AUSTRALIAN HOUSE PRICE INDEX BY CAPITAL CITY
REAL ESTATE IS A LONG TERM INVESTMENT*.
MANY INVESTORS FOCUS ON WHAT IS HAPPENING, IN THE SHORT TERM.
SINCE REAL ESTATE SHOULD BE LOOKED AT OVER A 5,10 OR EVEN 15 YEARS, WE PROVIDE THE FOLLOWING FIGURES OVER THE PAST 12 MONTHS - TO GET A BETTER UNDERSTANDING OF THE MARKET TRENDS OVER TIME - RATHER THAN JUST LAST MONTH.
(EVERY SINGLE WEEK, LEADING RESEARCH HOUSE SQM RESEARCH UPDATES THEIR AUSTRALIAN PRICES FOR ALL HOUSES, 3 BEDROOM HOUSES, ALL UNITS AND 2 BEDROOM UNITS FOR EVERY SINGLE RESIDENTIAL SUBURB IN AUSTRALIA, AS WELL AS FOR EACH CAPITAL CITY AND NATIONALLY ACROSS AUSTRALIA.
(OUR CHARTS BELOW REFLECT THE "ALL HOUSES" INDEX UPDATE EACH MONTH TO REFLECT THE PREVIOUS 12 MONTH PERIOD, AND IS WE BELIEVE AN ACCURATE INDICATOR OF WHAT AUSTRALIA'S HOUSING MARKETS ARE DOING OVERALL.)
NOTE: BOOKMARK THIS PAGE TO KEEP ABREAST OF THE CHANGING MARKET. WE UPDATE IT EACH MONTH.
AUSTRALIAN HOUSE PRICES- MARKET TRENDS BASED ON ASKING PRICES FOR HOUSES
LAST 12 MONTHS IN AUSTRALIA'S HOUSE PRICES***:
PREVIOUS MONTHS ARE SHOWING BELOW
***SEE THE LONG TERM (Past 17 years) CAPITAL GROWTH AND THE VERY IMPORTANT TREND LINES HERE. ARE THE AUSTRALIAN CITIES AHEAD OF OR BELOW THEIR LONG TERM TREND LINES? THE RESULTS MAY WELL SURPRISE YOU!
1. UPDATED MONTHLY BY CITYLIFE INTERNATIONAL REALTY, AS PUBLISHED BY SQM RESEARCH AUSTRALIAN HOUSE PRICE DATA, RECORDED EVERY TWO WEEKS BASED ON WEEKLY ACTUAL ASKING PRICES.**
2. FIGURES AS SHOWN REFLECT THE PREVIOUS 12 MONTHS CAPITAL GROWTH OR CAPITAL LOSS BASED ON "ALL HOUSES" CRITERIA FOR THE CITY IN QUESTION.
Why Asking Prices?
Timeliness - comprehensive data that does not need revision as the sample size is complete. Being able to assess where vendors sit with the market is also very useful. Do they have the confidence to be lifting their asking prices, or are they keenly dropping their prices in order to get out?!
In compiling SQM Research’s new market indexes, we have been surprised at how reactive vendors and landlords are to the market. It is clear vendors are very responsive when considering the whole market on aggregate.
Indeed, there is some evidence to suggest that they at times, drive the market, especially when it enters into a new upswing.
After considering all various house price methodologies, SQM Research came to the conclusion that using a stratified methodology based on geography for these new indexes, would be most optimal for the required task.
SQM Research declined to use a hedonic model as there was negligible additional accuracy provided compared to the stratified model, which accurately adjusts for compositional bias.
All capital city regions and city wide averages were stratified based on splitting postcodes into decile brackets. The decile brackets were calculated based on the relative long term median sold price ranking of each postcode.
SQM Research will monitor and update longer term pricing points and suburb rankings annually and make revisions to the decile bands accordingly.
Subsequent revision of the index is expected to be negligible. All compilations of cities are based on the Statistical division of each capital city as measured by the Australian Bureau of Statistics.
Percentage of Listings That Have an Asking Price
89% of all listings captured have a price indicator. Listings that have an asking price range are included, using the bottom of the price range. Auctions are left out of the calculation unless an asking price is provided after the auction event.
Vendor Discounting and the Effect on the Indexes
Where a vendor has discounted their asking price, it is calculated in the overall aggregate median of asking prices in the index. There are no weightings applied to various asking prices based on age of listing or discounting.
JULY 2020 UPDATE:
As you can see from the following chart, despite more properties coming onto the market for sale, the total number of listings (properties available for sale) is falling.
Corelogic report that there are 1.3 buyers in the market for every property for sale.
This confirms what we are finding on the ground that well located properties are selling quickly with a queue of buyers waiting for them.
The number of property transactions
The Coronavirus lockdowns have caused a very significant slow down in transaction numbers. We hope to update the chart below shortly.
In compiling this we rely upon information published and publicly available by SQM Reasearch Pty Ltd ABN 93 122 592 (The Publisher) .The information is supplied on the basis that, while the Publisher believes all the information in it will be correct at the time of publication, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to the Publisher for the supply of such information.
The data and projections should be used as a guide only and should not be relied upon in making investment decisions.