MONTHLY RESEARCH BULLETIN - MARCH 2022 - Burnham Real Estate
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MONTHLY RESEARCH BULLETIN MARCH 2022
Contents
MARKET OVERVIEW 3
ECONOMY 5
PRICES 8 Interested in purchasing any
of the statistics on this
AUCTION MARKET 10 bulletin?
Contact
RENTAL MARKET 13 research@reiv.com.au
TRANSACTIONS 16
COMMERCIAL MARKET 19Market Overview
+4.2% 78% 4.1k 34 3.9%
RMX Change Clearance Rate Reported Auctions Days on Market Vacancy Rate
The REIV Residential Market A clearance rate of 78.4 per There were 4,089 reported Private listings in Victoria took Victoria’s vacancy rate fell to
Index (RMX) for Victoria went cent was recorded in February auctions and 3,207 properties 34 days on market to sell in 3.9 per cent in February 2022.
up by 4.2 per cent to 162.5 2022. The rolling 12-month sold by auction in February February 2022.
over the four weeks to 13th clearance rate is 82.7 per cent. 2022. The proportion of vacant
March 2022. Properties in metro Melbourne properties in metro Melbourne
spent 35 days on market, went down to 5.1 per cent
The House price index rose same as previous month. while regional Victoria
slightly by 0.2 per cent to 168.5 remained at 1.3 per cent.
over the same period while the For regional Victoria, the
Unit index increased by 3.8 per median days on market is 32
cent to 147.6. days, two days quicker than
previous month.
Return to table of contentsMarket Overview
Following the Reserve Bank meeting in March 2022, the cash rate The REIV Residential Market Index (RMX) for Victoria went up by 4.2
remained unchanged at 0.1 per cent after a cut to historic lows in per cent to 162.5 over the four weeks to 13th March 2022. The House
November 2020. price index rose slightly by 0.2 per cent to 168.5 over the same period
while the Unit index increased by 3.8 per cent to 147.6.
There were 4,089 reported auctions in February 2022 with 3,207 of
these sold representing a clearance rate of 78.4 per cent, which is also Victoria’s vacancy rate fell to 3.9 per cent in February 2022. The
the busiest February for both auction volume and sales in Victoria. median rent for houses in metropolitan Melbourne fell slightly to $495
There were a total of 43,917 reported auctions in Victoria in the past per week while units saw an increase to $425 per week. In regional
12 months, with a 82.7 per cent clearance rate. Victoria, the median rent for houses and units rose to $417.50 and
$350 per week respectively over the month.
There were an estimated 13,545 house and unit sales transacted in
Victoria in February 2022, and 164,360 sales in the past 12 months.
Based on these estimates, the share of auctions sold as a percentage
of overall sales was 22.1 per cent in the 12 months to February 2022.
Return to table of contentsEconomy
Following the Reserve Bank meeting in March 2022, the cash rate According to the ABS, the seasonally adjusted unemployment rate for
remained unchanged at 0.1 per cent after a cut to historic lows in Australia fell to 4.0 per cent in February 2022, the lowest
November 2020. unemployment rate since August 2008, as employment increasing for
the fourth month in a row by 77,400 people and unemployment falling
The global economy is continuing to recover from the pandemic. by 18,500.
However, the war in Ukraine is a major new source of uncertainty. The
Australian economy remains resilient and spending is picking up The unemployment rate in Victoria went up by 0.1 percentage points
following the Omicron setback. to 4.2 per cent and the participation rate increased to 67.1 per cent in
February 2022, which is also the highest on record.
The resilience of the economy is evident in the labour market, with the
RBA's central forecast is for the unemployment rate to fall to below 4
per cent later in the year and to remain below 4 per cent next year.
Return to table of contentsEconomy Interest Rates Labour Force To customise this chart, click here Return to table of contents
RESIDENTIAL MARKET
Prices
The REIV Residential Market Index (RMX) is a residential property The RMX for Victoria went up by 4.2 per cent to 162.5 over the four
price index (RPPI) designed to provide a current, simple insight into weeks to 13th March 2022.
real property price trends in Victoria. An RPPI measures the price
change of the stock of residential dwellings over time. The House price index rose slightly by 0.2 per cent to 168.5 over the
same period while the Unit index increased by 3.8 per cent to 147.6.
The Victoria residential property value is recovering from the seasonal
The RMX provides a current, simple insight into real property price trends in
downturn early this year as transaction volumes remain strong. It is
Victoria. It is calculated weekly based on properties selling prices during the
expected to stabilize with more listings coming into the market.
period and weighted to the total number of properties in Victoria. The index
indicates price movement relative to the base calculation period of 2016.
