TOTAL PROPERTY LISTINGS INCREASED IN MAY
by Louis Christopher, CEO
Figures released today by SQM Research reveal national residential property listings increased in May by 3.9% from 292,775 listings in April 2020 to 304,137. Compared to 12 months ago, listings were down by 12.0%.
All capital cities experienced increases in property listings over the month except for Canberra which posted a marginal 0.8% decrease.
The largest listings increase was in Melbourne and Sydney at 11.6% and 10.9% increase, respectively. Hobart also recorded a large increase of 7.8%.
Year-on-year listings show more significant declines for all capital cities with Perth recording a 20.0% decline, followed by Darwin with a 18.8% decline and Hobart a 15.8% decline this time last year.
Overall, there was a rise in listings at the national level, driven by older stock not selling. We have recorded a 12% increase in listings of over 60 days. This tells me it is a patchy market with vendors struggling to meet their pricing expectations. New listings actually fell for the month at the national level, which is abnormal for May. Though we have recorded rises in new listings for Sydney and Melbourne, other cities such as Brisbane, Adelaide and others recorded a decline in new stock. Many regional locations also recorded falls in new listings.
Capital City average asking prices increased by 0.5% for houses and decreased 0.1% for units, over the month to 2nd June 2020. Unit asking prices are now at $573,300 and houses $997,400.
Compared to a year ago, the capital city asking prices posted increases of 10.2% for houses and 2.5% increase for units.
Over the month, most capital cities recorded marginal asking price increases however, Sydney’s unit prices declined by 0.4%, and Brisbane, Darwin and Hobart’s house prices all recorded declines of 0.3%, 1.1% and 0.1%, respectively.
Strongest monthly growth was seen in Darwin’s unit prices with a huge 7.2% increase, followed by Hobart with a 1.5% unit price increase and Perth’s houses had a 1.2% increase.
Year on year, it was only Perth and Darwin that experienced declines in house and unit prices. All other capital cities recorded growth this time last year with Sydney recording a strong 13.7% house price growth, Melbourne 11.9% house price growth and Hobart a 10.0% house price growth and 18.2% unit price growth, this time last year.
AUCTION LISTINGS* for week ending 7 June 2020
*Note: To date, most state governments have announced the return to public open homes and on-site auctions this Saturday, some online auctions could be converted to on-site auctions or postponed to a future date. The above counts of auctions represent most recent known auction dates for the coming week.
AUCTION RESULTS for week ending 31 May 2020
Last week, Sydney recorded a final auction clearance rate of 43.1% with mid-week auctions faring better than Saturday results (45.5% verses 42.6%). Sydney volumes rose to 436 properties for the week which is well up on recent weeks. Overall though, clearance rates faltered on the volume. We would regard clearance rates in the low to mid 40s as one where prices are likely weakening.
Melbourne had one of its best weeks since the crisis. A clearance rate for the week of 49.4% was recorded with the mid-week results fairing much better than the Saturday results (56.8% verses 47.5%). Volumes remained low levels at just 231 properties for the week.
Looking forward to this week, Sydney has 399 scheduled which represents a drop on the last week. While Melbourne has 179 scheduled, which is also down. But keep in mind it is the Queen’s Birthday long weekend for both states which normally see volumes fall. Happy cracker night!
Full individual auction results can be found on our website:
DISTRESSED PROPERTY OF THE WEEK
14 Lexton Avenue, Dandenong VIC 3175
A 2 bedroom house, sitting on a 583 sqm allotment in the Melbourne suburb of Dandenong, is being offered for sale at $509,000. Initially it was advertised with an asking price of $495,000 to $535,000 in March 2020. It last sold for $262,000 in September 2008.
The home is located near the heart of Dandenong within walking distance to public transport, shops, dining, schools, parks and a short drive to Dandenong Plaza, Eastlink and Monash Freeway.
The existing property is in good condition and is currently tenanted and features 2-bedrooms, 1 bathroom, a spacious lounge, kitchen with meals area and laundry. The home sits on a large block of land presenting an opportunity to either sub-divide, develop, renovate or knock-down and rebuild (STCA).
Asking prices for houses in postcode 3175 has declined by 2.4% over the last month, after a 3.0% increase over 12 months. Current house prices range from $550,000 to $650,000 in this postcode. Unit asking prices have also declined by 1.2% in this postcode.
Asking rents have also declined by 2.9% over the month for houses and 1.8% for units. Whilst vacancy rates have increased to 1.9%, up from 1.3% in March, it is still quite low. A gross rental yield of 3.2% can be achieved for houses in this area. Total property listings in this area have recently been declining.
This is currently an affordable area of Melbourne and will attract first home buyers however, this property would also suit developers and investors alike.
Keep monitoring this market’s growth with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.
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