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Thinking of selling? Tight supply and competition push prices higher
Vendors are entering spring in a strong position, with low competition and heightened buyer demand driving rising prices across most regions.
The latest Cotality Home Value Index data showed that national home prices grew by 0.7 per cent in August, marking the highest monthly gain since May 2024, which drove annual dwelling growth to 4.1 per cent.
Cotality Australia’s research director, Tim Lawless, said that housing values are upward as demand outpaces supply, with sales above average and listings still well below typical levels.
“The annual trend in estimated home sales is up 2 per cent on last year and tracking almost 4 per cent above the previous five-year average. At the same time, advertised supply levels remain about -20 per cent below average for this time of the year,” Lawless said.
Across the country, mid-sized capitals have continued to lead the price growth, with Brisbane recording a 1.2 per cent increase in August and a 7.9 per cent annual increase.
McGrath Bulimba principal and sales agent, Tony O’Doherty, said that the Queensland spring market will be a seller’s market.
“With rising interest rates and limited stock, this spring is shaping up to be highly favourable for sellers,” O’Doherty told SPI.
“Buyers currently are showing greater urgency, as there is evidence that prices are on the rise which they are aware of. Being in a low-stock environment, buyers are being priced upward.”
“Family homes with strong floor plans are attracting the most interest, and in the past week alone, we’ve sold properties ranging from $1,560,000 to $4,450,000. Well-presented homes are performing exceptionally well,” he said.
On the other side of the country, Perth dwellings followed suit, with Cotality data recording a 1.1 per cent growth over the month and a 6.6 per cent increase over the last 12 months.
Hartanto Properties Western Australia principal, Eric Hartanto, said the state property market will continue to be strong in spring.
“Traditionally, sellers are more motivated at this time of year, as the warmer weather and blooming gardens showcase homes at their best, which aligns with buyers’ increased willingness to get out and inspect properties,” Hartanto told SPI.
He said that with stock levels remaining at record lows, stronger competition among buyers and shorter selling campaigns have been expected, especially for in sought-after suburbs.
“Buyer interest is expected to stay pretty strong, especially in the market for mid-range family homes and well-established suburbs that are close to schools, transport, and shopping areas.
“Buyers will be keen on properties that offer real value – like reasonably priced family homes, townhouses perfect for downsizing, and apartments with great lifestyle perks,” Hartanto said.
Cotality data showed that Darwin property values rose by 1 per cent in August, reaching a 10.8 per cent price increase since January, the highest gain across the nation.
Lawless said that Darwin has become a hub for investors.
“It seems that investors are willing to look through the volatile history of Darwin housing trends, with investors attracted to the low price points and high yields. Lending to this segment has more than doubled over the past year,” Lawless said.
“Additionally, listings are extraordinarily low, down about 50 per cent on the five-year average.”
Adelaide wasn’t far behind, recording a 0.9 per cent lift in home values in August and a 6.5 per cent growth annually.
South Australian director and auctioneer at Noakes Nickolas, Simon Noakes, said that Adelaide’s market is set for a strong spring, with buyer demand likely to stay high despite more listings, following winter’s tight supply and rising prices.
“We’re seeing strong demand for low-maintenance homes, townhouses, and units in the sub-1 million range which is flooded with buyers due to affordability,” Noakes told SPI.
“[Additionally], family homes in blue-chip suburbs and well-renovated character properties are going to draw the most interest, especially around school zones.”
In the larger capital cities, Sydney and Brisbane recorded a 0.8 and 0.3 per cent rise in home values, respectively, reaching a 2.1 and 1.4 per cent annual increase.
Data showed that Tasmania was the only state not to record growth in August, with Hobart values down 0.2 per cent.
Lawless said housing values are rising broadly and gaining momentum since the February rate cut, with strong demand set to carry growth into spring despite tight supply.
He said spring will bring a lift in new listings from a low base, offering buyers more choice after a period of tight supply.
“While a rise in advertised stock levels will test the depth of housing demand, there is a good chance purchasing activity will continue to outpace available supply,” Lawless concluded.
