November Real Estate Report

National Housing Market Investors Report
Housing Market Revival Strengthens - Nearly Everywhere
Dr Andrew Wilson -Chief Economist at Wealthi
November - October 2020

Disclaimer
In compiling this publication, the Publisher relies upon information supplied by a number of
external sources. The publication 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.

Dr Andrew Wilson
Chief Economist
Mid-Spring Housing Markets Steaming Ahead
Prices Now Rising
Capital city housing markets have continued their spring revival with
surging buyer activity now clearly - and predictably, placing upward
pressure on prices.
The autumn market went into pause mode as a result of severe
coronavirus shutdown policies but with the easing of physical constraints
to property transactions, housing markets and the economy are both
now clearly finding their feet - and faster than many predicted.
Weekend home auction clearance rates continued to rise over October
and into November despite higher listings, with prospective sellers
encouraged by Increased competition for available properties now
driving rates towards boom-time levels.
October
Average Weekend Home Auction Clearence Rates
November
77.0%
71.4%
67.2%
57.9%
54.0%
84.2%
73.6%
80.6% 81.8%
48.2%
Sydney Melbourne Brisbane Adelaide Canberra
Reflecting the easing of coronavirus restrictions, the Melbourne auction market rebounded strongly over
October with clearance rates climbing well over 70% into November. Melbourne auction numbers, also
increasing sharply, however remained well below the levels of the same time last year.

Average Weekend Home Auction Listing
October
November
622
578
190
18
51 45
41 43
52 46
Sydney Melbourne Brisbane Adelaide Canberra
Other real-time leading housing market indicators also supported strengthening buyer and seller activity
over October and into November.
National Newly Listed Homes Daily Index
(Base 100 = Mar 1 2020)
100
104.03
1/3/20 1/4/10 1/5/20 1/6/20 1/7/20 1/8/20 1/9/20 1/10/20 1/11/20
The National Daily New Listings Index over October increased by 21.4% compared to September to exceed
this year’s pre-coronavirus shutdown levels with new listing activity now similar to the same time last year.

National Newly Listed Homes Daily Index Annual Change
30%
20%
10%
4.46%
0%
-10%
-20%
-30%
-40%
1/5/20 1/6/20 1/7/20 1/8/20 1/9/20 1/10/20 1/11/20
The surge in new listings over the past month reflects in particular a sharp revival In Melbourne
new seller activity following the easing of local shutdown restrictions.
Melbourne reported the highest average weekly new listings growth over October compared to
September at 155.9% - albeit from a low base, followed by Adelaide up by 4.6% and Sydney up
2.9%. Brisbane monthly new listings were down by 5.4% over October with Perth falling by 13.7%.
Monthly Increase Average Weekly Newly Listed Homes October
155.9%
2.6%
4.6%
-5.4%
Sydney Melbourne Brisbane Adelaide
-13.7%
Perth
Melbourne reported the highest number of average weekly new listings over October -10.6% higher than
Sydney. Sydney new listings were however 42.3% higher than Brisbane, 54.9% higher than Perth and
71.7% higher than Adelaide.

Average Weekend Newly Listed Homes Relativity Index October
(Base 100 = Mar 1 2020
October
November
110.6
100 100
44.5
58.7
63.8
45.2
53.8
28.3 27.9
Sydney Melbourne Brisbane Adelaide Perth
Newly reported home sales Increased sharply over October as rising confidence encouraged buying
activity. Nationally, average weekly sales volumes increased by 12% compared to September with
Melbourne again the strongest performer up by 165.4%, followed by Adelaide up 12.5%, Perth up 6.8%,
Sydney up 4.4% and Adelaide higher by just 0.2%.
Monthly Increase Average Weekly Newly Reported Home Sales October
155.9%
2.6%
-5.4%
4.6%
-13.7%
Sydney Melbourne Brisbane Adelaide
Perth
Sydney reported the highest number of average weekly newly reported sales over October, 47% higher
than Melbourne, 59.6% higher than Perth, 61.3% higher than Brisbane and 81.1% higher than Adelaide. .

