Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 9 June 2015

SQM stock and asking prices news

SQM news

SQM Research released its latest newsletter and it was fascinating stuff as always.

Sign up for their newsletter here.

Total listings increased from the prior month in May, particularly in Melbourne and Sydney, which saw an 11.8 per cent increase.

Stock on market is clearly trending up in Perth and Darwin.

In Melbourne, listings have confounded the critics to come down by 16 per cent from very lofty levels indeed in May 2014 as stock is gradually being absorbed. 

In Sydney, stock levels remain exceptionally low, still down by 14.5 per cent year-on-year.

As a share of total capital city listings Sydney sits below way Melbourne, and beneath Brisbane and even Perth.

SQM's asking price index showed prices for both Sydney units (+0.8 per cent) and houses (+1.4 per cent) continuing to rise in the month of May, which casts further doubt on the idea that sales prices fell in May (they surely didn't).

Over the past year asking prices for Sydney houses and units are up by 12.4 per cent and 11.1 per cent respectively.

The SQM newsletter notes that despite the increase in Sydney listings in May, anecdotally stock is still being absorbed exceptionally quickly.

It certainly feels that way, with very few listings apparent in some popular suburbs.

This point was re-iterated by Louis Christopher, Managing Director of SQM Research, over on Twitter.

It's something of an ongoing nightmare for prospective buyers.