Property Number of per Quarter Property Prices Median Sale Price (Log Scale) 1,6 House Unit Land Total (Trend) $45, Houses 1,2 $32, 8 $23, Units 4 $165, Vacant Land Mar-8 Mar-9 Mar-1 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-8 Sep-9 Sep-1 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Quarter Ended * All sales are classsified to the date of contract ** Recent quarters are provisional and subject to revision Source: HTW Analysis of RPData There are early signs of volume starting to return to the real estate market. The trend number of sales taking place in the March quarter of 218 totalled 1,91, a 2.6% increase compared to the levels observed in the March quarter of 217 and a distinct change from the dead flat conditions that had been otherwise occurring during 216 and 217. The 2.6% trend increase taking place between the March quarter of 217 and the March quarter of 218 comes as the combined result of a.2% trend increase in house sales, a 5.5% trend increase in unit sales and a 7.6% trend increase in vacant land sales. $12, May-8 May-9 May-1 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 * All sales are classified to date of contract (not date of settlement) ** Recent months are provisional and subject to revision Source: HTW Analysis of RPData Median price trends have technically declined over the last six months, but these have resulted primarily from property sales shifting from more expensive areas such as the Northern Beaches to less expensive areas such as the Southern Corridor. In our view individual property prices have varied by no more than plus or minus 5% from their prices twelve months ago, and on balance have remained static. The latest trend median prices, for properties sold in the month of May 218, came in at $43, for a house, $216, for a unit, and $198, for a block of land. N.B. The median property price is the actual sale price of the middle-priced property from the list of properties sold each month. Movements in median prices do not necessarily equate to movements in individual property values. CairnsWatch June 218 6
Rental Vacancies Percentage Vacancy 8% Houses Units Total Herron Todd White does Tax Depreciation Schedules 6% 4% 2% 'Balanced ' Range Do you have an up-to-date tax depreciation schedule? You could be missing out on thousands of dollars each year in allowable depreciation for your investment property. Depreciation is an important part of maximising your investment returns from an income generating property. Contact us on 457 2 for an obligation-free quote. % May-8 May-9 May-1 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 Source: HTW Rentroll Survey Though rental vacancy trends have been somewhat wobbly over the last year, rental vacancy rates remain extremely low and continue to indicate tight and/or stressed market conditions. Our latest survey results show that the trend rental vacancy rates for May 218 stood at 1.9% for houses, 1.8% for units and 1.9% overall. Coupled with the low level of new rental supply being created due to relatively low levels of new housing construction and reduced levels of investor housing activity, rental market conditions are expected to stay tight and/or stressed for some time. CairnsWatch June 218 7
Building Approvals Number of New Dwellings Approved in Cairns Urban Area 4 Houses Units 3 2 Total (Trend) Herron Todd White does Rural Valuations Selling the farm? Herron Todd White has valuers specialising in agribusiness from cane farms to cattle properties and banana plantations. 1 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Source: Derived from ABS data Building approval figures spiked in April 218 from the inclusion of 335 new units to be built in the Cairns CBD, comprising the first component of the long anticipated Nova City development. Whilst this development is a most welcome statistical game-changer, it is drawing a long bow to suggest that this one project is the start of a new uptrend in building activity rather than a one-off spike. The number of approvals for new houses in particular remains at a very low ebb, down in trend terms by 24.3% during April 218 compared to April 217. CairnsWatch June 218 8
SPECIAL TOPIC Industries of Employment Number of Persons Employed (Trend) 4, Tourism Services 3, 2, Government & Social Services Retail & Allied Services Herron Todd White does Socio-Economic Research Herron Todd White Cairns carries out specialist project consulting assignments in all areas of socio-economic research, including demographic studies, statistical surveys, market research, strategy planning, cost benefit studies, and socio-economic impact assessment. Contact us today to discuss your requirements. 1, Business & Professional Services Agriculture, Mining & Manufacturing Construction May-8 May-9 May-1 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 Twelve Months Ended Source: Derived from ABS data ABS figures on employment by industry for the Cairns region need to be treated with a modicum of suspicion due to their low levels of statistical accuracy, even when presented in trend terms. Nevertheless the region s standout employment growth sector has been Government and Social Services (inclusive of Health Care, Education and Public Safety), which has expanded in employment size by a staggering 53.6% since 21. Meanwhile tourism related employment has grown by 1.7% over the last two years, and construction employment by 18.4% over the same period. The retail sector has been in long term decline, with a 3.6% employment contraction since 21. CairnsWatch June 218 9
National Property Clock Coffs Harbour Newcastle NSW Central Coast NSW Mid Nth Coast Bathurst Canberra Melbourne NSW Central West Orange Sunshine Coast Approaching Peak of Peak of Starting to Decline Bendigo Gold Coast Gippsland South East NSW Herron Todd White does Townsville Information Herron Todd White produces a quarterly publication of Townsville Information entitled Townsville in Focus. Like CairnsWatch, it is free of charge. Adelaide Ballarat Brisbane Dubbo Hobart Lismore Mount Gambier Tamworth Albury Barossa Valley Burnie-Devonport Echuca Launceston Mildura SA Iron Triangle Rising Declining Sydney For further enquiries or to subscribe, contact townsville@htw.com.au or call (7) 4724 2. Cairns Emerald Gladstone Hervey Bay Horsham Ipswich Mackay South West WA Townsville Warnnambool Whitsunday Steady State/ Start of Recovery Bottom of Approaching Bottom of Lismore Adelaide Hills Alice Springs Bundaberg Darwin Perth Rockhampton Toowoomba Entries coloured dark blue indicate positional change from last month Source: Residential Property Ratings Compiled by Herron Todd White, May 218 Herron Todd White s National Property Clock is prepared each month based on the local market perceptions of its Australia-wide network of offices. Though there are early signs of a pick-up in real estate sales volumes, the absence of any accompanying price growth means we still regard Cairns as being in a Steady State position. CairnsWatch June 218 1