- New data highlights contrast between metropolitan and regional property markets
- Tasmania, Northern Territory and Queensland top buyer’s markets at a state and territory level
- Sydney becomes the top seller’s market in the country, pushing Melbourne and Canberra into second and third spots respectively
While solid auction clearance rates continue to be recorded across Sydney, Melbourne and Canberra, overall national property market conditions favour buyers, according to the latest Commonwealth Bank/RP Data Home Buyers Index (HBI) released today.
According to Clive van Horen, General Manager Home Loans, Commonwealth Bank, the latest HBI reveals some good opportunities for buyers, particularly those looking outside the capital cities or for inter-state investment opportunities.
“While the property market remains competitive for many home buyers in the capital cities of the south eastern states, reflective of the solid clearance rates we’ve seen in Sydney and Melbourne recently, there are some interesting opportunities for buyers in the regional housing markets and for investors, particularly in the north east and west of the country.
“With mixed market conditions across the country, buyers should undertake comprehensive research before entering negotiations, including looking at comparative property valuations and real market value data, as well as getting tailored advice from lending specialists,” said Mr van Horen.
The January 2014 report noted a number of shifts in market conditions across the states and territories.
State/Territory: |
Market Conditions: |
New South Wales |
Balanced market – despite Sydney becoming the top seller’s market, in January 2014 conditions across the whole of New South Wales were balanced between buyers and sellers. |
Victoria |
Balanced market – although Melbourne shifted further in favour of sellers between October 2013 and January 2014, across Victoria there were balanced market conditions. |
Queensland |
Buyer’s market – little change was recorded between October 2013 and January 2014, with conditions continuing to favour buyers. |
South Australia |
Balanced market – moved from a buyers market in October 2013 to a balanced market in January 2014, as the number of homes for sale balanced with buyer demand. |
Western Australia |
Balanced market – remained a balanced market in January 2014, with buyer demand and the number of properties for sale evenly matched. |
Tasmania |
Extreme buyer’s market – conditions remained the most supportive of buyers than any other state. |
Northern Territory |
Buyer’s market – although market conditions were balanced in October 2013, in January 2014, the property market moved in favour of buyers. |
Australian Capital Territory |
Seller’s market – with the state capital Canberra remaining one of the top three seller’s markets in the country, conditions across the state remained in favour of sellers. |
Between October 2013 and January 2014, there were mixed market conditions across the capital cities with Sydney becoming the top seller’s market in the country, pushing Melbourne and Canberra into second and third spots respectively. Despite showing balanced market conditions, Perth is slowly shifting towards being more in favour of sellers, reflective of its position as the fifth best place to sell a property in January 2014. Conditions across the other capital cities were typically more balanced or more in favour of buyers.
The top five best buyer’s and seller’s markets were identified as:
Seller’s markets: |
Buyer’s markets: |
1. Sydney, NSW (seller’s market) |
1. West Moreton, QLD (extreme buyer’s market) |
2. Melbourne, VIC (seller’s market) |
2. Wide Bay-Burnett, QLD (extreme buyer’s market) |
3. Canberra, ACT (seller’s market) |
3. Mersey-Lyell, TAS (extreme buyer’s market) |
4. Central Highlands, VIC (balanced market) |
4. Far West, NSW (extreme buyer’s market) |
5. Perth, WA (balanced market) |
5. Southern, TAS (extreme buyer’s market) |
Tim Lawless, National Research Director, RP Data said, “Overall, the best opportunities for buyers are in the regional areas of Tasmania and Queensland, while sellers continue to enjoy the upper hand in Sydney, Melbourne and Canberra.”
To access the report summary visit commbank.com.au/hbi
Editor’s note: About the Commonwealth Bank/RP Data Home Buyers Index Report
The HBI is based on the ratio of properties available for sale compared with the number of housing loans that are being committed to by Commonwealth Bank. The findings from the HBI report are reflected in the Property Buy/Sell Index – a free online tool for prospective buyers that combines historical sales data and current market information to offer insight into whether a particular region is a buyer’s or seller’s market. The online Index includes expert commentary on each region, and also offers an overview of the national housing market.
The Commonwealth Bank/RP Data Home Buyers Index provides an estimate of the level of supply and demand that is evident within the Australian real estate market. To calculate an estimate of supply, RP Data closely monitors the number of homes available for sale around Australia, including those from leading real estate portal, realestate.com.au and other real estate groups and advertising portals. On the demand side of the equation, Commonwealth Bank is the nation’s largest home loan lender, and as such can provide one of the timeliest and most representative estimates of housing demand in the market place. The HBI is produced across a range of geographic boundaries, from a national index to state level indices, major regional indices, capital cities and broad regions within capital cities.