SQM Research Weekly Newsletter
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SQM Research Residential Newsletter - 
Tuesday 23 June 2020
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report
Black Dragon's
Words for the Week

"It's a recession when your neighbour loses his job; it's a depression when you lose yours."

Harry S Truman

Real Estate Realities 

Reserve Bank considered asking for real estate transaction 'pause' amid property crash fears

Reserve Bank economists considered urging the Federal Government to shut down the real estate industry, "pausing" sales of established homes to avoid perceptions of a coronavirus-inspired housing market crash.
Documents from inside Australia's central bank, including many marked "highly restricted", also suggest house prices could slump up to 15%.
The internal reports contradict a much rosier public view the Reserve Bank of Australia has been displaying about the billions of dollars and millions of jobs tied up in housing, construction and real estate.

Minutes of the board's May 5 meeting, released publicly, noted "demand for both new and established housing had fallen" and falling incomes, confidence and population growth "were expected to affect demand for new housing for an extended period".

But inside the RBA, which sets key interest rates and economic direction, the warnings were clearer and more severe.

"It's become clear that there has been a big drop-off in demand for new housing," said speaking notes for assistant governor (economic), Luci Ellis, which were obtained through a Freedom of Information (FOI) request.

Beyond difficulties inspecting and selling houses, people were worried about job security.


AUCTION LISTINGS* for week ending 28 June 2020



Rest of Week




Rest of Week


Sydney 529 92   All NSW 599 141 Auctions in NSW 
Melbourne 581 41   All VIC 608 47 Auctions in VIC 
Brisbane 52 35   All QLD 84 86 Auctions in QLD 
Perth 6 7   All WA 8 13 Auctions in WA 
Adelaide 38 12   All SA 39 14 Auctions in SA 
Canberra 17 9   All ACT 17 9 Auctions in ACT 
Darwin 2 3   All NT 3 3 Auctions in NT 
Hobart 0 0   All TAS 1 0 Auctions in TAS

*Note: To date, most 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 21 June 2020

Last week, Sydney recorded a final auction clearance rate of 45.1% with Saturday auctions selling better than mid-week by some margin (46.2% verses 38.5%). Sydney volumes were steady at 526  properties. Clearance rates dipped on the previous week’s 47.9%.
Melbourne auctions once again struggled.  A clearance rate for the week of 43.3% was recorded with the Saturday results fairing a little worse than the mid-week results (43.2% verses 44.3.%). Volumes rose to 561 properties for the week compared to the 477 for the previous week..
Looking forward to this week, Sydney has 621 scheduled, while Melbourne has 622 scheduled. So both cities offering very similar volumes.

Full individual auction results can be found on our website: 



  Lot 2, Neverfail Bay, Berowra Waters NSW 2082

Here is an opportunity to restore a deep-waterfront home and garden to its former glory.  Located in Berowra Waters, a northern outer suburb in Sydney, approximately 40 km north of the CBD, this home was constructed 30 years ago by its current owners and is built over 3 levels and would best suit a large family.  The property also has a separate self-contained guest suite on the ground floor, plenty of space for family / friends to visit or it would also make an excellent teenager retreat or could provide income as a holiday let (STCA).
The home appears to be structurally sound but requires updating and painting throughout, general maintenance, and the restoration of landscaped gardens over the entire block from the waterfront to the rear boundary.  This could be a good home to take advantage of the current Federal government HomeBuilder grant for owner occupiers who substantially renovate or redevelop.
The second floor comprises 2 spacious living rooms leading out onto a large covered and semi-enclosed verandah looking northwards over Berowra Creek. The kitchen on this level is a functional, open-plan design with a large walk-in pantry and a number of fridges and freezers. The dining room adjoins the kitchen.  Also on this level is a study and a full size bathroom.
The top level has 2 large bedrooms, plus a large study/fully fitted-out sewing room/extra sleeping area and another full size bathroom.  A feature of all the bedrooms is the complete wall of exceptional built in wardrobes.
With a floor space of approx. 182 sqm, this home is being sold on a complete walk-in walk-out basis, being fully furnished with quality furniture, including 2 compete walls of bookshelves, laden with an eclectic mix of books. There is a large inclinator to transport goods and building materials from the pontoon to the back door of the house.  The home is an easy 8-10 minute boat ride from the secure Residents Marina and Carpark.
Berowra Waters is located just off the F3, only 60 minutes by car or train from Sydney CBD, or 45 minutes to the Central Coast.  The area has a history as a holiday getaway luring people with its abundant natural beauty, scenic waterways for fishing and canoeing, and bushland at Ku-ring-gai Chase National Park and Muogamarra Nature Reserve.  The location tends to attract an older demographic but also draws families who want easy access to city trains.  
Asking prices in this postcode range from $820,000 to $1 million plus. This home is for sale at $895,000 after an initial asking price of $1.2 million in Jan 2018.  Currently asking prices for houses have increased by 9.7% over the month, after a 14.6% increase over the 12 months.  Unit prices have remained stable in the last month, over 12 months there was a huge 23.8% increase in asking prices.

