BrickX properties are independently revalued every six months. The valuations for July – December 2018 are in. Overall, BrickX properties have outperformed the market in all three capital cities we have properties in.
That said, nationwide property prices have fallen over the last six months, particularly in Sydney and Melbourne. This price compression has impacted our Sydney properties, with all except Mosman receiving lower valuations than in June 2018.
Quick snapshot
Several properties currently have Bricks available for below the updated valuation prices. These could represent an investment opportunity, depending on your objectives, financial situation and needs. See Bricks currently available for below their valuation or learn more about buying above and below valuation Bricks.
Remember to keep in mind that past performance is not indicative of future performance. Income and capital returns are not guaranteed. Investments in Bricks is generally for medium to long-term time horizons.
Adelaide
Adelaide was the only one of Australia’s five biggest capital cities to record positive house price growth over the last six months (+0.6%) – our St Peters property outperformed the city average, with +2.9% growth.
The St Peters property was purchased in July 2017 for $825,100. It has most recently been valued at $900,000 – an increase of 9% in 17 months.
Melbourne
The values of all three BrickX properties in Melbourne remained flat over the July – December 2018 period. This result outperforms the market, which fell -5.7% over the same period2 .
Sydney
There are 11 BrickX properties in Sydney. Over the last six months, the value of our Sydney properties moved -4.1%. Although a negative result, the properties did prove more resilient than the greater Sydney market, which fell -6.3% over the same period3 .
Not valued – Kingswood, Ballarat North & Soldiers Hill (Ballarat)
In August 2018 we purchased a second Adelaide property, in Kingswood. It was not revalued as it has been on the BrickX Platform for less than six months. The same applies to the properties in Soldiers Hill and Ballarat North. All three will be revalued for the first time in June 2019.
Property |
Settlement Date |
Initial Purchase Price |
Previous Property Valuation (Jun 18 or Initial Purchase Price) |
Most Recent Independent Valuation of the Property (Dec 18) |
% Change from prior valuation |
Latest Brick Valuation (including unamortised acquisition costs and cash reserve) |
| Enmore, NSW ENM01 |
12/12/14 | $ 620,000 | $670,000 | $650,000 | -2.99% | $ 66.42 |
| Mosman, NSW MOS01 |
23/1/15 | $ 1,200,000 | $1,500,000 | $1,650,000 | 10.00% | $ 166.85 |
| Prahran, VIC PRA01 |
5/5/15 | $ 1,150,000 | $1,190,000 | $1,190,000 | 0.00% | $ 122.22 |
| Annandale, NSW ANN01 |
6/11/15 | $ 1,270,000 | $1,430,000 | $1,400,000 | -2.10% | $ 105.68 |
| Double Bay, NSW DBB01 |
21/10/16 | $ 1,305,000 | $1,450,000 | $1,350,000 | -6.90% | $ 96.13 |
| Bondi, NSW BND01 |
2/12/16 | $ 1,350,000 | $1,400,000 | $1,250,000 | -10.71% | $ 82.62 |
| Port Melbourne, VIC PML01 |
3/2/17 | $ 1,455,000 | $1,455,000 | $1,455,000 | 0.00% | $ 152.95 |
| Darlinghurst, NSW DAR01 |
5/5/17 | $ 840,000 | $840,000 | $800,000 | -4.76% | $ 51.20 |
| Surry Hills, NSW SUR01 |
29/5/17 | $ 1,300,000 | $1,300,000 | $1,150,000 | -11.54% | $ 77.53 |
| Potts Point, NSW PPT01 |
5/6/17 | $ 885,000 | $885,000 | $800,000 | -9.60% | $ 55.74 |
| Manly, NSW MAN01 |
19/6/17 | $ 1,110,000 | $1,140,000 | $1,120,000 | -1.75% | $ 97.00 |
| Brunswick West, VIC BRW01 |
27/6/17 | $ 1,190,000 | $1,200,000 | $1,200,000 | 0.00% | $ 85.98 |
| St Peters, SA STP01 |
17/7/17 | $ 825,100 | $875,000 | $900,000 | 2.86% | $ 79.49 |
| Balmain, NSW BLM01 |
24/7/17 | $ 1,830,000 | $1,830,000 | $1,780,000 | -2.73% | $ 131.98 |
| Darlinghurst, NSW DAR02 |
10/4/18 | $ 639,000 | $639,000 | $600,000 | -6.10% | $ 64.41 |
| Kingswood, SA* KIN01 |
24/8/18 | $ 567,500 | n/a | n/a | n/a | $ 47.00 |
| Soldiers Hill, VIC* SLD01 |
31/8/18 | $ 401,000 | n/a | n/a | n/a | $ 33.00 |
| Ballarat North, VIC* BAN01 |
25/9/18 | $ 404,000 | n/a | n/a | n/a | $ 34.00 |
*Properties held for less than 6 months and therefore not valued independently at December 2018
Our Property Team’s view of the market
Property is best viewed as a medium-to-long term investment. Our specialist property team meets quarterly to discuss the BrickX property strategy. Hear what the team discussed last meeting (September 2018) in the article BrickX Property Team Meeting – September 2018.
References
1. CoreLogic Hedonic Home Value Index – https://www.corelogic.com.au/research/back-series
2. CoreLogic Hedonic Home Value Index – Greater Melbourne. July – December 2018 – https://www.corelogic.com.au/research/back-series
3. CoreLogic Hedonic Home Value Index – Greater Sydney. July – December 2018 – https://www.corelogic.com.au/research/back-series
