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

Second Quarter │2012

WERRIBEE AREA Property Watch®

Werribee Mansion

MARKET INDICATORS

Change from Last Year Half Year

HOUSE SALES

HOUSE MEDIAN UNIT SALES

UNIT MEDIAN

LAND SALES

LAND MEDIAN

The indicators depicted above are based on the twelve

months ending February 2012.

KEY HIGHLIGHTS

Substantial falls in transaction levels

are seen across house, units and

vacant land

Despite significantly lower volumes

both units (1.0%) and vacant land

(5.9%) post median price growth

increases

WERRIBEE AREA MARKET OVERVIEW

The following Property Watch report is the result of an investigation into the

historic and current market trends of the Wyndham Local Government Area,

which encompasses the city of Werribee and surrounding suburbs including

Hoppers Crossing, Point Cook and Wyndham Vale. The Wyndham area

continues to be one of the fastest growing regions in Victoria, supporting the

Western development of Melbourne.

Transaction volumes have seen consistent increases from the start of the century

through to late 2009/10 for both houses and units. Since then volumes had been

softening steadily, the six months to March 2012 however has seen a sizeable

decrease on typical sales levels.

House sales have averaged 1,509 for a six month period for the five years to

March 2011. The six months to March 2012 saw only 838 houses transact, a

44.5% decrease on the five year average to March 2011. The same comparison

for units sees a decrease on the five year average of 66% based on the 89

transactions for the six months to March 2012.

Much of the Victorian market has seen significant decreases in transaction levels,

with faster growing areas (such as Werribee and Melton) seeing greater

reductions in volumes than traditionally slower growing areas. Consumer

sentiment seems to be behind most of the reduction in growth, with buyers

reluctant to commit to purchasing decisions. PRDnationwide Werribee director

Rohan Smith comments that numbers at open for inspections have increased

substantially in recent months, and that this is translating to more offers and more

sale activity. Whilst sale numbers have not yet returned to previous levels Mr

Smith feels the current trends are all moving towards higher volume levels.

WERRIBEE AREA HOUSE & UNIT SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

$354,500

$290,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

0

500

1,000

1,500

2,000

2,500

20

02

MA

R

20

02

SE

P

20

03

MA

R

20

03

SE

P

20

04

MA

R

20

04

SE

P

20

05

MA

R

20

05

SE

P

20

06

MA

R

20

06

SE

P

20

07

MA

R

20

07

SE

P

20

08

MA

R

20

08

SE

P

20

09

MA

R

20

09

SE

P

20

10

MA

R

20

10

SE

P

20

11

MA

R

20

11

SE

P

20

12

MA

R

Me

dia

n s

ale

pri

ce

Num

be

r o

f sa

les

Half year period

House Sales Unit Sales House Median Unit Median

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. © 2012

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

Research Analyst │Mark Corboy P (0400) 520 717 E markcs4u@gmail.com.au

PRDnationwide Werribee │Principal Rohan Smith P (03) 9742 7557 F (03) 9742 5443 E werribee@prd.com.au

Vacant Land sales

over $200,000 have

quadrupled their

share of the market

since 2009

HOUSE PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

VACANT LAND PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

Given the contraction in volumes it is not surprising to see price growth over the

last twelve months lower than in recent periods. The median price for houses

closed the six month period to March 2012 at $354,500 down marginally on the

$357,000 median from twelve months earlier. In spite of this negative growth the

five year growth rate stands at 7.2%, reflecting the longer term strength of the

market.

The house price points table demonstrates the significant price growth in recent

years. Sales under $300,000 which represented 58% of all sales in the twelve

months to March 2009 have fallen to only 19% of the market for the March 2012

twelve months. Sales in the $300,000 to $399,999 bracket now dominate the

market with 47% of all sales occurring in this range. The top end of the market

over $400,000 has more than doubled in the comparison period from 14% of all

sales in 2009 to 34% in 2012.

Unit prices managed to post a small growth of 1.0% when the median for the

March 2012 six months closed at $290,000. Whilst a strong result in light of the

66% decrease in transaction levels, it remains well short of the five year average

growth of 6.1% per annum.

The decrease in vacant land sales for the March 2012 six months has been more

dramatic than either houses or units. In the five years to March 2011 the average

sales for a six month period were 2,205. The six months to March 2012 saw only

352 blocks transact, a decrease of 76.0%. Whilst this decrease is one of the

sharpest the market has seen, the sales cycle does show previous swings up and

down are substantial.

Despite encountering a greater downturn in transaction levels, vacant land prices

outperformed houses and units to record a strong 5.9% median price growth,

when the median for the March 2012 closed at $217,000 up from $205,000 of

twelve months earlier. The market is underpinned by strong underlying demand

for affordable land within reach of the Melbourne metropolitan area, and the

shortage of same.

The price points table shows some dramatic shifts away from the lower price

brackets towards the higher brackets. Sales under $150,000 which represented

half of all sales for the twelve months to March 2009, represent only 7% of all

sales as at March 2012. Sales over $200,000 represented only 14% of the

market at March 2009, represent 60% of all sales at March 2012.

WERRIBEE AREA VACANT LAND SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

51%

38%

19%

18%

28%

35%

45%

47%

9%

14%

19%

21%

5%

9%

15%

13%

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

Mar 09

Mar 10

Mar 11

Mar 12

Percentage of Settled Sales

Less than $100,000 $100,000 to $199,999

$200,000 to $299,999 $300,000 to $399,999

$400,000 to $499,999 At Least $500,000

48%

31%

12%

7%

36%

43%

42%

33%

10%

19%

23%

27%

2%

5%

15%

26%

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

Mar 09

Mar 10

Mar 11

Mar 12

Percentage of Settled Sales

Less than $100,000 $100,000 to $149,999

$150,000 to $199,999 $200,000 to $249,999

$250,000 to $299,999 At Least $300,000

$217,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

20

02

MA

R

20

02

SE

P

20

03

MA

R

20

03

SE

P

20

04

MA

R

20

04

SE

P

20

05

MA

R

20

05

SE

P

20

06

MA

R

20

06

SE

P

20

07

MA

R

20

07

SE

P

20

08

MA

R

20

08

SE

P

20

09

MA

R

20

09

SE

P

20

10

MA

R

20

10

SE

P

20

11

MA

R

20

11

SE

P

20

12

MA

R

Me

dia

n s

ale

pri

ce

Nu

mb

er

of

sa

les

Half year period

Number … Median