Carina Area Property Watch 2013 Q3 Report
Sales activities across the Carina Area house market has received a boost in the 2013 financial year, with median price improving 7.1 per cent from the previous year as well as registering a total of 315 settled transactions, 10 per cent up on the five year average of 284 settles sales. The median price of $603,000 recorded for the June 2013 period reflects the markets shift with the buyer market outnumbering that of the sellers. Whilst long term median price growth has been modest at 5.8 per cent per annum over the past decade a negligible change in the previous five year period has been recorded as we begin to see parity in the buying and selling market.
The House Price Points chart indicates a marked expansion in the level of sales activity between the $600,000 and $699,999 price point market over the past two years, recording a six per cent increase in market share at June 2013. This being said, with the favourable economic environment for buyers with historic low interest rates and what seems to be additional consumer confidence from the September 2013 change of federal government, the lower price points under $550,000 have all seen slight contractions as vendors can increase their property expectations to meet the market. With these factors, the Carina Area can expect a positive impact on activity during the second half of 2013 as lenders continue to pass on these rate cuts and develop more flexible, valued mortgage products.
The Median Price House Summary by Suburb demonstrates the market share of the 4152 post code and where how the market is situated by suburb. At the annual period to June 2013, Camp Hill and Carindale dominated the transactional market with 38 and 32 per cent respectively similarly registering the higher median prices of $620,000 and $649,500. The two suburbs divided by Creek Rd of Carina ($490,000) and Carina Heights ($520,000) registered more affordable median prices while only contributing 30 per cent of the residential house market for the postcode.
The Carina Area unit market has demonstrated a 4.1 per cent decline in sales activity over the five year period ending June 2013, registering 113 settled transactions. 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. With a number of multi-family living options in the pipeline, now may be as good a time as ever to invest in the unit market.
The median price recorded for the unit market was $415,000 for the June 2013 six month period, representing a marginal softening of 1.0 per cent from the June 2012 period. The long term median price trend has been stagnant over the past five years with unit median price since June 2008 only down $4,000, registering a negligible 0.2 per cent per annum decline. With the increasing number of first home buyers entering the market in a notoriously ageing population, the 4152 postcode can expect an increase in unit sales, in particularly the more affordable multi-family and aged care dwellings.
Investor activity across the Carina Area property market remains relatively subdued as there has been a correction in rental median compared with that of the June 2012 quarter. The median rental figure for the June 2013 quarter have for the most part plateaued or increased by either five or ten dollars per week with the exception of 3- bed units which recorded a five per cent drop in asking rent recording twenty dollars less than the $420 per week median asking rent requested in June 2012. The one positive outlier for the rental investor in the Carina Area was that single bedroom units recorded a 15 per cent increase ($35/wk) on the June 2012 median as the interest in one bedroom units and studio living within five kilometres of the CBD continue to increase. Enquiry levels from end users have increased throughout 2013 with increased mortgage affordability and an improvement in confidence likely to underpin the further activity in the Carina Area.