SQM Research Weekly Newsletter
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SQM Research Newsletter - Tuesday 25 June 2019
Property Valuations
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2019 Report

Black Dragon's
Words for the Week

"A life spent making mistakes is not only more honourable, but more useful than a life spent doing nothing."

George Bernard Shaw

Real Estate Realities 

Sydney apartments in spotlight as developers ramp up incentives to clear oversupply of stock

Developers are offering special deals like paying 12 months of a buyer's mortgage, $50,000 "bonuses" and even furniture vouchers in a bid to help clear Sydney's apartment glut.

An oversupply of apartments, falling property prices and restrictions on foreign investors mean developers have turned to targeted social media campaigns in a bid to lure customers.

St Trinity Property Group is advertising 12 months' mortgage free on its "luxury apartments" in Blakehurst, 20km south-west of the CBD.

In another advertisement, Arden Group says it will pay the stamp duty for buyers of its Elora The Hills development, in the north-west of the city.

Belle Property International is offering up a $15,000 Freedom Furniture voucher for its apartments and another, Tailor's Walk in Botany, is advertising a "$50,000 bonus".

Property analysts say the deals are common in an over-supplied market such as Sydney, with 54,000 new apartments built in 2018 and 2019 expected to be up for grabs by the end of the year.

SQM Research chief executive and property analyst Louis Christopher said developers would do anything to avoid reducing the asking price.



23 Stapledon Court, Corio Vic 3214

Situated in a quiet court, this 3-bedroom home offers great family living in Corio, a suburb of Geelong, Victoria.  
Conveniently located near schools and parks, Corio Village Shopping Centre, bus transport, Corio railway station, and a short drive to Geelong CBD and is easy travelling to Melbourne CBD.
The house is on a 618 sqm block with an open plan kitchen and dining, spacious lounge with a wood heater, 3 good sized bedrooms with robes, a central family bathroom and separate laundry.  You can look forward to reduced power bills as there is 5kws of solar panels. 

There is also an undercover alfresco area, garage for 4 cars or a boat or caravan, and a workshop also forms part of this space.  You could add capital value to this home by renovating, redeveloping or it can be enjoyed as is.
It was initially on sale at $395,000 in April 2019 but has now been reduced to $379,000.  It last sold 8 years ago for $245,000 in 2011.

asking prices for houses in postcode 3214 range from $352,000 to $355,000 and units range from $290,000 to $295,000.  House prices in the area have grown by 42.0% in the past 3 years, but declined 4.1% in the last 12 months.  However, over the last month we see a promising increase of 1.3% in house prices.  Unit prices in the area has also seen positive growth of 18.4% in the past 3 years and is also creeping back with a 0.9% growth over the last month.  SQM’s Valuation tool estimates this home between $370,000 to $400,000.  The vendor is keen to sell and is offering a short settlement if required.  

This home  is ideal for first home buyers looking to get their foot into the property market or investors can take advantage of this investment opportunity and earn rents of $290 to $300 per week for houses, obtaining a gross rental yield of 4.41%.  House asking rents in the area increased 17.9% in the past 3 years, but has declined 2.0% over the last month.  Vacancy rates are a very tight 0.3%.  There are currently 186 houses and 23 units listed for sale in the area since May 2019. 

Corio is currently more affordable than its neighbours North Geelong, Geelong West and Geelong where house prices can start from approx. $476k, $597k and $710k respectively. Overall, the Geelong region has seen a recent boost to its population and increase in jobs with employers such as WorkSafe Victoria, National Disability Insurance Scheme, oil refinery Viva Energy Australia, in the area.  This could be a good area to explore.
Monitor this market
 and other areas by accessing free property data at SQM’s website. Also consider the Property Valuation product for more in-depth data and property price estimator.


Did you know that SQM Research doesn’t only provide residential property data, we also provide research on all asset classes.  We have data and analytics on over 10,000 funds in Australia.  To find out more and to subscribe to our Fund Data tool click here.

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SQM Research Weekly Asking Prices Index
Week ending: 25 Jun 2019 Asking Price Chg on
prev wk
Rolling month
% chg
12 month
% chg
Sydney All Houses 1,235.7 6.5  1.3%  -8.7% 
All Units 690.4 1.2  1.1%  -5.0% 
Melbourne All Houses 936.5 -2.5  0.4%  -6.4% 
All Units 540.6 -0.8  0.0%  -0.7% 
Brisbane All Houses 617.3 -0.8  -0.1%  0.2% 
All Units 372.2 0.5  0.2%  -2.5% 
Perth All Houses 658.3 3.6  0.2%  -3.2% 
All Units 385.6 0.3  0.3%  -3.4% 
Adelaide All Houses 513.8 0.4  0.1%  0.7% 
All Units 302.4 0.4  0.3%  0.7% 
Canberra All Houses 797.1 -4.7  -1.6%  -2.3% 
All Units 431.6 0.2  0.6%  6.0% 
Darwin All Houses 583.1 -6.6  -1.6%  -1.3% 
All Units 355.7 1.1  -0.4%  -6.1% 
Hobart All Houses 518.7 -0.5  0.3%  7.2% 
All Units 305.2 -0.0  1.3%  1.2% 
National All Houses 567.3 -1.2  -0.1%  -0.4% 
All Units 375.2 1.7  -0.1%  0.1% 
Cap City Average All Houses 911.4 1.8  0.9%  -5.6% 
All Units 562.5 -1.2  0.7%  -3.4% 
Next update: 2 Jul 2019
SQM Research Weekly Rents Index
Week ending: 20 Jun 2019    Rent    Chg on
prev wk
Rolling month
% chg
12 month
% chg
Sydney All Houses 687.6 -1.6  -0.4%  -3.4% 
All Units 502.4 -0.4  -0.5%  -3.8% 
Melbourne All Houses 539.5 -0.5  -0.5%  2.1% 
All Units 424.0 0.0  0.1%  3.0% 
Brisbane All Houses 459.9 0.1  0.2%  1.8% 
All Units 373.5 1.5  0.5%  1.2% 
Perth All Houses 445.9 -2.9  -0.7%  5.1% 
All Units 336.6 0.4  -0.3%  4.0% 
Adelaide All Houses 397.3 1.7  1.3%  4.6% 
All Units 309.7 1.3  1.9%  3.4% 
Canberra All Houses 622.1 3.9  -0.4%  -2.4% 
All Units 462.3 -0.3  1.0%  3.2% 
Darwin All Houses 522.3 9.7  4.2%  -4.0% 
All Units 369.5 -1.5  -0.2%  -8.8% 
Hobart All Houses 438.6 3.4  2.0%  11.6% 
All Units 382.3 -6.3  -2.2%  8.9% 
National All Houses 442.0 1.0  0.7%  2.1% 
All Units 367.0 -3.0  0.0% 2.8% 
Cap City Average All Houses 552.0 -1.0  -0.5%  0.0%
All Units 441.0 0.0 -0.2%  -0.7% 
Next update: 28 Jun 2019
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