT 2011 APR 2011 OCT 2012 APR 2012 OCT

$130

$160

$220

$190

$225

$200

$125

$165

$220

$190

$235

$210

$135

$175

$235

$205

$250

$220

$0

$50

$10

0

$15

0

$20

0

$25

0

$30

0

Flat (1 Bed)

Flat (2 Bed)

Flat (3 Bed)

House (2 Bed)

House (3 Bed)

House (4 Bed)

Median rent

Dw

ellin

g t

yp

e

2010 JUN 2011 JUN 2012 JUN

9%

13%

13%

19%

4%

11%

17%

15%

3%

13%

19%

13%

10%

6%

13%

23%

15%

3%

15%

15%

9%

9%

21%

15%

15%

15%

17%

17%

10%

2%

6%

19%

2%

22%

27%

4%

4%

7%

7%

27%

0% 20% 40% 60% 80% 100%

Less than$100,000

$100,000 to$119,999

$120,000 to$139,999

$140,000 to$159,999

$160,000 to$179,999

$180,000 to$199,999

$200,000 to$219,999

At least$220,000

Proportion of total sales

Pri

ce

po

int

2010 OCT 2011 APR 2011 OCT 2012 APR 2012 OCT

$85,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

0

50

100

150

200

250

200

2 O

CT

200

3 A

PR

200

3 O

CT

200

4 A

PR

200

4 O

CT

200

5 A

PR

200

5 O

CT

200

6 A

PR

200

6 O

CT

200

7 A

PR

200

7 O

CT

200

8 A

PR

200

8 O

CT

200

9 A

PR

200

9 O

CT

201

0 A

PR

201

0 O

CT

201

1 A

PR

201

1 O

CT

201

2 A

PR

201

2 O

CT

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median

$137,757

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

0

20

40

60

80

100

120

140

200

2 O

CT

200

3 A

PR

200

3 O

CT

200

4 A

PR

200

4 O

CT

200

5 A

PR

200

5 O

CT

200

6 A

PR

200

6 O

CT

200

7 A

PR

200

7 O

CT

200

8 A

PR

200

8 O

CT

200

9 A

PR

2009

OC

T

201

0 A

PR

201

0 O

CT

201

1 A

PR

201

1 O

CT

201

2 A

PR

201

2 O

CT

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median