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Distressed Property of the Week

 108/172 Railway Parade, West Leederville WA 6007

The vendor is now accepting offers on this one-bedroom apartment from $369,000 in Perth, reduced significantly from $419,000 back in April 2021. Located in a modern apartment block, it offers modern living in a compact space at an affordable price. With the property on the market for several months, now could be a good time to haggle with the owner for a bigger discount.
 
The apartment is located in West Leederville (6007), which is just 3 kms northwest of Perth CBD. Built in 2016, the apartment on the 5th floor of the north tower offers quiet living with district views, a modern kitchen and open plan living. Occupants will be able to enjoy the reverse cycle air-conditioning in Perth’s hot summers, as well as a 16-metre swimming pool with cabana and lounge, BBQ facilities, gym and sauna.  The home is conveniently located close to three train stations, three large shopping centres, a local bus stop and the Mitchell Freeway.  This apartment could suit a young couple, student or investor. The property is currently tenanted at a rent of $400 per week.

But would it yield a good return?  The vacancy rate for postcode 6007 is just 0.6% while asking rents for units have surged 19.8% over the year to 20 November. SQM data shows rental listings have dropped sharply from 2021, pushing up rents, as demand outstrips supply. So, for investors, the outlook looks positive, with not enough apartments to rent for the number of people seeking rental homes.

The news on sales is less positive, with asking sales prices for units down 0.5% over the year to 23 November, despite a fall in property listings for units from a year earlier. Over the medium term, unit prices have barely risen, up just 2.3% over three years. Given these numbers, it might be wise to try drive a harder bargain with the seller, as those who bought a unit a year ago not getting a great return on their money. Having said that, it's not all about money, but about comfort and convenience too, and this apartment definitely offers some of that.

Monitor this market and others with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.

Auction Results

for week ending 21st November 2021
Full individual auction results can be found on our website:

Auction Listings*

for week ending 28 November 2021

CITY Saturday   Rest of Week STATE Saturday   Rest of Week   Link
Sydney 1260   454 All NSW 1486   702   Auctions in NSW
Melbourne 1615   342 All VIC 1787   402   Auctions in VIC
Brisbane 156   115 All QLD 245   227   Auctions in QLD
Perth 39   5 All WA 40   13   Auctions in WA
Adelaide 192   139 All SA 194   147   Auctions in SA
Canberra 122   62 All ACT 122   62   Auctions in ACT
Darwin 0   2 All NT 0   3   Auctions in NT
Hobart 0   0 All TAS 0   1   Auctions in TAS

* The above counts of auctions represent most recent known auction dates for the coming week.

Real Estate Realities

Foreign US property sales to soar

The US has lifted travel bans on about 33 countries for vaccinated visitors, easing restrictions that have prevented foreign buyers from entering the country to view and buy properties. Now, the easing of those restrictions is expected to add heat to already hot property markets in the US, where demand for luxury properties is soaring.
 
A recent review of sales data suggests the wave of overseas buyers could generate tens of billions of dollars in property sales. Foreign buyers spent US$267 billion on US real-estate in 2018 and US$183 billion in 2019, before the pandemic, according to the National Association of Realtors, says this report from CNBC.

From November 8, buyers from Europe, China, Brazil, and India have been able to enter the US for the first time in 20 months. Real estate agents in cities popular with the wealthy such as New York, Miami, and Los Angeles say they have a long list of showings scheduled in the coming weeks from buyers who have been anxious to invest in US property, according to CNBC. Flush with cash post-pandemic, the global wealthy are now looking for trophy assets. 
 
While China remained the largest source of overseas buyers in the US before the pandemic, with Chinese purchases of US real-estate totalling US$11.5 billion in 2020, Canada was a close second, at US$9.5 billion. Mexico ranked third, followed by India and the UK. Before the pandemic, Florida was the largest market for overseas buyers of US real estate, accounting for 20% of foreign sales. California ranked second at 16%, followed by Texas, Arizona, New Jersey and New York. But wherever they buy, the wealthy like to be near the water and US coastal cities are expected to be be the main beneficiaries of the foreign influx of cash, real estate agents say.  

