Capital Cities Face a Shifting Housing Landscape

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

This new data also highlights a considerable increase in the number of homes being listed for sale in both Sydney and Melbourne. Listings in Sydney alone rose by 6.7% compared to the same period last year, while Melbourne saw a more modest increase of 1.1%.

Eliza Owen from CoreLogic attributes this shift to changing market dynamics. "This time of the year is typically slow in terms of demand, but this goes beyond seasonality," she explains. According to Owen, the increase in listings and the apparent lack of eager buyers may be early indicators of growing mortgage stress among homeowners.

Owen suggests, "There’s less appetite from buyers, but more sellers are coming into the market, which could indicate rising mortgage stress." This sentiment is echoed by Cate Bakos, a buyer's agent in Melbourne, who believes, "Prices can’t be expected to grow while we have higher stock levels and weaker buyer demand."

Interestingly, Brisbane and Perth have reported a deceleration in dwelling value growth, maintaining a rate of just 0.3% over the past four weeks. Such trends suggest a potential buyers’ market, particularly in Brisbane, where supply has surged and demand has slowed, according to Zoran Solano of Hot Property Buyers Agency. "For me as a buyer’s agent, it’s a positive sign that the power has shifted back a little bit towards buyers," she observes.

Further analysis from The Australian Financial Review indicates that property values in Brisbane are declining in one out of seven suburbs, the highest rate in almost two years. CoreLogic’s Tim Lawless sees this as a sign that prices may continue to ease due to increased listings, reduced interstate migration, and affordability challenges. "The market is likely to continue to ease, and we could see prices moving into a subtle decline before interest rates come down," he remarks.

AMP chief economist Shane Oliver predicts a similar trend, highlighting Brisbane as a market where values might soon turn negative, following the pattern seen in Sydney and Melbourne. "Brisbane looks to me like a really soggy market and I wouldn’t be surprised if house prices go negative in the next couple of months," Oliver comments.

Oliver also suggests that potential interest rate cuts could reverse this downward trajectory. "A rate cut could turn that downward momentum around, so if it occurs in February it has the potential to head off a dip into negative territory for Brisbane prices," he explains, warning that delays in rate cuts might extend the price downturn.

Meanwhile, PropTrack notes an 80% spike in Brisbane home values since the pandemic’s onset in March 2020, which has positioned Brisbane as Australia’s second most expensive housing market by median value. However, rising prices, slowing migration, and worsening affordability may soon turn Brisbane into the latest domino to fall in the nation’s housing saga.

Published:Tuesday, 28th Jan 2025
Author: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Avan & Golf Caravans Forge Multi-Year Partnership with Outdoor Living & Caravan Expo

25 Mar 2026: Paige Estritori

In a significant development for Australia's caravan industry, Avan & Golf Caravans have entered into a multi-year national partnership with the Outdoor Living & Caravan Expo. This collaboration is set to enhance the profile and reach of caravan and outdoor lifestyle events across the country. - read more

South Australia's Premier Caravan and Camping Event Returns in 2026

25 Mar 2026: Paige Estritori

South Australians are embracing a shift towards local adventures and road trips, and the upcoming Caravan, Camping & Outdoor Show at the Adelaide Showground is set to cater to this growing trend. Scheduled from 25 February to 1 March 2026, this event stands as the state's official industry gathering, bringing together a vast array of resources for road trip enthusiasts. - read more

Rise of Chinese-Built Caravans in the Australian Market

25 Mar 2026: Paige Estritori

The Australian caravan market is experiencing a notable shift as Chinese-built caravans gain a stronger foothold, coinciding with a reported downturn in sales among local manufacturers. This trend is reshaping the landscape of the industry and presents both challenges and opportunities for consumers and manufacturers alike. - read more

Camplify Reports Unprecedented Demand for Caravan Rentals

17 Mar 2026: Paige Estritori

As international travel costs continue to rise, many Australian families are seeking more affordable holiday alternatives. This shift has led to a significant increase in demand for caravan rentals and camping trips across the country. - read more

Australian Families Opt for Caravan Holidays to Combat Rising Travel Costs

09 Mar 2026: Paige Estritori

In response to escalating travel expenses, a growing number of Australian families are choosing caravan holidays as a more affordable alternative. This trend has led to a significant increase in demand for caravan rentals and camping trips across the nation. - read more

Click for more Finance News