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SQM Research Newsletter - Tuesday 2 July 2019
Property Valuations
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2019 Report

Black Dragon's
Words for the Week

"If you want to know who controls you, look at who you are not allowed to criticise."

Real Estate Realities 

Concierge, goji salads and rooftop pools - Student housing goes upmarket

There are no bangers and mash or Eton Mess on the menu at Urbanest’s student accommodation at Sydney’s Darling Harbour, with hungry scholars offered choices such as daily congee and ancient grain salad with goji, berries, celery and pomegranate.

While not immersed in their books, residents of Scape’s 393 Swanston Street digs in Melbourne can enjoy a cinema, a 24-hour gym and multiple lounges, overlooked by around-the-clock concierge and security services.

And at Scape’s South Brisbane facility, leg-weary students can whoosh one level down an enclosed circular slide – inspired by an installation by artist Carsten Holler at Brisbane’s Gallery of Modern Art – to the facility’s games room, snug area or study zone.

Not to be outdone, residents of Atira’s Toowong facility can soak up the rays on a rooftop pool and barbecue area with panoramic views of Brisbane’s skyline.

Such refinements highlight the burgeoning purpose-built student accommodation sector’s move from drab dorms to tasteful architect-designed facilities close to campus, with private rooms and generous common areas in tasteful pastels.

“Facilities regularly rival those associated with four-star hotels,” says agent JLL in a report on the sector.


Property Listings Declined in June 2019
by Louis Christopher, CEO

Figures released today by SQM Research reveal national residential property listings declined by 5.8% in June 2019 to 325,404 from 345,516 in May 2019. Year-on-year listings were also down by 1.8%.

All states experienced a decline in property sales listings over the month, with Melbourne and Sydney experiencing the highest decline at 10.8% and 10.7% respectively.  Hobart was not far behind with a 9.4% decline, followed by Canberra with a 9.0% decline. Darwin recorded the lowest decline at 1.3%. 

Year-on-year Sydney’s listings declined by 9.8%. Canberra’s year-on-year listings increased by 12.5%, the highest % increase in the nation, followed by Melbourne with an increase of 5.7% and Hobart with a 4.8% increase.

It is not unusual for listings to decrease in June, the start of the colder winter months. Also, with falling house prices in recent months, most vendors have preferred to wait and watch.

The modest rise in asking prices in most cities could be a result of reduced stock levels and also increasing buyer confidence due to multiple factors including the Coalition victory, the RBA cash rate cut in June and the relaxation of mortgage lending rules by APRA.  With further RBA rate cuts expected, we could see increases in property listings in coming months.

Asking Prices

Capital City asking prices increased marginally by 0.4% for houses and 0.8% for units, over the month to 2nd July 2019. Unit asking prices are now $563,600 and houses $908,900.  Compared to a year ago, the capital city asking prices posted declines of 5.4% for houses and 3.1% for units.

Darwin was the only capital city to record decreases over the month in both houses and units, at 1.5% and 0.2% respectively.

Sydney’s property prices appear to have made a modest turn around and have now posted increases of 1.0% for houses and 1.3% for units over the month, after two years of cooling prices. Sydney’s 12 month decline is 8.1% for houses and 4.8% for units.  A house in Sydney is now priced at $1,236,200 and a unit is $692,900. 

Perth, Adelaide and Hobart’s house and unit prices have also increased marginally over the month.

Melbourne’s house prices have increased by 0.3% over the month, however unit prices show a minor decline of 0.3%.


46 Daniel Terrace, Port Augusta SA 5700

This 3 bedroom, 1 bathroom house in Port Augusta, a mining town in South Australia, approx. 322km from Adelaide CBD is on sale at an affordable $139,950.  SQM records show it has been on the market since January 2016 and was last sold for $27,000 in October 1995. 
Built in 1950, the property has a land size of 651 sqm and a floor size of 124 sqm, with good size bedrooms, a big kitchen with ample bench space and a walk-in pantry, a backyard for kids to play in, an undercover area for BBQs and carport for 2 cars plus a shed for the handyman.  This home would suit a family and would make a perfect first home or investment.
There are reports that mining towns like Port Augusta SA are currently high yield suburbs and are delivering good cash flow for investors.   A resurgence in the mining industry could be a key factor in boosting investor confidence and attracting investors back to the region.   
2019–20 SA State Budget handed down in June 2019, has committed $10 million through the Accelerated Discovery Fund (ADF) towards the exploration of South Australia’s untapped mineral resources to grow jobs and investment in the state’s economy. 

