Home buyers are gearing up for a busy spring market, with interest rate cuts boosting confidence and increasing the likelihood of stronger competition for properties around the country.
Real estate agents from each capital city are expecting greater buyer activity over the next three months, fuelled by the three rate cuts delivered so far and the prospect of more cuts to come later in the year.
REA Group executive manager of economics Angus Moore said home prices were already on the move heading into this spring selling season.
“Spring is usually the busiest time of year for the property market, and we usually see activity start to ramp up over August and September,” he said.
“Heading into this spring, we’ve seen rate cuts and we’re starting to see more price growth, especially in places like Sydney and Melbourne.”
Spring is normally the busiest period of the year for the property market. Picture: Getty
The latest home price data showed the national median home price reached a record high of $827,000 in July, up 4.9% over the past year, according to the latest PropTrack Home Price Index.
Australia’s capital city property markets vary greatly, so we’ve gathered the latest real estate outlooks from experts for each capital city.
Jump to your city
Sydney spring property outlook
In Sydney, Ray White Upper North Shore real estate agent Jessica Cao said there had been more buyer activity since July.
“We’ve been seeing stronger numbers at open homes and more registered bidders at auctions,” she said.
“At the past few auctions, I’ve had four to five registered bidders at each auction, which is great.
“Let’s hope the market will continue to improve and get stronger and stronger.
The three-bedroom house at 2 Roach Avenue, Thornleigh in Sydney recently sold under the hammer for $1.95 million, attracting six bidders at the auction. Picture: Supplied
“Over the past few years, the market has been pretty staggering, so we are looking forward to a very strong spring period and into next year.”
Sydney’s median house price was up 3.4% year-on-year (YoY) to $1.564 million in July, while the city’s median unit price was 3.2% higher at $860,000 for the same period.
In Sydney, new property listings were 5.3% lower YoY in July, while total listings were 2.2% higher, according to the latest data from PropTrack.
Melbourne spring property outlook
Melbourne home prices have been on the move this year after some challenging years, and agents were hopeful that the momentum would continue into spring.
The Melbourne median house price rose 2.2% to $983,000 during the year to July, while the median unit price was down 0.6% at $609,000 over the same time.
Real estate agent and director at Ray White – The Bayside Group, Kevin Chokshi, said there were promising signs for Melbourne’s property market.
“We’re seeing positive signs at opens and auctions, and there’s more confidence out there,” he said.
The three-bedroom house at 2 Blossom Street, Mitcham in Melbourne recently went to auction, attracting five bidders and selling under the hammer for $1.241 million. Picture: Realestate.com.au/sold
Mr Chokshi said his team had seen more homes sold before auction over the past quarter than any previous quarter in the past few years – a sign that buyers were starting to feel a sense of urgency.
“There are subtle cues emerging among buyers from the interest rate cuts, there’s more confidence and positive sentiment… so it’s going to be a strong spring and a strong year next year” he said.
New property listings in Melbourne were 9.4% lower YoY in July, while total listings were down 10.5%.
Brisbane spring property outlook
Brisbane remains a hotspot heading into spring, but sellers have been holding back as they struggle to find their next home or consider sitting tight to reap the benefits of the upcoming 2032 Olympic Games.
Units were leading the way in Brisbane, with the median unit price growing 13% YoY to $715,000 during the year to July, while house prices rose by 7.8% to $1.067 million.
Matt Lancashire, real estate agent and sales principal at Ray White – New Farm, said the upcoming spring market would be largely driven by local supply and demand levels.
“Across the board in Brisbane, we’re down 30% on new listings coming to market and we’re up by 60% on enquiries,” he said.
Four bidders recently competed for the five-bedroom house at 8 Howard Street, Grange in Brisbane, which sold for $3.315 million. Picture: Supplied
“It’s like a perfect storm for sellers and agents, but the problem is that it’s hard to get stock.”
Mr Lancashire said Brisbane had likely seen the majority of its price growth in 2021, when the pandemic drove a surge in home prices.
The 2032 Brisbane Olympic Games and the infrastructure being built to accommodate the games were likely to attract more buyers to the city over the coming years too, he said.
Adelaide spring property outlook
Adelaide’s property market has been a star performer in recent years, but demand in some parts of the city’s market was starting to ease.
Adelaide’s median house price rose 9.5% to $916,000 over the year to July, while unit prices grew by 8.4% to $632,000 over the same period.
Ray White Burnside director and real estate agent Brandon Pilgrim said the higher end of Adelaide’s property market was getting tougher.
