SUMMARY • With 5 million visitors to our site each month and almost every listing, we are able to gather unique insights into the Australian residential market. • Nationally, demand for housing and apartments is high however there is distinct variation across states. NSW and Victoria are achieving very high levels of demand for houses and apartments. Western Australia is seeing far more challenged conditions for both houses and apartments. • Despite concerns about over supply, apartments in Melbourne are seeing very high demand levels with new developments in Port Melbourne and Melbourne CBD seeing the most views nationally. Brisbane CBD also features. • The most popular price points for new apartments is relatively low cost. For Melbourne, it is between $400,000 and $450,000. Not surprisingly, the most popular apartments are two bedroom, two bathroom. • The most popular house and land developments are in Queensland. The most popular location in Melbourne is Craigieburn however this is ranked 12th so relatively low down the list. • New taxes on foreign buyers, restrictions to finance and capital controls have led to a decline in interest in Australian property by Chinese buyers. Sydney has been hit the hardest. Interestingly, despite increased taxes on foreign buyers, interest in Brisbane has increased perhaps driven by increases in stock levels or greater affordability • Chinese buyers are most interested in Melbourne locations with large shopping centres however are becoming more interested in just apartments. House and land packages in places such as Adelaide and Perth are attracting a lot of interest. • Although there are concerns about too much apartment development, we are seeing a lot of interest in certain locations, far higher than levels of supply. For renters, demand for apartment in Gold Coast is far outstripping supply. For buyers, NSW features prominently with Manly the most in demand. 50 70 90 110 130 150 170 190 210 230 250 REA Group Property Market Index - Houses, 2013-2016 60 80 100 120 140 160 180 200 REA Group Property Market Index - Apartments, 2013-2016 UDIA Research Breakfast – Changing Consumer Trends & Preferences HIGHLIGHTS Presented by Chief Economist at REA Group, Nerida Conisbee UDIA OCTOBER 2016