Asking Rents for houses have declined by 2.8% over the month but unit prices have increased by a 16.9% over the month.   Implied gross rental yield sits at 3.1% for houses and 2.6% for units.  Vacancy rates have dropped from 4.3% in April 2020 to 2.6% in May 2020.
 If you are looking for a sanctuary away from the hustle and bustle of city life this might just be it.

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
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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.

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SQM Research Weekly Asking Prices Index
Week ending: 23 Jun 2020 Asking Price    Chg on
prev week
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses   1,381.1 4.8  -0.4%  11.8% 
All Units 694.8 -1.5  -1.4%  0.6% 
Melbourne  All Houses 1,029.3 -4.3  -1.5%  9.9% 
All Units 566.5 0.8  0.7%  4.8% 
Brisbane  All Houses 642.1 -0.0  0.4%  4.0% 
All Units 377.5 1.5  0.8%  1.4% 
Perth  All Houses 670.9 3.8  1.0%  1.9% 
All Units 382.2 2.1  1.4%  -0.9% 
Adelaide  All Houses 528.2 0.7  0.1%  2.8% 
All Units 309.6 1.4  1.3%  2.4% 
Canberra  All Houses 830.9 7.7  1.1%  4.2% 
All Units 441.9 2.0  0.6%  2.3% 
Darwin  All Houses 578.7 1.7  0.7%  -0.8% 
All Units 346.2 0.5  1.2%  -2.6% 
Hobart  All Houses 569.6 0.3  0.3%  9.8% 
All Units 364.2 4.8  2.9%  19.3% 
National  All Houses 600.1 -0.9  0.4%  5.8% 
All Units 392.3 1.5  0.6%  4.5% 
Cap City Average  All Houses 991.9 7.2  -0.4%  8.8% 
All Units 572.1 0.1  -0.2%  1.7% 

Next update: 30 Jun 2020

SQM Research Weekly Rents Index
Week ending: 20 Jun 2020    Rent       Chg on
prev week
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses    641.7 0.3  -0.6%  -6.7% 
All Units 474.8 -1.8  -1.1%  -5.5% 
Melbourne  All Houses 531.3 -1.3  -0.4%  -1.5% 
All Units 403.5 -1.5  -0.7%  -4.8% 
Brisbane  All Houses 465.2 2.8  1.4%  1.2% 
All Units 378.9 1.1  0.5%  1.4% 
Perth  All Houses 450.5 0.5  0.4%  1.0% 
All Units 349.7 0.3  1.2%  3.9% 
Adelaide  All Houses 410.2 -1.2  0.6%  3.3% 
All Units 318.0 1.0  -0.1%  2.7% 
Canberra  All Houses 623.4 1.6  -0.6%  0.2% 
All Units 466.0 -1.0  0.1%  0.8% 
Darwin  All Houses 478.8 -6.8  -0.6%  -8.3% 
All Units 356.2 1.8  0.4%  -3.6% 
Hobart  All Houses 434.2 0.8  1.0%  -1.0% 
All Units 376.1 -2.1  -3.4%  -1.6% 
National  All Houses 445.0 2.0  1.1%  0.7% 
All Units 375.0 2.0  1.4%  2.2% 
Cap City Average  All Houses 538.0 0.0 0.0% -2.5% 
All Units 424.0 -1.0  -0.7%  -3.9% 

Next update: 28 Jun 2020

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