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SQM Research Residential Newsletter - 
Tuesday 22 December 2020
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Boom and Bust 2021 Report
Black Dragon's
Words for the Week

"I've been a puppet, a pauper, a pirate, a poet
A pawn and a king
I've been up and down and over and out
And I know one thing
Each time I find myself
Flat on my face
I pick myself up and get
Back in the race."

That’s Life by Frank Sinatra

Real Estate Realities 

NHFIC releases first flagship housing report

The National Housing Finance and Investment Corporation (NHFIC) has released its first flagship report producing five-year projections for housing supply and demand across Australia’s major cities and regional areas.

The State of the Nation’s Housing 2020 report assesses the number of new households that are expected to form (new housing demand) over the next five years, the number of new net dwelling additions expected to come on-line, and annual balance of new supply and demand, while also assessing housing affordability.

NHFIC’s flagship report, which will be undertaken annually, found:

  • The global COVID-19 pandemic has caused the largest shock to population growth since early last century, triggering a forecast fall in new demand for housing of 286,000 dwellings over the next five years. 
  • Despite the impacts of the pandemic, a recovery in construction activity from the COVID-19 recession is underway - led by detached housing - with total net additions expected to rise to 181,000 in 2021 from 170,000 in 2020 on the back of the monetary and Federal and State Government fiscal stimulus put in place this year. 
  • Federal and state government stimulus is supporting supply by encouraging construction activity in the short term, but the lower demand for new housing is expected over the medium to longer term, with net additions likely to fall and then recover to around 148,000 in 2025. Weakness in net apartment additions will potentially extend to 2025, when 27,000 new dwellings are expected, similar to levels seen prior to the apartment boom. 
  • Despite record levels of residential construction over the years prior to COVID-19, supply outpaced demand by only 4,500 dwellings (on average) for the years 2017-2019. The shorter term period where new supply exceeds new demand can be seen as a catch up for much longer periods of under supply in the earlier 2000s.

Read More...




HOUSING BOOM & BUST REPORT - Out Now!



Want to know the outlook for the Australian property markets in 2021?

Well Louis Christopher's 2021 Housing Boom & Bust Report was released on 3 December 2020.

As the nation works its way out of the worldwide pandemic and out of Australia’s first recession in 30 years, forecasting the property market will be difficult but the 2021 Housing Boom and Bust report will provide an accurate, impartial and detailed guide to the Australian property market in 2021.  

Key features of the 2021 Boom & Bust report will 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
  • 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’re a real estate professional, financial planner or a regular mum and dad residential property investor, you will not want to miss this report, still only priced at $59.95.  Click here to purchase your report.


 
AUCTION RESULTS for week ending 20 December 2020

Full individual auction results can be found on our website: 



AUCTION LISTINGS* for week ending 27 December 2020


CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 593 194   All NSW 689 331 Auctions in NSW
Melbourne^ 964 290   All VIC 1054 306 Auctions in VIC 
Brisbane 74 59   All QLD 139 131 Auctions in QLD 
Perth 13 7   All WA 16 12 Auctions in WA 
Adelaide 75 64   All SA 75 67 Auctions in SA 
Canberra 51 49   All ACT 51 49 Auctions in ACT 
Darwin 1 4   All NT 1 4 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.  ^As at 18-Oct-20, Melbourne outdoor auctions will be allowed (max. 10 people).
 

DISTRESSED PROPERTY OF THE WEEK

101 / 267 Hutt Street, Adelaide SA 5000
 
Located in Adelaide's south eastern residential precinct, this 2 bedroom city apartment now has an asking price of $329,000 after initially going to auction in October 2020.
 
The apartment boasts 2 spacious bedrooms, both with built-in robes; main bedroom has direct access to a private balcony with views over the south parklands.  Open plan living space with a modern kitchen, main bathroom offers floor to ceiling tiles and European style laundry.
 
Recently constructed and offering contemporary of facilities, "August Towers" provides a luxury lifestyle that will appeal to the most purchasers.  Secure building access and secure undercroft car parking plus dedicated bicycle parking area provide desirable utilities.
 
