Copy
SQM Research Weekly Newsletter
View this email in your browser
Twitter
Facebook
LinkedIn
Website
Distressed Properties Report
Research Reports
Postcode Snapshot
Property Explorer
Boom and Bust 2021 Report
Funds Research

Distressed Property of the Week

1702/243 Franklin Street, Melbourne 3000

The vendor is accepting offers from $200,000 to $220,000 as of the 2nd July on this 1-bedroom apartment, located in Melbourne. The property last sold in September 2019 for $240,000 and the vendor is hoping the reduced price will attract either an owner-occupier or landlord for a quick sale.
 
According to Ofer Rotkopf from Pagan Real Estate, the fully-furnished, north-facing 1-bedroom apartment is located in Melbourne's CBD and conveniently located directly opposite the Queen Victoria Market. The vendor also has easy access to public transport, all major universities hospitals, Flagstaff Gardens, cafes and restaurants.

Now, let's look at SQM’s numbers to gauge the property’s financial appeal. If you are an investor, caution may be warranted. In postcode 3000, the vacancy rate sits at 7.9%, well above Melbourne's overall vacancy rate of 3.5%. The gross rental yield on units sits at 4.2% and has slowly been declining, reflecting the plunge of 21.9% in asking rents over the last year. Asking sales prices have fallen 5.3% over the year to July 20, so those numbers don't look so good. You can view recent sales in 3000 here. Given these figures it would pay to do more research, as you could possibly drive a harder bargain with the seller given the fall in prices.

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.

Auction Results

for week ending 18 July 2021

Full individual auction results can be found on our website:

Auction Listings*

for week ending 25 July 2021

CITY Saturday   Rest of Week STATE Saturday   Rest of Week   Link
Sydney 540   151 All NSW 679   237   Auctions in NSW
Melbourne 1136   83 All VIC 1237   92   Auctions in VIC
Brisbane 120   50 All QLD 214   117   Auctions in QLD
Perth 9   8 All WA 9   11   Auctions in WA
Adelaide 97   54 All SA 98   59   Auctions in SA
Canberra 71   24 All ACT 71   24   Auctions in ACT
Darwin 0   1 All NT 0   1   Auctions in NT
Hobart 0   0 All TAS 1   1   Auctions in TAS

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

Real Estate Realities

Sydney First-Home-Buyers Sacrifice Car Spaces

First home buyers are saving between $70,000 and $100,000, due to "a surge in demand for apartments without car spaces." This saving has allowed first-home buyers to purchase a bigger home.

According to Frasers Property general manager development NSW Nigel Edgar, "apartments without car spaces are particularly popular in developments that are well located near transport and, as apartments have become more expensive, first home buyers are getting keener on them.” First home owners are after a home that fits below the $800,000 first-home-owner-buyer grant threshold. Young people are coming to the conclusion that the money spent on a car is better being used towards a mortgage.

New home buyers have had a shift in their mindset, as they are saving money without having a parking space; it means they can afford a brand new apartment with amenities and nearby public transport. This new trend is growing the closer to the city you get, as car spaces are becoming more expensive. 

According to David Milton, the managing director of residential projects Australia of CBRE, "with the improvements in public transport and the advent of car-sharing companies like GoGet and taxi companies like Uber, car spaces are losing their gloss. What’s happened with Uber has changed the world.” The accessibility to various transport options has seen a swing away from the need for car spaces for first-home buyers.

More ...

Black Dragon's Words for the Week

"Build your own dreams or someone else will hire you to build theirs"

~ Farrah Gray

SQM Research Housing Indexes

SQM Research Weekly Asking Prices Index

 
Week ending
20 Jul 2021
Asking Price    Chg on
prev wk
  Rolling month
% chg
12 mth
% chg
Sydney All Houses 1,622.2 13.5  5.2%  16.8% 
All Units 683.8 -0.4  0.1%  -0.2% 
Melbourne All Houses 1,081.6 3.8  1.5%  5.8% 
All Units 564.6 -0.1  -0.3%  -1.0% 
Brisbane All Houses 692.9 -1.9  0.9%  7.5% 
All Units 393.5 -0.6  -0.3%  3.9% 
Perth All Houses 698.9 0.5  1.8%  4.2% 
All Units 389.3 1.1  -0.4%  2.8% 
Adelaide All Houses 568.3 -1.7  -0.1%  7.9% 
All Units 327.2 0.8  0.9%  5.6% 
Canberra All Houses 822.9 1.9  2.7%  0.9% 
All Units 481.3 2.5  0.9%  8.2% 
Darwin All Houses 604.2 3.4  -0.4%  5.2% 
All Units 374.7 0.1  0.3%  8.7% 
Hobart All Houses 650.8 -0.1  -0.3%  13.5% 
All Units 413.9 3.3  -1.6%  10.8% 
National All Houses 686.7 1.0  1.0%  13.9% 
All Units 423.1 1.8  0.1%  7.3% 
Cap City Average All Houses 1,103.0 2.1  3.3%  11.2% 
All Units 571.0 0.5  -0.5%  0.6% 

Next update: 27 Jul 2021

SQM Research Weekly Rents Index

 
Week ending
20 Jul 2021                                    
  Rent    Chg on
         prev wk
  Rolling month
% chg
12 mth
% chg
Sydney All Houses 700.4 9.6  3.1%  9.9% 
All Units 464.8 2.2  1.4%  -0.9% 
Melbourne All Houses 518.0 0.0  0.3%  -1.2% 
All Units 367.3 0.7  1.6%  -8.2% 
Brisbane All Houses 517.0 0.0  2.1%  10.3% 
All Units 391.8 1.2  1.1%  3.1% 
Perth All Houses 525.2 1.8  0.7%  12.9% 
All Units 406.0 3.0  1.9%  16.0% 
Adelaide All Houses 449.3 -2.3  0.8%  9.1% 
All Units 336.3 0.7  3.1%  5.9% 
Canberra All Houses 730.2 11.8  2.7%  18.0% 
All Units 502.8 3.2  0.9%  6.7% 
Darwin All Houses 624.9 2.1  1.8%  27.7% 
All Units 462.2 3.8  7.1%  24.3% 
Hobart All Houses 476.5 4.5  1.8%  9.5% 
All Units 399.7 -2.7  -5.4%  5.4% 
National All Houses 524.0 5.0  2.9%  15.9% 
All Units 398.0 -1.0  0.0% 8.4% 
Cap City Average All Houses 580.0 4.0  1.6%  7.8% 
All Units 421.0 1.0  1.4%  0.0%

Next update: 28 Jul 2021

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!

Twitter
Facebook
LinkedIn
Website
Copyright © 2021 SQM Research, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.