RESIDENTIAL PROPERTY

Great expectations, sellers raise asking prices

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SYDNEY asking house prices rose by 6.1% over the month, as vendor confidence continues to rise.

According to SQM Research national residential property listings increased in April by 2.4% to 262,617, compared to 256,568 in March. However, compared to the same time in 2020, listings are down by 10.3%.

“We have also seen a strong rise in Sydney’s new property listings for the month, in part driven by having five weekends, but also because property owners are keen to take advantage of the buoyant conditions,” said Louis Christopher, managing director of SQM Research.

Canberra, Perth and Sydney reported the greatest monthly increases in property listings, with a respective 9%, 5.5% and 5.3% rise.

Meanwhile Hobart was the only capital to see a monthly decrease, with listings falling by 4.8%.

Melbourne increased by 4.1%, Adelaide by 3.3%, Darwin by 2.7% and Brisbane by 2.2%, while nationally listings increased by 2.4%.

“With low interest rates expected to prevail for some time yet, a benign end to Job Keeper and many households flush with cash, we expect to see moderate to strong activity in the housing market over this quarter, which will likely push house prices even higher,” said Christopher.

New listings dropped nationally by 2.8% in April, with 81,643 new properties entering the market, over the year new listings rose by 57.5%.

Hobart new listings also dropped the most, falling by 16%, Brisbane by 6.7%, Darwin by 6.2%, Adelaide by 3.6% and Perth by 1.4%.

Meanwhile Canberra, Sydney and Melbourne posted increases, at 10.7%, 4.8% and 1.8% respectively.

“Old listings continued to fall and that suggests that sales rates were still quite strong for the month despite the lift in prices and the Easter and school holiday periods causing some people to delay their property search,” added Christopher.

Nationally, old listings greater than 180 days fell by 1.3%, dropping in all capitals but Canberra with 9.5%.

In the 30 days to 4 May, national asking prices were up by 2.6% for houses and 0.2% for units, with an annual growth of 11.8%.

“Property owners have clearly responded to all the talk about a property boom and have aggressively lifted asking house prices over April, particularly in Sydney,” said Christopher.

Asking unit prices were up by 6.1%, driven by increases in the smaller capitals and regional areas.

Asking house prices in capital cities were up by 5.2% for the year, while unit asking prices fell by 1.8%.

In the capitals Sydney, Melbourne, Adelaide, Darwin and Hobart posted increases in asking house prices with 6.1%, 1.6%, 0.6%, 0.6% and 2.2% respectively.

While Brisbane, Perth and Canberra reported declines in asking house prices at 0.3%, 0.1% and 2.4% respectively.

Asking unit prices rose Brisbane by 0.4%, Perth by 0.1%, Adelaide by 2.3%, Canberra by 0.7%, Darwin by 1.0% and Hobart by 10.8%.

“We are, however, seeing ongoing oversupply of units in Sydney and Melbourne with falls in asking unit prices over the month, leaving some space open for first home buyers and investors to enter the property market,” said Christopher.

With Sydney and Melbourne posted losses of 0.5% and 0.3% respectively.

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