Over the past year, property listings have been trending downwards across the country, while demand for home buying has been on the rise, putting upwards pressure on house prices.
Data released today from property analysis group SQM Research shows national listings fell 21.6% in June, compared to 12 months ago, with the biggest falls occurring in Hobart, Adelaide, Canberra and Brisbane.
Meanwhile, asking prices for houses in capital cities surged 2.8% over the four weeks to 29 June, while unit prices gained 2.2%, according to SQM.
“As demand outstrips supply, we are seeing strong rises in asking property prices, in capital cities and the regions, which is likely to continue through 2021,” SQM Research Managing Director Louis Christopher said.
“However, we note the current pace of the housing market is not sustainable over the long term. And we also note the current world-wide housing boom, strongly suggesting this strong upturn in Australia has been driven largely by ultra-low interest rates and easier lending standards. In time, there will be a change in these monetary settings which will trigger a downturn.”
New research from Westpac shows 29% of buyers surveyed cited a lack of listed options as a barrier to achieving home ownership – a sentiment that’s increased by 10 percentage points in the last three months.
The survey of 2,017 Australian adults in May also revealed 39% of respondents were thinking about selling their property in the next five years, which is an increase of nine percentage points since November 2020.
Westpac’s Managing Director of Mortgages, Anthony Hughes, said this was largely driven by people’s confidence in getting a good return on their home, as well as an increasing desire to live in a new area as they seek more living space.
“Properties further from the city boasting backyards and a more relaxed lifestyle remain top of mind for buyers, and for the first time, more homeowners are telling us increased infrastructure and amenities in their desired area is also motivating them to sell, with public transport, local shops and parks ranking as the most desirable suburban features,” Mr Hughes said.
Top suburbs likely to list in the next 6 months, by capital city
In what could be welcome news for house hunters competing for limited stock, Westpac has released a list of the top areas in Adelaide, Brisbane, Melbourne, Perth and Sydney where homeowners are most likely to list a property in the next six months. The data was unavailable for Hobart, Darwin and Canberra.
|Seacombe Gardens||Torrens Park/
|Frankston North||Carrum Downs|
|Narre Warren||Hampton Park|
|Mosman Park||Hamilton Hill/
|Avalon Beach||St Ives|
|Mona Vale||Dee Why|
|Palm Beach||Palm Beach|
|St Ives||Wentworth Point|