This article is from the Australian Property Journal archive
RESIDENTIAL property listings have risen across all capital cities in the month of October, reflecting a softening in demand, according to SQM Research.
The latest SQM Research figures found no capital city recorded declines. In fact real estate listings have risen in the double digits territory across most capital cities, with the exception of Hobart and Perth where stock increased by 1.1% and 6.1% respectively.
Melbourne recorded the highest increase and now has more stock on the market than it did during the panic of 2008.
During the month, listings increased by 20.2% from September and are 28.6% higher than a year ago, with 26,521 houses and 9,547 units advertised for sale.
SQM Research also found Adelaide, Brisbane, Perth and Sydney have considerable high number of house and units on the market.
Brisbane recorded the highest annual increase, listings jumped 52.9% to 24,412 house and 5,787 units. Brisbane had the second highest number of houses for sale, behind Melbourne.
Meanwhile Sydney came in third with 20,012 houses for sale, but the city has the highest number of units listings, 12,370, across Australia.
SQM Research managing director Louis Christopher said this large jump in listings indicates an ever increasing softening market.
“The rise is illustrative of a slowing market which is affected by more than just seasonal factors.
“The market has been slowing due to the withdrawal of the First Home Owner’s boost and the rise in interest rates. It’s as simple as that. And now with the most recent interest rates rise by another quarter point, the market is likely to weaken quite rapidly from this point,” he added.
Only eight out of Australia’s fifty two regions experienced a decline in listings for this month. These regions were – New South Wales off Shore, Queensland Far North Coast, Gold Coast South, Queensland North Coast, Yorke and Lower North South Australia, Central Hobart, Tasmanian East Coast and South East Perth.
The region to record the highest rise in listings for the month was South West Melbourne.
SQM Research reaffirms the overall state of the real estate market which has slowed considerable. Last weekend, the auction market in Melbourne and Sydney dipped to new lows following the interest rate rise.
Recently, Melbourne’s auction market flopped with almost 1,000 properties auctioned and just 643 sales.
Despite buyer demand receding, sellers are continuing to put more properties on the market. The REIV said another 3,600 properties will be auctioned in November, the highest number of auctions in any month this year.
Australian Property Journal
