Brisbane new property listings lower than a year ago
According to the latest results from CoreLogic, the number of advertised properties for sale across Australia is far lower than it was 12 months ago. This reduction however is largely being driven by the regional housing markets rather than the capital cities.
Although new listings on a national level were 2.3% higher than a year ago, total listings were actually -6.0% lower. Across the combined capital cities, there were 23,138 new listings, which although was 5.7% higher than a year ago, total listings of 101,443 was -0.4% lower than a year ago.
So how do the three main Eastern seaboard states perform? We take a closer look at their current number of property lists available.
In Sydney, there is plenty of residential development work happening and cranes seem to be filling the skyline. It therefore comes as no surprise that Sydney’s new property listings have risen by almost 17% compared to a year ago, with total advertised stock rising to 21,300; 13.3% higher than 12 months ago.
With greater choice of available stock coming onto the marketplace, Sydney buyers are faced with more choice and less urgency to buy. However, property prices here are still expensive for many, with many Sydneysiders seeking investment properties or new homes interstate in order to enter the property market.
The Melbourne property market is also seeing an increase in listings, with new property listings up by 10.8% from last year, sitting at 7,091. The total number of listed properties for sale also sits at 27,191, which is 0.1% higher than this time last year.
However, although both new and total listings are higher than they were 12 months ago, both listings are lower than they were in 2015. And with Melbourne’s population exploding and expected to overtake Sydney as Australia’s most populous capital city by mid-century, the need for new listings strongly remains.
The Brisbane property market tells us a slightly different story. Brisbane is home to 3,906 new properties and a total of 19,547 properties listed for sale. However, new listings are -2.9% lower than this time last year and sit at their lowest level for this time of year since 2013.
Total listings are also -1.3% lower than they were 12 months ago, but they are higher than the preceding three years. The only capital city to have even less new listings compared to a year ago was Perth which saw a massive fall of 12.9%.
This goes against what the media is saying that Brisbane has an oversupply of new properties coming onto the market. There are plenty of new residential developments which are due for completion over the next year to two years, but there is still a growing need for new properties in Brisbane. This is mainly down to reduced dwelling approvals and an increase in population.
Brisbane dwelling approvals significantly declined
The number of dwelling approvals in Brisbane has significantly declined, mainly driven by rising construction costs, retraction in foreign investment and increasingly stringent development finance conditions.
Since mid-2014, the number of apartments approvals has been declining, with the reduction in the number of applications in Inner Brisbane declining by 95% between 2014 and 2017. This means that the number of dwelling completions evaporate almost entirely by 2019.
Foreign investors restriction
With the recent budget announcement stating that developers can only sell 50% of their development to foreign investors, this will also make it harder for a development to get off the ground, which in turn restricts new property supply.
Stringent lending also has a part to play where developers now require 90-95% of their project sold off the plan to commence construction. This means it takes longer between approval and commencement and many more projects commencements are being deferred or simply cancelled altogether.
Brisbane has highest internal net migration
In terms of population, Brisbane still leads the way out of all the capital cities for internal migration. According to the Australian Bureau of Statistics (ABS), Brisbane in FY2016, had the highest internal migration net gain out of all capital cities (10,149 people), whilst Sydney lost 23,179 people. One of the reasons for this is due to Sydney’s ever-increasing property prices which are driving people to move interstate in search of more affordable homes, which Brisbane fortunately has.
With many more major infrastructure and developments underway in Brisbane including the $3 billion Queens Wharf, Brisbane Airport Redevelopment and the Brisbane Live Entertainment Arena, many more people will be attracted to move here.
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Emily is one of our friendly agents who can assist you with your all important off the plan property purchase in Melbourne, Sydney and Brisbane.
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