SQM Research Weekly Newsletter
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SQM Research Residential Newsletter - 
Wednesday 10 June 2020
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report
Black Dragon's
Words for the Week

“Confrontation is not bad. Goodness is supposed to confront evil.” 

Fred Shuttlesworth

Real Estate Realities 

HomeBuilder: Eight ways that $688 million could be better spent on housing to stimulate the economy

Critics have slammed the federal government’s HomeBuilder stimulus program, with one labelling the $688 million scheme to subsidise renovations as “grotesque”.

To be eligible, home owners must be undertaking renovations worth at least $150,000 and no more than $750,000, and have household incomes lower than $120,000 for singles and $200,000 for couples. It also will provide subsidies for new construction projects.

Grattan Institute fellow Brendan Coates said the stimulus was unlikely to have any effect because it wouldn’t be widely taken up. 

“As far as getting the best bang for your buck, they have missed the mark,” he said. “The money will largely go to projects that would have happened anyway, before it would spend a dollar supporting a single construction job.” 

What else could the money be used for?
Here are some property-related initiatives that experts recommend.


PLEASE NOTE: we have made an amendment to AUCTION RESULTS for week ending 7 June 2020 commentary (Melbourne results)

AUCTION LISTINGS* for week ending 14 June 2020



Rest of Week




Rest of Week


Sydney 449 81   All NSW 491 121 Auctions in NSW 
Melbourne 450 27   All VIC 463 30 Auctions in VIC 
Brisbane 34 13   All QLD 63 73 Auctions in QLD 
Perth 5 8   All WA 5 10 Auctions in WA 
Adelaide 30 17   All SA 31 19 Auctions in SA 
Canberra 22 12   All ACT 22 12 Auctions in ACT 
Darwin 0 1   All NT 1 1 Auctions in NT 
Hobart 0 0   All TAS 0 1 Auctions in TAS

*Note: To date, most state governments have announced the return to public open homes and on-site auctions this Saturday, some online auctions could be converted to on-site auctions or postponed to a future date.  The above counts of auctions represent most recent known auction dates for the coming week. 

AUCTION RESULTS for week ending 7 June 2020 (Comments Amended)

Last week, Sydney recorded a final auction clearance rate of 40.4% with mid-week auctions and Saturday results fairly even in terms of success (40.8% verses 40.2%). Sydney volumes fell to 399 properties for the week which was to be expected given the long weekend. The clearance rate has now fallen for two weeks straight. At 40%, it represents a market that is likely falling with vendors and buyers struggling to agree on price.  
Melbourne also recorded a fall.  A clearance rate for the week of 40.8% was recorded with the Saturday results fairing a little worse than the mid-week results (39.6% verses 48.0%). Volumes fell to just 179 properties for the week.
Looking forward to this week, Sydney has 530 scheduled which represents a bounce from the long weekend but still not quite back to levels prior to Coronavirus.  While Melbourne has 477 scheduled, which is also up on last week but still well down on normal levels.

Full individual auction results can be found on our website: 



4/69 Aralia Street, Rapid Creek NT 0810

Located in Rapid Creek, one of Darwin’s sought-after locations, this 3 bedroom, 1 bathroom apartment, set just 250 metres from the Nightcliff foreshore, is for sale at $274,000. It was initially for sale in June 2019 via auction and last sold for $115,200 in September 1999.

The apartment features a practical floor-plan with open-plan living areas, kitchen with ample storage, 3 bedrooms with robes, split-system air conditioning, spacious undercover courtyard and 2 car spaces.

The home’s location appeal is huge – only one street back from the Nightcliff foreshore, the property has access to all the foreshore amenities and is close to schools, markets, leisure, cafe's, foreshore food vans and stalls, festivals and the beautiful blue waters are virtually at your door step.  It is also a short distance to Darwin Private & Public Hospitals, Charles Darwin University, Casuarina Shopping Centre, Darwin Airport and more.

Back in 2011 to 2015 the units in this block were commanding sale prices in the $400,000s however Asking prices for units have declined and currently range from $250k to $300k.  Unit 5 in this block sold for $290k in March 2020.