Located near the vibrant Hutt Street restaurant and café scene, and only a short walk to the Adelaide parklands and schools, the apartment offers an easy-care lifestyle for those wishing to reside in the city, or a great lock-up and leave city pad, ideal for the transient city visitor or a great, easy to rent investment acquisition with promises of good rental returns.
 

Asking prices for apartments in this postcode has declined by 0.1% over the month to 15 December 2020 but had increased by 1.8% over 7 years.
 

Asking Rents in the area have increased by 0.8% over the month to 12 December 2020 and has increased 2.9% over 3 years.  However, vacancy rates, like most CBDs nationally were exceptionally high at 8.5% at the height of Covid-19 in September 2020 but has since declined to 7.3% in November.  A gross rental yield of 5.7% can be achieved for units in this postcode.


You can monitor this market 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: 22 Dec 2020 Asking Price    Chg on
prev wk
  Rolling month
% chg
  12 month
% chg
Sydney All Houses   1,401.3 2.6  2.0%  5.2% 
All Units 670.9 -0.6  0.0%  -6.7% 
Melbourne All Houses 1,031.3 4.7  0.8%  0.7% 
All Units 575.1 -0.8  -0.5%  4.4% 
Brisbane All Houses 658.9 3.7  0.8%  3.5% 
All Units 379.0 -0.1  -0.2%  2.4% 
Perth All Houses 664.6 1.0  -1.0%  1.1% 
All Units 383.2 0.8  0.8%  1.9% 
Adelaide All Houses 536.3 -0.7  0.4%  3.0% 
All Units 315.1 -0.1  -0.2%  4.2% 
Canberra All Houses 819.5 1.9  0.7%  -0.5% 
All Units 474.6 0.0  0.7%  9.4% 
Darwin All Houses 585.5 -3.5  -1.1%  3.0% 
All Units 357.9 2.1  0.8%  15.6% 
Hobart All Houses 591.4 -1.9  2.3%  9.2% 
All Units 371.6 -7.9  -5.7%  8.6% 
National All Houses 638.4 -0.1  0.8%  8.4% 
All Units 407.3 -3.0  -0.4%  5.5% 
Cap City Average   All Houses 1,002.5 -0.7  1.1%  2.9% 
All Units 564.4 -1.0  -0.2%  -2.3% 

Next update: 29 Dec 2020 refer to website
 
SQM Research Weekly Rents Index
Week ending: 20 Dec 2020                     
Rent
   Chg on
prev wk
   Rolling month
% chg
   12 month
% chg
Sydney All Houses     637.7 -0.7  0.1%  -6.9% 
All Units 445.8 -0.8  -0.5%  -9.8% 
Melbourne All Houses 511.8 -0.8  -0.3%  -4.1% 
All Units 379.8 -2.8  -1.7%  -7.4% 
Brisbane All Houses 471.4 1.6  1.0%  0.0% 
All Units 380.4 1.6  0.9%  0.7% 
Perth All Houses 488.6 3.4  1.0%  10.5% 
All Units 364.8 -0.8  0.2%  9.3% 
Adelaide All Houses 420.9 -0.9  0.3%  4.3% 
All Units 314.9 0.1  1.1%  0.5% 
Canberra All Houses 654.9 -0.9  3.4%  1.6% 
All Units 473.4 -0.4  -1.3%  2.8% 
Darwin All Houses 592.7 7.3  5.6%  23.7% 
All Units 397.6 2.4  4.8%  4.1% 
Hobart All Houses 463.1 1.9  5.2%  1.7% 
All Units 397.0 -4.0  1.2%  -4.3% 
National All Houses 485.0 2.0  -0.2%  8.3% 
All Units 380.0 -1.0  -0.5%  4.7% 
Cap City Average   All Houses 540.0 0.0 0.2%  -2.4% 
All Units 406.0 -2.0  -0.7%  -6.5% 

Next update: 29 Dec 2020 refer to website

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