Presentation for BNI Boroondara On Tuesday 8 November 2011 By Nick Pane, Director, O’Donoghues First National Real Estate At 1 Bowen Street, Camberwell Victoria 3124

What will we cover What we do O’Donoghues - the team Clearance Rates Is the Real Estate market sensitive to interest rate movements? Metropolitan growth suburbs Median prices Median term capital growth Housing market conditions Housing affordability Where is the market heading in 2012 What is a good referral

What we do Residential Sales Commercial Sales Commercial Leasing and Management Licensed Valuers Auctioneers

O’Donoghues – the team Directors – Simon O’Donoghue – Nick Pane – Sales Assistant – Sue Ellson Property Manager – Gabrielle Vertessy – Assistant Property Manager – Tania Pakoti Receptionist – Jane Hearn Administrator- Michele Gunther

Clearance Rates Last weekend: 417 auctions, clearance rate of 50% This weekend: 595 auctions, clearance rate of 53% This weekend last year: 704 auctions, clearance rate of 59% This weekend 2009: 524 auctions, clearance rate of 81%

Is the Real Estate market sensitive to interest rate movements? Improved affordability Increased confidence in market Investor activity increased Real estate is a good indicator of economic activity

Metropolitan growth suburbs - September Quarter 2011 Top 10 Growth Suburbs, Houses (Quarterly) Suburb Sep-11Jun-11 Qtly Change 1 Balwyn$1,590,000$1,280, % 2 Deer Park$385,000$346, % 3 Brighton E$1,156,250$1,050, % 4 Newport$706,750$655,0007.9% 5 Glen Waverley$768,800$722,0006.5% 6 Wyndam Vale$350,000$330,0006.1% 7 Boronia$455,000$432,7505.1% 8 Narre Warren South$410,000$395,0003.8% 9 Rowville$550,000$530,0003.8% 10 Carrum Downs$355,000$342,5003.6%

Median Price Growth Area % ChangeQ1.MedianQ1.Median Kew 366% $ 1,945,000 $ 417,500 Malvern East297% $ 1,477,500 $ 372,500 Ivanhoe 271% $ 1,280,000 $ 345,200 Balwyn257% $ 1,475,000 $ 413,000 Strathmore252% $ 922,000 $ 261,625 Canterbury250% $ 1,845,500 $ 527,000 Hawthorn250% $ 1,427,000 $ 408,000 Footscray246% $ 650,000 $ 188,000 Hawthorn East211% $ 1,360,000 $ 437,500 Caulfield South210% $ 1,008,000 $ 325,000

Area % ChangeQ1.MedianQ1.Median Sunshine 208% $ 447,500 $ 145,500 St Kilda East 207% $ 1,060,000 $ 345,000 Blackburn 206% $ 903,750 $ 295,500 Armadale206% $ 1,780,000 $ 582,250 Glen Waverley 206% $ 733,400 $ 240,000 Reservoir 205% $ 548,750 $ 180,000 Keilor East 204% $ 640,000 $ 210,200 Mordialloc 202% $ 662,500 $ 219,500 Murrumbeena 201% $ 903,500 $ 300,000 Burwood 199% $ 800,000 $ 268,000 Melbourne Metro 109% $ 565,000 $ 270,000 Median Price Growth (cont)

Medium Term Capital Growth 2010 – No increase 2009 – % increase Market moves in cycles Government policy – First home buyer grants – Easing of restrictions on foreign investors

Housing Market Conditions The market continues to be supported by strong economic fundamentals Strong population growth Low levels of unemployment Long term housing shortage will continue to underpin the market Long term confidence in property

Housing Affordability Main influencers – interest rates – Prices House prices down 4.9% Unit prices down 2.6% Average Days on market 52

Where is the market going in 2012? Increased stock levels Subdued buyer activity Stabilizing of prices - signs of falls Investors are returning – Self managed super funds – Poor returns elsewhere Foreign Buyers – AUD

What is a Good Referral? What is a good referral? – Sellers – Buyers – Investors – For Sale By Owners – To Let By Owners

Thank you Further information (blog) Nick Pane BBus (Acctg) CEA (REIV) Helper Agent® or