October
November
Average Weekend Newly Listed Homes Relativity Index October
(Base 100 = Mar 1 2020)
100 100
53.0
20.8
39.7 41.3
19.9
18.5
40.4
39.5
Sydney Melbourne Brisbane Adelaide Perth
Perth reported the highest Increase In average median daily asking prices for houses over October at
1.4% with Adelaide the highest for units at 1.8%. Sydney maintained Its most expensive position with the
highest average median asking price over October at $1,115,491, significantly ahead of the next highest
Melbourne at $838,500.
Capital City Daily Median Weekly Asking Prices October
Houses
Units
Capital
October
Units
October
Month
Sydney
$1,115,491
0.5%
$581,779
-1.0%
Melbourne
$838,500
0.7%
$459,652
0.0%
Brisbane
$573,651
-1.4%
$357,483
0.4%
Adelaide
$537,930
-0.7%
$286,055
1.8%
Perth
$353,833
1.4%
$331,026
-0.2%

Capital city rental markets continue to report diverging results with significantly lower
and falling vacancy rates for houses offset by higher rates for units. This reflects
sharply falling demand and increased supply of units - particularly in inner-city Sydney
and CBD Melbourne.
Closed borders have resulted in a surge of previous holiday rentals into the permanent
market and a significant fall in demand from international students and fewer
prospective first home buyers who are now purchasing in record numbers.
Higher demand for houses may indicate a shift in preference for larger homes to cater
for increased home-office requirements and a declining priority for residential proximity
to CBD workplaces through remote workplaces.
As a consequence, unit rents are now generally falling with Sydney recording the
sharpest decrease In average daily median asking rents for houses and units over the
month falling by 2.4% and 2.9% respectively.
Capital City Daily Median Weekly Asking Rents October 20
Houses
Units
Capital
October
Units
October
Month
Sydney
$516
-2.4%
$478
-2.9%
Melbourne
$443
-1.6%
$400
-1.5%
Brisbane
$402
0.2%
$412
-1.6%
Adelaide
$418
-0.5%
$361
-1.1%
Perth
$402
0.8%
$379
-0.3%
For Investors, capital city gross yields were generally easier over October for both
houses and units driven by a combination of upward pressure on prices and lower
rents - particularly for units. Sydney maintained the lowest yields with Adelaide the
highest for units.

Capital City Daily Median Weekly Asking Rents October 20
Houses
Units
Capital
Yield
Change
Yield
Change
Sydney
2.41%
--2.71%
4.25%
-1.87%
Melbourne
2.75%
-2.28%
4.53%
-1.59%
Brisbane
3.64%
1.59%
5.99%
-2.05%
Adelaide
4.04%
0.17%
6.56%
-2.83%
Perth
3.90%
-0.61%
5.95%
-0.08t%
Broken Hill reported the highest Local Government Area gross yields for houses over
October with Cairns the highest for units.

Capital City Daily Median Weekly Asking Rents October 20
Houses
Units
State
LGA
Yield
State
LGA
Yield
NSW
Broken Hill
8.72%
QLD
Cairn
7.07%
QLD
Hinchbrook
8.25%
WA
Kalgoorlie/Boulder
6.96%
QLD
Isaac
6.98%
SA
Sailsbury
6.90%
QLD
Mount Isa
6.86%
WA
Bunbury
6.68%
NSW
Western Plains Regional
6.79%
NSW
Albury
6.66%
QLD
South Burnett
6.60%
VIC
Latrobe
6.65%
NSW
Singleton
6.51%
QLD
Ipswich
6.61%
WA
Collie
6.50%
QLD
Logan
6.53%
WA
Broome
6.22%
WA
Joondalup
6.50%
NSW
Muswellbrook
5.99%
QLD
Whitsunday
6.43%
Other housing market indicators also reveal strong recent growth in activity levels particularly home loan
approvals. The ABS reports that housing loans seasonally adjusted Increased by 5.9% over September
following a record rise of 13.2% over August.
ABS National Home Loan August 2020 Seasonally Adjusted
$16
$14
$12
First Home Buyers
Investors
Owner-Occupiers
$15.7b
$10
$8
$6
$4
$5.3b
$2
$0
2014 2015 2016 2017 2018 2019 2020

All states, with the exception of shutdown impacted Victoria reported Increases In
housing loans over September.
ABS Home Loans Seasonally Adjusted Monthly Change
September 2020
23.5%
9.7%
12.7%
9.8%
7.2%
NSW VIC QLD SA
WA
Lending for new home building was a significant contributor to September’s
overall new record total, with loans up by a remarkable 27.1% over the month
following an increase of 2.3% the previous month. So far this year lending for new
home building has risen by 14.1% compared to the same period last year.
ABS National Home Building Loans Seasonally Adjusted August 2020
5,948
4,679
Jan-2019
Feb-2019
Mar-2019
Apr-2019
May-2019
Jun-2019
Jul-2019
Aug-2019
Sep-2019
Oct-2019
Nov-2019
Dec-2019
Jan-2020
Feb-2020
Mar-2020
Apr-2020
May-2020
Jun-2020
Jul-2020
Aug-2020
Sep-2020
Home building loans accounted for a record 9.8% of total lending for housing
reflecting the impact of the federal governments HomeBuilder policy. Victoria
again recorded the highest number of loans for home building.

