Capital Cities Face a Shifting Housing Landscape

0

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

This new data also highlights a considerable increase in the number of homes being listed for sale in both Sydney and Melbourne. Listings in Sydney alone rose by 6.7% compared to the same period last year, while Melbourne saw a more modest increase of 1.1%.

Eliza Owen from CoreLogic attributes this shift to changing market dynamics. "This time of the year is typically slow in terms of demand, but this goes beyond seasonality," she explains. According to Owen, the increase in listings and the apparent lack of eager buyers may be early indicators of growing mortgage stress among homeowners.

Owen suggests, "There’s less appetite from buyers, but more sellers are coming into the market, which could indicate rising mortgage stress." This sentiment is echoed by Cate Bakos, a buyer's agent in Melbourne, who believes, "Prices can’t be expected to grow while we have higher stock levels and weaker buyer demand."

Interestingly, Brisbane and Perth have reported a deceleration in dwelling value growth, maintaining a rate of just 0.3% over the past four weeks. Such trends suggest a potential buyers’ market, particularly in Brisbane, where supply has surged and demand has slowed, according to Zoran Solano of Hot Property Buyers Agency. "For me as a buyer’s agent, it’s a positive sign that the power has shifted back a little bit towards buyers," she observes.

Further analysis from The Australian Financial Review indicates that property values in Brisbane are declining in one out of seven suburbs, the highest rate in almost two years. CoreLogic’s Tim Lawless sees this as a sign that prices may continue to ease due to increased listings, reduced interstate migration, and affordability challenges. "The market is likely to continue to ease, and we could see prices moving into a subtle decline before interest rates come down," he remarks.

AMP chief economist Shane Oliver predicts a similar trend, highlighting Brisbane as a market where values might soon turn negative, following the pattern seen in Sydney and Melbourne. "Brisbane looks to me like a really soggy market and I wouldn’t be surprised if house prices go negative in the next couple of months," Oliver comments.

Oliver also suggests that potential interest rate cuts could reverse this downward trajectory. "A rate cut could turn that downward momentum around, so if it occurs in February it has the potential to head off a dip into negative territory for Brisbane prices," he explains, warning that delays in rate cuts might extend the price downturn.

Meanwhile, PropTrack notes an 80% spike in Brisbane home values since the pandemic’s onset in March 2020, which has positioned Brisbane as Australia’s second most expensive housing market by median value. However, rising prices, slowing migration, and worsening affordability may soon turn Brisbane into the latest domino to fall in the nation’s housing saga.

Published:Tuesday, 28th Jan 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Australian Mortgage Market Reaches Record $2.41 Trillion Amid Rising Property Prices

11 Jan 2026: Paige Estritori

In November 2025, Australia's residential mortgage market achieved a new milestone, with authorised deposit-taking institutions (ADIs) collectively holding $2.41 trillion in home loans. This represents a 0.67% increase over the month and a 6.36% rise over the preceding year, as reported by the Australian Prudential Regulation Authority (APRA). - read more

APRA Implements Cap on High Debt-to-Income Home Loans to Safeguard Financial Stability

11 Jan 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating emerging risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more

Australian Home Prices Hit Record Highs in December 2025

11 Jan 2026: Paige Estritori

In December 2025, Australia's housing market reached a new peak, with the national median home price climbing to $880,000, reflecting an 8.8% increase compared to the previous year. This growth was driven by varying performances across different regions, with regional areas outperforming capital cities. - read more

Australian Boating Industry Sees Significant Growth Amidst Economic Challenges

11 Jan 2026: Paige Estritori

The Boating Industry Association (BIA) has released its latest State of the Industry Data Report, revealing a noteworthy national turnover of $10.12 billion for the fiscal year 2023-24. This represents a 5% increase from the previous year, underscoring the sector's resilience and growth despite recent economic uncertainties. - read more

Australian Banks Predict Interest Rate Increases in 2026

09 Jan 2026: Paige Estritori

As 2026 approaches, Australia's major banks have released forecasts indicating potential interest rate hikes, sparking concerns about a renewed cost of living crisis. The 'big four' banks-Commonwealth Bank, National Australia Bank (NAB), Westpac, and ANZ-have dismissed the likelihood of rate cuts in the coming year, with some predicting increases as early as February. - read more

Click for more Finance News