This article is from the Australian Property Journal archive
NEW listings across the capital cities are increasing at the fastest pace in six years, hitting record highs in Sydney, Melbourne and Canberra, as resilient values and the prospect of a much-anticipated interest rate cut entice sellers to the market.
Numbers from Domain provided to Australian Property Journal showed new listings for houses are 56.1% higher in Sydney in annual terms, and around 30% higher in Canberra and on the Gold Coast. Brisbane is up by 18.9% and Melbourne by 2.7%.
In the units market, new listings in Sydney are 19.6% higher than a year ago, and in Canberra are 21.6%. Melbourne is up by 6.5%.
“The market conditions evident in the latter part of last year have continued into 2025, giving us the largest monthly increase in new listings since 2019,” said Domain’s chief of research and economics, Nicola Powell.
“The continued rise in new stock suggests that sellers are likely encouraged by stable demand and resilient property values. The high chance of a rate cut has potentially also brought some formerly hesitant sellers back to the market.”
Listings are currently at their third-highest on record in Adelaide, and the highest since 2022 in Brisbane and Perth, according to Domain.
Domain’s data is reflected in SQM Research numbers, which shows total listings grew by 4.5% in January, hitting 243,642 properties – 10.3% higher than a year earlier. Domain data shows total supply has risen for the tenth consecutive month. Along with stretched affordability, that has translated into the slowdown in price growth, and in some cities, price falls.
“The higher supply is giving buyers more time to make decisions and assess the market, meaning the time it takes to sell a home is extending across most capital cities,” Powell said.
“This may be prompting sellers to adjust pricing expectations to get a quicker sale. With a potential rate cut at our doorstep, we could see buyer demand increase again in the coming months.”
The past week’s inflation data showed the underlying inflation measure had eased further, within touching distance of the RBA’s target band, and prompting most analysts and three of the four major banks to tip an interest rate cut at the RBA’s next board meeting over February 17th and 18th.
Homes are taking longer to sell with an increase in days on market across most cities, including Sydney (to 59 days), Melbourne (to 66), Brisbane (45), Perth (33), and Hobart (83).
Vendors have increased discounting on houses in most cities over recent months. Sellers in Melbourne are now offering discounts of 6.4%, Sydney vendors are coming down by 6.3%, Hobart sellers by 6.6%, Adelaide sellers by 5.6%, and Perth sellers by 5.4%.
Vendors in Brisbane are offering discounts of 5.5%, in Canberra of 4.8%, and in Darwin by 6.6%.
Domain expects increased supply to be a major reason while there will be a buyer’s market in 2025.
“One of the clear things has been an increase in choice. So any prospective buyer out there will be finding that supply is rising – across the combined capitals stock hit a three-year high for the month of December – which does present, I think, opportunities for the upcoming autumn selling season,” Powell recently told Australian Property Journal.
In a note to clients, Capital Economics Australia and New Zealand economist Abhijit Surya said that although the prospect of imminent rate cuts could temporarily buoy buyer sentiment, “we don’t expect a meaningful rally in the housing market given that affordability is poised to remain stretched by past standards”.
