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The majority of Australia’s capital cities have an excessive supply housing that demand is not meeting, according to recent data.
CoreLogic research has a revealed supply is on the rise across most of capital cities.
“Based on advertised stock levels across Australia’s capital cities, the relationship between demonstrated housing demand and advertised stock levels is telling us that more stock is available for sale compared to demand,” CoreLogic analyst Cameron Kusher said.
“[Looking at] supply figures, it seems that the supply of stock for sale relative to demand is increasing in Sydney, Melbourne and Brisbane.”
Perth and Darwin maintain high levels of supply, but is slowly meeting the level of demand, while Hobart and Canberra both have more demand than supply and Adelaide is little changed either way.
CoreLogic determined there is now 4.4 months’ worth of supply on the market, which is said to be at its highest for this time of the year since 2012.
“The increase in months of supply is largely due to the slowing rate of transaction activity rather than a spike in properties available for sale, indicating demand has diminished relative to advertised supply levels which are pushing the figure higher,” Mr Kusher said.
The figure of 4.4 months’ worth of supply was determined by comparing the number of unique properties advertised for sale with the number of transactions in the market.
“The analysis provides unique insights into how long it should take to clear the volume of stock currently available for sale,” Mr Kusher said.
“It’s important to note that off-the-plan housing stock is typically not advertised for sale as individual properties and, as a result, is not included within this analysis.”
CoreLogic also analysed each individual state and territory’s supply and demand. The current outlook is:
Sydney has three months of housing supply available throughout the city and is at its highest for this time of year since 2012
Melbourne has 4.2 months of supply. While the data indicates this level is low, it is the highest levels for supply for this time of the year in five years.
Brisbane has 5.1 months of supply, which is higher than usual for this time of the year for the last five years.
Adelaide has 3.7 months of supply, which is high for this time of the year for the last two years, but not as high as it was for the three years before.
Perth has the highest months of supply at 8.3, which is not as high as it was this time last year when it was 8.7 months’ worth of supply.
Hobart’s months of supply figure is at a low point at 4.1 months, compared to last year’s five months and 7.2 months the year before.
Darwin’s supply is at 6.7 months, down from 10.5 months this time last year and 7.5 months the year before.
Canberra faces 2.6 months of supply available, which is the same as it was last year and lower than the four years prior.
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