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SQM Research Residential Newsletter - 
Tuesday 25 August 2020
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Words for the Week

“A people that elect corrupt politicians, imposters, thieves and traitors are not victims... but accomplices.” 

George Orwell

Real Estate Realities 

Despite COVID Outbreaks, Many International Cities Enjoying Sales Recovery in July

According to Knight Frank's latest Global Property Index, and despite localized outbreaks, a number of global cities are seeing sales volumes continue to recover with April so far looking to be the low point for residential activity.

New outbreaks have emerged in parts of the US (Southern & Western states), Spain (Catalonia, Galicia) as well as Melbourne which has led to the city entering lockdown again and the state border closing between Victoria and New South Wales, for the first time in 100 years. Perth has also moved to limit international arrivals to 525 a week.

The UK has also announced its long-awaited 'traffic-light' list of 74 countries and territories which Brits can travel to without self-isolating from 10 July. Whilst France, Spain, Italy and Germany are included, Portugal, the US and Canada are currently omitted. In the case of Australia and New Zealand, despite being on the list, their borders remain closed. People resident in Scotland, Wales and Northern Ireland will still have to self-isolate on their return from "amber" rated countries under the terms of the deal.

In the Eurozone, Capital Economics has revised their GDP forecasts upwards for 2020 as activity has rebounded faster than they anticipated.

In the UK, Chancellor Rishi Sunak announced a slew of measures to boost the UK's economy including a stamp duty holiday for homes priced below £500,000 which will start with immediate effect.

 

AUCTION LISTINGS* for week ending 30 August 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 642 140   All NSW 727 204 Auctions in NSW 
Melbourne* 183 47   All VIC 195 51 Auctions in VIC 
Brisbane 86 34   All QLD 133 70 Auctions in QLD 
Perth 7 4   All WA 12 16 Auctions in WA 
Adelaide 55 11   All SA 55 15 Auctions in SA 
Canberra 53 14   All ACT 53 14 Auctions in ACT 
Darwin 1 8   All NT 1 9 Auctions in NT 
Hobart 1 0   All TAS 1 0 Auctions in TAS

*Note: The above counts of auctions represent most recent known auction dates for the coming week.  As at 8 July, Melbourne auctions are back on-line.
 

AUCTION RESULTS for week ending 23 August 2020

Full individual auction results can be found on our website: 


 

DISTRESSED PROPERTY OF THE WEEK

  Unit, 35 Hercules St, Hamilton QLD 4007
 
This fully furnished, 2 bedroom, 2 bathroom apartment is for sale in the Brisbane inner city suburb of Hamilton, only 6 km from Brisbane’s CBD.

Located on the 7th level of the Alcyone Residences at Portside Wharf, the apartment faces towards the river, offering breezes, views and low maintenance living within a secure and very convenient location. 
 
The agents say the vendor is motivated and is encouraging all offers from serious buyers.  It is currently selling for $460,000 and has been on the market since March 2020.  

Around 2015, similar 2-bedders in this building had selling prices ranging from $500-$545k.   SQM data reveals asking prices in this postcode have increased by 3.1% for 2-bedroom units over the month and over 12 months the growth has been 4.7%.
 
The apartment is suited for those looking to down size, first home buyers looking to break into the Hamilton market or a savvy investor.
 
This modern apartment comes with a fully equipped kitchen and laundry, 2 bedrooms, 2 bathrooms, balcony with river glimpses and quality fixtures and fittings throughout.  It is fully furnished and includes access to the outdoor facilities within the complex including large swimming pool, communal BBQ area and gymnasium. It also has secure intercom entrance and a secure underground car park.
 
It is well located, only 6 km to Brisbane CBD; 5 km to Brisbane's international and domestic airports; walking distance to historic Eagle Farm Racecourse and Racecourse Road's famous cafés and boutiques. Also nearby are supermarkets, medical centre, parklands, sports fields, children's playgrounds and the Royal Queensland Golf Course.
 
