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SQM Research Residential Newsletter 
Tuesday 21 January 2020
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report

Black Dragon's
Words for the Week

The temptation to quit will be the greatest just before you are about to succeed." 

Chinese Proverb
Real Estate Realities 

Green home loans: Experts welcome scheme for energy-efficient builds but call for more retrofitting

Experts have welcomed a new scheme offering consumers mortgage discounts to build new energy-efficient homes, but called for the program to be extended to retrofit existing houses.

The Clean Energy Finance Corporation on Tuesday launched a green home loan scheme through Bank Australia for borrowers who meet a minimum seven-star energy rating.

The program will offer a discounted home loan rate of as low as 2.44% for seven-star energy rating homes that are bought or built.

It received cautious backing from residential builders’ lobby group the Housing Industry Association.

While the new green home loan was a good idea, it has had limited uptake in the past, Kristin Brookfield, industry policy chief executive of the HIA, told Domain on Tuesday. 

But a better opportunity would be available through encouraging existing home owners to retrofit sustainability features, she said. 

“There’s a really important opportunity for this type of offering to be made for existing homes and renovations,” Ms Brookfield said. 

“Home owners are already getting good value in terms of energy efficiency … houses already have to meet [minimum six-star] standards to be energy efficient. We really need to find incentives like this that we can start to turn on for existing houses.”

Bank Australia has flagged that it will later extend the benefits of the loan to existing homes to finance green home improvements, including energy monitoring, energy storage systems, solar hot water and energy efficient airconditioning.

A minimum of seven stars under the Nationwide House Energy Rating Scheme (NatHERS) - which rates the energy efficiency of a home based on its design - exceeds the minimum standards of the National Construction Code. Homes built to this rating require less energy for heating and cooling.


 11 / 54 Chaseling Street, Phillip ACT 2606

A renovated, ground floor, 2 bedroom apartment in Philip in the ACT, has been on the market since July 2019, initially for $340,000.  The vendor has now reduced this to $310,000+.  It sounds like a great value property as current asking prices for units in postcode 2606 ranges from $410k to $478k.
The unit is conveniently located mid-way between Canberra Hospital, Woden town centre and Woden Westfield, and boasts 2 bedrooms with walk-in robes, combined lounge-dining, a tastefully renovated kitchen with ample storage and dishwasher, new floor coverings, curtains and it is freshly painted.  It has the added bonus of being on the ground floor with a covered carport and intercom security.

The asking prices for 2 bedroom units in postcode 2606 has increased 25.9% over 3 years, a little below the capital growth of houses in the area of 34.7% over 3 years.  Over the last 12 months, unit growth was 11.1% for 2-bedders but house growth declined by 2.6%.  Unit growth continued over the month with a 4.6% increase for 2-bedders.
Phillip is located 9 kms south west of Canberra and has a
population of 2,936 people (2016 census) with 47.3% of its occupants living in rental accommodation.

Asking rents in this area for 2-bedders has increased by a huge 32.4% over 3 years, 13.9% over 12 months and over the last month the increase has been 2.7%.  If it is rental yields you are after, this area is above benchmark with gross rental returns of 5.6% expected. Vacancy rate sits at a low 2.2%.
stock on market has declined from 169 in November to 133 in December 2019.  Properties are now also selling faster with days on market declining.
The area is predominantly apartment accommodation which makes this unit ideal for the rental market, and is a great entry point that would suit investors but also First Home Buyers and young couples.  
Canberra’s economy is robust and has previously delivered modest housing growth.
Christopher’s Boom and Bust Report 2020 is predicting further moderate price increases between 3% to 7% in 2020, which could make this a promising area to invest in.

SQM website features free property data that is now more interactive, easier to navigate and user-friendly, so keep monitoring this market’s growth at 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!

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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 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. 

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

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SQM Research Weekly Asking Prices Index
Week ending: 21 Jan 2020  Asking Price Chg on
   prev wk
  Rolling month
% chg
 12 month
% chg
Sydney  All Houses 1,321.7 2.1  -0.8%  5.4% 
All Units 718.5 -3.3  -0.1%  1.6% 
Melbourne  All Houses 1,035.3 0.8  1.1%  5.8% 
All Units 549.3 0.1  -0.3%  -0.8% 
Brisbane  All Houses 641.6 3.8  0.8%  3.5% 
All Units 371.8 0.8  0.4%  -0.9% 
Perth  All Houses 651.5 -2.7  -0.9%  -2.2% 
All Units 375.0 0.2  -0.3%  -3.7% 
Adelaide  All Houses 524.0 0.9  0.6%  2.0% 
All Units 301.6 0.9  -0.2%  0.9% 
Canberra  All Houses 821.8 0.4  -0.2%  -0.5% 
All Units 434.4 1.7  0.1%  2.0% 
Darwin  All Houses 566.4 1.4  -0.3%  -3.5% 
All Units 307.4 -0.1  -0.7%  -23.0% 
Hobart  All Houses 554.9 5.4  2.5%  12.7% 
All Units 340.1 -0.2  -0.6%  7.1% 
National  All Houses 585.1 0.6  -0.7%  3.1% 
All Units 384.0 -0.7  -0.5%  1.3% 
Cap City Average   All Houses 971.1 3.8  -0.3%  4.6% 
All Units 574.7 -2.1  -0.6%  0.0% 

Next update: 28 Jan 2020 

SQM Research Weekly Rents Index
Week ending: 20 Jan 2020    Rent        Chg on
prev wk
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses     691.8 5.2  1.1%  -2.5% 
All Units 499.1 2.9  1.0%  -2.2% 
Melbourne  All Houses 541.4 1.6  1.4%  -0.1% 
All Units 415.4 1.6  1.3%  1.2% 
Brisbane  All Houses 474.0 1.0  0.6%  3.2% 
All Units 377.9 0.1  0.1%  0.6% 
Perth  All Houses 442.3 0.7  0.1%  0.3% 
All Units 336.6 0.4  0.8%  2.4% 
Adelaide  All Houses 401.4 -1.4  -0.6%  1.5% 
All Units 312.8 -1.8  -0.2%  3.6% 
Canberra  All Houses 631.5 -1.5  -2.0%  -1.7% 
All Units 465.2 -0.2  1.0%  -0.7% 
Darwin  All Houses 469.2 0.8  -2.0%  -8.6% 
All Units 378.4 -2.4  -0.9%  -2.9% 
Hobart  All Houses 465.3 2.7  2.2%  9.3% 
All Units 424.8 4.2  2.4%  21.0% 
National  All Houses 451.0 0.0   0.7%  0.2% 
All Units 374.0 10.0  3.0%  1.9% 
Cap City Average  All Houses 559.0 4.0  1.1%  -0.5% 
All Units 440.0 3.0  1.4%  -0.2% 

Next update: 28 Jan 2020

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