- New listings only dropped 0.7% MoM, despite the typically quieter winter months.
- Sydney, Brisbane, and Canberra all recorded new listings increases.
- Auction clearance rates have also noticeably picked up.
REA Group has released the PropTrack Listings Report for June. The latest report found new listing activity across the nation recorded marginal declines, despite the typically quieter winter months.
Nationally, new listings dropped 0.7% between May and June, with the combined capital cities figure down 0.9%.
Broadly, the modest decline was driven by elevated demand, a factor that continues to fuel the market.
While Hobart, Adelaide, and Perth recorded new listings declines (month-on-month) of 25.5%, 8.2%, and 6.7%, respectively, much of the east coast recorded modest gains. Brisbane saw new listings up 6%, Canberra up 4.6%, Darwin up 3.6%, and Sydney up 1.2%.
The year on year changes were negative across the country, but some suburbs managed to seriously buck the trend.
While Brisbane recorded an overall 23.2% drop in new listings (YoY), the suburb of Newport recorded a 71% increase, Yarrabilba and Bowen Hills up 65%, and Doolandella up 64%.
Melbourne saw listings drop 1.4% MoM, 6.5% YoY, but the suburb of Burwood East saw listings leap 125% YoY. The next largest leap was recorded in Deanside, up 85% YoY, and Melton South jumped 76% YoY.
Winter warmers?
“The decline in activity is somewhat smaller than is typically the case,” said PropTrack economist and report author, Angus Moore.
That glimmer of hope is quickly dashed when comparing the latest results with last year.
“2023’s trend of slower property market activity continued, with all capitals seeing fewer new listings this June than last year. With demand remaining solid, we may be seeing a concentration of buyer attention on a smaller flow of new properties hitting market.”
“Activity is likely to be mildly subdued over the next couple of months during the typically quieter winter period before activity starts to pick up again for the spring selling season, and the usual seasonal peak of activity in October and November,” Moore added.
Moore observed positive signs for both the auction and broader market, noting that auction clearance rates have picked up noticeably compared to late last year and remained solid throughout autumn and into the start of winter.
“Home prices are also recovering after the downturn last year and increased in June for the sixth consecutive month.”
Demand unabating
While the search for space during lockdown previously led people to smaller households and larger spaces, the latest drivers of demand include a strong return in overseas migration.
“Further out, the fundamentals of housing demand remain strong. Rental markets are extremely tight across much of the country amid strong demand and limited rental availability,” said Moore.
“International migration has resumed, which will further add to housing demand. Unemployment is still sitting close to a five-decade low and labour demand has only mildly moderated. Wages growth has picked up, and there are signs the peak of inflation is behind us. Interest rates may also be nearing their peak, which could provide a sense of certainty to buyers and sellers.”
