more properties listed ahead of spring in sydney
Sydney’s property listings are heading upwards. Image: Canva.
  • New for sale listings in Sydney were up 9.2%, year on year.
  • Month on month, Sydney was behind Melbourne and Hobart.
  • Investors expected to snap up eastern suburbs apartments.

Property listings across Australia’s largest cities leapt by over 9%, according to PropTrack‘s Listings Report July 2023. This uptick was observed across the eastern seaboard prior to the typically busier spring months.

“Property market activity is showing early signs of picking up in Sydney and Melbourne amid what is typically the quieter winter season,” said PropTrack senior economist and report author, Angus Moore.

“Australia’s two largest property markets both saw more new listings than has been typical on average for mid-winter over the past decade.”

New for sale listings trends

Month on month Year on year
National -2.1% -4.9%
Adelaide -1.2% -12.1%
Brisbane -2.9% -14.0%
Canberra -3.6% -5.7%
Darwin -21.7% -17.6%
Hobart 12.4% 0.5%
Melbourne 5.3% 9.1%
Perth -5.0% -16.6%
Sydney 2.3% 9.2%

Source: PropTrack July 2023 listings report.

A July uptick was also observed by Raine & Horne, with the real estate agency recording a 10% increase in attendance at open for inspections (OFIs) in July, compared to autumn, and a 37% surge from summer.

“The surge in demand for properties makes this spring a strategic time for investors looking to rebalance their portfolios by listing their properties on the market,” said Raine & Horne head of property management, Maria Milillo.

“Concurrently, a multitude of markets are still grappling with a shortage of property listings, which offers investors considering a sale during spring an exceptional chance to achieve decent sales results due to reduced competition.”

Moore also observed that the current environment is good news for sellers, with more favourable conditions and rising home prices, compared to the second half of 2022.

“Home prices, nationally, posted the seventh consecutive month of growth in July and have recovered 2.8% since December. That means home prices nationally are now sitting just 1.4% below the March 2022 peak,” said Moore.

“The Reserve Bank held the cash rate at 4.1% for the second consecutive month in July, and a stabilisation in interest rates looks to be within sight. Inflation appears to be heading back towards target at a pace consistent with what the RBA was expecting. As a result, markets are factoring in only a modest chance of further increases in interest rates.

“Further out, the fundamentals of housing demand remain strong. Unemployment remains extremely low by historic standards and has shown little sign of moving higher. Rental markets are extremely tight across much of the country amid strong demand and limited rental availability. International migration has also resumed, which will further add to housing demand.”

Investors pounce on high-quality rentals

Spring will present a favourable opportunity for real estate investment in eastern Sydney, said Raine & Horne Green Square and Bexley/Beverly Hills head of property management, John Katergarakis.

As the warmer months approach, Katergarakis anticipates a substantial reduction in vacancy rates for high-quality rental properties. He believes that this transition offers a prime opportunity for potential investors to enter the market. Particularly, he highlights the demand for two-bedroom, two-bathroom apartments valued at approximately $1 million, whether situated in Waterloo or Bexley.

“These types of apartments have gained popularity among professional couples who utilise the second bedroom as a home office, as well as among singles who opt to share rent,” said Katergarakis.

“The presence of a second bathroom enables flat mates to have separate living arrangements, and these apartments also appeal to young families starting out.

“Furthermore, these premium apartments are currently being rented out for approximately $900 to $1,000 per week, translating to an impressive yield of almost 5%.

“Given interest rates are projected to fall in 2024, these popular properties are expected to become even more enticing options for investors this spring.”

~~

Before making any financial decisions, please do your own independent research, taking into account your own situation. This article provides factual information only and is not intended to imply a recommendation or opinion about a financial or credit product. See our Terms of Use.



You May Also Like

Melbourne property market sees mom and dad builders flock to outer suburbs for the best bang for buck

The cost of building a house in these top 20 suburbs started at $272,944 and topped out at $387,688.

Australian rental market clocks in a near-40% price growth, while wages struggle to keep up

Rents soared by almost 40% across the pandemic, while wages barely clocked in 20% growth.

Gender gap closes? Women outpace men in overall property ownership

Challenges persist for younger women in achieving homeownership, highlighting the need for targeted solutions.

Exclusive: Top five regional New South Wales housing markets revealed, the affordable alternatives to Sydney

Hotspotting has exclusively revealed to TPT New South Wales housing market’s five best regional hotspots for homebuyers and investors.

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.