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SQM Research Residential Newsletter - 
Tuesday 21 July 2020
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Black Dragon's
Words for the Week

“During lockdown, we are surely locked but not down. Stay inspired.” 

Dr Prem Jagyasi

Real Estate Realities 

How government intervention in the property market is actually harming it

Picture this: it’s a scene that plays out so often it seems inevitable. There’s an election campaign and a politician decides to shore up support by committing to a policy that’s proven to be popular: first-home buyer grants.

But what is the effect on the property market and the economy of these grants? No one knows definitively. Why?

The University of Sydney’s Cameron Murray said the way sales were reported made it nearly impossible to track and to research.

“The concerning thing in this is: why there is a gap [in knowledge]?” Dr Murray said. “Because property information, sales records and ownership records are difficult to get in this country.

“It’s almost an impossible task to match this up. So we have to go on secondary information and look at price changes in certain suburbs.”

While writing peer-reviewed research would help to discourage governments from undertaking the grants, which most agree didn’t work, governments seemed happy enough that they appeared to prevent prices from falling, he said.

So what do we know?

 

AUCTION LISTINGS* for week ending 26 July 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 552 92   All NSW 609 133 Auctions in NSW 
Melbourne* 567 47   All VIC 605 55 Auctions in VIC 
Brisbane 53 23   All QLD 96 60 Auctions in QLD 
Perth 6 8   All WA 6 8 Auctions in WA 
Adelaide 41 26   All SA 41 31 Auctions in SA 
Canberra 41 10   All ACT 41 10 Auctions in ACT 
Darwin 2 3   All NT 2 3 Auctions in NT 
Hobart 0 0   All TAS 1 0 Auctions in TAS

*Note: The above counts of auctions represent most recent known auction dates for the coming week.  As at 8 July, Melbourne auctions are back on-line.
 

AUCTION RESULTS for week ending 19 July 2020

Full individual auction results can be found on our website: 


 

DISTRESSED PROPERTY OF THE WEEK

   3E, 2-18 Riverview Parade, Surfers Paradise, QLD 4217

If you are looking for an oversized renovator then this 3-bedroom, 2-bathroom apartment in Surfers Paradise Qld, could be the perfect choice.  With a huge floor space of 142 sqm, the apartment is situated on the 3rd floor of the ‘Condor’ building.  It is a family-sized, quality unit with 3 very large bedrooms plus master with ensuite, open plan lounge, well-appointed kitchen, sunny East-facing balcony with Nerang River and city skyline views, a large laundry and a car space.  The apartment is ready to move into or renovate and reap the rewards.  
 
The apartment has been on the market since early July with an asking price of $429,000, and the interstate vendor has instructed to sell the property.  It last sold in September 1988 for $165,000.
 

Asking prices for units in post code 4217 currently range from $440k to $500k.  Over the month, the asking price for units has increased by 1.8% but has declined by 0.2% for houses.
 
Current
asking rents for units have declined by 1.1% over the month however house asking rents have increased by 1.0% over the month for 3-bedders.  A high Gross rental yield of 5.3% can be achieved for units in this area.
 

Vacancy rates did climb to 10.0% in May however it has dropped to 7.9% with the relaxing of lockdown and border restrictions.
 
This unit is designed to allow the new owner a relaxed lifestyle situated right on the River with resort facilities in the building (indoor and outdoor pools, tennis court and onsite manager) and walking distance to the centre of Surfers Paradise. This apartment would be ideal for a family to live in or a fantastic investment.

 
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.



 
Louis Christopher's 2020 Housing Boom & Bust Report has now been released and is available for $59.95!

The Housing Boom and Bust report is accurate, impartial and detailed. Best of all it is priced so that EVERYONE from real estate agents, financial planners to regular mums and dads can access it at just $59.95. 

