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Distressed Property of the Week

1302/11 Hassall Street, Parramatta, NSW 2150 

The vendor is accepting offers from $750,000 as of 20 August on this 2-bedroom apartment, located in Parramatta. The property last sold in May 2015 for $785,000 and the vendor is hoping the reduced price will attract either an owner-occupier or landlord for a quick sale. The apartment currently has a tenant in place at $590pw

According to Agent in a Box, the 2-bedroom, 2-bathroom open-plan apartment is located on the 13th floor in the Skyrise Tower. The unit features amazing views from the balcony, while allowing for easy access to public transport, a shopping centre, restaurants, cafes, library and a school.   
   
If you think it is a good deal, make sure you crunch the numbers first. In postcode 2150, the vacancy rate has decreased over the last 12 months to 4.7% in August 2021 from 6% in August 2020. Asking rents have fallen 7.1% over the last 12 months to 31 August. The gross rental yield on units currently sits at 3.5%.

However, asking sales prices for units have fallen over the year by 4.3%. You can view recent sales in 2150 here. Given these figures, it would pay to do more research, as you could possibly drive a harder bargain with the seller.

You can monitor this market and others with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.

Listings Fall Over August

August Represents the Lowest Counts of Listings Since SQM Begun its Series in January 2010

Figures released today by SQM Research reveal national residential property listings fell in August 2021 by 9.6% to 215,911 from 238,834 in July 2021. This represents the lowest count of listings recorded by SQM Research since it begun its series in January 2010.

The largest monthly falls in property listings in August were in Sydney, Melbourne and Canberra as the lockdowns in these cities disrupted the market. Over the year, property listings are trending downwards nationwide. Compared to 12 months ago, national listings fell 26.3%, with the biggest falls in Sydney, Hobart, Adelaide, Canberra and Brisbane.

Nationally, new listings (Less than 30 days) fell 7.8% over August 2021 to 65,948 properties on the market, though they rose 8% over the year. New listings dropped the most in Melbourne followed by Canberra, down by 31.2% and 21.2%, respectively. Over the year, new listings rose the most in Darwin, by 50.3% as they seek to take advantage of strong market conditions.

In a sign that older stock is clearing, property listings over 180 days dropped by 10.3% in August 2021 and they are down 53.2% over the year, with monthly falls posted recorded in all capital cities, led by Canberra.

Commentary
Louis Christopher, Managing Director of SQM Research said: “Listing counts over August were predominantly impacted by lockdowns, particularly for Sydney whereby there was a 19.7% decline in new listings. Older listings also had another monthly fall, indicating strong absorption rates across the country. Going forward we are cautious for the market given the likely economic damage as a result of these latest city wide closures.
 
Asking Prices
Over the past 30 days to 31 August 2021, Sydney asking prices fell by 0.4% for houses, yet rose by 4.2% for units in what was a reversal from a general softening in the local unit market over 2020-21. Asking prices for houses in Melbourne and Brisbane rose by 0.2% and 2.3% Adelaide asking prices for houses rose by 2.8%, while units fell by 0.9%. Canberra, Darwin and Hobart asking prices for houses rose by 1.0%, 2.1% and 1.4%.

Auction Results

for week ending 29 August 2021

Full individual auction results can be found on our website:

Auction Listings*

for week ending 5 September 2021

CITY Saturday   Rest of Week STATE Saturday   Rest of Week   Link
Sydney 517   159 All NSW 621   247   Auctions in NSW
Melbourne 613   101 All VIC 708   122   Auctions in VIC
Brisbane 115   43 All QLD 203   118   Auctions in QLD
Perth 6   3 All WA 7   7   Auctions in WA
Adelaide 107   43 All SA 108   50   Auctions in SA
Canberra 60   23 All ACT 60   23   Auctions in ACT
Darwin 1   2 All NT 1   3   Auctions in NT
Hobart 0   0 All TAS 0   0   Auctions in TAS

* The above counts of auctions represent most recent known auction dates for the coming week.

