New Property Listings Decreased in April
by Louis Christopher
Figures released today by SQM Research reveal national residential property listings decreased in April by 4.9% from 307,847 listings in March 2020 to 292,775. Compared to 12 months ago, listings were down by 11.9%.
All capital cities experienced decreases in property listings over the month except for Canberra which posted a marginal 0.4% increase.
The largest decrease was in Perth with an 8.4% decrease, followed by Sydney at 7.2% and Adelaide and Darwin both posted 6.0% decreases in property listings. Hobart had the smallest decrease of 4.3% in listings.
Year-on-year listings show more significant declines for all capital cities with Sydney recording a decline of 19.4%, followed by Darwin with a 17.7% decline and Perth a 17.4% decline this time last year.
Stock on Market Table:
We confirm there was a large fall in new listings recorded over the course of April which impacted every capital city. We also note the surge in older listings, particularly for properties that have been on the market between 30 to 60 days. This tells me that sellers struggled to sell their properties over April and new sellers deferred listing. The housing market has clearly been weakened by the coronavirus and the restrictions placed on the economy to limit the outbreak. With the lifting some restrictions over the course of May, we could see a lift in buyer activity for housing; however many issues persist such as the spike in unemployment and the ongoing closure of the international border.
Capital City asking prices increased by 0.7% for houses and increased 0.1% for units, over the month to 5th May 2020. Unit asking prices are now at $574,900 and houses $994,300.
Compared to a year ago, the capital city asking prices posted increases of 9.4% for houses and 3.0% increase for units.
Over the month, some capital cities recorded marginal asking price increases, with the exception of Perth, Canberra and Hobart which all recorded declines for both houses and units.
Brisbane recorded the highest decline in house prices of 1.0% over the month, followed by Perth 0.9%, Hobart 0.7% and Canberra 0.1% decline in house prices.
Unit prices declined in Sydney by 0.6%, Perth 0.5%, Hobart 0.3% and Canberra 0.1%.
Melbourne, Adelaide and Darwin were the only capital cities to record increases in both house and unit prices. Strongest monthly growth was seen in Sydney house prices with a 1.1% increase and Melbourne’s unit market which saw a 1.0% increase.
Year on year, it was only Perth and Darwin that experienced declines in house and unit prices. All other capital cities showed some strong growth this time last year where house prices rose 12.4% in Sydney, 11.2% in Melbourne and 12.0% in Hobart.
AUCTION LISTINGS* for week ending 10 May 2020
*Note: To date, the NSW, WA and NT 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 3 May 2020
Auction clearance rates noticeably picked up last week for Sydney and Melbourne. Albeit from very low levels and still remain at very low levels. Sydney recorded a clearance rate of 38.9% and registering the 4th straight week of clearance rate rises from what would have been the all time low recorded on the 12th of April.
Melbourne also recorded a rise in the clearance rate to 29.4% with the mid-week results fairing a little better than the Saturday Auctions. Once again, the ACT recorded the strongest clearance rate of any city at 45.8% but on low volumes of just 24 auctions.
And that is the clear takeaway this week – that being auction volumes are at very low levels and will remain the case for this week as well. But on the bright side, with the lifting of the Auction Ban in NSW and some other states it is very possible we will see a rise in the number of scheduled auctions in coming weeks.
For those that are interested in the individual results, you can now find them on our website:
DISTRESSED PROPERTY OF THE WEEK
2 Canara Place North Lambton NSW 2299
Located in North Lambton within the City of Newcastle, some 160km north of Sydney’s CBD, is this 5 bedroom, 1 bathroom house listed for sale from $530,000 to $550,000. It last sold in 2013 for $449,950.
The home is a classic mid-century home in a quiet cul-de-sac location and is currently configured with 5 spacious bedrooms, all with built-in robes; open-plan living, dining and kitchen; one bathroom and second w/c; a backyard with garden shed and a single carport and freestanding single garage.
The home sits on a 689sqm corner block and would suit first home buyers, families or investors. Currently it is configured for the student lifestyle in an area popular with overseas and interstate students and returns $660 per week, as it is only 500m from University of Newcastle. You can continue to reap the rewards of this investment or return it to a warm and spacious family home. Being a corner block, you can also explore other options using the two street frontages or extend or add a granny flat (STCA).
North Lambton is a well-located suburb, close to transport including Warabrook train station, schools, colleges and University of Newcastle, Jesmond shopping centre, hospitals, golf course, parks and easy access to Newcastle city centre.
The impact of the Covid-19 pandemic has started to affect house prices in this area with current house asking prices for postcode 2299 decreasing by 2.2% over the last month, after a 7.5% increase over 12 months and 13.6% increase over 3 years. Unit asking prices have also decreased 5.7% over the month. Property listings have increased from 57 in January to 66 at end of April 2020, 49 of these listings are houses.
Asking rents have declined by 1.1% over the last month for houses in the postcode and unit asking rents have increased by 4.0% over the month. In comparison, Sydney region asking rents have declined by 4.1% for houses and 2.4% for units.
Vacancy rates have increased slightly from to 2.4% in February to 2.6% in March for this postcode. Implied gross rental yield is a low 1.5% for all houses and 4.9% for units.
Could this location rebound with the Newcastle area attracting more housing and infrastructure redevelopment?
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.
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