The three-bedroom house at 8 Rawson Street, Alberton in Adelaide attracted four registered bidders and sold for $1.225 million. Picture: Realestate.com.au/sold
“The market we have is still good, but there are parts of it that have become quite tough,” he said.
He said homes at the higher end of the market that had flaws like quirky floorplans may struggle in the current market.
On the other hand, Mr Pilgrim said the market was still hot for homes at lower price points and anything with land, citing high demand from property developers.
In Adelaide, new property listings were 4.1% lower in July than the same time last year, while total listings were up 5.1%.
Perth spring property outlook
In Perth, buyers should see more homes hit the market this spring, but they are likely to see greater competition as well due to this year’s interest rate cuts.
Real estate agent and sales associate at Peard Real Estate – Hillarys, Gemma Andrews, said Perth’s property market remained fiercely competitive.
“Well-presented homes in desirable or coastal locations continue to drive price growth, while rising vacant land prices and building costs are also contributing to higher house values,” she said.
“We expect a rise in listings as part of the seasonal market cycle, providing more opportunities for buyers.
There were eight bidders at the recent auction of 57 Elsie Street, Watermans Bay in Perth, which sold under the hammer for $2.652 million. Picture: Supplied
“At the same time, any easing in interest rates is likely to increase borrowing capacity, which could further stimulate buyer activity and maintain a competitive market environment.”
Unit price growth has been outpacing houses in Perth, with the median unit price up 11.4% YoY to $584,000 in July, compared to annual median house price growth of 7.3% ($926,000).
New property listings in Perth were 11.2% lower YoY in July, while total listings were up 6.6%.
Hobart spring property outlook
A shortage of homes for sale in Hobart has been increasing competition among buyers in the lead up to the spring selling season.
In Hobart, new property listings were down 13.5% YoY in July, while total listings were 10.3% lower.
Bec Owens, real estate agent and sales manager at Peterswald, said the supply of homes for sale in Hobart was quite low.
“We’re back into a position of having multiple buyer interest more often on our listings than we have had previously,” she said.
“We expect that our spring is looking shaping up to be quite busy, particularly if we do get another boost in confidence from further interest rate cuts.
“The rate cuts that we’ve already have started to give people a bit more confidence to move forward with transactions.”
Ms Owens said spring was normally a busy listing time for sellers, but vendors appeared to be holding off from launching so far.
The median house price in Hobart increased 2.7% to $710,000 over the year to July, while unit prices jumped 5.1% to $581,000.
Canberra spring property outlook
In Canberra, real estate agent and principal/director at Hayman Partners, Brett Hayman, was seeing steady home price growth and market activity.
Mr Hayman said there was moderate house price growth in Canberra, while unit price growth had been under pressure due to an oversupply of units in the city.
“Normally, we’re listing a lot more for spring, but we think it might be a slower start to spring this year,” he said.
The six-bedroom house at 42 Jennings Street, Curtin in Canberra recently traded for $1.95 million. Picture: Realestate.com.au/sold
“I think things will heat up after the Labour Day long weekend in early October.
“We’re sensing that people are still waiting for more interest rate cuts before making their final decisions.”
Canberra’s median house price was slightly higher, up 0.7% to $959,000 during the 12 months to July, while unit prices were 2.4% lower over the same period ($590,000).
In Canberra, new property listings had decreased 0.4% in July, compared to the same time last year, while total listings were 1.1% higher.
Darwin spring property outlook
Affordable property prices and increasing rents have been attracting plenty of investors to Darwin’s property market lately, according to Elders Top End Group real estate agent Derek Hart.
The median house price in Darwin has grown 6.5% to $604,000 during the year to July, while unit prices were up 7.4% to $410,000 during the same period.
Mr Hart said the Darwin property market was the most buoyant it had been in the 18 years he had been selling homes.
Six bidders fought for the five-bedroom house at 52 Gumunggwa Street, Lyons in Darwin, which sold at auction for $1.12 million. Picture: Realestate.com.au/sold
“We don’t just have local buyers now, we have investors coming into Darwin, and it’s increasing prices,” he said.
“We’ve got the cheapest properties out of the capital cities and some of the highest rents, so the yield returns are a huge attraction for investors.
“As rents continue to rise, more local buyers are getting into the market too because sometimes it’s just cheaper to buy than rent.
“We’ve got a lack of supply here, so I think prices are going to continue to rise.”
In Darwin, new property listings were down by 9.9% YoY in July, while total listings were 40.7% lower.