RESIDENTIAL PROPERTY

Sellers discounting further as listings keep rising

Photo: Note Viriyarat (Copyright Australian Property Journal)
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THE spring selling season is going to be a “very tough one” for vendors and their agents, as listings grew in July by 7.1% amid weakening market conditions.

SQM Research data shows the largest monthly rises in property listings were Brisbane, of 11.1%, followed by Adelaide (9.9%), Canberra (9.6%) and Hobart (9.0%).

The major markets of Sydney and Melbourne were up 6.0% and 4.9% respectively, while Perth was up 5.5% and Darwin by 3.8%.

Sydney’s listings in July were 24.1% higher than a year ago, and Hobart’s by a whopping 40.4%.

New listings rose 1.8% over July, with Darwin down 37.7% and Hobart 10.4%. Property listings over 180 days rose by 0.6%, with a 16.8% increase in Hobart. However, listings between 31 and 180 days rose by 14.1%, indicating a surge in unsuccessful sales campaigns for the month and year to date.

SQM Research now anticipates a rapid rise in total listings for the remainder of 2022.

“Vendors were largely unsuccessful in their selling efforts over July. There is now a clear trend across all cities of rising listings which is being driven by lower buyer interest and is ultimately symptomatic of the national housing downturn,” SQM Research managing director Louis Christopher said.

“I think the spring selling season is going to be a very tough one for property sellers and their respective agents. While asking prices have been adjusting downwards since February, there will need to be further compromise if property vendors do want to sell this spring.

Australian house prices are falling at their fastest rate since the early 1980s recession, and AMP Capital chief economist Shane Oliver believes interest rates rising to 3.5% could see 30% wiped off values.

According to SQM Research, capital city asking house prices fell 0.8% over the month to 2nd August, while unit prices fell 0.3%. Sydney saw the largest falls with a 1.3% decline in asking prices, while Melbourne was down 0.5% and Brisbane 0.1%.

Darwin recorded the largest rise in asking prices of 3.7%. Hobart was up 1.2%.

Distressed listings also rose, up from 6,014 recorded in June to 6,257. The rise was driven by Queensland (up 6.4%) and NSW (up 5.8%). However, the rise is from an extraordinarily low base – just prior to COVID, there were some 15,000 properties selling under distressed conditions.

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