Return to table of contentsPrices
REIV Residential Market Index (RMX) RMX, House and Unit
To customise this chart, click here
Return to table of contentsAuction Market
There were 4,089 reported auctions in February 2022 with 3,207 of At the suburb level, Reservoir had the highest number of reported
these sold representing a clearance rate of 78.4 per cent, which is also auctions for the month, with 65 reported auctions, followed by Glen
the busiest February for both auction volume and sales in Victoria. Waverley (58) and Craigieburn (55). Reservoir also had the highest
There were a total of 43,917 reported auctions in Victoria in the past number of properties sold by auction (47), followed by Glen Waverley
12 months, with a 82.7 per cent clearance rate. (44) and Craigieburn (41).
During the month, the middle Melbourne region recorded the highest Eight suburbs recorded 100 per cent clearance rates over the month
number of auctions with 1,556 auctions and 79.8 per cent of them (at least 10 listings), led by Boronia and Warrnambool with 21 and 18
sold. Inner Melbourne followed with 1,318 auctions and 74.1 per cent auction listings respectively.
clearance rate; while outer Melbourne sold 81.6 per cent from 956
auctions. Regional Victoria had 259 auctions with 80.7 per cent selling. It should be noted that the REIV continues to receive results several
weeks after the date of auction which may lead to revisions in auction
The local government areas of Moreland (240), Boroondara (229), and data.
Monash (229) had the highest number of auctions for the month.
Return to table of contentsAuction Market
House Price Growth and Clearance Rate, Rolling Annual, Melbourne Auctions v Clearance Rate, Victoria
Customise this chart for your area, click here
Return to table of contentsAuction Market
Highest Clearance Rates, February 2022 Highest Number of Auction Sales, February 2022
SUBURB SOLD CLEARANCE RATE SUBURB SOLD CLEARANCE RATE
BORONIA 21 100.00% RESERVOIR 47 72.30%
WARRNAMBOOL 18 100.00% GLEN WAVERLEY 44 75.90%
BLACKBURN 15 100.00% CRAIGIEBURN 41 74.50%
WANTIRNA 13 100.00% CHELTENHAM 37 82.20%
KEILOR DOWNS 12 100.00% MOUNT WAVERLEY 36 90.00%
BURWOOD EAST 11 100.00% COBURG 35 81.40%
ROSEBUD 11 100.00% NORTHCOTE 33 84.60%
NIDDRIE 10 100.00% CAMBERWELL 32 80.00%
YARRAVILLE 22 95.70% BRUNSWICK 31 83.80%
CHELSEA 17 94.40% GLENROY 31 79.50%
NOTE: Includes sales between 01-28 February 2022 for suburbs with 10 or more auctions
Return to table of contentsRental Market
Victoria’s vacancy rate fell to 3.9 per cent in February 2022. The median rent for houses in metropolitan Melbourne fell slightly to
$495 per week while units saw an increase to $425 per week. In
The vacancy rate across metropolitan Melbourne went down to 5.1 per regional Victoria, the median rent for houses and units rose to $417.50
cent over the month. Middle Melbourne saw another decrease to 7.6 and $350 per week respectively over the month.
per cent and inner Melbourne also went down to 6.1 per cent. Outer
Melbourne ‘s vacancy rate fell to 1.9 per cent from previous month. Median weekly rent for houses in Geelong region rose to $460 while it
fell to $400 for Bendigo region. The rental houses at Ballarat region
Regional Victoria’s vacancy rate remained at 1.3 per cent in February saw their median rents remained unchanged at $380 per week.
2022. The vacancy rate in the Bendigo and Ballarat region stayed at
1.8 and 1.1 per cent respectively while Geelong region experienced a
increase to 1.6 per cent.
Return to table of contentsRental Market
Vacancy Rates, Melbourne & Regional Victoria Vacancy Rates, Metropolitan Melbourne
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Return to table of contentsRental Market
VACANCY RATES, 6-month MEDIAN HOUSE RENTS FEBRUARY 2022 JANUARY 2022
FEBRUARY 2022 JANUARY 2022
average trend Inner $660 $690
Inner Total 6.1 6.4 Middle $490 $520
Inner (0-4Km) 6.1 6.5 Outer $435 $433
Metro Melbourne $495 $500
Inner (4-10Km) 5.6 5.8
Geelong $460 $450
Middle (10-20Km) 7.6 7.8
Ballarat $380 $380
Outer Total 1.9 2.0 Bendigo $400 $410
Outer (20+Km Exc. Mornington Regional Victoria $418 $400
1.9 2.0
Pen.)
