Property listings in Sydney and Melbourne are on the rise. Residential property in Australia is now collectively worth a mind-boggling AU$6 trillion.
This is thanks, in part, to the double-digit price growth in these two cities. Data released by CoreLogic revealed that Sydney featured the strongest annual growth in the country, recording a year-on-year growth of 18.4%. Property in Melbourne rose by 11.5% during the same period, while Brisbane rose by only 3.9%. In real terms, this means that the median price of property in Sydney is now 72% higher than property in Brisbane.
Although some argue the point, most agree that property markets in Sydney and Melbourne have ballooned into a bubble situation.
Recent reports have shown that properties are coming onto the market in record numbers. Nationally, these figures increased by 3.8% in July this year – up by 4.2% from 2014 stats. In Sydney, listing increased by some 18.5% during the same period, although it has to be said that listings in the capital are lower than levels recorded in Melbourne, Brisbane and Perth.
Nevertheless, SQM Research, an independent property advisory and forecasting research house, has noted that the rise in listings in both Sydney and Melbourne were “abnormal” for this time of the year, as listings are generally subdued during this time. The company’s MD Louis Christopher noted that the unseasonal early jump in listings ahead of the traditional spring selling season might be a sign that Australia’s two booming property markets are nearing their peak.