It’s clear the property sector is in the midst of a consolidation – something I have been predicting for a few months. I saw this coming because finance approvals were falling (there were fewer buyers applying for finance) at a time when there were more properties on the market.
BY MICHAEL YARDNEY
According to SQM Research residential property listings (properties for sale) increased in all cities during October with the market now flooded with more properties than during 2008.
SQM Research managing director Louis Christopher says the increase in listings is clear evidence the market is softening.
“It means the housing market is slowing down and we are expecting more listings to come into the market in November…. and that’s a huge increase,” he says.
Melbourne has recorded the largest increase in property listings over the quarter, with listings jumping by 20.2 per cent in the three months to October to a total of 26,521 houses and 9,547 units.
Listings jumped by 28.6 per cent over the year.
Sydney recorded the second largest increase for the quarter at 14.5 per cent, with listings at 20,012 houses and 12,370 units, representing a 12.6 per cent rise over the year. Canberra followed closely with a 14.2 per cent change for the quarter, along with a 33.1 per cent increase over the year.
In Brisbane there’s been a 50 per cent increase in stock levels year on year. Brisbane recorded a 12.6 per cent rise for the quarter with 24,412 houses and 5,787 units, while Darwin followed with a 12.5 per cent increase, with 949 houses and 612 units.
Hobart was the city with the smallest increase, with listings jumping only by 1.1 per cent during the October quarter, and by 19.1 per cent during the year. Sure there’s now an oversupply of properties on the market.
What these figures don’t show is the segmented nature of the markets. While the market is less buoyant than earlier in the year, good properties are still selling quickly however B and C class properties have been hit hard.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia’s leading experts in wealth creation through property. Subscribe to his e-magazine at www.propertyupdate.com.au. For more information about Michael visit www.metropole.com.au.