SQM Research Weekly Newsletter
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SQM Research Residential Newsletter 
Tuesday 10 December 2019
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report

Black Dragon's
Words for the Week

"If you don’t like something, change it. If you can’t change it, change your attitude.”

Dr Mary Angelou
Real Estate Realities 

Apartment owners face millions of dollars in re-cladding bills following landmark ruling

Thousands of apartment owners across Australia who thought they were safe from potentially deadly cladding fires now face millions of dollars in bills to remove and replace timber-based panels.

In a landmark legal ruling, timber-PVC cladding that was believed to be a reliable alternative to dangerous aluminium composite has now also been declared unsafe.

This puts the widely-used Biowood panelling into the same category of major defects of the kind that caused the catastrophic 2017 blaze at London’s Grenfell Tower in which 72 people died, and the Lacrosse building in Melbourne, where this year owners won $5.7 million in damages after a cladding fire in 2014.

“This will affect thousands and thousands more buildings all across Australia,” said Faiyaaz Shafiq of JS Mueller & Co Lawyers who conducted the case at the NSW Civil and Administrative Tribunal.

“We think this is the first ruling in Australia, and possibly in the world, against Biowood, and it will have consequences for so many buildings that used it, thinking of it as a safe and aesthetically pleasing cladding.

“But the tribunal found that it is not safe and, if ignited, a fire could spread from apartment to apartment on the exteriors of the façade and then flow inside the building to put residents at risk. It could cause another catastrophe like Grenfell or Lacrosse.”

.


 6 Ireby Court, Mermaid Waters QLD 4218

If you are in the market for a large family home, then this 4 bedroom, ensuite home with a tropical pool could be worth an inspection.  Located in Mermaid Waters in Queensland’s Gold Coast, the home would suit a large family looking for a convenient lifestyle with a relaxed coastal vibe.
The home features large open plan lounge, separate dining and family room, 4 good sized bedrooms, master with ensuite and walk-in wardrobe, plus a separate games room with a built-in BBQ and media area, making it a great indoor/outdoor entertaining area.  The home sits on a 826 sqm block and also has a double lock-up garage.
The vendor seeks a price of $799,500 after an initial advertised price of $835,000 in August 2019.  The home was last sold in March 2008 for $625,000.
Mermaid Waters has recorded strong
asking price growth of 47.7% for 3-bedroom houses over the last 3 years and 24.8% growth over the last 12 months.  The last month has seen the growth continue with a 3.8% increase.  Units in the postcode however, have only experienced a minor price growth of 0.3% over the month.
The vendor’s price at under $800k, could represent a good bargain, as SQM records show that house prices currently range from $990k to $1.1m in this area.
Investors could struggle with rentals as
asking rents have decreased 5.2% over the month for houses and 5.1% for units. However vacancy rates are decreasing and is now 1.7%. Stock on market is also decreasing with 820 vacant properties as at November, down from 1039 in January 2019.  Gross rental yields sits at 3.8% for houses.
Mermaid Waters is a popular area for families, due to its larger land sizes and location in the heart of the Gold Coast and easily accessible to schools, shopping, cafes and transport.
The ad says it is priced to sell so you may need to be quick in this buoyant market. Buyers are becoming more confident about the future of the Gold Coast and its property market.

For further insights into
 the property market in 2020, subscribe to Christopher’s Boom and Bust Report 2020.

SQM website features free property data that is now more interactive, easier to navigate and user-friendly, so keep monitoring this market’s growth at 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 interested in where the market is heading on a national level, then this is the report for you from one of the most accurate housing market forecaster in the country. 

If you are a real estate professional or a serious residential property investor, you will not want to miss this report!

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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.

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 Weekly Asking Prices Index
Week ending: 10 Dec 2019    Asking Price      Chg on
prev wk
    Rolling month
 % chg
    12 month
% chg
Sydney All Houses 1,311.9 1.6  1.6%  3.0% 
All Units 710.9 2.3  0.9%  2.2% 
Melbourne All Houses 995.9 10.0  2.8%  3.3% 
All Units 552.6 -0.2  0.1%  -0.7% 
Brisbane All Houses 637.3 2.8  1.0%  2.7% 
All Units 371.0 -0.6  -0.3%  -2.0% 
Perth All Houses 653.3 -1.3  -0.5%  -2.2% 
All Units 379.3 -1.3  -0.1%  -2.0% 
Adelaide All Houses 520.0 0.8  0.2%  0.6% 
All Units 302.3 0.3  -0.1%  -0.5% 
Canberra All Houses 823.7 1.1  1.4%  -1.5% 
All Units 436.3 1.0  0.6%  2.2% 
Darwin All Houses 578.8 1.0  0.1%  -0.2% 
All Units 313.7 0.8  -0.5%  -14.6% 
Hobart All Houses 538.4 1.7  0.5%  7.1% 
All Units 339.2 4.0  2.4%  7.5% 
National All Houses 587.3 4.3  0.9%  2.2% 
All Units 383.6 -0.7  -0.4%  1.5% 
Cap City Average All Houses 958.3 3.5  1.7%  2.8% 
All Units 574.8 1.7  0.4%  1.0% 

Next update: 17 Dec 2019

SQM Research Weekly Rents Index
Week ending: 4 Dec 2019        Rent      Chg on
   prev wk
    Rolling month
% chg
    12 month
% chg
Sydney All Houses 687.4 1.6  1.1%  -3.1% 
All Units 495.4 -0.4  -0.4%  -2.5% 
Melbourne All Houses 535.5 0.5  1.1%  0.1% 
All Units 409.2 -0.2  0.3%  1.0% 
Brisbane All Houses 467.2 0.8  1.2%  2.7% 
All Units 377.9 0.1  0.3%  1.2% 
Perth All Houses 441.3 0.7  1.0%  2.0% 
All Units 334.3 -0.3  0.1%  4.0% 
Adelaide All Houses 400.5 0.5  0.5%  2.3% 
All Units 314.3 0.7  0.7%  5.1% 
Canberra All Houses 647.2 1.8  2.8%  1.8% 
All Units 466.2 -1.2  -0.6%  1.1% 
Darwin All Houses 490.9 0.1  -2.4%  -1.3% 
All Units 379.6 2.4  0.9%  -2.8% 
Hobart All Houses 452.9 8.1  4.1%  5.5% 
All Units 433.5 12.5  8.0%  22.0% 
National All Houses 449.0 -1.0  -0.4%  0.9% 
All Units 366.0 -1.0  -0.8%  -0.3% 
Cap City Average All Houses 554.0 0.0 1.1%  -0.4% 
All Units 434.0 -1.0  -0.2%  -0.5% 

Next update: 12 Dec 2019

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