A new analysis of Australia's property market conditions has revealed the five regions that most favour vendors and those where buyers hold the power.
The Commonwealth Bank-CoreLogic Home Buyers Index (HBI) is based on the ratio of properties available for sale compared with the number of CBA housing loans for the region.
The report revealed a slight shift towards buyers over the period between February and April 2015 – but overall, the national property market remains balanced between buyers and sellers, with marked variations in market conditions across the states, territories and capital cities.
According to the report, Queensland, Western Australia, Tasmania and Northern Territory offer the best conditions for buyers at a state and territory level, with all the other states and territories showing balanced conditions.
Across the state capitals, one of the most significant shifts is in Adelaide, which has gone from balanced market conditions to those favouring sellers, with mortgage applications rising in the city while housing stock remains steady. Sellers continue to have the upper hand in Sydney and Melbourne, although Sydney has moved slightly in favour of buyers.
The most favourable conditions for buyers among the state capitals are to be found in Brisbane, Hobart and Darwin, while Perth and Canberra remain balanced between buyers and sellers.
The top five best buyer’s markets in Australia are:
1. South West, Qld
2. Northern, SA
3. Wide Bay-Burnett, Qld
4. Southern, TAS
5. South Eastern, WA
The top five best seller’s markets in Australia are:
1. Sydney, NSW
2. Central Highlands, Vic
3. Melbourne, Vic
4. Adelaide, SA
5. Ovens-Murray, Vic
Within Sydney, the report revealed there are five “extreme seller’s markets” (Blacktown, central-western Sydney, Fairfield-Liverpool, inner Sydney and outer-western Sydney), seven “seller’s markets” (Canterbury-Bankstown, central-northern Sydney, eastern suburbs, lower-northern Sydney, northern beaches, outer-western Sydney and St George-Sutherland), two balanced markets (inner-western Sydney, Gosford-Wyong) and no “buyer’s markets”.
Melbourne had more “balanced markets” than Sydney – offering up four options in this category (Boroondara City, eastern-middle Melbourne, inner Melbourne and Mornington Peninsula Shire). The city also has seven “seller’s markets” (Frankston City, Greater Dandenong City, Moreland City, northern-middle Melbourne), southern Melbourne, western Melbourne and Yarra Ranges Shire Part A), five “extreme seller’s markets” (eastern-outer Melbourne, Hume City, Melton-Wyndham, northern-outer Melbourne and south-eastern outer Melbourne) and no “buyer’s markets”.
Brisbane is currently offering investors numerous options for buyers, and, according to the report, has no “seller’s markets”. Instead, the city and its surrounds has five balanced markets (northwest inner Brisbane, northwest outer Brisbane, Pine Rivers Shire, southeast inner Brisbane and southeast outer Brisbane), six “buyer’s markets” (Beaudesert Shire Part A, inner Brisbane, Ipswich City, Logan City, Redcliffe City and Redland Shire) and one “extreme buyer’s market” (Caboolture Shire).
All regions of Adelaide (eastern, northern, southern and western) were listed as “seller’s markets” and all regions in Perth were listed as “balanced” with the exception of central metropolitan Perth, which the report said was a “buyer’s market”.
Cameron Kusher, senior research analyst at CoreLogic RP Data, said the best opportunities for buyers are found away from the state capitals.
“Sydney and Melbourne have typically been two of the toughest markets for buyers and the latest HBI report reveals that Adelaide has also tipped in favour of sellers,” Mr Kusher said. “However, the state capitals of Darwin, Hobart and Brisbane offer better opportunities for buyers.
“Overall, the best buyer’s markets lie outside the capital cities in regions linked to the mining sector, with Queensland and Western Australia particular stand-outs. Keep in mind that these regions are seeing high supply coupled with low demand due to the slowdown in the resources sector. While they may be good for buyers, their immediate prospects are generally weak.”