Asking prices for 3-bedroom houses in postcode 0810 have increased by 1.2% over the month and 13.5% over the quarter however unit prices have declined 4.4% over the month after a 5.8% decline over the last 12 months.  In comparison, Darwin’s asking prices for units have increased 7.3% over the month and houses increased by 0.2%.

Investors will be glad to know this property has been an investment property and is currently leased at $330 per week with a lease expiry in September 2022.

Whilst Asking Rents have increased by 5.6% for houses in this postcode, units have declined by 2.1%.  Vacancy Rates have had a minor increase from 2.2% in March to 2.3% in April.  Property listings have been increasing from 189 in February to 233 properties listed in May.  New listings however have declined from 37 in February to 25 new listings in May.  With less new listings, the market in this area could be competitive due to a lack of choice. 

This property can provide value-for-money for investors as a Gross rental yield of 5.5% for units and 4.2% for houses can be achieved. 

It is a versatile home that will appeal to all ages regardless of whether you are a first home owner, downsizer, senior, single, couple, family or astute investor.  The vendor is motivated to sell.

Now could be a good time to investigate this market 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. 

Click here to purchase now!


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 Weekly Asking Prices Index
Week ending: 9 Jun 2020 Asking Price    Chg on
prev wk
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses    1,389.4 -1.9  0.7%  13.3% 
All Units 698.0 -3.5  -1.4%  1.9% 
Melbourne  All Houses 1,037.8 -4.8  -0.7%  10.8% 
All Units 564.1 -0.9  0.2%  4.3% 
Brisbane  All Houses 641.2 1.1  0.1%  3.8% 
All Units 375.3 0.6  0.6%  0.9% 
Perth  All Houses 665.2 1.1  0.9%  1.8% 
All Units 378.8 1.3  1.1%  -1.5% 
Adelaide  All Houses 528.3 0.2  0.5%  3.1% 
All Units 308.0 0.9  0.1%  2.1% 
Canberra  All Houses 822.4 -0.8  -0.4%  1.6% 
All Units 439.0 -0.2  0.6%  1.9% 
Darwin  All Houses 575.4 1.4  -0.5%  -2.7% 
All Units 345.5 0.8  7.3%  -2.9% 
Hobart  All Houses 569.5 0.4  0.6%  9.4% 
All Units 354.4 -2.6  4.3%  16.6% 
National  All Houses 602.5 -4.0  0.9%  6.2% 
All Units 392.0 1.4  0.1%  5.0% 
Cap City Average   All Houses 993.1 -4.3  -0.1%  9.3% 
All Units 570.6 -2.7  -1.2%  1.9% 

Next update: 16 Jun 2020

SQM Research Weekly Rents Index
Week ending: 4 Jun 2020    Rent          Chg on
prev wk
    Rolling month
% chg
   12 month
% chg
Sydney  All Houses   643.0 -1.0  -1.4%  -7.0% 
All Units 478.1 -2.1  -0.4%  -5.1% 
Melbourne  All Houses 532.3 -0.3  -0.5%  -1.4% 
All Units 405.9 0.1  -0.5%  -4.3% 
Brisbane  All Houses 460.7 0.3  0.6%  0.3% 
All Units 377.8 1.2  0.4%  1.8% 
Perth  All Houses 450.2 -1.2  0.6%  -0.1% 
All Units 347.9 1.1  1.0%  3.4% 
Adelaide  All Houses 409.0 0.0  0.3%  3.8% 
All Units 315.8 -0.8  0.2%  3.2% 
Canberra  All Houses 624.5 0.5  -0.9%  1.0% 
All Units 465.8 0.2  -0.3%  1.4% 
Darwin  All Houses 492.4 6.6  4.3%  -2.4% 
All Units 353.9 -0.9  -1.0%  -4.8% 
Hobart  All Houses 431.0 1.0  -0.3%  0.4% 
All Units 396.3 7.7  1.7%  3.9% 
National  All Houses 445.0 4.0  0.9%  1.1% 
All Units 368.0 -1.0  0.3%  -1.3% 
Cap City Average    All Houses 537.0 -1.0  -0.4%  -3.2% 
All Units 426.0 -1.0  -0.2%  -3.4% 

Next update: 12 Jun 2020

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