SQM Research Newsletter
24 May 11
SQM Research Newsletter
Top Ten Most Discounted
This week SQM Research is throwing something different into the mix and has compiled a list of discounted properties from around Australia - a highly discounted property from each state, with the addition of two of our personal picks - properties which may not possess the highest discounts but appear to be of value to a certain degree. These two properties are those marked with an *. We would like to formally add that we have ABSOLUTELY NO affiliation with the agents nor the vendors of these properties, nor do we ever wish to. Outside of trying to find potenially good value, these properties are picked completely at random.
|
Rank
|
Address
|
Suburb
|
Postcode
|
First seen
|
Initial price
|
Now asking
|
Reduction
|
Days on Mkt
|
Link
|
|
1
|
35 Flinders Drive
|
Stuart Park
|
820
|
13/11/2010
|
$1,150,000
|
$925,000
|
20%
|
182
|
|
|
2
|
3 Boolari Road
|
Gosford West
|
2250
|
08/07/2009
|
$990,000
|
$650,000
|
34%
|
675
|
|
|
3
|
1350 Wynnum Road
|
Tingalpa
|
4173
|
06/11/2010
|
$700,000
|
$400,000
|
43%
|
189
|
|
|
4
|
2 Romney Rd
|
Happy Valley
|
5159
|
07/06/2009
|
$575,000
|
^$410,000
|
29%
|
708
|
|
|
5
|
25 Vicary Street
|
Triabunna
|
7190
|
02/08/2010
|
$299,000
|
$189,000
|
37%
|
287
|
|
|
6
|
195, 38 Kavanagh Street
|
Southbank
|
3006
|
11/09/2010
|
$1,565,000
|
$1,180,000
|
25%
|
245
|
|
|
7
|
1/21 Ocean Drive
|
Coogee
|
6166
|
23/05/2010
|
$2,700,000
|
$1,600,000
|
41%
|
356
|
|
|
8
|
6 Ahern Place
|
Monash
|
2904
|
20/02/2011
|
$565,000
|
$470,000
|
17%
|
84
|
|
|
9
|
*6 Melaleuca Place
|
Warriewood
|
2102
|
27/11/2010
|
$980,000
|
$850,000
|
13%
|
168
|
|
|
10
|
*11a Howson Street
|
Hilton
|
6163
|
06/11/2010
|
$549,000
|
$430,000
|
22%
|
189
|
This week's list is somewhat a taste of one of the things to come from SQM Research shortly. Currently we are putting together a
"Top One Hundred Biggest Bargains" which will be a collaborated list containing the top ten most discounted properties in each capital city as well as a random pick of twenty discounted properties which SQM Research believes to be of a particularly good value. For each property on the list, SQM Research will provide the address, date it initially was put up for sale, original asking price and subsequent discounts thereafter, the last sold price if available, its total discount in percentage terms and the link to its online listing. It will be updated twice monthly to ensure listings remain current and credible and will be available to consumers via a subscription or a one off purchase from our website.
Stay tuned for its release date!
In Other News....
The Director of SQM Research - Louis Christopher wrote the following article, published in the Sun Herald on Sunday and now featured on domain.com.au, regarding falling house prices. Well worth the read -
A word from our Managing Director Louis Christopher -
The media spotlight has been shining on our company this week and on that note- we would like to say thank you to those who have been writing in messages of support, whether that be via facebook, twitter, email or even just referring to us via their own blogs. It is greatly appreciated.
Interestingly, many of the messages have been coming from real estate agents who have simply been confirming what is happening on the ground, in that house prices are falling in most areas at this point in time.
Here is an example from a Sydney Northern Beaches real estate agent -
"Hi Louis, I saw you on the 7.30 report last night and you are correct, the real estate market is very sensitive to interest rate moves. I am involved on the Northern Beaches and believe me, it is tough and has got a lot worse since the last interest rate rise. There are no buyers!
I can quote you many examples from Palmy to Mona Vale. For example- Max Delmage beach front is still available- down from a valuation of $9m, $4.5m would buy it today. It will be withdrawn from auction tomorrow night (Saturday night last week) due to no prospects!"
So far, its real estate agents who are wearing the full force of this downturn as sales turnover appears to have fallen nationwide by about 25%. Now I know many of you won't exactly be crying tears over this, but I can assure you that agents have one of the harder jobs in the world. Personally I would not like to be treated with scorn and distrust nearly each working day of my life. And yes, there are many good, trustworthy, hard-working agents out there, individuals who I regularly contact to find out what is happening on the ground.
Of course, not everyone agrees with us (particularly our more optimistic competitors) and thats fine. I am still yet to read anything from them that explicitly states that house prices are currently falling, even though their own data states as such.
Outside the skirmishes between the various data reporting houses and research firms, the downturn does indeed continue. Fortunately, the market is bigger than those of us that publicly comment about it, it's like a tide or river. It will head in the direction that mass purchasing power and mass self-interest takes it to.
The geographical extent and magnitude of the downturn and when the downturn will end is increasingly becoming the question that should now be considered. The geographical extent, from what we can see is significant in that it appears to be now affecting most regions in the country. The magnitude of the downturn is clearly in the minus five percent bracket and we think a number of regions are going to (and already have) fall more than this.
We have a strong conviction that the bottom won't be this year - not unless we see an imminent cut in interest rates or a new government stimulus program. These two factors are most likely the events that will trigger a bottom in the market.
Until then there are many x-factors out there which may have their own bearing on it, such as :
* Could a second and deeper European sovereign crisis effect our housing market? In short, yes it can as a new European sovereign crisis at its worst, will likely drive up the cost of housing credit. Our banks were very recently downgraded due to their reliance on overseas facilities and that will already be putting upward pressure on their cost of capital.
* What would happen in the Australian Dollar now fell by a considerable margin? This potentially would be a positive for the market, particularly for those holiday areas.
* Will the strong rental market create a buffer effect on the for-sale market? In short, yes, it is one of the reasons why we think Sydney and Canberra are likely to suffer less in this downturn then the other cities.
Black Dragon's comments for this week-
"Truth has nothing to do with the number of people it convinces." - Paul Claudel
That is all for this week from the team at SQM Research, visit our
facebook page and/or
official website to post any comments or queries you may have or follow the managing director of SQM Research - Louis Christopher on both
twitter and
facebook as he shares his honest, unbiased musings on the current Australian property market.
Happy House Hunting!
SQM Research Pty Limited
ACN 122 592 036
Tel: 1800 766 651