Green Square Blog

The most recent CoreLogic data has finally reflected what we knew was happening late last year.

Green Square suburbs are now in the negatives for median price movement over the past 12 months. Some have fallen by 7 to 10 per cent.

But the data has also revealed some positivity. First, Beaconsfield and Rosebery had median price growth for houses in the three months before Christmas. Beaconsfield is a tiny suburb so not as susceptible to big market swings. Rosebery has a good mix of units and established houses, so doesn’t rely so heavily on new developments. The next quarter’s data will be interesting as it may reveal whether some markets are actually turning a corner.

Meanwhile, the real major positive is found in average annual growth figures over 10 years.

While the market has been volatile recently, the 10 year average for annual growth is very healthy. Zetland houses have grown an average of 11.4 per cent a year and units by 5.4 per cent a year since 2008, while Rosebery and Beaconsfield have both averaged 10 per cent growth for houses and 6 per cent for units each year. Waterloo saw 9.7 per cent growth for houses and 5.3 per cent for units. From an investment perspective, these yearly returns are good by anyone’s measures.

Investing really is a long game and Green Square property owners have certainly reaped the rewards.

To put it into perspective, Rosebery has an average hold period of 13.5 years for houses and seven years for units, meaning an average owner in that suburb has made more than $1 million on a house or more than $300,000 on a unit since purchasing. In Zetland, it’s 10 years for houses and six years for units, making owners more than $1 million on houses and around $200,000 on units since purchase.

Some markets may have come back by 10 per cent, but that is from record highs, after five years of a property boom. The 9 or 10 per cent average growth a year is what really tells the story.

Some people lose sight of that perspective and they may have made $250,000 in capital gains, but because the market has come off, they are talking as if they have lost money. A property price graph will look like a bit of a wriggling worm, but over time the trend is always up, so if you hold the property for another 10 years, you can expect a similar trajectory in value growth as the previous 10.

Below is a snapshot of the Green Square area across the sales and rental market.  

 

Published by Trevor Back

Principal, Raine & Horne Green Square

Phone: 0428 006 900

[email protected]

 

 

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