A surge in for-sale listings tipped to dampen home price growth
The forecast slowdown comes on the back of sharp increases in home values
3 min
The number of new for-sale listings has been stubbornly sluggish for much of the year, but there are growing signs would-be vendors are finally feeling confident to go to market.
New analysis indicates this surge in supply is likely to put the brakes on a renewed boom in property prices being seen across much of the country.
According to data from research firm CoreLogic, national home values rose 2.9 percent in the three months to July – the highest quarterly movement since January.
Across the capital cities, values were up 0.8 percent last month – down slightly from a 1.2 percent lift seen in June.
Prices are rising fastest in Sydney, with a whopping 4.5 percent jump in the three months to July.
Prices rose 4.2 percent in Brisbane in the quarter, while Adelaide and Perth each recorded a 3.2 per cent increase. Values in Melbourne were up two per cent.
“Home values are down 3.4 percent annually, but declines are quickly subsiding from an eight per cent drop in the year to March,” Eliza Owen, head of residential research at CoreLogic, observed.
Data shows the number of new listings nationally hit 33,616 in the four weeks to 30 July, trending slightly higher through the month, which she noted is unusual for this time of year.
“The flow of new listings added to the market has been rising since mid-June, in contrast to the usual seasonal trend where new vendor activity would be trending lower through the colder months.”
With more homes hitting the market ahead of the traditionally busy spring selling season, Paul Ryan, economist at data house PropTrack, said price growth could dampen in the months ahead.
“There have been some tentative signs that sellers are responding to continued strong buyer demand and higher prices by bringing more listings to market,” Mr Ryan said.
PropTrack modelling shows a low level of new listings could be responsible for as much as a quarter of the price growth seen this year, and the impact of low supply can be felt within a few months.
“This analysis suggests that a stronger flow of listings could weigh on home price growth later this year as the market gears up for the spring selling season,” Mr Ryan said.
“And importantly, it shows the impact on prices is likely to be felt quite quickly after any new listings are brought to market – within one to two months.”
Mr Ryan said property markets have “displayed a remarkable turnaround in 2023”.
“Home prices fell persistently over 2022, down 4.1 percent from April to December, during the sharpest episode of interest rate increases ever implemented by the Reserve Bank,” he said.
“But 2023 has seen national home prices increase each month, up 2.8 percent so far this year, despite continued increases in interest rates.”
One major factor for the rapid turnaround in price movements is the low supply of new listings hitting the market, he said. Buyer demand has remained strong.
“The flow of new listings over the first half of 2023 was around 15 percent below the level seen over the same period in 2022, which represents a significant decrease.
“By contrast, the total number of homes on the market has mostly drifted upward as homes take longer to sell compared to the strong market conditions in 2021.”
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out
2 min
Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.
Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.
The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.
Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.
Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.
“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”
Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.
“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”
Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.
All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.
Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.
The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.
The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
