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SQM Research Residential Newsletter - Wednesday 6 November 2019
Property Valuations
Research Reports
Distressed Properties Report
Funds Research
Boom and Bust 2020 Report

Black Dragon's
Words for the Week

"The profession of book writing makes horse racing seem like a solid, stable business."

John Steinbeck
Real Estate Realities 

SA student thinks outside the home ownership box

It’s not common for a high school student to build a house for a class assignment - but what Mitchell Phillips is building is no ordinary house.

In a Melrose Park warehouse the McLaren Vale 18-year-old has spent this year fastidiously constructing a tiny house for his Year 12 research project at Willunga Waldorf School.

His goal is to prove that there is a cost effective alternative to owning a home - and that those without any experience can build their own home.

He has devoted weekends and school holidays to translating a design, initially sketched out on pavement of his family’s home, into a reality.

The 18sqm house - about a 10th the size of the average SA home - is made of timber and corrugated iron fixed onto a steel frame, supported by a trailer.

Mitchell - who had little prior building experience aside from woodwork classes at school - has learnt to install windows, roofing and cladding, lay flooring, while project managing the build on a $30,000 budget.


Property Listings Rise for Mid-Spring

by Louis Christopher

Figures released today by SQM Research reveal national residential property listings increased in October by 2.0%, up from 312,754 in September 2019 to 318,874.  Compared to 12 months ago, listings were down by 4.8%.

All states experienced an increase in property sales listings over the month except for Darwin which experienced a decrease of 2.4%.

Sydney experienced the highest increase of 4.2%. Overall, listings are down in Sydney by 19% when compared to October 2018.  Canberra’s October sales listings was not far behind with a 4.1% increase.

Melbourne, Brisbane and Perth’s October increases of 3.7%, 1.9% and 2.7% respectively, also showed a good year-on-year turnaround for sales listings.  Hobart had a marginal increase of 0.8% over the month.

Capital city listings overall rose for October, which is a fairly normal phenomena during the spring selling season. Sydney and Melbourne have larger counts of new listings compared to this time last year, which should please real estate agents.

Old stock still appears to be declining but remains at somewhat elevated levels. This may have made some vendors adjust their expectations over the month as asking prices in four of the eight capital cities actually fell.

Asking Prices

Capital City average asking prices decreased marginally by 0.7% for houses but increased 0.3% for units, over the month to 29 October 2019.  House asking prices are now $935,400 and units $570,100.  

Compared to a year ago, the capital city asking prices posted declines of 0.8% for both houses and units.
Over the month, Melbourne, Canberra and Darwin recorded decreases in both houses and units, with Darwin showing a large decrease of 8.6% in unit asking prices.  Year-on-year Darwin’s unit prices also decreased 13.5%.

Brisbane, Adelaide and Hobart recorded increases in both houses and units with strongest growth occurring in Hobart’s unit market with a 4.8% increase.

Sydney’s median asking price for houses had decreased by 1.6% but there was a 0.7% increase for units.  Median price for houses is now $1,283.9m in Sydney. Melbourne’s current median house price of $955.6k for houses, stills sits below its $1.008m high in April 2018.

Brisbane’s median house price increased by 0.8% over the month and continues to peak from 2009, now sitting at $631.8k.


1 Granites Drive, Rosebery NT 0832

click to enlarge

A 3-bedroom, 1 bathroom house in the Darwin suburb of Rosebery is under a Mortgagee in Possession sale for a bargain price of $300,000.  Initially selling for over $399,000 in October 2018, the $300k price tag is below its last sold price of $379k in November 2008 and well below the $445k current Asking Price in postcode 0832 for 3-bedders.
Sitting on an 801 sqm block, the home is ideal for a family with kids and features an in-ground pool, large, undercover rear deck for entertaining, good sized bedrooms with BIRs and a walk-in robe in the master bedroom.
The home is conveniently located, close to Bakewell Shopping Centre, Rosebery Primary school, Palmerston College, parks and other amenities as well as the Palmerston CBD.
This family suburb in Darwin has seen house prices decline by 4.9% over 12 months but over the last month, the decline has been minor at a 0.1% decrease.  Units however, tell a different story – over the last 12 months there has been decreases of 16.3% for all units in this suburb and a 26.8% decrease over 3 years.  Over the last month, we see a 9.1% price decrease for units. 
vacancy rate in the suburb is 3.3%, down from 4.7% in December 2018. Asking rents are $403 per week for 3-bedroom houses and is marginally down 0.8% over the month, after a 12 month decline of 6.2%. The gross rental yield for houses in postcode 0832 is 4.7% and 6.1% for units.
October’s property sales listings for Darwin shows a decline of 0.2%.  In postcode 0832 we see a total of 258
properties listed for sale, with 121 of these are over 180 days on sale.  208 are houses and 50 are units. 

