We often hear people talking about the property market in terms of a buyer’s market or a seller’s market.
What does this mean and how do you know what’s going on?
The Definition of a Buyer’s Market is where supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
The opposite of a buyer’s market is a Seller’s Market where demand exceeds supply and owners have an advantage over buyers in price negotiations.
So where are we now?
The table below has been provided by Smartline to open a window on the various property markets in Australia, specifically looking at the supply side of the equation.
As you can see, the city with the smallest proportion of residential dwellings on the market is Sydney.
This is one of the reasons for the strong performance of the Sydney property market.
Interestingly Perth has 521 more dwellings on the market than Sydney.
In fact, 1 in 37 Perth dwellings is on the market.
Clearly the large supply of properties makes this a buyers market and that’s why property values are falling in Perth.
The Melbourne property market has 1 in 62 dwellings on the market.
Having said that, the number of listings has contracted by 3.8% compared to last year.
Brisbane property market has 1 in 51 dwellings on the market and has not seen much change in this stat over the last 12 months.
With the supply side relatively stable, it will be important to keep an eye on median price growth and population expansion to see if demand takes up the slack.
Adelaide’s market supply seems quite restricted with just 1 in 78 dwellings on the market.
There is not one “market’
Of course this is a very broad overview; there is not one Sydney property market or Melbourne or Brisbane property market.
There are markets within markets certain – different geographic locations, different price points.
What is important to have on the ground experience keeping track of supply and demand ratios, buyer sentiment, auction clearance and proposed future developments.
By way… that is what we specialise in at Metropole.
If you’re looking for independent advice, no one can help you quite like the independent property investment strategists at Metropole.
Remember the multi-award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
Whether you are a beginner or a seasoned property investor, we would love to help you formulate an investment strategy or do a review of your existing portfolio, and help you take your property investment to the next level.
Please click here to organise a time for a chat. