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

MitchCap's Strategic Alliance with BIA and BIAV: A New Era for Australia's Marine Industry

11 Dec 2025: Paige Estritori

The Australian marine industry is set to benefit from a significant partnership between MitchCap, the Boating Industry Association (BIA), and the Boating Industry Association of Victoria (BIAV). This collaboration aims to enhance financial literacy and provide robust support to marine businesses across the nation. - read more

Austal's US$100 Million Boost: Strengthening US Shipbuilding Capabilities

11 Dec 2025: Paige Estritori

Austal Limited, a prominent Australian shipbuilder, has secured a US$100 million loan facility from Export Finance Australia (EFA). This funding is set to bolster Austal's construction of vessels for the US Navy and US Coast Guard at its Mobile, Alabama shipyard. - read more

Navigating Towards Sustainability: Hybrid Propulsion in Australia's Marine Industry

11 Dec 2025: Paige Estritori

The Australian marine industry is witnessing a significant shift towards sustainability, marked by the increasing adoption of hybrid propulsion systems and eco-friendly technologies. This trend reflects a global movement towards reducing emissions and promoting environmental stewardship within the boating community. - read more

Australia's Housing Market Approaches $12 Trillion Milestone

10 Dec 2025: Paige Estritori

Australia's residential property market is on the brink of reaching a historic valuation of $12 trillion, marking a significant milestone in the nation's real estate sector. Recent data from the Australian Bureau of Statistics (ABS) indicates that the total value of Australia's 11.41 million homes increased by 2.7% in the September quarter, adding $317 billion to the market's worth. This surge brings the average price of residential dwellings to $1,045,400, reflecting the robust growth in property values across the country. - read more

Australian Property Borrowing Hits Record $98 Billion in Q3 2025

10 Dec 2025: Paige Estritori

In the third quarter of 2025, Australian property buyers borrowed an unprecedented $98 billion, marking a significant surge in housing finance. This substantial increase, primarily driven by investors, has raised concerns among economists about potential regulatory interventions to curb the rapid growth. - read more

Click for more Finance News