 Whilst Sydney and Melbourne prices are rebounding, the Darwin property market is yet to recover however with mining exports expected to pick up this could result in increased demand for properties. Now may be a good time to pick-up a bargain in Darwin.

SQM website 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 Property Valuation product for more in-depth data and property price estimator.

Louis Christopher's 2020 Housing Boom & Bust Report is due for release from the 14 November and is available now for pre-order at an opening price of $59.95!

The Housing Boom and Bust report is accurate, impartial and detailed. Best of all it is priced so that EVERYONE from real estate agents, financial planners to regular mums and dads can access it at just $59.95.
Key features of the 2020 Boom & Bust report 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
  • All the possible scenarios that could play out next year 
  • 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 are a real estate professional or a serious residential property investor, you will not want to miss this report!

Click here to purchase now!



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 Weekly Asking Prices Index
Week ending: 5 Nov 2019    Asking Price  Change on
prev wk
 Rolling month
% chg
 12 mth
% chg
Sydney All Houses 1,285.7 1.9  -1.4%  -1.4% 
All Units 702.1 -0.6  0.4%  -0.1% 
Melbourne All Houses 964.8 9.1  1.4%  0.6% 
All Units 551.1 3.8  0.9%  -0.4% 
Brisbane All Houses 631.8 -0.0  0.5%  2.2% 
All Units 371.9 -0.3  0.2%  -2.6% 
Perth All Houses 654.8 0.2  0.9%  -1.9% 
All Units 377.3 -0.1  -0.2%  -2.4% 
Adelaide All Houses 518.6 0.8  0.0%  1.1% 
All Units 302.0 0.7  1.4%  -0.7% 
Canberra All Houses 811.1 8.5  0.7%  -2.2% 
All Units 432.5 -1.0  -1.7%  1.1% 
Darwin All Houses 583.4 -2.6  -1.3%  0.6% 
All Units 317.0 -2.5  -9.2%  -13.0% 
Hobart All Houses 533.0 4.4  2.3%  8.5% 
All Units 339.5 -7.3  1.7%  8.4% 
National All Houses 580.8 3.4  1.3%  0.7% 
All Units 384.2 2.7  1.2%  2.3% 
Cap City Average All Houses 939.8 4.4  0.6%  0.1% 
All Units 570.0 -0.2  0.5%  0.1% 

Next update: 12 Nov 2019

SQM Research Weekly Rents Index
Week ending: 4 Nov 2019     Rent       Chg on
 prev wk
Rolling    Month
 % chg
   12 month
% chg
Sydney All Houses 679.8 4.2  1.1%  -5.1% 
All Units 497.5 0.5  0.2%  -2.8% 
Melbourne All Houses 529.6 0.4  0.9%  1.0% 
All Units 407.9 -0.9  -1.0%  0.5% 
Brisbane All Houses 461.7 0.3  -0.5%  2.0% 
All Units 376.8 -0.8  -0.7%  1.6% 
Perth All Houses 437.1 -0.1  -1.3%  2.7% 
All Units 334.1 -2.1  -0.7%  4.3% 
Adelaide All Houses 398.3 1.7  0.3%  3.4% 
All Units 312.1 0.9  0.9%  4.9% 
Canberra All Houses 629.5 10.5  2.8%  -1.1% 
All Units 469.0 6.0  1.5%  5.1% 
Darwin All Houses 502.9 -0.9  -3.9%  2.2% 
All Units 376.1 0.9  -1.6%  -3.6% 
Hobart All Houses 434.9 2.1  -0.6%  2.9% 
All Units 401.5 0.5  0.5%  8.8% 
National All Houses 451.0 7.0  1.8%  2.0% 
All Units 369.0 2.0  1.1%  2.2% 
Cap City Average All Houses 548.0 3.0  1.1%  -0.9% 
All Units 435.0 0.0 0.0% -0.7% 

Next update: 12 Nov 2019

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