National Media Release

RP Data-Rismark October Hedonic Home Value Index Results

Released: Friday, November 1, 2013
Further information contact: Mitch Koper, RP Data national communications manager 07 3114 9879 or media@rpdata.com

Values continue to rise in October fuelled by Australias three largest cities

Australian capital city dwelling values increased by 1.3 per cent in October, driven largely by the Sydney housing market as well as significant value growth in Melbourne and Brisbane.
The release today of the RP Data and Rismark International Index results as at October 31, 2013 Change in dwelling values October housing market results confirmed a 1.3 per cent Month Quarter YoY rise across the combined capital cities index over the Region Sydney 2.4% 5.5% 11.6% month with the rolling 12 month combined capital cities Melbourne 1.2% 3.8% 7.8% index growth rate recording its fastest pace in three years. Brisbane 1.4% 2.6% 3.4%

Combined capital city dwelling values increased by 7.9 per cent over the last 12 months and are up 8.2 per cent year to date.
RP Datas Senior Research Analyst Cameron Kusher noted that the latest data also emphasises the strong housing market conditions in Australias two largest cities, Sydney and Melbourne, which is having a strong influence on capital growth across the combined capital cities. Sydney home values increased by 2.4 per cent in October and increased by 5.5 per cent over the past three months while in Melbourne, home values increased by 1.2 per cent in October and recorded an increase of 3.8 per cent over the past three months. For the first 10 months of this year, Sydney and Melbourne house values have performed very strongly achieving growth of 13.4 per cent and 8.7 per cent, respectively, Mr Kusher said. Rismark CEO, Ben Skilbeck, added that while Sydney has eclipsed its previous cyclical high and Melbourne is near its peak, Brisbane remains 8.4% below its highs. There is, however, evidence that growth conditions may be spreading to Brisbane with home values in that city rising by 1.4 per cent over the month and 2.6 per cent over the past three months. While Brisbane auction clearance rates are typically low in comparison to Sydney and Melbourne due to differences in the preferred sale mechanism, Brisbane auction clearance rates are approaching the 50% mark which was last consistently observed in 2009 when values increased 7.1 per cent over the year, Mr Skilbeck said. Elsewhere, the results confirmed that dwelling values rose over the month in Adelaide (0.3%) and Darwin (1.6%) while they fell in Perth (-0.2%), Hobart (-2.3%) and Canberra (-1.5%).

Adelaide Perth Hobart Darwin Canberra 8 capital city aggregate Rest of state*

0.3% -0.2% -2.3% 1.6% -1.5% 1.3% -0.1%

2.1% -0.6% -6.0% -0.3% -1.4% 3.4% -0.3%

1.9% 6.9% -0.7% -0.1% 3.5% 7.9% 0.8%

Total gross Median returns dwelling price 16.6% $610,000 11.9% $538,000 8.5% $429,000 6.5% $375,000 11.8% $493,000 4.6% $303,000 6.2% $520,000 8.4% $508,250 12.6% $511,000 $340,000

* Rest of state change in values and median prices are for houses only to end of September

Highlights over the three months to October 2013

Best performing capital city: Sydney +5.5 per cent Weakest performing capital city: Hobart, -6.0 per cent Highest rental yields: Darwin houses with gross rental yield of 6.2 per cent and Darwin Units at 6.3 per cent Lowest rental yields: Melbourne houses with gross rental yield of 3.4 per cent and Melbourne units at 4.3 per cent Most expensive city: Sydney with a median dwelling price of $610,000 Most affordable city: Hobart with a median dwelling price of $303,000

Annual change in dwelling values, year to Oct 2013

14.0% 12.0%
10.0% 8.0% 6.0% 4.0% 6.9% 7.8% 11.6%

7.9%

3.4% 1.9%
-0.1% Darwin Adelaide Brisbane

3.5%

2.0% 0.0%
-2.0% -0.7% Hobart

Canberra

Perth

Melbourne

Sydney

Combined capitals

Dwelling value changes over the 2013/14 financial year to October 2013
10.0% 8.0%
6.0% 4.0% 2.0% 0.0% 2.7% 6.2% 7.7% 5.1%

0.5%

1.0%

1.1%

1.8%

-2.0% -4.0%
-6.0% -5.2% Hobart Adelaide Canberra Perth Darwin Brisbane Melbourne Sydney Combined capitals

50.0%

Rolling annual change, Australias largest capital cities

Sydney Melbourne Brisbane Adelaide Perth

40.0%

30.0%
20.0% 10.0% 0.0%

-10.0% Oct-03

Oct-05

Oct-07

Oct-09

Oct-11

Oct-13

Media enquiries contact: Mitch Koper , RP Data national communications manager 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices

National Media Release (Contd)

