Carina Area Property Watch 2012 Q3
The following Property Watch report is the result of an investigation into the historic and current market trends of the Carina Area, defined by the suburbs of the 4152 post code; Carina, Carina Heights, Camp Hill and Carindale.
Sales activity across the Carina Area house market remains subdued for the April 2012 half year period, with sales improving a marginal 1.6 per cent from the previous year to register a total of 206 settled transactions. The median price of $667,760 recorded for the April period reflects the markets appetite for more affordably priced houses. Long term median price growth has been very modest, with notable corrections experienced during 2008 and 2011 resulting in a five year average annual growth rate of just 3.4 per cent.
The House Price Points chart indicates a marked expansion in the level of sales activity within the sub $500,000 market over the past three years, as vendors discount their properties to meet the market causing a shift into the lower price range. A contraction in sales activity has been evidenced within the $800,000 plus price range, reiterating the current markets sensitivity to high prices and expectation for better value in the marketplace. Increased mortgage affordability resulting from consecutive interest rate cuts since November 2011 (on hold at 3.5 per cent as at August 2012) also appears to have made a positive impact to impeding a further decline in activity during the April 2012 period, as lenders continue to pass on these rate cuts (mostly in part) and develop more flexible, better value mortgage products. With that being said, the lack of listings across the Carina Area house market will continue to anchor sales volumes for the rest of 2012, as vendors remain reluctant to list their properties or meet current buyer expectations until market fundamentals improve.
The Carina Area unit market has demonstrated a remarkable 78.6 per cent uplift in sales activity during the year to 30 April 2012, registering a total of 100 transactions during the April 2012 half year period. Whilst the unit market remains quite small in the Carina Area, comprising mostly townhouse product, the median price differential that exists between the house and unit market is perhaps driving many to consider purchasing the latter. The median price recorded for the unit market was $472,500 for the April 2012 period, representing a marginal softening of 3.6 per cent from the April 2011 period. The long term median price trend has been rather stagnant over the past five years though still managed to achieve positive average annual growth of 3.4 per cent, likened to the house market.
The Unit Price Points chart indicates a modest increase in buyer activity within the sub $350,000 price range over the past three years, with the $450,000 to $499,999 remaining the most transacted price range. There was also a notable contraction in activity for premium unit stock, with the $650,000 plus price range accounting for only 2 per cent of sales.
Investor activity across the Carina Area property market remains subdued, despite moderate to high median rental price escalations over the past three years. Four bedroom houses outperformed during the June 2012 quarter, commanding an additional $50 rent (12 per cent) from the level recorded in June 2010. The unit market also faired reasonably well with three bedroom townhouses recording an extra $40 rent (10 per cent) from the level recorded in June 2010. While rents have increased across the board, high purchase prices are transpiring to comparatively weak investment yields, encouraging many investors to look to seek alternative property markets. Enquiry levels from end users have increased since the beginning of 2012 with increased mortgage affordability and an improvement in confidence likely to underpin further activity.