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Compound Annual Growth Rates
A substantial amount of my time is tracking market trends for owners and I pride myself on the quality of
information.
One of the most accurate market property indices I worked with was at Chesterton International in London.
There were twenty offices and each valued ten either houses or apartments that reflected a cross section of the
housing stock within the given geographical area. Every quarter each sales manager would enter a quarterly
price for all ten properties being the same property every time. This property index was able to track property
performance by geographical area and also price range giving a better overall overview as to where the property
market was heading. In future I will aim to provide some examples of this using historical data for ten apartments
within the city.
Below is a table of the average compound annual growth for both 2014 and 2015. It is calculated by taking all
of the individual apartment sales within a building for 2014 and 2015 and compared it to the original off the plan
price paid and worked out the average. Of course you could further break down the data into different apartment
types such as one, two and three bedrooms or break it down as price brackets and further examine what type
has performed better. Furthermore this information could be measured over different timeframes that would
illustrate long periods of very low growth and the latter years of substantial growth.
The more information that I have at my disposal such as annual growth rates and square metre rates and
gauging current demand I am then able to demonstrate to both owners and buyers a property’s true value.
Ray White is the most Googled
Real Estate Agent in Australia
For 2014 Settlements these figures represent the
Average Percentage Compound Annual Growth Rate:
The Hyde
5.71
Stamford on Kent
4.85
Observatory
4.50
Hyde Park Towers
4.33
The Highgate
4.30
Stamford Marque
3.88
Stamford Residences
3.80
Cove
3.70
The Connaught
3.60
Quay West
3.33
Regency Hyde Park
3.30
The Georgia
3.00
The Residences
2.71
Portico
1.85
The Eliza
No Data
For 2015 Settlements these figures represent the
Average Percentage Compound Annual Growth Rate:
The Eliza
9.00
The Highgate
6.33
Observatory
6.33
The Hyde
6.20
The Residences
5.67
Cove
5.50
The Connaught
4.83
Hyde Park Towers
4.83
Regency Hyde Park
4.50
Stamford on Kent
4.09
Quay West
4.00
Stamford Residences
3.90
Portico
3.00
Stamford Marque
2.00
The Georgia
No Data