Mr Kusher said that of note were the recent weaker capital growth conditions for the Perth housing market. According to Mr Kusher, two months ago Perth was experiencing the fastest 12 month rate of value growth of all capital cities at 9.4 per cent, whereas this has now slowed to 6.9 per cent following a -0.6 per cent fall in home values over the past quarter. Although values are broadly rising, the strength in the market is being fuelled by Sydney where home values have only increased at an average annual rate of 2.7 per cent over the past decade. Therefore, it is little wonder that the Sydney market is responding strongly to record low mortgage rates given its long period of underperformance coupled with a pent up undersupply of new housing over recent years, Mr Kusher said. Outside of the home values growth, most other indicators are pointing to an ongoing improvement in overall housing conditions. Over the three months to August 2013, RP Data estimated that capital city home sales were 20.1 per cent higher than the same time in 2012. The number of capital city properties listed for sale is 12.0 per cent lower than it was a year ago. There has also been marked improvements in the time it takes to sell a home and the level of discounting by vendors. Capital city homes are currently selling after 44 days compared to 56 days a year ago and discounting levels have reduced from 6.8 per cent a year ago to 5.7 per cent currently Rismarks Ben Skilbeck commented that while overall housing credit growth remained modest at nearly 5 per cent per annum, the latest lending commitment data shows the month of August 2013 had commitments for existing dwellings which exceed the August 2012 month by 10.2% for owner-occupiers and 22.6% for investors. RP Datas Cameron Kusher said that with home values growing at a much more rapid pace than rents we are already seeing signs of an erosion of rental returns, particularly within the Sydney and Melbourne markets. It could be expected that value growth will continue to outpace rental growth within these cities over the short term and if this occurs it will lead to an ongoing decline in rental returns, Mr Kusher said.

Media enquiries contact: Mitch Koper, RP Data national communications manager 07 3114 9879 or media@rpdata.com

Media enquiries contact: Mitch Koper , RP Data national communications manager 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices

Table 1: RP Data-Rismark Daily Home Value Index Results (Actual Results)

Brisbane Melbourne Gold Coast Australia 5 Capitals (ASX) Australia Brisbane 8 Capitals

Capital Growth to 31 October 2013 Table 1A: All Dwellings Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

Sydney

Adelaide

Perth

Hobart

Darwin

Canberra

2.4% 5.5% 12.6% 11.6% 16.6% $610,000

1.2% 3.8% 8.4% 7.8% 11.9% $538,000

1.1% 2.0% 2.7% 2.8% 7.9% $425,000

0.3% 2.1% 1.3% 1.9% 6.5% $375,000

-0.2% -0.6% 5.5% 6.9% 11.8% $493,000

1.4% 3.5% 8.2% 8.0% 12.6% $510,000

-2.3% -6.0% -1.5% -0.7% 4.6% $303,000

1.6% -0.3% 1.4% -0.1% 6.2% $520,000

-1.5% -1.4% 3.2% 3.5% 8.4% $508,250

1.4% 2.6% 3.1% 3.4% 8.5% $429,000

1.3% 3.4% 8.2% 7.9% 12.6% $511,000

Table 1B: Houses Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

2.5% 5.8% 13.4% 12.7% 17.5% $705,000

1.4% 4.1% 8.7% 8.1% 12.0% $595,000

1.4% 2.3% 3.0% 3.1% 8.1% $461,223

0.4% 1.7% 1.1% 1.9% 6.4% $390,000

-0.3% -0.9% 5.5% 7.0% 11.9% $508,000

1.5% 3.6% 8.5% 8.3% 12.9% $540,000

-1.9% -6.4% -1.5% -0.3% 5.2% $325,000

1.4% 0.2% 2.8% -0.3% 6.0% $580,000

-1.7% -1.8% 3.3% 3.6% 8.5% $548,009

1.5% 2.6% 3.3% 3.7% 8.6% $453,000

1.4% 3.4% 8.4% 8.2% 12.8% $540,000

Table 1C: Units Month Quarter Year-to-Date Year-on-Year Total Return Year-on-Year
Median price* based on settled sales over quarter

1.7% 4.4% 9.4% 7.2% 12.6% $535,000

-0.5% 1.5% 5.6% 6.1% 10.9% $460,000

-1.3% -0.6% 0.2% 0.1% 5.6% $360,000

-0.9% 6.2% 3.5% 2.7% 7.8% $319,000

0.0% 3.4% 6.1% 5.9% 11.3% $415,000

0.6% 3.1% 6.8% 5.8% 11.1% $452,000

-6.1% -2.1% -1.8% -5.2% -0.2% $236,150

2.5% -2.4% -4.3% 0.7% 7.1% $465,000

0.4% 3.8% 2.1% 1.6% 7.4% $418,000

0.6% 2.3% 1.6% 1.0% 6.8% $375,000

0.8% 3.4% 7.0% 5.9% 11.2% $460,000

Table 1D: Rental Yield Results Houses Units

3.9% 4.7%

3.4% 4.3%

4.7% 5.5%

4.3% 4.7%

4.4% 4.8%

4.0% 4.7%

5.5% 5.3%

6.2% 6.3%

4.4% 5.2%

4.6% 5.6%

4.0% 4.7%

The indices in grey shading have been designed for trading environments in partnership with the Australian Securities Exchange (www.asx.com.au). Indices under blue shading (Hobart, Darwin, Canberra, Brisbane and the 8 capital city aggregate) are calculated under the same methodology however are not currently planned to be part of the trading environment.