“South Australia has vast reserves of valuable resources yet to be identified and this $10 million investment in exploration, data and innovative technology will help unlock these resources.  Opening new mines with significant deposits of copper, gold, and other strategic minerals such as uranium and cobalt will deliver new investment, jobs and increased royalties to finance South Australia’s health, education and transport systems,” said Minister for Energy & Mining, Dan van Holst Pellekaan.
Mining currently accounts for 35% of South Australia’s exports of traded goods and accelerating new mines has the potential to deliver a major stream of revenue to the State Budget.  Now may be a good time to consider mining towns like Port Augusta. 
Port Augusta is situated at the foothills of the Flinders Ranges, where the desert meets the sea and is considered the 'back door' to the great Australian Outback.  The
population of Port Augusta in 2011 was 7,334 people. By 2016 the population declined to 6,562, showing an annualised population decline of 1.1% in the area.  Renters account for 42% of occupant type according to 2016 Census.
Of course, you need to be selective in your purchase so you can attract good tenants.  The agent says this property has a great rental history of $200 per week.

Weekly rents can range from $224 to $245 for houses and whilst there has been a 6.8% rents increase over 12 months for houses, over the last month, there has been a decline of 6.0% over the last month.

Weekly Asking Prices index shows houses prices can range from $200,000 to $222,000 in postcode 5700 but has been declining 1.9% over the month, after a 3 year decline of 3.5%.  Units however, increased a huge 50.4% over 3 years, 48.5% increase over 12 months and over the month, a 9.3% increase.

Vacancy Rates are high at 4.0% in the area.  Current gross rental yield is 5.8% for 3-bedroom houses and units can achieve a similar 5.29% yield.  Currently there are 307 houses and 33 units listed for sale in postcode 5700.
Caution needs to be used when interpreting quarterly and monthly movements for regional markets. The small size of these markets and low number of sales can lead to volatile results.

If you want to investigate what opportunities this region can bring, check out SQM Research’s 
free property data at SQM’s website. Also consider the Property Valuation product for more in-depth data and property price estimator.


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: 2 Jul 2019 Asking Price Chg on
prev wk
Rolling month
% chg
12 month
% chg
Sydney All Houses 1,236.2 0.7  1.0%  -8.1% 
All Units 692.9 2.5  1.3%  -4.8% 
Melbourne All Houses 934.5 -2.0  0.3%  -6.3% 
All Units 539.4 -1.2  -0.3%  -0.9% 
Brisbane All Houses 617.2 -0.1  -0.0%  0.1% 
All Units 371.8 -0.4  0.1%  -2.6% 
Perth All Houses 658.7 0.4  0.5%  -3.0% 
All Units 385.9 0.3  0.5%  -3.1% 
Adelaide All Houses 513.7 -0.0  0.1%  0.8% 
All Units 302.0 -0.4  0.2%  0.5% 
Canberra All Houses 795.6 -1.5  -1.8%  -2.3% 
All Units 430.7 -1.2  0.1%  5.9% 
Darwin All Houses 582.9 -0.2  -1.5%  -1.4% 
All Units 355.6 -0.1  -0.2%  -5.4% 
Hobart All Houses 518.3 -0.4  0.2%  6.7% 
All Units 307.4 2.1  1.7%  2.7% 
National All Houses 566.8 -0.5  -0.1%  -0.3% 
All Units 375.2 -0.2  0.2%  0.3% 
Cap City Average All Houses 908.9 -2.4  0.4%  -5.4% 
All Units 563.6 1.1  0.8%  -3.1% 
Next update: 9 Jul 2019
SQM Research Weekly Rents Index
Week ending: 28 Jun 2019   Rent    Chg on
prev wk
Rolling month
% chg
12 month
% chg
Sydney All Houses 685.8 -1.8  -0.7%  -3.5% 
All Units 502.7 0.3  -0.3%  -3.8% 
Melbourne All Houses 537.8 -1.8  -0.4%  2.4% 
All Units 423.0 -1.0  -0.2%  2.8% 
Brisbane All Houses 461.9 2.1  0.7%  2.3% 
All Units 374.3 0.7  0.8%  1.3% 
Perth All Houses 442.0 -4.0  -1.7%  3.7% 
All Units 337.3 0.7  0.1%  4.0% 
Adelaide All Houses 398.6 1.4  1.4%  4.8% 
All Units 308.9 -0.9  1.6%  3.2% 
Canberra All Houses 624.1 1.9  0.2%  -2.3% 
All Units 460.2 -2.2  -0.1%  3.1% 
Darwin All Houses 525.2 2.8  5.7%  -3.6% 
All Units 368.2 -1.2  -1.2%  -9.1% 
Hobart All Houses 439.3 0.7  3.0%  11.6% 
All Units 390.2 7.8  0.2%  10.2% 
National All Houses 440.0 -2.0  0.2%  1.9% 
All Units 368.0 1.0  0.0% 4.2% 
Cap City Average All Houses 550.0 -2.0  -0.5%  0.0%
All Units 441.0 0.0 0.0% -0.9% 
Next update: 4 Jul 2019
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