Real Estate Realities

Kerri-Anne Kennerley sells Woollahra home for $22m, smashes suburb record

Kerri-Anne Kennerley a queen of Australian television, recently sold her Woollahra property for more than $22 million. In 1997, Kennerley and her husband John purchased the Victorian styled estate at auction for $2.49 million. The buyer is currently unknown, but struck the sale off-market, given her plan to downsize after the death of her husband in 2019. This result has shocked agents, however highlights “the strength of Sydney’s high-end market given a dearth of houses for sale and an over-supply of buyers with deep pockets.”

Located on Wellington Street, the two storey residence features 892 square metre of land providing the owner with a swimming pool, internal lift above the three car garage and self-contained studio. The estate is featured directly behind the Chiswick restaurant located on the consular belt.

The sale is a record for the suburb, as it tops the 2020 property record when the former German consul-general residence was purchased for $18.5 million. This estate has a land size of 2000 square metres and is more than double the size of the Kennerley home.

As the latest Covid-19 restrictions in NSW have temporarily banned open house inspections. Agents have been forced to offer private inspections in a tight market. According to Alexander Phillips of PPD “It also means that agents have time on their hands to marry up the best buyers with the right sellers to see more of these deals done on the quiet. We are offering houses for sale off-market before we go out with marketing more broadly and given the demand are often selling before any advertising goes out.”

More ...

Black Dragon's Words for the Week

"The tragedy in life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach"

~ Benjamin Mays    

SQM Research Housing Indexes

SQM Research Weekly Asking Prices Index

 
Week ending
31 Aug 2021
Asking Price Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Sydney All Houses 1,578.6 28.8  -0.4%  16.6% 
All Units 714.2 6.8  4.2%  5.2% 
Melbourne All Houses 1,087.7 4.8  0.2%  5.9% 
All Units 566.6 0.9  0.5%  0.8% 
Brisbane All Houses 721.2 -1.3  2.3%  12.4% 
All Units 393.3 0.6  -0.4%  4.5% 
Perth All Houses 693.8 -2.5  -0.8%  4.1% 
All Units 388.6 0.4  -0.2%  2.2% 
Adelaide All Houses 588.0 5.3  2.8%  11.5% 
All Units 327.1 -0.9  -0.9%  6.3% 
Canberra All Houses 834.5 6.2  1.0%  3.8% 
All Units 491.5 1.4  2.9%  8.4% 
Darwin All Houses 616.4 2.4  2.1%  7.3% 
All Units 367.3 -4.8  -2.5%  6.2% 
Hobart All Houses 663.1 8.6  1.4%  16.2% 
All Units 428.3 -0.4  -1.4%  9.2% 
National All Houses 695.5 4.6  1.5%  16.4% 
All Units 433.0 1.3  1.7%  10.1% 
Cap City Average All Houses 1,101.2 22.6  1.7%  12.3% 
All Units 589.1 3.3  2.9%  4.4% 

Next update: 7 Sep 2021

SQM Research Weekly Rents Index

 
Week ending
28 Aug 2021
Rent Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Sydney All Houses 700.9 -0.9  0.1%  11.4% 
All Units 466.1 -0.1  -0.3%  1.1% 
Melbourne All Houses 519.3 -0.3  0.2%  -0.5% 
All Units 370.8 0.2  0.7%  -5.8% 
Brisbane All Houses 519.0 2.0  0.7%  12.2% 
All Units 395.6 0.4  0.6%  4.6% 
Perth All Houses 526.4 -0.4  -0.3%  11.8% 
All Units 396.1 -4.1  -3.0%  11.2% 
Adelaide All Houses 451.2 0.8  0.7%  10.5% 
All Units 335.8 0.2  -0.1%  6.4% 
Canberra All Houses 721.8 3.2  -1.2%  12.8% 
All Units 515.0 1.0  1.5%  9.4% 
Darwin All Houses 608.8 -3.8  -2.0%  22.0% 
All Units 462.2 0.8  -0.1%  28.3% 
Hobart All Houses 472.9 5.1  -1.1%  7.1% 
All Units 433.0 2.0  6.7%  15.2% 
National All Houses 528.0 0.0 0.6%  15.0% 
All Units 398.0 -4.0  -0.3%  7.0% 
Cap City Average All Houses 578.0 -1.0  0.0% 8.2% 
All Units 421.0 -1.0  -0.5%  1.4% 

Next update: 4 Sep 2021

SQM Ratings Newsletter ☆☆☆☆☆


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