*The median price is the middle price of all settled sales over the three months to the end of the final month. Median prices are provided as an indicator of what price a typical home sold for over the most recent quarter. The median price has no direct relationship with the RP Data-Rismark Hedonic Index value. The change in the Index value over time reflects the underlying capital growth rates generated by residential property in the relevant region.
The RP Data-Rismark Hedonic Index growth rates are not ordinarily influenced by capital expenditure on homes, compositional changes in the types of properties being transacted, or variations in the type and quality of new homes manufactured over time. The RP Data-Rismark index values are not, therefore, the same as the median price sold during a given period. See the methodology below for further details. Methodology: The RP Data-Rismark Hedonic Home Value Index is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property comprising the index into its various formational and locational attributes, differing observed sales values for each property can be separated into those associated with varying attributes and those resulting from changes in the underlying residential property market. Also, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the stock of residential property comprising an index can be accurately tracked through time. RP Data owns and maintains Australia's largest property related database in Australia which includes transaction data for every home sale within every state and territory. RP Data augments this data with recent sales advice from real estate industry professionals, listings information and attribute data collected from a variety of sources. For detailed methodological information please visit www.rpdata.com

For more information on the RP Data-Rismark Indices, please go to http://www.rpdata.com Media enquiries contact: Mitch Koper , RP Data national communications manager 07 3114 9879 or media@rpdata.com

Introduction to the RP Data-Rismark Daily Hedonic Home Value Index methodology:

The RP Data-Rismark Hedonic Home Value Index is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property comprising the index into its various formational and locational attributes, differing observed sales values for each property can be separated into those associated with varying attributes and those resulting from changes in the underlying residential property market. Also, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the stock of residential property comprising an index can be accurately tracked through time. RP Data owns and maintains Australia's largest property related database in Australia which includes transaction data for every home sale within every state and territory. RP Data augments this data with recent sales advice from real estate industry professionals, listings information and attributes data collected from a variety of sources. For detailed methodological information please visit www.rpdata.com

Media enquiries contact: Mitch Koper , RP Data national communications manager 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices

About RP Data
RP Data is 100 per cent owned by CoreLogic which is a leading provider of consumer, financial and property information, analytics and services to business and government. The company combines public, contributory and proprietary data to develop predictive decision analytics and provide business services that bring dynamic insight and transparency to the markets it serves. Today, CoreLogic has more than 6,000 employees globally with 2012 revenues of $1.6 billion and is listed on the NYSE. At RP Data, we continually collect, manage and process property-based data and imagery from over 300 sources across Australia including government agencies, media partners and industry professionals. RP Data is the biggest provider of property information, analytics and risk management services in Australia and New Zealand with a database of 210 million property records. RP Data serves customers ranging from real estate agents and consumers to banks, mortgage brokers, financial planners and governments. We understand that data is most useful when its presented as relevant and actionable analytics. Our data provides customers with insights that realise more market opportunities, while simultaneously growing businesses and managing risk. Our results speak for themselves; were helping over 100,000 end users including approximately 45,000 real estate agents win more business by providing Australias most trusted prelistings comparative market appraisal (CMA) report, as well as industry standard tools that promote transparency and confidence when buying and selling property. In addition, 1 million consumers use RP Data to make important decisions about property they are about to hold, sell or purchase. Our Mortgage Platforms cover more than 90 per cent of the mortgage lending activity in Australia. We estimate the value of every residential property in Australia each week via our automated valuation models which support our industry leading RP Data Rismark Daily Home Value Index. On average, we issue over 30 million automated valuation assessments every month. Were Australias leading source for mobile property information too with over 500,000 mobile devices accessing our services each month. Using public and proprietary data, we bring insight and transparency to the Australian property market. We employ 330 people at ten locations in Australia and New Zealand and our revenue for 2012 was over $70 million.

About Rismark International

Rismark International ("Rismark") is a funds management and quantitative research business. It is dedicated to the development of intellectual property required to facilitate the creation of financial markets over the residential real estate asset class. Rismark also has a long history of advising Australian and overseas governments on the development of innovative economic policies as they relate to housing and financial markets. As a by-product of its quantitative research activities, Rismark has developed the technology and intellectual property underlying the market-leading RP Data-Rismark hedonic property price indices and related automated property valuation models (AVMs), amongst other things. For more information visit www.rismark.com.au.

Media enquiries contact: Mitch Koper , RP Data national communications manager 07 3114 9879 or media@rpdata.com

www.rpdata.com/indices