Residential property prices hitting uncharted territory: SQM Research
The dip in Australia residential property prices seen last year has proven to be more of a blip, with the resurgent sector soaring to new heights last month according to data out of SQM Research.
Asking prices for both property and units reached record highs in November, with the combined aggregate asking price peaking at $802,879 across the nation. The figure caps a remarkable surge for residential property in the previous 12 months; in October last year the aggregate combined asking price was down at $757,253.
While units have experienced marginal increases over the last year (up from $503,741 to $519,246), an uplift in house prices from $819,542 in November 2022 to $879,608 this year has been the driving force.
The property market appears to have largely shaken any ill effects of the post-pandemic era, which saw a brief period of minor relief for buyers as the rate of price increases tailed off for a few months. Since, the market has made up for lost time, with the new figures in early November setting a record for the national combined asking price.
“Overall, vendors remained confident for the month as displayed to the new record high in asking prices,” commented SQM Research founder and managing director.
As expected, Sydney is leading the property price table, with the combined asking price sitting at an aggregate of $1,427,695 and the asking price for houses a staggering $1,862,691.
The level of listings across the country also remained strong, Christopher said, even though this time of year presents cyclical challenges.
“Despite the school holiday period, Grand Finals, listing counts maintained the robust levels recorded in spring. And given what we know about seasonality for this time of year, I am expecting a significant rise in listings for the month of November.”
Not all news for sellers was positive, however, as distressed listings rose considerably over the period.
“SQM Research’s latest report reveals that as of October 2023, the number of residential properties being sold under distressed conditions in Australia has risen to 5,521,” the latest SQM report stated. “This reflects an increase of 5.2 per cent compared to the 5,246 distressed listings recorded in September 2023.
“The uptick in distressed selling activity was primarily driven by increases in New South Wales (8.9 per cent), Western Australia (7.6 per cent) and a substantial 35 per cent increase in the Australian Capital Territory compared to the previous month.”