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SQM Research Residential Newsletter - 
Tuesday 1 December 2020
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Boom and Bust 2021 Report
Black Dragon's
Words for the Week

"If the human race wishes to have a prolonged and indefinite period of material prosperity, they have only got to behave in a peaceful and helpful way toward one another."

Winston Churchill

Real Estate Realities 

‘Silly beyond belief’: The ugliest buildings in Australia revealed

They’re the eyesores only a designer could love.

And if Miley Cyrus came in like a wrecking ball and NSW Treasurer Dominic Perrottet had his way, they would be gone.

After declaring the old White Bay power station should be demolished last week, Mr Perrottet created a tongue-in-cheek list to stir the pot some more by detailing which Sydney buildings should be knocked down.

Mr Perrottet’s comments about the station attracted controversy after he called it a “shocking building” and a “rave cave”.

In his opinion piece, titled Ten iconic buildings I’d bulldoze – which actually includes a Melbourne landmark as well, Mr Perrottet said we don’t give architecture the passionate debate it deserves.

“Many (buildings) are scars from the architectural establishment’s obsession with utilitarianism, wherein form follows function, and creativity is all about what shocks, jags and juxtaposes,” he wrote.

His list of “buildings whose reduction to rubble would make Sydney a more beautiful city” comprises the Blues Point Tower, anything Brutalist, including the UTS Tower, the Annexure to Land and Property Information Building, Hospital Road Courthouse, Cahill Expressway; MLC Centre, Greenway Apartments, Sydney Aquarium, RBA Building, Martin Place and Federation Square, Melbourne.

Read More...

HOUSING BOOM & BUST REPORT - out 3 December!



Want to know the outlook for the Australian property markets in 2021?

Well Louis Christopher's 2021 Housing Boom & Bust Report is due for release on 3 December 2020.

As the nation works its way out of the worldwide pandemic and out of Australia’s first recession in 30 years, forecasting the property market will be difficult but the Housing Boom and Bust report will provide an accurate, impartial and detailed guide to the Australian property market in 2021.  

Key features of the 2021 Boom & Bust report will 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
  • 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’re a real estate professional, financial planner or a regular mum and dad residential property investor, you will not want to miss this report, still only priced at $59.95.  Click here to purchase your report.

 


PROPERTY LISTINGS DECREASED IN NOVEMBER

Melbourne Listings Continue to Increase


by Louis Christopher

Figures released today by SQM Research reveal national residential property listings decreased in November by 4.0% from 308,468 listings in October 2020 to 296,267.  Compared to 12 months ago, listings were down by 12.6%.

All capital cities recorded decreases in property listings over the month with the exception of Melbourne which recorded an increase of 1.2% in listings. 

Darwin, Sydney and Hobart posted the largest decreases of 6.7%, 6.4% and 6.1% respectively.

Brisbane recorded a 3.8% decrease, Adelaide 3.0% and Canberra 3.2%.  Perth recorded the lowest decrease of 2.4%.  

National year-on-year listings reveal a decrease of 12.6% with significant decreases in Darwin (28.2%) and Hobart (26.1%) and Adelaide (21.5%).  Sydney recorded a smaller decrease of 0.7%.  Melbourne however, recorded a large increase of 11.5%.Stock on Market Table



New Listings (30 days)

Nationally, new listings (30 days) increased by a 0.48% over the course of November with 381 more properties on the market.  Darwin’s new listings increased by a significant 27.3%.  Melbourne new listings increased by 4.1%.  Sydney was the only capital city that recorded a decline in new listings.

Commentary

There was a surprise decline in total listings for the month, which was predominantly driven by a decline in old listings. The fall in old listings tells me stock is being absorbed at a quicker rate than levels recorded earlier this year. It is a yet another signal that buyer activity is on the rise.


Asking Prices

Capital City Average asking prices decreased 0.1% for houses but increased 0.3% for units over the month to 1st December. Average asking prices are now $565,800 for units and $988,500 for houses.

Compared to a year ago, the capital city asking prices posted an increase of 4.2% for houses but declined by 1.2% for units.
 
Over the month, Adelaide, Canberra and Darwin were the only capital cities to record asking price increases in both houses and units.

Sydney continues to record a decline in unit asking prices of 0.3% but recorded an increase of 1.6% for houses over the month.

Melbourne posted increases in unit asking prices of 1.4% but a 1.1% decline in house asking prices. 

Perth and Hobart recorded declines in both house and unit prices over the month, 1.2% and 0.1% respectively for Perth, and Hobart declined 0.9% for houses and 1.4% for units.

Year on year, most capital cities recorded increases in house and unit asking prices with a significant increase of 19.2% in Hobart’s unit asking price. Darwin’s unit prices also increased by 13.4%.  Sydney’s unit prices declined 5.2% over the 12 months but house prices increased 5.5%.

 

AUCTION RESULTS for week ending 29 November 2020

Full individual auction results can be found on our website: 



AUCTION LISTINGS* for week ending 6 December 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 815 148   All NSW 925 227 Auctions in NSW
Melbourne^ 799 160   All VIC 864 174 Auctions in VIC 
Brisbane 69 23   All QLD 138 98 Auctions in QLD 
Perth 12 3   All WA 17 6 Auctions in WA 
Adelaide 69 44   All SA 69 53 Auctions in SA 
Canberra 70 30   All ACT 70 30 Auctions in ACT 
Darwin 2 5   All NT 2 5 Auctions in NT 
Hobart 1 0   All TAS 3 1 Auctions in TAS

* The above counts of auctions represent most recent known auction dates for the coming week.  ^As at 18-Oct-20, Melbourne outdoor auctions will be allowed (max. 10 people).
 

