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Distressed Properties Report
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Boom and Bust 2021 Report
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Distressed Property of the Week

5/80 Ryans Road, Nundah QLD 2017

The vendor is accepting offers from $409,000  on this 2-bedroom apartment, located in the Nundah, down from the initial asking price of $439,000. The property last sold in July 2014 for $455,000 and the vendor is hoping the reduced price will attract either an owner-occupier or landlord for a quick sale.
Nundah is an inner suburb in the City of Brisbane and conveniently located close to public transport and entertainment facilities. The apartment is located 480m from Northgate train station and provides the vendor with easy access to various shops, cafes, restaurants and bars.

According to Matt Phillips from the Domain, the 154m2 unit features high ceilings, a spacious balcony and an open-style living and dining space. One of the bedrooms includes a built-in-wardrobe while the other master bedroom features both a built-in-wardrobe and ensuite. The property includes ducted air-conditioning, a study area and comes with two car spots.

If you think it is a good deal, make sure you crunch the numbers first. On a first look, they look good. In postcode 4012 the vacancy rate has decreased to 0.8% and asking rents having gained 6.9% over the last 12 months to 4 July. The gross rental yield has increased by 0.2% over the last year to 5.4%. Overall, this paints a positive picture for future investors with such strong rental growth.

Asking prices for a 2-bedroom units over the last 12 months to 6 July have increased by 5.4%. A similar sized apartment on the same street, sold for $316,000 in February 2021. Given these figures, it would pay to do more research on the pricing of this apartment and investigate if there is room for a greater discount. You can view sales records for postcode 4012 here.

You can monitor this market and others with SQM Research’s free property data. Also consider the SQM Property Explorer product for more in-depth data and property price estimator.

Total Property Listings Fall in June

Asking House Prices Surge, With Strong Gains in Capitals

Figures released today by SQM Research reveal national residential property listings dropped in June 2021 by 4.0% to 236,218 from 245,953 in May 2021, with old stock being cleared nationwide as the number of buyers outstrips sellers, pushing up property prices around the nation.

The largest monthly falls in property listing in June were in Canberra, Hobart, Melbourne and Adelaide. Over the year, property listings are trending downwards nationwide, which is putting upward pressure on property prices as demand outstrips supply. Compared to 12 months ago, national listings fell 21.6%, with the biggest falls in Hobart, Adelaide, Canberra and Brisbane.

Nationally, new listings (Less than 30 days) fell 9.1% over June 2021 to 72,415 properties on the market, though they rose 26.2% over the year. New listings dropped the most in Melbourne followed by Canberra, down by 21.7% and 10.1%, respectively. Over the year, new listings rose the most in Darwin, by 179.4% as the seek to take advantage of strong market conditions.

In a sign that older stock is clearing, property listings over 180 days dropped by 6.1% in June 2021 and they are down 46.9% over the year, with falls posted recorded in all capital cities, led by Canberra.

Louis Christopher, Managing Director of SQM Research said: “Notwithstanding the quieter winter season, property listings fell again in June following a drop in May. We have also seen a another large fall in old listings this month, indicating old stock is being sold and new property listings aren’t offsetting this fall. This highlights there are more buyers than sellers in national property markets, and it also suggests the market remains strong despite the new outbreak in Covid19 cases and the end of Job Keeper and Home Builder earlier this year.

“As demand outstrips supply, we are seeing strong rises in asking property prices, in capital cities and the regions, which is likely to continue through 2021. Households are awash with cash, the jobless rate is falling So, we’d expect house price growth to remain strong with interest rates so low.
“However we note the current pace of the housing market is not sustainable over the long term. And we also note the current world-wide housing boom, strongly suggesting this strong upturn in Australia has been driven largely by ultra-low interest rates and easier lending standards. In time, there will be a change in these monetary settings which will trigger a downturn.”

Asking Prices
Over the month to 29 June 2021, national asking prices rose by 0.7% for houses and 1.3% for units. Over the year, national asking house prices jumped 14.1%. Asking unit prices rose 7.0%, though an oversupply of units in Melbourne saw a slight fall in asking unit prices there. Capital city asking house prices rose 2.8% over the month to 29 June, while unit prices rose 2.2%. Over the year, unit asking prices in capital cities have risen 0.4%, while capital city house prices rose 9.0% over the year, with Sydney and Hobart leading the house price gains.

Auction Results

for week ending 4 July 2021

Full individual auction results can be found on our website:

Auction Listings*

for week ending 11 July 2021

CITY Saturday   Rest of Week STATE Saturday   Rest of Week   Link
Sydney 806   143 All NSW 93   235   Auctions in NSW
Melbourne 1073   63 All VIC 1176   90   Auctions in VIC
Brisbane 123   50 All QLD 200   141   Auctions in QLD
Perth 9   9 All WA 9   13   Auctions in WA
Adelaide 76   47 All SA 76   49   Auctions in SA
Canberra 67   14 All ACT 67   14   Auctions in ACT
Darwin 0   5 All NT 0   5   Auctions in NT
Hobart 3   0 All TAS 4   1   Auctions in TAS

* The above counts of auctions represent most recent known auction dates for the coming week.

