NEW PROPERTY LISTINGS SURGED IN JANUARY
by Louis Christopher, CEO, SQM Research
Figures released today by SQM Research, reveal national residential property listings increased in January by 2.2% from 288,966 in December 2019 to 295,295. Compared to 12 months ago, listings were down by 10.0%.
All capital cities experienced increases in property listings over the month with the largest increase in Sydney of 5.1%, followed closely by Hobart with 4.9% increase. Canberra had the smallest increase of 0.6% listings.
Year-on-year listings show declines for all capital cities with Sydney recording a significant decline of 24.8% and Darwin a 24.7% decline this time last year. However new listings (listings less than 30 days old) recorded a surge for the month and are higher than same levels recorded in January 2019.
The month of January traditionally records small falls in properties listed for sale as the market is still in a summer holiday mode however, the positive start in new listings shows vendors are now keen to sell and we could see further increases in the coming months.
Capital City asking prices decreased by 0.4% for both houses and units, over the month to 28th January 2020. The year commenced with unit asking prices at $575,100 and houses $973,500.
Compared to a year ago, the capital city asking prices posted increases of 5.5% for houses but a 0.1% decline for units.
Over the month, Melbourne, Brisbane, Adelaide and Hobart recorded increases in both house and unit prices. Sydney was the only city to post declines in both, houses and units, 0.6% for houses and 0.7% for unit prices. Perth and Canberra recorded minor decreases in house prices of 1.1% for Perth and 0.4% for Canberra houses. Darwin house market has made a turnaround with increase of 0.6% in house prices however unit prices declined 0.4%.
Canberra had the strongest growth of 1.4% in the unit market whilst Hobart’s house prices had the strongest growth of 1.3%.
DISTRESSED PROPERTY OF THE WEEK
3 / 3-7 Banrock Place, Mawson Lakes SA 5095
This double-storey townhouse at Banrock Place, Mawson Lakes, approx. 12km north of Adelaide’s CBD, has 3 bedrooms, 2 bathrooms plus an additional toilet; an open plan kitchen, dining and living area; secure parking and veranda and balcony.
Built in 2007, the property has a floor space of 120 sqm and is in one of Adelaide’s popular suburbs. This postcode saw an annualised population growth of 8% in 2011 and 3% in 2016 (source: Australian Bureau of Statistics). 38% of the population are renters. To obtain further essential market statistics and graphs for any Australian postcode, subscribe to SQM’s Postcode Snapshot report.
The townhouse is walking distance to Mawson Lakes train station, shopping precinct, schools, University of SA and many cosmopolitan cafes and restaurants. Walking trails and recreational reserves are footsteps away.
The property has been listed for sale since October 2018 for $349,000. The price is now reduced to $329,000 which is less than when it was last sold for $337,000 in March 2011.
Asking prices in postcode 5095 have currently increased 0.6% over the month for 3-bedroom houses after a 2.6% increase over 12 months. Unit prices were down 6.2% over 12 months but have now increased 0.4% over the month for all units.
Asking rents increased 6.2% for 3-bedroom houses over the 12 month but has since decreased by 1.4%. Unit asking rents shows marginal growth of 0.1% over the month, after a 2.6% increase in 12 months. Rents for houses range from $390 to $400 per week and unit rents are $325 to $332 per week. This townhouse is currently rented at $350 per week since March 2019.
A gross rental yield of 4.8% can be achieved for houses and 6.2% for all units. Stock on market has decreased from 227 in November to 206 in January 2020. Current vacancy rate is 2.0%.
This property is move-in ready and would be a good value family home for an owner-occupier or for an astute investor looking to add to their portfolio.
For a more indepth look at the property market for 2020, subscribe to Christopher’s Boom and Bust Report 2020.
SQM website also 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.
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