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

Japanese Banks SMBC and MUFG Propel Business Lending Expansion in Australia

06 Nov 2025: Paige Estritori

Australia's business lending sector is witnessing a significant shift as Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) emerge as leading growth drivers. In July 2025, the combined business loan books of Australia's top 10 authorised deposit-taking institutions (ADIs) reached A$925 billion, with SMBC and MUFG recording the highest percentage growth rates among them. - read more

ANZ Ceases Share Buyback to Fund Strategic Restructuring

29 Oct 2025: Paige Estritori

In a significant strategic shift, ANZ Group has announced the cessation of its remaining A$800 million share buyback program. This decision is aimed at bolstering the bank's cash reserves to support a comprehensive restructuring plan under the leadership of CEO Nuno Matos. - read more

RBA's October 2025 Review Affirms Australia's Financial Resilience

29 Oct 2025: Paige Estritori

The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive assessment of the nation's financial system. The report underscores the resilience of Australia's financial institutions, households, and businesses in the face of elevated global uncertainties. - read more

Australian Business Conditions Remain Steady in September 2025

29 Oct 2025: Paige Estritori

In September 2025, Australian business conditions remained steady, according to the latest survey from National Australia Bank (NAB). The survey's business conditions index held firm at +8, while the business confidence index saw a slight increase of 3 points to +7, both figures sitting just above their long-term averages. - read more

RBA's October 2025 Review Highlights Financial System Resilience

13 Oct 2025: Paige Estritori

The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive assessment of the nation's financial system. The report affirms that Australia's financial institutions are well-equipped to navigate current global economic uncertainties. - read more

Australian Consumer Sentiment Declines in October 2025

13 Oct 2025: Paige Estritori

In October 2025, Australian consumer sentiment experienced a notable decline, marking the second consecutive month of reduced confidence. The Westpac-Melbourne Institute survey reported a 3.5% drop in the sentiment index, bringing it to 92.1. This follows a 3.1% decrease in September, indicating a growing sense of pessimism among consumers. - read more

Prime Capital Introduces 'Business Jumbo Loans' for SMEs

13 Oct 2025: Paige Estritori

In response to the growing demand for substantial business financing, Sydney-based non-bank lender Prime Capital has unveiled its 'Business Jumbo Loans' program. This initiative offers loans ranging from $5 million to $25 million, with interest rates starting at 8.64% and a loan-to-value ratio of up to 75%. Notably, the approval process is streamlined to provide decisions within 24 hours. - read more

Click for more Finance News