Real Estate Realities

International Property Buyers Keen to Make Australia Home  

Despite Australian borders being shut, international residents are still making Australia home. This interest comes regardless of other countries reopening their economies and having higher vaccination rates, while Australians still suffer from lockdowns due to covid-19 outbreaks.

According to the latest Foreign Investment Review Board Report, 7056 residential real estate applications were approved in the financial year of 2019-2020, Domain reports. Even though the number of applications approved dropped by 455 from the year before, the investment value increased by $2.3 billion to a total of $17.1 billion. Fast forward a year and there is still strong foreign interest in Australia’s property market.

Sydney Sotheby’s International Realty director Michael Pallier, says that every day he answers property queries from overseas buyers as “a lot of my clients, their family members are already here or they have children studying here, and they dream of having a residence here and coming to Australia”.
Domain senior research analyst Nicola Powell said Australia’s latest increase in foreign property investment is due to our booming house prices and Australia’s relative safety from the pandemic. International buyers tend to be interested in prestige property. According to Dr Powell “the types of houses being purchased by foreign buyers are bigger and more elite.”

The Foreign Investment Review Board data show that the number of vacant properties for longer than six months over a 12-month period has doubled from 118 in 2018-2019 to 231. The 2019-2020 report reveals the vacancy fees owed on these vacant properties total $3.7 million. Belle Property Balwyn director and auctioneer Robert Ding said “a lot of these homes that are vacant were purchased before COVID-19 hit and before we closed the borders. They’re now caught overseas and can’t get back so there’s little they can do.”

More ...

Black Dragon's Words for the Week

"Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"

~ Dr. Seuss 

SQM Research Housing Indexes

SQM Research Weekly Asking Prices Index

Week ending
6 Jul 2021
Asking Price Chg on
prev wk
Rolling month
% chg
12 mth
% chg
Sydney All Houses 1,587.5 26.8  3.2%  15.5% 
All Units 685.2 -2.1  1.9%  -0.8% 
Melbourne All Houses 1,063.5 -1.4  0.2%  3.8% 
All Units 563.2 -0.5  -0.4%  -1.2% 
Brisbane All Houses 688.4 -2.0  1.2%  6.9% 
All Units 393.3 -1.7  0.5%  3.6% 
Perth All Houses 680.3 -10.7  0.1%  1.2% 
All Units 395.8 5.5  1.5%  4.1% 
Adelaide All Houses 570.5 -1.7  2.9%  8.5% 
All Units 332.3 8.5  2.8%  7.4% 
Canberra All Houses 809.6 3.4  3.7%  -2.3% 
All Units 472.8 -1.2  -1.1%  6.9% 
Darwin All Houses 609.3 8.5  -0.5%  5.5% 
All Units 413.1 39.0  8.3%  20.3% 
Hobart All Houses 663.1 12.6  2.0%  15.2% 
All Units 421.2 7.0  2.5%  13.0% 
National All Houses 691.7 4.2  1.1%  14.6% 
All Units 423.1 1.9  1.1%  6.9% 
Cap City Average All Houses 1,084.7 6.3  1.3%  10.1% 
All Units 572.4 -0.8  0.6%  0.3% 

Next update: 13 Jul 2021

SQM Research Weekly Rents Index

Week ending
4 Jul 2021                                
Rent Chg on
      prev wk
  Rolling month
% chg
    12 mth
% chg
Sydney All Houses 678.5 -4.5  1.1%  5.9% 
All Units 459.9 0.1  1.0%  -2.6% 
Melbourne All Houses 513.9 -2.9  0.7%  -2.7% 
All Units 361.1 -1.1  0.0%  -10.4% 
Brisbane All Houses 514.3 3.7  3.1%  10.0% 
All Units 389.6 1.4  0.6%  2.3% 
Perth All Houses 523.2 0.8  1.0%  15.0% 
All Units 393.8 -5.8  -0.6%  11.7% 
Adelaide All Houses 446.6 -0.6  1.5%  8.7% 
All Units 331.5 3.5  1.6%  4.8% 
Canberra All Houses 713.5 2.5  0.2%  15.2% 
All Units 500.8 0.2  1.3%  6.1% 
Darwin All Houses 593.3 -17.3  -3.6%  22.5% 
All Units 451.1 3.9  3.8%  26.4% 
Hobart All Houses 469.5 7.5  -2.8%  7.6% 
All Units 418.4 -0.4  -0.2%  12.9% 
National All Houses 517.0 6.0  0.8%  15.7% 
All Units 398.0 -1.0  0.8%  8.4% 
Cap City Average All Houses 565.0 -6.0  0.0% 5.2% 
All Units 414.0 -2.0  0.5%  -2.1% 

Next update: 12 Jul 2021

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