Real estate listings jump in Sydney, fall in Melbourne

Real estate listings jump in Sydney, fall in Melbourne

New property data suggests the Sydney market might be cooling but that the Melbourne market shows no sign of slowing.

SQM Research has found that more Sydney properties have been coming onto the market, which is something that generally puts downward pressure on prices.

Sydney had 26,197 property listings in May, according to SQM, which was up 5.9 per cent on the previous month and 2.0 per cent on the previous year.

Melbourne had 30,070 listings during May – a drop of 1.2 per cent on the month and 19.5 per cent on the year.

“The Sydney rise of 5.9 per cent is a little on the weaker side and I also note the monthly decline in asking prices of 1 per cent for that city,” SQM managing director Louis Christopher said.

“While it is still too early to call a slowdown in Sydney at this stage, we are watching this market closely as there has been increasing evidence of a possible slowdown.

“Meanwhile, the listings activity and asking prices out of Melbourne suggest there were very robust market conditions throughout May. To record a 1.2 per cent decline in listings plus a near 6 per cent surge in asking prices for houses is about as strong as it gets.”

City May listings Monthly change Annual change
Sydney 26,197 5.9% 2.0%
Melbourne 30,070 -1.2% -19.5%
Brisbane 28,985 3.2% -1.0%
Perth 25,540 0.6% -0.4%
Adelaide 15,777 1.3% -6.8%
Hobart 2,925 -5.7% -18.9%
Canberra 3,489 0.5% 2.7%
Darwin 2,071 3.0% -2.8%
Australia 324,041 0.5% -7.5%

Listings rise modestly across Australia

Melbourne and Hobart were the only capital cities not to report a monthly increase in listings during May.

“Normally, May listings increase over April due to the multiple holiday periods in that month. So a 0.5 per cent list for May is actually quite modest,” Mr Christopher said.

“The listings data suggests the national market was still relatively strong over the course of May.”

What’s happening in Melbourne?

SQM Research’s finding of strong activity in Melbourne contradicts recent data from CoreLogic, which reported that Melbourne’s median price fell 1.7 per cent during May.

CoreLogic also reported that Sydney’s median price fell 1.3 per cent over the month and was flat over the quarter.

In annual terms, Melbourne prices rose 11.5 per cent while Sydney prices rose 11.1 per cent.

Did you find this helpful? Why not share this news?

Advertisement

RateCity

Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the ratecity.com.au Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

Advertisement

Learn more about home loans

Mortgage Calculator, Repayment Frequency

How often you wish to pay back your lender. 

How common are low-deposit home loans?

Low-deposit home loans aren’t as common as they once were, because they’re regarded as relatively risky and the banking regulator (APRA) is trying to reduce risk from the mortgage market.

However, if you do your research, you’ll find there is still a fairly wide selection of banks, credit unions and non-bank lenders that offers low-deposit home loans.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

What is bridging finance?

A loan of shorter duration taken to buy a new property before a borrower sells an existing property, usually taken to cover the financial gap that occurs while buying a new property without first selling an older one.

Usually, these loans have higher interest rates and a shorter repayment duration.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

What is a specialist lender?

Specialist lenders, also known as non-conforming lenders, are lenders that offer mortgages to ‘non-vanilla’ borrowers who struggle to get finance at mainstream banks.

That includes people with bad credit, as well as borrowers who are self-employed, in casual employment or are new to Australia.

Specialist lenders take a much more flexible approach to assessing mortgage applications than mainstream banks.

What is the average annual percentage rate?

Also known as the comparison rate, or sometimes the ‘true rate’ of a loan, the average annual percentage rate (AAPR) is used to indicate the overall cost of a loan after considering all the fees, charges and other factors, such as introductory offers and honeymoon rates.

The AAPR is calculated based on a standardised loan amount and loan term, and doesn’t include any extra non-standard charges.

What is the amortisation period?

Popularly known as the loan term, the amortisation period is the time over which the borrower must pay back both the loan’s principal and interest. It is usually determined during the application approval process.

Mortgage Calculator, Interest Rate

The percentage of the loan amount you will be charged by your lender to borrow. 

What is breach of contract?

A failure to follow all or part of a contract or breaking the conditions of a contract without any legal excuse. A breach of contract can be material, minor, actual or anticipatory, depending on the severity of the breaches and their material impact.

What is a redraw fee?

Redraw fees are charged by your lender when you want to take money you have already paid into your mortgage back out. Typically, banks will only allow you to take money out of your loan if you have a redraw facility attached to your loan, and the money you are taking out is part of any additional repayments you’ve made. The average redraw fee is around $19 however there are plenty of lenders who include a number of fee-free redraws a year. Tip: Negative-gearers beware – any money redrawn is often treated as new borrowing for tax purposes, so there may be limits on how you can use it if you want to maximise your tax deduction.

What is appreciation or depreciation of property?

The increase or decrease in the value of a property due to factors including inflation, demand and political stability.

Savings over

Select a number of years to see how much money you can save with different home loans over time.

e.g. To see how much you could save in two years by switching mortgages,  set the slider to 2.

Do other comparison sites offer the same service?

Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.