The start of 2025 has brought notable shifts in the property market, with listings surging across several regions nationwide. According to PropTrack, listings have increased by 7.9%, fueling speculation about the impact on property prices.
Traditionally, December sees a seasonal dip in new listings, but December 2024 bucked the trend, with total listings up 5.7% year-on-year. Key capital cities such as Sydney, Melbourne, and Perth experienced particularly strong growth, with total listings climbing 12.7%, 8%, and 5.9%, respectively. However, new listings during December showed slight declines compared to the previous year: Sydney (-2.5%), Melbourne (-3.0%), and Brisbane (-8.4%).
This rise in listings has slowed price growth in many areas. Yet, significant variation exists between cities and even within regions, underscoring the complexity of the evolving market.
What’s Driving the Rise in Listings?
A primary factor behind the increase in listings is financial pressure on homeowners. In cities like Sydney and Melbourne, high holding costs and rising interest rates have become unmanageable for many, prompting a wave of downsizing and relocations. Melbourne, in particular, has seen a substantial number of investors exiting the market.
Sydney and Canberra, two of the country’s least affordable markets, are experiencing some of the largest supply increases. In contrast, regions like Queensland and Perth continue to see tight supply levels.
The lingering effects of the COVID-19 pandemic also play a role. During the pandemic, uncertainty caused listings to plummet as people held onto properties. It has taken years for supply and demand to start rebalancing across the country.
A Regional Perspective
Supply is adjusting to meet shifting demand. For example, economic growth and job opportunities are attracting buyers to Western Australia and the Northern Territory. Meanwhile, affordability issues are shaping the dynamics in other areas.
For buyers, this means a more selective approach is crucial. While rising listings can provide more options, the focus should be on regions with low supply and high demand, as these areas are more likely to deliver strong growth.
Finding Opportunities Amid Rising Listings
Even within individual cities, market performance varies significantly. In Melbourne, some pockets offer affordable, foundational investment opportunities. These areas, with strong fundamentals, are ideal for long-term growth and could see substantial upside as the broader Melbourne market regains momentum.
For those seeking short-term, high-growth opportunities, regions like Darwin, regional Queensland, and Perth may appeal. These areas have the potential for double-digit returns, but they come with increased risk and are nearing the peak of their growth cycles.
The Gold Coast remains an attractive option for investors. As a landlocked region close to Byron Bay and Brisbane, it continues to draw buyers and investors. Its affordability, lifestyle appeal, and strong demand from interstate relocators make it a prime market for long-term growth.
The Takeaway for Investors
While rising supply and slowing price growth dominate headlines, these statistics represent market averages. Savvy investors can identify outperforming locations and build solid portfolios. For example, focusing on areas with strong fundamentals, tight supply, and high demand can yield significant results.
Every market cycle has opportunities. By looking beyond the headlines and focusing on specific regions and properties, you can position yourself for long-term success in the ever-evolving property market.