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SQM Research Residential Newsletter - 
Tuesday 27 October 2020
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Black Dragon's
Words for the Week

“Monsters are real, and ghosts are real too. They live inside us, and sometimes, they win.” 

Stephen King

Real Estate Realities 

How have global property markets bounced back after lockdown?

The tougher the lockdown, the quicker the bounce back for the property market, an analysis of listings in cities around the world has shown.

New property listings in Australia, New Zealand, the UK and the US all fell significantly during respective lockdowns, but the rebound has varied depending on the severity of the restrictions, the analysis by Domain showed.

In New Zealand and the UK, where lockdowns were strict and all but shut down the housing market, the rebound in listings and sale volumes was “unseasonable”, Domain senior research analyst Nicola Powell said.

“You’ve got this snowball effect where the longer the lockdown, the more people are waiting to transact, so the rebound is stronger,” Dr Powell said.

Melbourne, too, has seen a rapid rebound in listings since stage 4 restrictions for real estate, which banned in-person inspections, started easing in early October.

Domain data showed weekly listings dropped by as much 70% during the most recent lockdown – compared with the 40% to 50% drop seen by most Australian capitals during the stage 3 restrictions earlier in the year.

 

AUCTION RESULTS for week ending 25 October 2020

Full individual auction results can be found on our website: 



AUCTION LISTINGS* for week ending 1 November 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 776 166   All NSW 901 248 Auctions in NSW
Melbourne^ 427 260   All VIC 456 271 Auctions in VIC 
Brisbane 78 26   All QLD 131 100 Auctions in QLD 
Perth 12 3   All WA 12 10 Auctions in WA 
Adelaide 68 29   All SA 68 37 Auctions in SA 
Canberra 69 12   All ACT 69 12 Auctions in ACT 
Darwin 5 4   All NT 5 4 Auctions in NT 
Hobart 0 0   All TAS 2 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

 21 Sanderling Street, Werribee Vic 3030
 
Situated in Werribee, 32km south-west of Melbourne’s CBD, this corner-block house is for sale with an asking price of $360,000 to $390,000.  It has been on the market since mid-October and the vendor has priced this property to sell now. Currently, houses in this area are selling with a price range of $500k to $570k.  This house was last sold 3 years ago in July-2017 for $370,000.
 
Sitting on a 360 sqm block, the house comprises 3 good sized bedrooms all with built-in robes, a central family bathroom, a spacious family living area and a kitchen with an abundance of bench and cupboard space. The home also features ducted heating, evaporative cooling, single carport, low maintenance garden with a shed and water tank.  There is also a pergola outdoor entertainment area for family and friends.
 
The home is conveniently located within close proximity to the Pacific Werribee Shopping Centre, Werribee CBD, Werribee and Hoppers Crossing Train Stations, sought after schools and parklands.

 
The home is well-presented and would suit first home buyers, downsizers or investors. 
 

Asking prices for 3-bedroom houses in postcode 3030 has declined 2.4% over the month after a 6.3% increase over 3 years.  However, unit prices in this area have increased 2.3% over the month.
 
Investors will be pleased to see
asking rents increasing in this postcode.  Rents for 3-bedroom houses have remained stable with a minor 0.1% increase over the quarter.  Unit rents have increased 1.9% over the month.  Implied gross rental yield of 3.7% can be achieved for 3-bedroom houses in this area and 4.5% for units.  The start of 2020 saw vacancy rates at 4.0% in January, this has now declined to 3.2% in September.
 
Not surprisingly,
stock on market had declined during Melbourne’s Stage 4 lockdown from July 2020.  With Stage 4 restrictions now easing including allowing public auctions of 10 people, agents are now expecting more stock to come onto the market. This could drive sales as there are still a number of potential buyers in the market.
 
Already there are now 456
auctions scheduled in Victoria for Saturday 31 October, compared to only 156 for Saturday 17 October.  Melbourne’s auction clearance rate for week ending 25/10/20 has increased to 47.0%.  In comparison for the week ending 13/9/20 the auction clearance rate dipped to 10.5%.  For the week ending 28/6/20, prior to Stage 4 lockdown, Melbourne’s auction clearance rate was 46.6%.
 
Yes, the real estate market is back open for business in Victoria, 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: 27 Oct 2020 Asking Price    Chg on
prev wk
   Rolling month
% chg
  12 month
% chg
Sydney  All Houses    1,344.1 8.3  -1.6%  4.7% 
All Units 673.4 -0.7  -0.4%  -4.2% 
Melbourne  All Houses 1,032.9 3.5  0.5%  8.1% 
All Units 568.2 1.7  0.8%  3.8% 
Brisbane  All Houses 655.6 3.1  1.6%  3.8% 
All Units 377.0 0.0  0.3%  1.3% 
Perth  All Houses 674.8 1.7  1.4%  3.1% 
All Units 380.9 -0.7  -0.1%  0.9% 
Adelaide  All Houses 525.2 0.5  -0.1%  1.4% 
All Units 311.0 2.2  0.4%  3.2% 
Canberra  All Houses 807.3 3.8  -0.2%  0.6% 
All Units 468.5 2.6  2.3%  8.1% 
Darwin  All Houses 583.9 -0.1  2.1%  -0.4% 
All Units 348.1 1.7  1.1%  8.9% 
Hobart  All Houses 585.2 3.1  2.1%  10.7% 
All Units 406.5 1.2  1.0%  17.2% 
National  All Houses 608.5 4.2  1.8%  5.4% 
All Units 396.0 -1.0  -0.7%  3.8% 
Cap City Average   All Houses 986.2 5.5  0.2%  5.4% 
All Units 563.8 0.8  0.1%  -1.1% 

Next update: 3 Nov 2020

SQM Research Weekly Rents Index
Week ending: 20 Oct 2020      Rent         Chg on
    prev wk
  Rolling month
% chg
    12 month
% chg
Sydney  All Houses      611.3 -0.3  -1.5%  -9.2% 
All Units 451.5 -0.5  -0.9%  -9.2% 
Melbourne  All Houses 514.7 -0.7  -0.6%  -2.6% 
All Units 388.6 -1.6  -1.2%  -5.1% 
Brisbane  All Houses 468.7 1.3  0.9%  1.5% 
All Units 377.0 0.0  0.1%  -0.3% 
Perth  All Houses 475.1 1.9  1.1%  8.1% 
All Units 364.2 1.8  1.8%  8.3% 
Adelaide  All Houses 417.0 0.0  1.4%  5.0% 
All Units 315.2 -0.2  -0.5%  1.6% 
Canberra  All Houses 624.0 0.0  0.1%  1.8% 
All Units 480.4 0.6  1.3%  3.7% 
Darwin  All Houses 536.8 10.2  0.0%  3.7% 
All Units 372.5 3.5  1.3%  -1.3% 
Hobart  All Houses 448.8 -5.8  0.1%  3.5% 
All Units 379.8 -2.8  2.9%  -5.2% 
National  All Houses 468.0 5.0  0.4%  5.4% 
All Units 372.0 3.0  0.3%  2.2% 
Cap City Average   All Houses 528.0 1.0  -0.2%  -2.9% 
All Units 411.0 0.0 -0.5%  -5.5% 

Next update: 28 Oct 2020

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