Reflecting strong demand for property, Manhattan luxury real estate sales posted their best week in at least 15 years, with more than US$613.7 million in contracts signed for homes priced at US$4 million or more in the week ending November 21, 2021, the largest total sales volume since 2006, according to data from Olshan Realty.

The US property market overall is strong, with US home sales in October reaching their highest level in nine months. The median existing house price jumped 13.1% from a year earlier to US$353,900 in October, with sales concentrated in the US$250,000-US$500,000 range, Reuters reports. Sales soared over the summer of last year amid an exodus from cities to suburbs as Americans sought more spacious accommodations for home offices and online schooling during the pandemic.

More ...

Black Dragon's Words for the Week

 

“Unless we make Christmas an occasion to share our blessings, all the snow in Alaska won't make it white.” —

~ Bing Crosby

SQM Research Housing Indexes

SQM Research Weekly Asking Prices Index

Property Indexes

SQM Research Weekly Asking Prices Index
Week ending
23 Nov 2021
Asking Price Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Sydney All Houses      1,734.0 17.3 3.9% 26.2%
All Units 706.8 1.0 0.6% 5.3%
Melbourne All Houses 1,134.8 4.7 0.9% 10.9%
All Units 579.1 3.3 1.2% 0.2%
Brisbane All Houses 796.5 6.8 3.7% 21.9%
All Units 409.9 1.1 1.6% 7.9%
Perth All Houses 714.1 -0.8 1.0% 6.4%
All Units 395.9 1.4 1.3% 4.2%
Adelaide All Houses 632.0 3.1 3.0% 18.3%
All Units 325.1 0.5 0.6% 3.0%
Canberra All Houses 850.6 -3.8 -1.1% 4.5%
All Units 474.1 -1.2 -2.6% 0.6%
Darwin All Houses 648.0 0.4 0.2% 9.5%
All Units 384.5 1.5 3.0% 8.3%
Hobart All Houses 682.6 -0.1 -0.2% 18.1%
All Units 441.9 -0.4 0.4% 12.2%
National All Houses 755.8 9.6 4.5% 19.4%
All Units 449.4 2.7 0.6% 9.9%
Cap City Average All Houses 1,178.8 4.8 3.6% 18.8%
All Units 589.2 1.7 1.1% 4.1%

Next update: 30 Nov 2021

SQM Research Weekly Rents Index

QM Research Weekly Rents Index
Week ending
20 Nov 2021
     Rent               Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Sydney All Houses 721.9 10.1 2.4% 13.3%
All Units 472.5 1.5 0.9% 5.4%
Melbourne All Houses 526.5 1.5 0.4% 2.6%
All Units 372.8 0.2 -0.3% -3.6%
Brisbane All Houses 538.9 2.1 1.9% 15.5%
All Units 396.4 0.6 0.2% 5.1%
Perth All Houses 531.9 4.1 1.4% 9.9%
All Units 402.3 -1.3 -0.6% 10.5%
Adelaide All Houses 456.7 0.3 0.1% 8.9%
All Units 333.7 -0.7 -0.3% 7.2%
Canberra All Houses 716.3 -2.3 -0.3% 13.1%
All Units 524.8 0.2 1.1% 9.4%
Darwin All Houses 620.1 -8.1 2.8% 10.5%
All Units 457.5 -2.5 0.2% 20.6%
Hobart All Houses 495.5 -5.5 0.6% 12.6%
All Units 409.0 4.0 -5.0% 4.3%
National All Houses 552.0 3.0 2.6% 13.6%
All Units 410.0 -2.0 0.5% 7.3%
Cap City Average All Houses 595.0 6.0 2.2% 10.4%
All Units 426.0 2.0 0.5% 4.2%

Next update: 28 Nov 2021

SQM Ratings Newsletter ☆☆☆☆☆


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