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March Total Housing Listings rise by 6.9%
NSW distressed selling activity records a surprise decrease of 5.8%
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According to today's data from SQM Research, February recorded an 6.9% increase in nationwide residential property listings. The total listings now stand at 256,000 properties, an increase from the 239,459 recorded in February 2024. Notably, all major cities experienced an increase in their listings.
Over the course of a 12-month period, there are 2.6% more listings than recorded back in March 2023. Sydney and Melbourne now record 9.1% and 8.7% more listings than this time, last year. Brisbane, Perth and Adelaide continue to run against the trend, reporting a significant decrease of 11.1%, 27.2% and 13.7%, respectively over the 12 month period.
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Nationally, new listings (less than 30 days) increased a further 6.2% in March, to 79,296 properties. All listed cities besides Perth and Darwin continued to experience increases in new listings to some extent, which has been driven by the normal seasonal increases recorded in The March and February periods of each year. However, it should be noted there have been large increases in new listings recorded in Sydney and Melbourne compared to the same period in 2023. For example, Sydney is up by 20.4% compared to March 2023.
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In March, older listings (properties listed for over 180 days) recorded a 6.0% increase over the past 12 months. Notably, most cities recorded an uptick in older stock during the month but are well down on numbers recorded over March 2023. At this point in time SQM has no significant concerns on the total number of older listings on the market.
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According to SQM Research's latest report in March 2024, the count of residential properties sold under distressed conditions in Australia has increased marginally to 5,350. This marks a 0.7% increase from the 5,312 distressed listings noted in February 2024
This month, there has been a significant shift in the data for distressed property listings across different states, with some experiencing large decreases and others increases.
In NSW, SA, NT, and TAS, there has been a decrease in distressed listings, with reductions of 5.8%, 6.6%, 8.3%, and 5.9% respectively. However, VIC has continued to show a strong increase of 9.6%. QLD has reversed its trend from negative to positive, now showing a 2.5% increase, while WA has also shifted from negative to positive, now standing at 2.3%. ACT has remained steady for the month of February.
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Louis Christopher, Managing Director of SQM Research said:
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“The Australian housing market has recorded a further increase in activity as measured by the 6.2% increase in new listings over the month of March. This increase in activity has also showed up in the weekly auction listings which have been at their highest levels since the second half of 2021.
While listings are up across the nation, they are not at levels which would be regarded as an oversupply situation. Distressed activity was somewhat muted over march with a large decline in NSW distressed listings. However, Victoria recorded another surge and so we are watching that state closely.”
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The national combined dwelling asking price rose by 0.3% to record a median dwelling asking price $ 833,120. Asking prices for capital cities increased by 0.6%, marking an 8.9% rise compared to March 2023. Canberra combined asking price saw a notable decrease of 2.0% from February to March 2024 but are still up by 10.1% for the 12 months to March 2024.
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Distressed Property of the Week
5/192 Cecil Street, South Melbourne, VIC 3205
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This week's property report highlights a 1-bedroom apartment situated on Cecil Street, North Melbourne, VIC 3205, offering city views and within walking distance of the South Melbourne market, local street shops, cafes, and convenient public transport.
As described the apartment boasts a secure entrance and features a beautifully designed kitchen, a cozy double bed with ample robes for storage, a well-appointed bathroom with a shower over bath, convenient laundry facilities, and a delightful balcony perfect for enjoying the views and fresh air.
Originally listed at $445,000 on February 9th, 2024, this apartment was previously sold in December 2017 for $200,000. Currently, it is listed on the market at a reduced price of $399,000.
In the 3205-postcode area, the combined weekly asking price for properties averages close to $840,110. For 2-bedroom units, the weekly asking price sits at $695,434, while the weekly asking prices for all units averages $599,148.
Over the past 12 months, the weekly asking price index has shown a 2.3% increase. At one point, there was a decrease of 6.8% in the quarter-point index; however, the trend has since reversed, showing a return to an upward trajectory.
Sold prices for 1-bedroom apartments in the last 6 months have ranged from $255,000 to $924,000, indicating a big variance in pricing. Estimate range for this property shows high confidence and states at approximately $371,000.
The current occupancy of this property is under a month-to-month tenancy agreement at a rental rate of $390 per week. In postcode 3205, weekly rents for all units have seen a significant increase of 8.6% in the last month, continuing a trend of growth that has persisted for the past decade. Additionally, over the last 12 months, the growth index has shown a solid increase of 2.9%.
Comparing the 12-month period March 2023 to March 2024 for postcode 3205, both asking rents and property prices have shown an upward trend. The vacancy rate currently sits just at 1.3%.
Gross rental yield remains steady increase from 5.3% to6.1% from January 2024 to the current week. For the last year the change was very minimal from 6.08% to 6.1%.
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.
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Auction Results
for the week ending 03 March 2024
Full individual auction results can be found on our website:
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Auction Listings*
for the week ending 10 March 2024
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* The above counts of auctions represent most recent known auction dates for the coming week.
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Real Estate Realities
The suburbs where homes are earning more than their owners!
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A recent analysis utilising PropTrack's Automation Valuation Model (AVM) has identified suburbs nationwide where the median property prices have surpassed the average Australian wage. Based on data from the Australian Bureau of Statistics (ABS) released in February, the gross weekly ordinary time earnings for full-time adults were $1,888.80 in November 2023, equating to an average annual income of $98,218. Since the family home is not subject to capital gains tax, an increase in property value extends further in real terms than the average annual wage. Nearly 900 suburbs across the country experienced median property price growth exceeding $98,218 in the year leading up to February.
The suburbs that experienced the most significant increases in property value were the high-end areas in major cities, a trend not surprising to PropTrack's senior economist, Paul Ryan. He explained, that in exclusive suburbs, the same percentage increase will result in a larger dollar value increase. Additionally, some of these premium suburbs had experienced significant price reductions in 2022, so this can be seen as a rebound in prices.
However, Mr. Ryan also noted that there was substantial price growth in more affordable areas. He stated, that in the past year or so, we've observed consistent growth across cities. While demand and growth remain strong in premium suburbs, this trend is also apparent in more affordable areas.
Among the top 100 Australian suburbs where properties saw the highest annual gains in dollar terms, an impressive 87 were located in Sydney. According to PropTrack, property prices in Sydney rose by 7.77% over the year leading up to February. The eastern suburbs of Bellevue Hill and Vaucluse saw the highest year-on-year growth, with house values increasing by more than a million dollars on average.
Click here to discover more information.
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Black Dragon's Words for the Week
The road to success is dotted with many tempting parking spaces.
~~ Will Rogers, performer
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SQM Research Housing Indexes
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SQM Ratings Newsletter ☆☆☆☆☆
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