SQM Research Residential Newsletter -
Tuesday 9 March 2021

Words for the Week

“Keep your face to the sunshine and you cannot see the shadow.”

Helen Keller

Real Estate Realities

Schitt's Creek home on market

With the world awash with money and much of it pouring into property, some owners are cashing in. In Toronto, the owner of a look-alike 17th century French palace featured in the popular TV series Schitt’s Creek is being sold with an asking price of C$19.9 million ($20.5m). Bloomberg reports.
The 24,000-square-foot residence has more than 25 film and television credits to its name where it was glimpsed as the Rose family’s abode before they lost their fortune. Now the real owner, Van Lapoyan, President of Toronto-based construction firm VHL Developments, has put his mansion up for sale and is planning to retire somewhere warmer than the Canadian city. Lapoyan says the 12-bedroom, 16-bathroom house is too big for just him and his wife. says Lapoyan: “Modern houses today are very in vogue, and people like it, but classical houses never go out of fashion. Whether it’s now or in 10 years or in 50 years, you’re still going to love that house,” he says.

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AUCTION RESULTS for week ending 28 February 2021

Full individual auction results can be found on our website:

AUCTION LISTINGS* for week ending 14 March 2021

CITY	Saturday	Rest of Week	STATE	Saturday	Rest of Week	Link
Sydney	741	133	All NSW	848	175	Auctions in NSW
Melbourne	1036	96	All VIC	1104	113	Auctions in VIC
Brisbane	72	45	All QLD	139	110	Auctions in QLD
Perth	9	8	All WA	9	12	Auctions in WA
Adelaide	72	29	All SA	72	30	Auctions in SA
Canberra	73	22	All ACT	73	22	Auctions in ACT
Darwin	2	2	All NT	2	2	Auctions in NT
Hobart	0	0	All TAS	1	0	Auctions in TAS

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

DISTRESSED PROPERTY OF THE WEEK

1702/500 ELIZABETH STREET, MELBOURNE, VIC 3000

click to enlarge

Boasting panoramic views of the Melbourne CBD, the owners of this north-facing two-bedroom apartment are asking $440,000, down from $495,000 in July last year. The ad says: "MUST SELL- CHEAPEST 2 BEDDER IN THE BUILDING." So it sounds like it could be a bargain. But further investigation is required if you are a would-be investor or owner occupier.

This modern unit features a contemporary kitchen features quality stainless steel appliances with gas cooktop and integrated dishwasher, and the main bedroom boasts built-in robes and large windows with an impressive view over the Melbourne CBD. Other features include a security intercom, split system air conditioning and heating. And lots of sunlight, which ties in with the Black Dragon's Words for the Week.

But is it a good buy or not? With asking property prices for units having trended downwards in the Melbourne CBD in recent years, caution should be warranted. Asking prices for 2-bedroom apartments in postcode 3000 have fallen by 1.8% over the last twelve months, and haven't risen at all over three years, reflecting ample supply and rising property listings. According to Domain, median asking prices for two-bedroom units in the CBD sit close to $600,000. This property sold for $497,000 in 2012, so and its current price is well below the median and prior sale. So it could be worth a look.

But be aware that the rental outlook isn't so bright. With COVID-19 having slammed rents in most capital cities, Melbourne has been especially hard hit, with the surplus of rental property most acute there and the lockdown hitting hard. Asking rents in Melbourne's CBD had dropped 34.4% over the last twelve months and by 11.7% over three years. Vacancy rates jumped to 7.6% in January 2021 from below 3% in 2019, though that is down from over 10% last year. Investors can achieve gross rental yields of 4.0% for 2-bedroom units in the Melbourne CBD area.

Given the price drop, this apartment may present some opportunities for investors and maybe worth investigating. You can monitor 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

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SQM RESEARCH HOUSING INDEXES

SQM Research Weekly Asking Prices Index
Week ending 9 Mar 2021		Asking Price	Chg on prev wk	Rolling month % chg	12 mth % chg
Sydney	All Houses	1,406.4	10.5	2.5%	2.3%
Sydney	All Units	676.9	1.1	0.7%	-3.9%
Melbourne	All Houses	1,025.0	4.5	-0.5%	-0.1%
Melbourne	All Units	573.9	2.2	0.1%	3.0%
Brisbane	All Houses	665.9	2.5	0.8%	1.6%
Brisbane	All Units	384.2	0.3	0.8%	3.1%
Perth	All Houses	667.5	-0.6	-0.5%	2.4%
Perth	All Units	390.5	0.4	0.8%	4.1%
Adelaide	All Houses	537.0	-1.2	-0.7%	2.8%
Adelaide	All Units	317.9	-0.3	-0.1%	4.6%
Canberra	All Houses	827.8	1.6	1.2%	1.4%
Canberra	All Units	465.1	-0.7	-1.9%	4.7%
Darwin	All Houses	582.2	-3.2	-1.2%	1.4%
Darwin	All Units	372.2	0.1	0.5%	15.8%
Hobart	All Houses	636.9	-1.4	3.5%	11.8%
Hobart	All Units	366.6	-1.9	-2.4%	-1.3%
National	All Houses	648.9	5.7	1.3%	9.1%
National	All Units	413.3	-0.7	1.0%	7.0%
Cap City Average	All Houses	1,006.4	12.6	1.9%	1.5%
Cap City Average	All Units	569.6	1.7	0.5%	-0.5%

Next update: 16 Mar 2021

SQM Research Weekly Rents Index
Week ending 4 Mar 2021		Rent	Chg on prev wk	Rolling month % chg	12 mth % chg
Sydney	All Houses	654.9	-1.9	-0.3%	-6.8%
Sydney	All Units	455.7	-0.7	-0.2%	-9.0%
Melbourne	All Houses	514.3	-0.3	0.0%	-7.1%
Melbourne	All Units	371.0	-2.0	-1.6%	-12.3%
Brisbane	All Houses	478.7	0.3	0.1%	1.6%
Brisbane	All Units	382.8	0.2	0.6%	1.2%
Perth	All Houses	502.9	0.1	0.8%	12.3%
Perth	All Units	380.3	0.7	1.3%	11.4%
Adelaide	All Houses	425.8	0.2	0.2%	5.0%
Adelaide	All Units	321.1	2.9	1.4%	4.3%
Canberra	All Houses	659.7	-7.7	-1.6%	4.4%
Canberra	All Units	491.6	1.4	2.1%	5.6%
Darwin	All Houses	585.9	1.1	0.7%	27.5%
Darwin	All Units	383.0	-2.0	-3.3%	4.8%
Hobart	All Houses	473.9	1.1	-0.2%	5.2%
Hobart	All Units	399.2	3.8	0.4%	-1.6%
National	All Houses	498.0	3.0	1.0%	11.2%
National	All Units	387.0	0.0	-0.5%	4.6%
Cap City Average	All Houses	549.0	-1.0	-0.2%	-2.5%
Cap City Average	All Units	411.0	-1.0	-0.7%	-6.6%

Next update: 12 Mar 2021