Australia’s two biggest capital cities have recorded the greatest number of new property listings for a decade as winter ended on a high across the nation.
According to the PropTrack Listings Report August 2023, a monthly report analysing new and total listings on realestate.com.au, property markets experienced a busier-than-usual end to winter, with the volume of new properties hitting the market up on the same time last year.
Nationally, new listings were up 20.5 per cent month-on-month in August and 4.1 per cent higher than August 2022.
Activity in Sydney and Melbourne led the surge, with both recording their busiest end to winter in more than a decade—up 18.4 per cent and 20.8 per cent respectively compared to last year.
New listings in the combined capital cities were up 8 per cent year-on-year, led by the strong activity in Sydney and Melbourne.
Regional area activity ramped up ahead of spring but, unlike the combined capital cities, recorded a slower pace of activity this year than last at -2.2 per cent.
The busier month of new listings meant the total number of properties listed for sale across Australia increased in August, up 5.7 per cent month-on-month.
That helped lift choice for buyers marginally above where it stood a year ago, with the total number of properties listed for sale in August up 0.5 per cent year-on-year.
PropTrack senior economist and report author Angus Moore said that after a quieter first half of 2023, property market activity appeared to be picking up in Sydney and Melbourne, with both markets busier-than-typical in August.
“Activity in many other capitals has also increased but remains subdued compared to a year ago,” he said.
“Activity is likely to continue increasing over the spring selling season, reaching the typical peak in October and November.
“Selling conditions and home prices have also improved compared to late 2022. Home prices nationally have continued to recover, posting their eighth consecutive month of growth in August.”
National listings, August 2023 (Year-on-year, Month-on-month)
Home prices nationally were now just 0.8 per cent below the March 2022 peak, Moore said.
“Auction clearance rates remained solid through winter and have improved from the levels recorded in late 2022,” he said.
“The cash rate has remained steady at 4.1 per cent for three consecutive months.
“While there may still be further interest rate increases, markets are pricing in only a small probability of that occurring. Inflation appears to be heading back towards target at a pace consistent with the Reserve Bank’s expectations.”
Moore said looking further ahead, the fundamentals of housing demand remained strong.
“Unemployment remains very low by historic standards, though it has edged higher recently,” he said.
“Rental markets remain extremely tight across much of the country and rents are growing quickly amid strong demand and limited rental availability.
“International migration and population growth are forecast to remain strong, which will further add to housing demand.”