It is an easy walk to two CityCat Terminals and is situated between Queensland's two largest employment and technology hubs - the Brisbane CBD and Australia Trade Coast - and neighbouring KSD1 and Brisbane Technology Park.
 
As part of Alcyone Residences, this apartment is currently in the letting pool, that lease can be renewed or the new owner can choose to move in and call it home.
 
Rents in 2019 have produced solid rental returns of at least $500 - $550 per week in this complex but currently asking rents range from $460 - $480 per week in this postcode.  Property investors however can be reassured as the last month has seen asking rents in this postcode increasing by 1.2% for 2-bedroom units.  And over 12 months, the increase has been 3.2% and 3 year growth is 14.6%.  An implied gross rental yield of 4.5% can be achieved for units.  Vacancy rates have also dropped to 2.7% in July 2020.
 
The Brisbane market is showing some resilience during this health crisis led recession, no doubt supported by record low interest rates, record levels of government incentives and support and deferred loan repayments. This could be a 
smart investment but  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.


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: 25 Aug 2020 Asking Price Chg on
   prev wk
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses   1,354.6 -2.7  -1.8%  6.6% 
All Units 678.0 -2.6  -0.8%  -2.5% 
Melbourne  All Houses 1,025.9 2.9  0.5%  9.3% 
All Units 561.9 -1.0  -1.4%  4.3% 
Brisbane  All Houses 641.7 -1.3  -0.3%  3.8% 
All Units 376.1 0.0  -0.4%  1.4% 
Perth  All Houses 666.8 -1.3  -0.8%  3.0% 
All Units 379.7 -0.4  0.0%  -0.5% 
Adelaide  All Houses 527.7 1.3  0.3%  2.8% 
All Units 307.8 0.3  -0.2%  3.2% 
Canberra  All Houses 807.7 -4.7  -1.1%  -0.5% 
All Units 452.1 1.0  1.7%  4.9% 
Darwin  All Houses 573.0 -0.6  -0.3%  -3.1% 
All Units 345.8 0.2  0.1%  -2.1% 
Hobart  All Houses 569.6 -2.8  -1.0%  12.1% 
All Units 387.5 -1.4  4.1%  26.7% 
National  All Houses 597.8 0.3  -1.0%  5.1% 
All Units 395.2 0.4  0.1%  5.1% 
Cap City Average   All Houses 979.7 0.1  -0.5%  6.5% 
All Units 561.7 -1.6  -0.9%  0.0% 

Next update: 1 Sep 2020 

SQM Research Weekly Rents Index
Week ending: 20 Aug 2020     Rent        Chg on
prev wk
  Rolling month
% chg
   12 month
% chg
Sydney  All Houses     629.5 -3.5  -1.2%  -7.6% 
All Units 462.7 -1.7  -1.4%  -7.2% 
Melbourne  All Houses 521.6 -0.6  -0.5%  -0.8% 
All Units 393.7 -1.7  -1.6%  -6.5% 
Brisbane  All Houses 464.7 0.3  -0.9%  -0.1% 
All Units 378.1 -0.1  -0.5%  0.6% 
Perth  All Houses 467.4 -1.4  0.5%  7.4% 
All Units 356.4 1.6  1.8%  5.4% 
Adelaide  All Houses 408.5 -1.5  -0.8%  2.3% 
All Units 316.8 -0.8  -0.2%  1.6% 
Canberra  All Houses 643.2 5.8  3.9%  6.6% 
All Units 470.5 -5.5  -0.2%  2.8% 
Darwin  All Houses 489.6 2.4  0.1%  -4.5% 
All Units 357.4 -1.4  -3.8%  -5.2% 
Hobart  All Houses 437.9 -3.9  0.6%  -2.7% 
All Units 381.4 -5.4  0.6%  -1.4% 
National  All Houses 459.0 0.0 1.5%  4.3% 
All Units 375.0 1.0  2.2%  2.5% 
Cap City Average   All Houses 532.0 -3.0  -1.1%  -2.4% 
All Units 416.0 -1.0  -1.2%  -5.2% 

Next update: 28 Aug 2020

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