Copy
SQM Research Weekly Newsletter
View this email in your browser
SQM Research Residential Newsletter - 
Tuesday 8 September 2020
Facebook
Twitter
LinkedIn
Website
Property Explorer
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report
Black Dragon's
Words for the Week

“The world is going through a period of crisis, but whether we look at it as a crisis or as an opportunity to reshape our thinking, depends on us. So use this period as a lesson on how to live life with a concern for all of humankind.” 

Abhijit Naskar

Real Estate Realities 

Pandemic paradox: Global housing markets continued to rise strongly in Q2, defying the pandemic

During the year to Q2 2020:

Surprisingly, global housing markets remained extraordinarily vibrant during the year to Q2 2020, especially in Europe, Canada and the US. Real house prices (i.e. prices adjusted for inflation) rose in 33 out of the 49 world's housing markets which have so far published housing statistics.
 
The more upbeat nominal figures, more familiar to the public, showed house price rises in 38 countries, and declines in only 11 countries.
 
This is happening despite transaction volumes suffering an enormous hit from lockdowns and travel restrictions associated with the COVID-19 outbreak.
 
The most likely explanation is lower interest rates. Many central banks compensated for weak economies through lower interest rates and Quantitative Easing.
 
Strong house price surges have taken place in European countries, such as TurkeyGermanySlovak RepublicEstonia, as well as Portugal.
 
Despite being the new epicentre of the coronavirus outbreak, the U.S. housing market remains surprisingly robust. The S&P/Case-Shiller seasonally-adjusted national home price index rose by 3.62% during the year to Q2 2020 (inflation-adjusted), an improvement from the previous year’s 1.57% growth. The Federal Housing Finance Agency displayed an even more rosy picture (from the seller’s perspective) with its seasonally-adjusted purchase-only U.S. house price index rising by 5.02% y-o-y in Q2 2020 (inflation-adjusted), up from the previous year’s 3.34% growth and the biggest increase since Q4 2015.
 
Thirty-four of the 49 surveyed housing markets showed stronger momentum in Q2 2020 compared to the previous year.

 

AUCTION RESULTS for week ending 6 September 2020

Full individual auction results can be found on our website: 



AUCTION LISTINGS* for week ending 13 September 2020

CITY

Saturday

Rest of Week

 

STATE

Saturday

Rest of Week

Link

Sydney 592 71   All NSW 657 104 Auctions in NSW 
Melbourne* 13 6   All VIC 16 8 Auctions in VIC 
Brisbane 57 29   All QLD 95 81 Auctions in QLD 
Perth 2 7   All WA 3 7 Auctions in WA 
Adelaide 42 16   All SA 43 20 Auctions in SA 
Canberra 37 13   All ACT 37 13 Auctions in ACT 
Darwin 3 4   All NT 3 5 Auctions in NT 
Hobart 0 0   All TAS 2 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.
 

DISTRESSED PROPERTY OF THE WEEK

   Unit 23, 46 The Crescent, Dee Why, NSW 2099
 
A recently modernised, two-bedroom apartment in Dee Why, 18 km north-east of Sydney’s CBD, is listed for sale with a price guide of $695,000.  The property last sold for $390,000, 12 years ago in 2008.
 
With approx. 96 sqm on title, this 2-bedroom unit boasts style and comfort and is only a stroll away to popular Dee Why beach.  The property presents a versatile living/dining space that opens out to a sunny balcony, with a spacious updated kitchen and full bathroom. There is also an internal laundry and undercover car space with an additional separate lock-up storage cage.
 
The unit sits comfortably in a quiet position at the rear of the block, only meters to lively beachfront cafes and restaurants, public transport, schools and local shopping centres and specialty shops. The building is well maintained and has a pool. 

The apartment is best suited for first home buyers or savvy investors looking for a beach side locality.

Units in this area have an estimated price range from $670k to $820k. 
Asking prices in this postcode for 2 bedroom units have had a minor decline of 0.5% over the last month however houses increased by 0.9%.  Over the last 3 years unit house price growth has been 5.5% and the last 12 months shows a 19.2% growth for units in this postcode. House prices had a significant growth of 32.6% over the last 12 months.

