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: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Pioneering Australia's First Fully Electric Passenger Ferry

09 Jun 2026: Paige Estritori

In a groundbreaking development for Australia's marine industry, Aus Ships and Volvo Penta have announced their collaboration to construct the nation's first fully electric passenger ferry. This initiative signifies a major advancement in sustainable marine transportation, aligning with global efforts to reduce carbon emissions and promote eco-friendly alternatives. - read more

Pioneering Australia's First Fully Electric Passenger Ferry

09 Jun 2026: Paige Estritori

In a groundbreaking development for Australia's marine industry, Aus Ships and Volvo Penta have announced their collaboration to construct the nation's first fully electric passenger ferry. This initiative signifies a major advancement in sustainable marine transportation, aligning with global efforts to reduce carbon emissions and promote eco-friendly alternatives. - read more

Australia's Marine Sector Confronts Severe Workforce Shortages

25 May 2026: Paige Estritori

The Australian marine industry is currently grappling with a significant shortage of skilled labour, a challenge that is affecting operational capacities and financial performance across the sector. According to the 2026 National Jobs & Skills Survey conducted by the Boating Industry Association (BIA), more than 90% of marine businesses have expressed deep concern over the lack of qualified personnel. - read more

Whittley Marine Launches CR 3100 OB at Sanctuary Cove

25 May 2026: Paige Estritori

Whittley Marine Group has introduced its latest innovation, the CR 3100 OB, at the 2026 Sanctuary Cove International Boat Show. This 31-foot outboard-powered cruiser is designed to offer a blend of overnight accommodation, trailerable practicality, and extended cruising capabilities, all within Australia's 2.5-metre maximum width regulations. - read more

Sydney Boat Show 2026: A Premier Marine Event at Olympic Park

25 May 2026: Paige Estritori

The Boating Industry Association Ltd (BIA) has announced that the 2026 Sydney Boat Show will be held from 30 July to 2 August at the Sydney Showground, Sydney Olympic Park. This four-day event is poised to transform the world-class precinct into a vibrant showcase of the boating, fishing, and marine lifestyle. - read more

ASMEX 2026: Elevating Australia's Marine Industry

17 May 2026: Paige Estritori

The Australian Superyacht, Marine Export and Commercial Marine Conference (ASMEX) is set to return to the Gold Coast on 19-20 May 2026, promising two days of industry connection, business insight, and celebration for Australia's marine sector. - read more

Click for more Finance News