SQM Research Weekly Newsletter
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SQM Research Newsletter - Tuesday 5 December 2017
Property Valuations
Research Reports
Discounted/ Distressed Properties
Funds Research
Boom and Bust 2018 Report

Black Dragon's
Words for the Week

"Your children need your presence more than your presents."

Jesse Jackson
Rude Real Estate Realities 

Prices run in Canberra

A luxury Deakin home broke Canberra's auction record in November, selling for a whopping $5.75 million, highlighting the heat in the property market in the nation's capital.

The four-bedroom four-bathroom house on Hotham Crescent is reportedly the third most expensive home ever sold in the ACT.

A Canberra family snapped up the home, which can also claim the record of the most expensive Deakin residential property ever sold.

The new owners will enjoy views of parliament house from multiple areas and possibly a glimpse of Prime Minister Malcolm Turnbull. More likely, they'll enjoy the home's modern sleek design, a large swimming pool and spa and an attractive outdoor entertaining area.

The Deakin home is built in 2010 on a 1711m2 block, a distinguishing feature compared to a property sold in Sydney or Melbourne. In this case, the $5.75 million really did buy a lot of land, rather than an attractive location alone.

The previous record was held by a home on the National Circuit bought for $4.3 million almost 10 years ago. Read more ...

Property Listings Jump in November

By Louis Christopher
Managing Director, SQM Research

Figures released today by SQM Research reveal national residential listings rose in November 2017 by 3.2% to 334,594, with stock levels jumping in Sydney, Melbourne, Canberra and Adelaide, as homeowners seek to take profits ahead of the summer break.

Listings jumped by 5.6% in Sydney, 4.9% in Melbourne and 8.5% in Canberra. Compared to a year earlier, listings are up 20.1% in Sydney, reflecting a large increase in properties available for sale, though in Melbourne stock levels are down 10.3% from a year earlier.

In Adelaide, listings rose 5.9%, in Brisbane by 3.3% and in Perth they rose 3.4%. In Hobart, listings were up by 3.1% over November, but are still down 28% from a year earlier, reflecting a sharp shortage of properties available for sale in that city.

November listings usually jump ahead of the market slowing during the Christmas and New Year’s break, so the results are expected. That said, the year-on-year increase in Sydney is significant. Sydney now has the highest level of listings since October 2012.

While there is a slowdown in Sydney, and to a lesser extent in Melbourne, we are still of the belief this is just a temporary stay, with a likely acceleration in market conditions next year based on an expansion in lending once again by the banks and still low levels of interest rates.

Capital city asking prices rose 0.5% for houses and 0.2% for units for the month to December 5. The largest monthly rise came from Canberra, where house asking prices rose 5.9%. In Melbourne, asking prices for units rose by 1.4%. Year-on-year asking house price gains were the strongest in Melbourne, with prices rising by 22.2%.  Hobart recorded the strongest asking price gains for units, which were up 19.7% over the year.  

Prices are falling only it Darwin and Perth as the mining downturn continues to impact the property markets there.

Distressed Property of the Week
7043/7 Parkland Boulevard, Brisbane City, Qld 4000
The Brisbane property market has had a mixed year,  not quite as buoyant as markets in other capital cities. As a result, property buyers have been able to take advantage of vendors reducing prices, especially as the end of the year approaches. 

The vendor of this one-bedroom unit in the Brisbane CBD has slashed the price by $75,000 since December 2016. Given that the property has been on the market for almost one year,  there could be further room to negotiate with what could be a desperate seller.

At 84 square metres, the properly could suit investors or cashed-up first home buyers. But first, let's do some research and look at SQM's data for postcode 4000 to help guide our decision.

Vacancy rates for the Brisbane CBD sit at a whopping 8.2%,  so if you are hoping for a quick rental you might be disappointed

At the same time, asking rents for units in the city have been virtually stagnant over the year to December 4, having risen by just 0.9%, and over three years asking rents have fallen by 8.7%, reflecting the surplus of rental properties in the Brisbane CBD.

Asking prices for units houses in postcode 4000 having dropped by  0.7% over the year, and have  risen by just 1.6% over the three years to December 4, again reflecting the surplus of properties for sale in the city.

The implied gross rental yield for units currently sits  just below 6% for units in the city.

Look at the SQM Research website for more property data and useful reports.

If you want an in depth look at what 2018 may bring, check out the Boom and Bust 2018 report which is available now from our website.  The Boom and Bust report provides an accurate and impartial assessment of the housing market for 2018.  It includes the main drivers of demand and supply at present and going forward, property stats plus rating outlook for nearly every postcode, capital city forecasts and a special report on mining and regional towns.


The table below reveals weekly Asking Prices for the week ending 5 December 2017.  Monthly and yearly changes are also given.
SQM Research Weekly Asking Prices Index
Week ending
5 Dec 2017
Asking Price Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Canberra All Houses 779.4 21.8 5.9% 17.2%
All Units 397.7 2.3 1.3% 8.3%
Sydney All Houses 1,343.8 -1.5 0.1% 8.0%
All Units 706.9 -0.6 -0.1% 5.6%
Darwin All Houses 604.6 0.2 -0.5% -1.7%
All Units 409.4 -0.1 0.2% -7.3%
Brisbane All Houses 613.7 -0.4 -0.5% 2.6%
All Units 381.5 -0.1 0.2% 1.2%
Adelaide All Houses 519.4 -0.1 0.2% 3.8%
All Units 300.6 1.1 0.7% 1.2%
Hobart All Houses 489.7 4.7 3.3% 14.7%
All Units 320.7 -6.7 -5.2% 19.7%
Melbourne All Houses 979.9 7.9 1.2% 22.2%
All Units 525.7 1.6 1.4% 14.1%
Perth All Houses 673.1 1.2 0.4% -1.0%
All Units 394.7 -0.3 -0.5% -6.5%
National All Houses 574.7 3.0 0.9% 10.9%
All Units 372.9 -2.1 0.0% 7.5%
Cap City Average All Houses 961.1 3.5 0.5% 10.2%
All Units 567.1 -0.2 0.2% 6.0%

Next update: 12 Dec 2017

The table below reveals weekly Asking Rents for the week ending 4 December 2017.  Monthly and yearly changes are also given.
SQM Research Weekly Rents Index
Week ending
4 Dec 2017
Rent Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Canberra All Houses 604.9 0.1 2.0% 13.6%
All Units 431.6 2.4 0.4% 5.1%
Sydney All Houses 732.0 -2.0 0.1% 0.1%
All Units 520.3 -1.3 -0.2% 2.2%
Darwin All Houses 532.9 2.1 -2.1% -3.2%
All Units 409.5 0.5 3.9% -6.0%
Brisbane All Houses 442.8 0.2 0.5% 0.3%
All Units 366.1 -0.1 0.6% -1.1%
Adelaide All Houses 379.5 0.5 0.8% 4.0%
All Units 291.3 -0.3 0.7% 1.3%
Hobart All Houses 387.0 4.0 4.3% 8.3%
All Units 325.0 -7.0 -0.4% 5.3%
Melbourne All Houses 514.2 1.8 0.9% 4.2%
All Units 395.5 0.5 0.8% 6.5%
Perth All Houses 416.1 0.9 0.5% -1.5%
All Units 322.7 0.3 -0.3% -4.0%
National All Houses 438.0 5.0 0.7% 2.3%
All Units 356.0 2.0 0.8% 4.7%
Cap City Average All Houses 551.0 -2.0 0.5% 1.5%
All Units 437.0 -1.0 -0.2% 2.6%

Next update: 12 Dec 2017

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