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SQM Research Newsletter - Tuesday 29 October 2019
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Black Dragon's
Words for the Week

“Always be a first rate version of yourself and not a second rate version of someone else.”

Judy Garland
 
Real Estate Realities 

Not even Boris can kill demand for London property

London’s property market is showing signs of life despite the uncertainty of Brexit, according to reports. While the political uncertainty has weighed on prices, some buyers, tired of waiting, have jumped in.

Camilla Dell, founder of London buying agent Black Brick, says one very wealthy client recently bought a £20m ($38m) apartment and had no worries about the impact of political upheaval in the UK. “He said governments change and you might pay more tax, but broadly speaking, they’re the same. That’s the view of a billionaire,” she says.

“Some of these buyers are fed up of paying rent and feel the market has come down far enough for them to come back,” she says.

They might be optimists. The uncertainty created by Brexit has deterred buyers, with fears of further falls in property prices. “Unless you are prepared to take a punt and catch the falling knife of London house prices, you may as well sit tight and wait it out. There don’t appear to be many signs of stability in the future, but there are plenty more signals of instability,” says Neal Hudson, director at research firm Residential Analysts, noting that the market for homes worth £2m or more fell 18% in the year to April 2019. With a Brexit conclusion nowhere in sight, there could be more falls to come.

Read More...

DISTRESSED PROPERTY OF THE WEEK
9 Leopold Street, Vista, SA 5091

 

Impressive and set on a massive 1,273 block with wide frontage, this home was custom built over two levels by the original owner/builder in 1970. This home has been beautifully renovated since then and features views of Adelaide and its coastline. The asking price has been slashed to just $645,000 down from $685,000.  

The immense front patio is perfect for entertaining, with hill views, while the tiered rear gardens has both coastal and CBD views. Inside the home there are four bedrooms, more than enough room for a large family. The lower level features a study/office opening to a huge rumpus room or 5th bedroom with patio doors opening to the driveway. Direct access to the home is available from the remote-controlled large garage/workshop with room for up to three cars.

Vista is a small north-eastern suburb of Adelaide, sitting in the foothills. Being an outer suburb, housing is affordable and set on large books. Asking house prices in the area are $459,000 but most do not feature the views, the large block or the pool that this home features. Reflecting the appeal of the area, asking house prices have jumped 13.6% over the year to 29 October. Property listings in 5091 have declined in 2019, which could explain some of the upward pressure on prices. 

The vacancy rate in the suburb is just 0.2%, down from 1% in September 2018, so landlords could do well in the area. Asking rents are $308/week, and despite the low vacancy rate, are down 12% over the year to 28 October and around 11% over three years. The gross rental yield in postcode 5091 is around 3.5%.
 
Keep monitoring this market’s growth at SQM Research’s 
free property data at SQM’s website. Also consider the Property Valuation 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
29 Oct 2019
Asking Price    Chg on
prev wk
Rolling month
% chg  
12 mth
% chg
Sydney All Houses      1,283.9 4.9  -1.6%  -2.0% 
All Units 702.7 1.9  0.7%  -0.8% 
Melbourne All Houses 955.6 2.7  -0.4%  -0.2% 
All Units 547.3 2.4  -0.1%  -1.1% 
Brisbane All Houses 631.8 1.2  0.8%  2.6% 
All Units 372.2 0.2  0.3%  -2.6% 
Perth All Houses 654.6 1.7  0.7%  -1.9% 
All Units 377.4 -0.1  -0.3%  -2.4% 
Adelaide All Houses 517.9 -0.7  0.2%  1.3% 
All Units 301.3 0.1  1.4%  -0.7% 
Canberra All Houses 802.7 0.3  -0.9%  -3.2% 
All Units 433.5 -1.8  -1.5%  1.6% 
Darwin All Houses 586.0 -2.4  -0.4%  0.9% 
All Units 319.5 -4.7  -8.6%  -13.5% 
Hobart All Houses 528.6 2.3  1.3%  6.7% 
All Units 346.8 4.5  4.8%  9.5% 
National All Houses 577.4 -0.2  -0.1%  0.6% 
All Units 381.5 -0.4  -0.1%  1.4% 
Cap City Average All Houses 935.4 10.7  -0.7%  -0.8% 
All Units 570.1 1.4  0.3%  -0.8% 

Next update: 5 Nov 2019
 

SQM Research Weekly Rents Index
Week ending
28 Oct 2019
Rent      Chg on   
prev wk   
Rolling month
% chg 
12 mth
% chg
Sydney All Houses                675.7 2.3  0.0%  -5.9% 
All Units 497.1 -0.1  0.2%  -2.8% 
Melbourne All Houses 529.3 0.7  0.8%  1.1% 
All Units 408.8 -0.8  -1.3%  0.9% 
Brisbane All Houses 461.3 -0.3  -0.9%  2.3% 
All Units 377.5 -0.5  -0.3%  1.9% 
Perth All Houses 437.2 -2.2  -1.3%  3.0% 
All Units 336.2 -0.2  -0.5%  4.9% 
Adelaide All Houses 396.6 -0.6  -0.4%  2.8% 
All Units 311.1 0.9  0.3%  4.3% 
Canberra All Houses 619.0 6.0  1.5%  -2.5% 
All Units 463.0 -0.0  0.4%  4.1% 
Darwin All Houses 503.8 -13.8  -3.4%  1.3% 
All Units 375.2 -2.2  -1.2%  -4.6% 
Hobart All Houses 432.8 -0.8  -1.5%  1.3% 
All Units 400.9 0.1  -0.7%  7.5% 
National All Houses 444.0 0.0 0.5%  0.5% 
All Units 367.0 3.0  0.5%  2.8% 
Cap City Average All Houses 545.0 1.0  0.2%  -1.3% 
All Units 435.0 0.0 0.0% -0.5% 

Next update: 4 Nov 2019

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