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SQM Research Residential Newsletter 
Tuesday 24 March 2020
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Boom and Bust 2020 Report

Black Dragon's
Words for the Week

“Today we fight. Tomorrow we fight. The day after, we fight. And if this disease plans on whipping us, it better bring a lunch, 'cause it's gonna have a long day doing it.”  

Jim Beaver,
Author, Life's That Way

Real Estate Realities 

How buying and inspecting a home is changing in the age of coronavirus

Taking interested buyers through a home for sale in his turf of Sydney’s inner west  is something that Ray White Surry Hills-Alexandria agent Ercan Ersan is very familiar with. But these days he is doing things a little differently.

Open homes are strictly controlled with social distancing, there is growing demand for private inspections, detailed virtual tours going from room to room are underway along with Facebook Live tours as the business of buying and selling homes adapts in the time of coronavirus.

“We are preparing to be a contactless society,” said Mr Ersan.

He said both agents and the public had quickly adapted to this new way of doing business.

“I’ve done three private inspections this week, others want Facebook live tours and we are producing detailed video tours for every property we have,” he said.

Upcoming Auctions Listings

The SQM Research website is now providing listings of upcoming residential property auctions in all states.

Note: The auctions listed are preliminary and current at the time of publication.  This list may well change during the week based on new listings or some properties may have sold prior, or are withdrawn or have been rescheduled.  Please check the listing ad to ensure auction times have not changed.

 
Auction Clearance Rates - Week ending 22 March 2020

NSW 71%
VIC 67%
QLD 44%
SA 65%
WA 43%
NT 50%
ACT 74%
TAS 17%



DISTRESSED PROPERTY OF THE WEEK

102 Barbour Road, Bracken Ridge QLD 4017

This 4 bedroom, 2 bathroom home in the Brisbane suburb of Bracken Ridge, is selling for $525,000 after initial price offers of over $530,000 on 25 October 2019.  It last sold for $172,000 on 10 February 2005.
 
Sitting on a 453 sqm block, the home is low maintenance and in a great location close to schools, Queensland TAFE, parks and reserves and bus stops.  A range of local shopping facilities is also nearby.
 
Built in 2005, the total floor space is 177 sqm and features a king-sized master bedroom with WIR, air-conditioning and ensuite; 3 additional bedrooms with ceiling fans and built in wardrobes; spacious kitchen with stainless steel appliances; open plan living and dining area; an undercover outdoor entertaining area; fully fenced large backyard with low maintenance gardens and double remote lock-up garage.
 
The home would suit first home buyers, families or investors.  Currently,
asking prices for houses in postcode 4017 has seen increases of 10.0% over 3 years; 6.9% increase over 12 months and a minor increase of 0.3% over the last month. In contrast, unit prices in the area had declined 1.6% over the month.  House prices currently range from an entry level of approximately $450,000 to high end of $600,000 in the area.
 

Asking rents increased 2.2% over the last month for houses, after an 5.7% increase over 12 months.  With a low vacancy rate of 1.0% this could be good news for investors who could earn gross rental yields of 4.1% for houses.
 
Whilst the uncertainty of the coronavirus has shaken the share market, the impact on the property market has been minor.  Property values tend to be less volatile than share markets.
 
Louis Christopher, SQM Research CEO said, “The most likely scenario would be short-term weakness in the market until the number of virus cases began to peak and eventually subside. Then it’s off to the races.”

"Even with the recent RBA cash rate drop to an unprecedented 0.25%, history shows interest rates can push up prices but the effect of this latest stimulus would only be felt once there was more certainty about the COVID-19 pandemic.”


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. 

Click here to purchase now!
 

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: 24 Mar 2020 Asking Price     Chg on
prev wk
  Rolling month
% chg
12 month
% chg
Sydney  All Houses   1,370.0 -5.6  0.5%  11.3% 
All Units 707.8 2.9  0.5%  1.7% 
Melbourne  All Houses 1,027.2 3.7  1.8%  9.7% 
All Units 555.5 -1.2  -0.1%  0.8% 
Brisbane  All Houses 656.4 -0.6  1.0%  6.5% 
All Units 371.0 -0.5  -0.7%  -1.2% 
Perth  All Houses 659.0 4.0  1.8%  -0.7% 
All Units 376.1 0.2  0.6%  -2.3% 
Adelaide  All Houses 522.0 -1.6  -0.4%  1.2% 
All Units 305.1 0.7  0.5%  1.5% 
Canberra  All Houses 818.0 -0.6  0.1%  0.3% 
All Units 442.0 -0.2  -0.9%  5.3% 
Darwin  All Houses 567.7 -0.7  0.2%  -2.5% 
All Units 318.7 -1.4  -0.2%  -20.6% 
Hobart  All Houses 578.0 2.2  3.3%  14.4% 
All Units 361.4 -2.4  -1.2%  10.9% 
National  All Houses 599.9 0.6  0.7%  5.9% 
All Units 391.2 1.4  0.9%  4.1% 
Cap City Average  All Houses 985.7 -1.8  0.9%  8.7% 
All Units 574.4 1.5  0.7%  1.3% 

Next update: 31 Mar 2020

SQM Research Weekly Rents Index
Week ending: 20 Mar 2020   Rent     Chg on
prev week
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses   702.0 -1.0  -0.8%  -0.7% 
All Units 500.4 -0.4  -0.3%  -1.3% 
Melbourne  All Houses 550.8 -2.8  -0.5%  1.1% 
All Units 422.6 -0.6  -0.2%  0.6% 
Brisbane  All Houses 469.4 -1.4  -0.4%  2.7% 
All Units 378.7 0.3  0.0%  2.1% 
Perth  All Houses 447.8 0.2  0.1%  1.7% 
All Units 344.6 3.4  2.5%  3.4% 
Adelaide  All Houses 406.9 1.1  -0.1%  3.1% 
All Units 308.7 1.3  -0.4%  2.1% 
Canberra  All Houses 629.5 -1.5  -0.8%  -2.4% 
All Units 463.8 -0.8  -0.1%  1.9% 
Darwin  All Houses 460.2 3.8  1.2%  -6.2% 
All Units 362.2 -2.2  -2.4%  -4.2% 
Hobart  All Houses 453.8 3.2  0.5%  3.7% 
All Units 408.9 3.1  -1.4%  12.2% 
National  All Houses 450.0 1.0  -0.2%  0.7% 
All Units 365.0 -5.0  -1.6%  1.4% 
Cap City Average  All Houses 562.0 -1.0  -1.2%  0.4% 
All Units 441.0 1.0  -0.2%  0.0%

Next update: 28 Mar 2020

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