Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 2 February 2016

Sydney listings fall

Listings off & running in 2016

Sydney property market listings dropped back by 5 per cent in January according to data from both CoreLogic-RP Data and SQM Research, probably reflecting a little apprehension as to how the market in 2016 will unfold. 

CoreLogic's figures showed that despite the January decline in Sydney, nationally listings were well up on the same time last year. 

SQM's data showed that nationally listing were down a slightly in January, declining by 0.2 per cent, with monthly declines in Sydney and Melbourne offset by rises in the other capital cities.

The year-on-year data showed that Melbourne (-8.9 per cent) and Hobart (-7.7 per cent) have experienced tightening markets over the past 12 months.

Hobart's housing market is one I pegged some time ago on this blog for a likely jump in dwelling prices, but with negligible population or employment growth the longer term outlook remains somewhat less inspiring. 

Total listings

Melbourne still has the highest number of listings, but according to SQM the total for the Victorian capital is now below the 5 year average for this time of year, suggesting that Melbourne could be in for yet another decent year ahead, thereby confounding the critics.

While the absolute numbers remain small, Darwin listings have continued to rise, while rents have taken a nosedive, and vacancy rates have rocketed north.

By the time the Ichthys LNG largesse winds up, Darwin will likely have have experienced a material housing market correction (in my opinion, at any rate).

Meanwhile, SQM's asking prices data showed that Sydney prices have "risen considerably" over the past year.

The Sydney figures implied that units may be set to outperform houses as affordability constraints bite, with asking prices for houses (+8.5 per cent year-on-year) now lagging asking prices for units (+11.7 per cent).

That said, there are obviously siginifcantly diverging trends within the Sydney market, with some sectors set to far worse than others.

Read SQM's equable media release here.