ABS Owner-Occupier Home Building Loans September 2020
1992
1372
1014
1058
482
NSW VIC QLD SA
WA
The surge In lending for home building Is also been reflected In rising home
building activity - particularly for houses. ABS building approvals seasonally
adjusted for September Increased by 8.8% nationally with private sector houses
up by 20.7% over the month. All capital reported Increases In house building
approvals over the month with Melbourne the underperformer with a rise of 3.2%.
ABS Building Approvals Monthly Change September 2020
22.7%
14.8%
12.5%
5.9%
3.2%
Sydney Melbourne Brisbane Adelaide
Perth
Despite recent rises In home building approvals underling levels, particularly for
units, remain well below previous peaks.

ABS Annual Building Approvals Rolling Monthly September 2020
Units
120,000
Houses
100,000
80,000
60,000
40,000
20,000
0
2014 2015 2016 2017 2018 2019 2020
The national economy also continues to Improve with labour markets
rebounding strongly since the end of the autumn shutdown.
Although the ABS seasonally adjusted unemployment rate Increased
marginally over September from 6.8% to 6.9% this was clearly a
consequence of significant job losses and a shrinking workforce In
Victoria.
ABS National Jobless Seasonal Adjusted
8%
7%
6.9%
6%
5%
4%
3%
2015 2016 2017 2018 2019 2020
NSW and QLD record strong recoveries In jobs growth and return to the
workforce since the easing of coronavirus restrictions.

ABS Labour Market Monthly Change September 2020
Jobs Found
Workforce Change
47,148
26,635
24,134
31,540
9,538
4,879
607
-1,387
33,840
58,339
NSW VIC QLD SA
WA
Similarly, a fall In ABS retail sales turnover seasonally adjusted over September
reflected clearly a strong decline In Victorian sales constrained by shutdown
policies. Retail sales volumes nonetheless remained higher than the levels
recorded prior to the autumn shutdown.
ABS National Home Building Loans Seasonally Adjusted August 2020
$35,000
$29,158m
$30,000
$27,759m
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Jan-2019
Feb-2019
Mar-2019
Apr-2019
May-2019
Jun-2019
Jul-2019
Aug-2019
Sep-2019
Oct-2019
Nov-2019
Dec-2019
Jan-2020
Feb-2020
Mar-2020
Apr-2020
May-2020
Jun-2020
Jul-2020
Aug-2020
Sep-2020
The significant easing of shutdown policies In Victoria will act to reinvigorate the
local economy as evidenced by revivals In other states since autumn with higher
retail sales and significant increases In jobs and workforce growth.

ABS Home Loans Seasonal Adjusted Monthly Change August 2020
2.8% 2.6%
1.7%
1.0%
14.8%
NSW VIC QLD SA
WA
The decision by the RBA to cut interest rates to a new record low of just 0.1% will
also encourage economic revival and the assertion that official rates would remain
at the current level for at least three years. A broadening of quantitative easing
policies also announced by the RBA Is designed to put downward pressure on
borrowing rates generally - not just mortgages, and also act to reduce demand for
the dollar.
AUD v USD Daily Close
80
75
70
70.2c
72.77
65
57.43.c
60
55
50
02/09/19 25/11/19 17/02/20 11/05/20 03/08/20 26/10/20
The Australian sharemarket and dollar continue to consolidate their gains since the
autumn shutdown which to some degree reflects ongoing local and International
investor support for the national economy and associated policy settings.

All Orders Daily Close
8000
7000
7,237
6,544
6000
4,564
5000
4000
3000
2000
1000
0
09/12/19 23/10/20 06/03/20 21/04/20 02/06/20 15/07/20 26/08/20 07/10/20
Australian housing markets generally and the national economy continue to revive
following the easing of autumn coronavirus shutdowns with the Melbourne market
now also clearly In revival mode.
With robust buying activity now emerging, house prices are now set to continue
to rise over the remainder of 2020.