Maryborough Property Watch Q3 2012

MARYBOROUGH AREA MARKET OVERVIEW

The April 2012 six months saw 62 houses transact, well down on the average of 120 transactions over a six month period for the last five years. Volumes across most Victorian markets have been dropping for several periods; with the Maryborough house market is only now seeing the impacts of the general slowdown in activity. Despite the lower volumes the median price for houses closed the six months to April 2012 marginally up on the previous year at $181,500. Whilst this represents only a 0.8% growth on the previous years medium price, the ten year growth rate of 8.3% shows the steady upwards progression of house prices in the area. An analysis of all sales in the last twelve months, where the property had been previously purchased in the last ten years, showed a capital growth of 8.7% on an average holding period of 3.3 years. The steady upwards movement in prices is well evidenced in the house price points chart. Sales over $150,000 which represented less than half of all sales (44%) as recently as April 2009 represent 67% of all sales as at April 2012. Sales over $300,000 have shown the most growth over this period, more than doubling from 3% to 8%. Vacant Land sales which have averaged 39 transactions for a six month period over the last five years fell to only 23 transactions for the six months to April 2012. The median price for vacant land closed the April 2012 six months at $67,500 translating to a -2.2% decrease on the previous year. Capital growth analysis shows that only three properties previously purchased in the last ten years were sold in the twelve months to April 2012. The average holding period for these blocks was less than one year, and the average capital gain was 5.8%.This suggests that the downwards movement in median price may reflect the size and location of blocks that are selling, as opposed to the underlying value of land.