Asking Rents have increased by 3.2% over the month for units in this postcode. 3-bedroom houses too have increased by 1.6% over the last 12 months. It was last advertised for rent in December 2018 for $530 per week.  Implied gross rental yield for units in this postcode is 3.6%.  
 
This postcode’s
Vacancy rate has always been below 2.0% since 2005.  At the start of Covid-19 it began to climb, peaking at 1.8% in May 2020.  However this has now declined back to a very low 0.6% in July 2020. 
 

Stock on market shows a minor decline in new properties listed with most properties listed for 30-60 days.  With lower supply but growing Interest in this area it could push up asking prices and rents in this area.
Keep researching  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: 8 Sep 2020 Asking Price   Chg on
 prev wk
  Rolling month
% chg
  12 month
% chg
Sydney  All Houses   1,351.6 -2.6  -0.5%  4.7% 
All Units 678.7 -0.1  -0.7%  -2.1% 
Melbourne  All Houses 1,027.3 0.0  0.4%  8.9% 
All Units 562.3 0.0  -0.2%  3.9% 
Brisbane  All Houses 641.9 0.1  -0.5%  3.2% 
All Units 376.2 -0.1  0.0%  1.5% 
Perth  All Houses 662.1 -4.6  -1.3%  1.9% 
All Units 380.4 0.0  0.1%  0.0% 
Adelaide  All Houses 525.8 -1.7  0.1%  2.2% 
All Units 308.0 0.2  0.3%  3.1% 
Canberra  All Houses 800.4 -3.4  -1.3%  -2.9% 
All Units 455.1 1.7  1.8%  4.9% 
Darwin  All Houses 574.8 0.0  0.2%  -3.0% 
All Units 345.5 -0.5  -0.3%  -1.9% 
Hobart  All Houses 573.0 2.3  0.0%  10.3% 
All Units 397.6 5.2  3.5%  24.3% 
National  All Houses 595.5 -1.9  -0.7%  4.0% 
All Units 395.4 2.0  0.2%  3.9% 
Cap City Average   All Houses 977.0 -3.6  0.0%  4.6% 
All Units 563.8 -0.5  -0.2%  0.0% 

Next update: 15 Sep 2020

SQM Research Weekly Rents Index
Week ending: 4 Sep 2020    Rent         Chg on
prev wk
   Rolling month
% chg
   12 month
% chg
Sydney  All Houses     627.1 -2.1  -1.2%  -7.3% 
All Units 458.9 -1.9  -1.7%  -7.8% 
Melbourne  All Houses 520.9 -0.9  -0.3%  -1.1% 
All Units 393.9 0.1  -0.7%  -6.2% 
Brisbane  All Houses 462.2 -0.2  -0.8%  -0.9% 
All Units 377.5 -0.5  -0.5%  0.2% 
Perth  All Houses 474.3 3.7  1.9%  8.6% 
All Units 356.6 0.4  0.8%  5.4% 
Adelaide  All Houses 410.6 2.4  -0.4%  2.7% 
All Units 315.7 0.3  -0.5%  1.1% 
Canberra  All Houses 634.8 -4.8  0.8%  5.0% 
All Units 469.4 -1.4  -1.0%  2.3% 
Darwin  All Houses 501.4 2.6  2.2%  -1.9% 
All Units 361.6 1.4  0.5%  -3.7% 
Hobart  All Houses 439.7 -1.7  0.0%  -0.5% 
All Units 373.3 -2.3  -2.4%  -7.5% 
National  All Houses 460.0 1.0  0.7%  4.5% 
All Units 371.0 -1.0  1.1%  1.1% 
Cap City Average   All Houses 533.0 -1.0  -0.2%  -2.0% 
All Units 414.0 -1.0  -1.2%  -5.7% 

Next update: 12 Sep 2020

Facebook
Twitter
LinkedIn
Website
Copyright © 2020 SQM Research, All rights reserved.

Our mailing address is: Level 16, 275 Alfred Street, North Sydney, NSW 2060, Australia

unsubscribe from this list