MEDIAN UNIT RENTS FEBRUARY 2022 JANUARY 2022
Outer (Mornington Pen.) 0.6 0.3
Inner $435 $425
Metro Melbourne 5.1 5.3 Middle $430 $430
Geelong 1.6 1.5 Outer $400 $395
Bendigo 1.8 1.8 Metro Melbourne $425 $423
Geelong $388 $400
Ballarat 1.1 1.1
Ballarat $310 $300
Regional Victoria 1.3 1.3
Bendigo $320 $340
Victoria Total 3.9 4.1 Regional Victoria $350 $340
Return to table of contentsTransactions
There were an estimated 13,545 house and unit sales transacted in Properties in metro Melbourne spent 35 days on market, same as
Victoria in February 2022, and 164,360 sales in the past 12 months. previous month. For regional Victoria, the median days on market is
Based on these estimates, the share of auctions sold as a percentage 32 days, two days quicker than previous month.
of overall sales was 22.1 per cent in the 12 months to February 2022.
With 29 days, outer Melbourne saw lowest days on market for
In January 2022, there were approximately 9,878 new housing finance metropolitan area. Inner and middle ring suburbs spent 50 and 40
commitments for owner-occupiers in Victoria. This is a decrease of days on market respectively in February 2022.
10.0 per cent from January 2021.
The total number of building approvals in January 2022 decreased by
35.5 per cent compared to previous month in seasonally adjusted
terms, with approximately 3,733 dwelling units approved. There were
70,034 dwelling units approved in the past 12 months to January 2022
for Victoria.
Return to table of contentsTransactions
Building Approvals, Victoria Estimated Sale Volume, Victoria
Return to table of contentsTransactions
Days on Market, Victoria Housing Finance, Victoria
To customise this chart, click here
Return to table of contentsCOMMERCIAL MARKET
Commercial Market
Capital values in the commercial office space rose by 4.9 per cent to
$6,554/sqm in February 2022. Net face rents went down by 0.6 per
cent to $268/sqm. Net rental yields saw a increase of 0.2 percentage
points to 4.2 per cent.
Capital values for the industrial sector went up by 2.3 per cent to
$2,474/sqm while net face rents stayed at $111/sqm. Net rental yields
also remained the same at 5.0 per cent.
Capital values for the retail increased by 12.9 per cent to $6,111/sqm
over the month and net face rents also went up by 0.9 per cent to
$327/sqm. Net rental yields was unchanged at 4.7 per cent.
Return to table of contentsCommercial Market
Commercial Office
LOWER QUARTILE MEDIAN FEB-22 UPPER QUARTILE LOWER QUARTILE MEDIAN JAN-22 UPPER QUARTILE MONTH CHANGE
Capital values ($/sqm) $4,684 $6,554 $9,954 $4,722 $6,250 $9,885 4.9%
Face rents ($/sqm) $186 $268 $328 $188 $270 $309 -0.6%
Rental Yield (% pa) 2.7% 4.2% 5.1% 2.7% 4.0% 4.9% 0.2ppts
Industrial
LOWER QUARTILE MEDIAN FEB-22 UPPER QUARTILE LOWER QUARTILE MEDIAN JAN-22 UPPER QUARTILE MONTH CHANGE
Capital values ($/sqm) $1,903 $2,474 $3,865 $1,774 $2,419 $3,609 2.3%
Face rents ($/sqm) $83 $111 $171 $83 $111 $171 0.0%
Rental Yield (% pa) 4.3% 5.0% 5.2% 4.3% 5.0% 5.2% 0.0ppts
General Retail
LOWER QUARTILE MEDIAN FEB-22 UPPER QUARTILE LOWER QUARTILE MEDIAN JAN-22 UPPER QUARTILE MONTH CHANGE
Capital values ($/sqm) $3,239 $6,111 $9,595 $3,068 $5,414 $9,239 12.9%
Face rents ($/sqm) $237 $327 $438 $248 $324 $434 0.9%
Rental Yield (% pa) 3.6% 4.7% 5.2% 3.8% 4.7% 5.3% 0.0ppts
Return to table of contentsABOUT REIV The Real Estate Institute of Victoria has been the peak professional association for the Victorian real estate industry since 1936. Over 2,000 real estate agencies in Victoria are members of the REIV. These Members are located in city, rural and regional areas. Members specialise in all facets of real estate, including: residential sales, commercial and industrial sales, auctions, business broking, buyers agency, property management, owners’ corporations management and valuations. CONTACT US The Real Estate Institute of Victoria Ltd. 335 Camberwell Rd, Camberwell, Victoria 3124, Australia Phone +61 3 9205 6666 | Fax +61 3 9205 6699 Email reiv@reiv.com.au | www.reiv.com.au
Glossary/About REIV data
What is a median price? Why are only areas with 25, 30 or 50 sales included in snapshots?