Key features of the 2020 Boom & Bust report include:

  • Louis Christopher's personal take on the markets 
  • Capital city forecasts 
  • Main drivers of demand and supply at present and going forward 
  • All leading indicators such as stock on market, vacancy rates etc
  • All the possible scenarios that could play out next year 
  • Nearly every city and regional postcode covered re: property stats plus ratings outlook

If you are a real estate professional or a serious residential property investor, you will not want to miss this report!

If you are interested in where the market is heading on a national level, then this is the report for you from one of the most
accurate housing market forecaster in the country. 

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SQM RATINGS NEWSLETTER

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.

If you would like to subscribe to our Ratings Newsletter, click here.  The newsletter provides regular updates on all funds including ratings changes and media releases, and valuable Insights into the point of view of our analysts on a variety of ratings research related topics.  And it’s completely free!

 

SQM RESEARCH HOUSING INDEXES
 
SQM Research Weekly Asking Prices Index
Week ending: 20 Jul 2020 Asking Price   Chg on
prev wk
  Rolling month
% chg
 12 month
% chg
Sydney  All Houses 1,388.6 3.9  0.5%  12.7% 
All Units 685.4 -2.7  -1.4%  -1.9% 
Melbourne  All Houses 1,022.3 -1.8  -0.7%  9.4% 
All Units 570.2 -0.2  0.7%  5.7% 
Brisbane  All Houses 644.4 -0.5  0.4%  4.5% 
All Units 378.8 -0.9  0.3%  1.8% 
Perth  All Houses 670.9 -0.9  0.0%  2.5% 
All Units 378.7 -0.5  -0.9%  -1.4% 
Adelaide  All Houses 526.6 2.0  -0.3%  2.2% 
All Units 310.0 0.5  0.1%  3.5% 
Canberra  All Houses 815.6 -7.3  -1.8%  2.6% 
All Units 444.8 2.7  0.7%  2.8% 
Darwin  All Houses 574.3 -1.0  -0.7%  -2.8% 
All Units 344.7 1.3  -0.4%  -3.1% 
Hobart  All Houses 573.3 2.8  0.6%  11.2% 
All Units 373.5 1.7  2.5%  21.0% 
National  All Houses 602.8 -2.7  0.5%  6.4% 
All Units 394.5 1.3  0.6%  4.7% 
Cap City Average  All Houses 991.6 -1.7  0.0%  9.4% 
All Units 567.5 -1.5  -0.8%  0.2% 

Next update: 27 Jul 2020

SQM Research Weekly Rents Index
Week ending: 20 Jul 2020    Rent      Chg on
prev wk
  Rolling month
% chg
   12 month
% chg
Sydney  All Houses    637.1 0.9  -0.7%  -7.0% 
All Units 469.2 -1.2  -1.2%  -6.4% 
Melbourne  All Houses 524.3 -1.3  -1.3%  -1.1% 
All Units 400.3 -1.3  -0.8%  -5.3% 
Brisbane  All Houses 468.9 1.1  0.8%  1.2% 
All Units 379.9 -0.9  0.3%  1.4% 
Perth  All Houses 465.0 5.0  3.2%  7.9% 
All Units 350.1 -1.1  0.1%  2.8% 
Adelaide  All Houses 411.7 1.3  0.4%  3.2% 
All Units 317.6 1.4  -0.1%  2.2% 
Canberra  All Houses 618.8 1.2  -0.7%  0.0% 
All Units 471.3 -0.3  1.1%  2.3% 
Darwin  All Houses 489.3 7.7  2.2%  -6.9% 
All Units 371.7 8.3  4.3%  0.3% 
Hobart  All Houses 435.1 0.9  0.2%  -4.0% 
All Units 379.1 7.9  0.8%  -6.1% 
National  All Houses 452.0 4.0  1.6%  3.2% 
All Units 367.0 -1.0  -2.1%  -0.8% 
Cap City Average  All Houses 538.0 4.0  0.0% -1.3% 
All Units 421.0 0.0 -0.7%  -4.5% 

Next update: 28 Jul 2020

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