A flood of new homes hit the Sydney property market last month, it was nuts

More new craziness in Aussie property for fans of both to chew over: new listings in Sydney last month are up a ludicrous 21.3% year-on-year, according to data published on Friday.

REA Group’s PropTrack listings report for September shows the total number of homes hitting the market lifted strongly compared to a year ago, with new for sale listings sitting 4.5% higher on this time in 2022, the start of the annual Spring residential property carnival.

PropTrack’s suggests the usually busy Aussie home-selling season of Spring is going to be a lot busier than usual – with Sydney, Melbourne and Canberra driving the acceleration in new listings.

East vs West: Sydney up +21.3%, Perth down -12.8%

Despite the overall rise, there are significant differences by state.

Australia’s three most expensive capital cities – Sydney, Melbourne and Canberra – have seen the highest year-on-year growth in new listings.

Selling activity has picked up the most in Sydney, with new listings up 21.3% year-on-year. Melbourne and Canberra followed, with new listings up 10.1% and 4.9% respectively.

Perth, in contrast, saw new listings fall 12.8% year-on-year, the largest drop of any capital city. The only other cities to see a decline in new listings over the past 12 months were Darwin, down 11.3%, and Brisbane, down 4.2%.

The number of new listings across Australia’s combined capital cities was 5.9% higher in September of this year compared to last, while combined regional areas saw new listings up 2.3% over the same 12-month period.

New listings on realestate.com.au started the spring selling season 4.5% higher than a year ago, despite a monthly fall of 7.1% in September.

Let’s break it all down in some edible dot points:

🏚️ The number of new listings across Australia’s combined capital cities was 5.9% higher in September of this year compared to last.
🏚️ Regional areas saw new listings up 2.3% over the 12-month period.
🏚️ It was Australia’s three most expensive capital cities – Sydney, Melbourne and Canberra – that recorded the highest year-on-year growth in new listings in September.
🏚️ Sydney saw selling activity pick up the most, with new listings up a staggering 21.3% year-on-year. Melbourne (+10.1%) and Canberra (+4.9%) followed.
🏚️ New listings in the combined capital cities recorded an 11% drop in September compared to August.
🏚️ Regional areas held relatively steady, with new listings dipping just 0.3% month-on-month.
🏚️ Perth recorded the largest annual drop of any capital city, with new listings down 12.8% year-on-year.
🏚️ The only other cities to see a decline in listings over the past 12 months were Darwin, down 11.3%, and Brisbane, down 4.2%.
🏚️ While new for sale listings fell between August and September, total listings held relatively steady, rising by 0.8% month-on-month and up 1.6% year-on-year.

PropTrack economist Anne Flaherty says that after “an unseasonably busy end to winter,” the number of homes newly listed for sale fell slightly in month-to-month in September due to stuff like school holidays and long weekends in a few states.

Even so, it was a busier start to spring, with new listings picking up from 12 months ago.

“An improvement in seller sentiment is a key driver behind the annual rise in the number of new listings. This time last year, sentiment among both buyers and sellers was declining, with the market in the midst of one of the most aggressive series of interest rate hikes ever undertaken by the Reserve Bank.

“Interest rates are now largely predicted to have reached their peak, having held steady since July. This has supported a recovery in sentiment which, according to realestate.com.au’s Residential Audience Pulse, has recorded a significant jump from the start of the year.

Anne says that while spring is typically the most popular time of year to sell a property, “it isn’t uncommon for fewer new listings to be seen in September compared to August, with this occurring during five of the past 10 years”.

“October, in contrast, has consistently recorded a monthly increase in for sale listings over each of the past 10 years, an outcome that may be repeated this year with strong selling conditions in most markets.”

PropTrack says an improvement in seller sentiment has been a key driver behind the annual rise in the number of new listings.

Around the same time in 2022, market sentiment on both sides of the auction was dim and getting darker. The central bank – having now held rates on pause since July – there’s clearly some consensus building around predictions that the RBA cycle has hit its peak.

Anne says this has supported a recovery in buying and selling excitement.

According to realestate.com.au’s there’s been a significant jump in positive sentiment from the start of the year.

“Property prices have climbed every month in 2023, recovering last year’s falls to reach a new peak in September,” she says.

What’s more, Anne adds, the outlook for the property market remains strong.

“With interest rates likely at, or very close to, peak levels (and) Australia’s population growing at record speeds – all of which is driving increased demand for housing.”