The median price is the middle price in a series of sales. For example, if 15 sales are Using a median price taken from a limited sample will tend to be more volatile from one
recorded in a suburb and arranged in order from the lowest to the highest value, the period to the next. Therefore caution must be taken about making broad conclusions
eighth sale price is the median price. In the case where there is an even number of on the market from such figures.
sales in a series, the median price is the average of the middle two prices.
How does the REIV classify property?
Why do you use median prices?
The REIV endeavours to use as similar classifications as possible to the ones used by
Median prices provide a useful guide to market activity. The REIV does not intend for real estate agents, in order to maintain the accuracy of data collected.
median price measures to be regarded as a valuation tool. The assessment of a
Property that falls under the ‘house’ classification includes:
property’s value is a job for a qualified professional who possesses the knowledge,
- Detached houses
experience and comparable sales information required to do so.
- Terraced houses
What are upper and lower quartile points? - Semi-detached houses
- Holiday houses
The lower quartile is the point where one quarter of the sales are of a lesser value, and
- Duplexes
the upper quartile is the point where one quarter of the sales are of a higher value.
- House and granny flat
How do you gather your data? Property that falls under the ‘units & apartments’ classification includes:
The REIV gathers most of its data online from agents submitting their sales results - Flats
electronically and it also has a dedicated call centre to collect property sales results at - Units
the time of contract. The sales results submitted to the REIV include residential, - Apartments
commercial, industrial and rural sales results from around the state. - Townhouses
- Penthouses
Is your data accurate? - Villas
All our data is checked for accuracy and questionable sales are either verified with the - Residential warehouse conversions
selling agent or excluded from analysis. - Bed-sitsGlossary/About REIV data
Which areas are included in ‘metropolitan Melbourne’? - Port Phillip
- Stonnington
For the purpose of our analysis we define ‘metropolitan Melbourne’ as those suburbs - Whitehorse
contained within the following 31 municipalities: - Whittlesea
- Wyndham
- Banyule
- Yarra
- Bayside
- Yarra Ranges
- Boroondara
- Brimbank Which regions are ‘inner’, ‘middle’ and ‘outer’ Melbourne?
- Cardinia
- Casey For the purposes of our analysis we define:
- Darebin
- ‘inner’ as being within 10km from the CBD;
- Frankston
- ‘middle’ as being between 10km and 20km of the CBD; and
- Glen Eira
- ‘outer’ as being more than 20km from the CBD.
- Greater Dandenong
- Hobsons Bay The full suburb list of what is within the inner, middle, and outer regions is available on
- Hume the REIV website at www.reiv.com.au/property-data/about-our-research/research-faq
- Kingston
- Knox
- Manningham
- Maribyrnong
- Maroondah
- Melbourne
- Melton
- Monash
- Moonee Valley
- Moreland
- Mornington Peninsula
- NillumbikChief Executive Officer
CREDITS & Quentin Kilian
DISCLAIMER Editors
REIV Research
© 2022 The Real Estate Institute of Victoria Ltd. (REIV). All rights reserved. No
reproduction, distribution, or transmission is permitted without the prior written
permission of the REIV.
In compiling information, the REIV has relied upon data supplied by third parties. The
REIV uses recognised statistical techniques in compiling its data, and this data is
checked for accuracy and questionable sales results are either verified with the selling
agent or discarded.
Because the REIV has relied upon data supplied by third parties, the REIV does not
warrant the information’s accuracy or completeness. Subscribers specifically accept the
information on an ‘as is’ basis. To the full extent allowed by law the REIV excludes
liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or
by any other person or body corporate arising from or in connection with the supply or
use of the whole or any part of the information in this publication through any cause
whatsoever and limits any liability it may have to the amount paid to REIV for the supply
of such information.
Median prices are a guide to market activity, and the REIV does not intend for median
prices measures to be regarded as a valuation tool.
The assessment of an individual property’s value is a job for a qualified professional, who
possesses the knowledge, experience, and comparable sales information required to do
so.You can also read
