Rising supply tilts market conditions further in buyers' favour
Australia’s property market is seeing a surge in supply as the new year begins, with Domain reporting record-high listings in multiple capital cities.
According to the firm’s Market Insights for January 2025, new property listings across Australia’s combined capital cities recorded their largest monthly increase since 2019. Sydney, Melbourne and Canberra saw all-time highs for January, while Adelaide posted its third-highest figure on record. Brisbane and Perth also experienced their highest levels since 2022.
Total housing supply across the capital cities rose for the 10th consecutive month, further shifting market dynamics in favour of buyers.
The Domain report also revealed that properties were taking longer to sell, with days on market increasing in Sydney, Melbourne, Brisbane, Perth and Hobart. At the same time, sellers in Melbourne, Adelaide, Perth, Darwin and Hobart have been more willing to offer discounts, reflecting changing market conditions.
“The higher supply is giving buyers more time to make decisions and assess the market, meaning the time it takes to sell a home is extending across most capital cities,” said Nicola Powell (pictured above), Domain’s chief of research and economics. “This may be prompting sellers to adjust pricing expectations to get a quicker sale.”
January auction clearance rates increased overall, though Sydney and Adelaide recorded declines. Sydney’s auction volumes dropped to their lowest level since 2020, while Melbourne and Canberra saw their busiest January since 2022.
Powell noted that sellers appear encouraged by stable demand and resilient property values. “The continued rise in new stock suggests that sellers are likely encouraged by stable demand and resilient property values,” she said.
She also pointed to expectations of a potential rate cut, which could influence both sellers and buyers in the coming months. “With a potential rate cut at our doorstep, we could see buyer demand increase again.”
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