DISTRESSED PROPERTY OF THE WEEK

93 Playford Avenue, Whyalla Playford SA 5600
 
For this week’s distressed property we look at the regional town of Whyalla Playford, approx. 382km north of Adelaide in South Australia’s Eyre Peninsula.
 
93 Playford Avenue, Whyalla Playford sits on approx. 1,011 sqm land and comprises 3 bedrooms, spacious lounge, Jarrah floors, modern kitchen, separate dining, 2nd toilet and heating/cooling.  Outside there is a carport, garage and tool shed.  The home could do with some renovations and also has subdivision potential (STCC).
 
The home is in a Residential zone and is located in the middle of town, close to shops, schools, Whyalla Hospital and University of South Australia Whyalla Campus.
 
The vendor says the price has been ‘slashed’ to sell at $200,000.  Currently,
asking prices for houses in this area range from $275k to $300k. 
 
SQM Research’s data shows
asking prices for houses in the region have declined by 1.7% over the month of November but there has been a 7.9% increase over 12 months.  Unit values have shown greater promise with 6.7% increase over the month and 4.0% over 12 months.
 

Asking rents in this postcode have experienced substantial increases of 10.8% for houses and 27.6% for units over the month.  Investors can earn a gross rental yield of 5.6% for 3-bedroom houses and 7.7% for 2-bedroom units. Vacancy rates have declined to a low 0.8% in October 2020.
 
Rents appear to be increasing in the area due to significant investment in the region driven by billionaire Sanjeev Gupta’s recent overhaul of the Whyalla steelworks and Whyalla Council’s redevelopment of the Whyalla foreshore and horticulture development. The overhaul of the steelworks had dramatically increased confidence in the regional city’s property market and the population of 21,000 (
2016 Census) is anticipated to increase in the coming years.


You can monitor 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.


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: 1 Dec 2020 Asking Price    Chg on
prev wk
   Rolling month
% chg
 12 month
% chg
Sydney  All Houses    1,376.0 2.2  1.6%  5.5% 
All Units 671.2 0.2  -0.3%  -5.2% 
Melbourne  All Houses 1,020.1 -3.1  -1.1%  3.9% 
All Units 577.4 -0.2  1.4%  4.3% 
Brisbane  All Houses 654.5 1.2  -0.5%  3.4% 
All Units 379.5 -0.3  0.5%  2.1% 
Perth  All Houses 669.5 -1.6  -1.2%  2.6% 
All Units 379.8 -0.2  -0.1%  -0.5% 
Adelaide  All Houses 538.3 4.2  2.1%  3.6% 
All Units 317.7 2.1  2.0%  4.9% 
Canberra  All Houses 813.5 -0.4  0.5%  -0.8% 
All Units 473.7 2.3  1.7%  9.1% 
Darwin  All Houses 593.3 1.5  1.5%  3.0% 
All Units 355.0 -0.2  1.9%  13.4% 
Hobart  All Houses 581.5 3.4  -0.9%  9.1% 
All Units 394.4 0.4  -1.4%  19.2% 
National  All Houses 635.9 2.7  3.6%  8.5% 
All Units 411.0 2.2  4.0%  7.3% 
Cap City Average  All Houses 988.5 -3.5  -0.1%  4.2% 
All Units 565.8 0.1  0.3%  -1.2% 

Next update: 8 Dec 2020

SQM Research Weekly Rents Index
Week ending: 28 Nov 2020     Rent         Chg on
prev wk
   Rolling month
% chg
  12 month
% chg
Sydney  All Houses    635.4 -1.4  4.0%  -7.3% 
All Units 447.1 -1.1  -0.6%  -9.8% 
Melbourne  All Houses 512.1 -1.1  -0.3%  -4.3% 
All Units 385.3 -1.3  -0.5%  -5.9% 
Brisbane  All Houses 465.9 -0.9  -0.9%  -0.1% 
All Units 376.6 -0.6  -0.1%  -0.3% 
Perth  All Houses 485.0 1.0  1.6%  10.1% 
All Units 365.1 0.9  0.3%  9.1% 
Adelaide  All Houses 418.2 -1.2  -0.1%  4.6% 
All Units 312.2 0.8  0.2%  -0.4% 
Canberra  All Houses 641.2 7.8  2.2%  -0.7% 
All Units 477.4 -2.4  -0.7%  2.1% 
Darwin  All Houses 568.7 7.3  8.0%  15.8% 
All Units 382.8 3.2  2.3%  1.5% 
Hobart  All Houses 449.6 9.4  0.2%  1.1% 
All Units 398.1 5.9  5.2%  -5.5% 
National  All Houses 483.0 -3.0  2.8%  7.3% 
All Units 384.0 2.0  3.2%  4.6% 
Cap City Average  All Houses 536.0 -3.0  1.3%  -3.2% 
All Units 408.0 -1.0  -0.2%  -6.2% 

Next update: 4 Dec 2020

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