With the real estate market in Australia shifting, now may present both challenges and opportunities for buyers. The traditional distinction between buyers’ and sellers’ markets is becoming less clear, with conditions varying greatly by location and property type.
Market Snapshot
In Melbourne, the market currently favors buyers. Over the past three months, there were 26,590 new listings and 21,145 property sales. This surplus of available homes means buyers have more choices, which has created a buyers’ market. Sydney, however, is more balanced, with sales and new listings nearly equal, leaning slightly in favor of sellers. Other cities, such as Brisbane, Perth, and Adelaide, remain strong sellers’ markets, where competition is high, and prices continue to rise.
High interest rates have reduced borrowing power for many potential buyers, yet prices have remained steady, creating affordability issues. Despite these challenges, opportunities exist for discerning buyers, especially those willing to compromise on certain property features. According to experts, quality homes in desirable locations still attract strong prices, while less sought-after areas may offer better deals.
Rental Market Trends
Sydney’s rental market has also taken a surprising turn. While much of the city still struggles with rental shortages, certain areas—particularly high-rise and beachside locations—have seen a significant rise in vacancies, turning them into tenant-friendly markets. Some landlords are offering incentives such as “rent-free” periods of up to four weeks to attract tenants in these areas.
This contrasts sharply with Sydney’s middle and outer suburbs, where demand for affordable rentals is higher, leaving few vacancies. Analysts suggest that this trend may continue for the next few months, with some areas still likely to see rent increases.
Looking Ahead
As spring approaches, new property listings are expected to increase across Australia. This uptick in supply, combined with high interest rates, could give buyers more leverage in certain markets. However, affordability remains a significant concern, and experts advise buyers to stay informed about local conditions before making a purchase.
Whether you’re looking to buy, sell, or rent, now is the time to assess your options carefully. The market is changing, and those who stay ahead of these trends will be best positioned to succeed in this dynamic environment.
This newsletter provides a brief overview of the current real estate market trends, helping you stay informed and make the best decisions for your property needs. If you have any questions or would like assistance, feel free to contact us for personalised advice and support.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 24 August 2024
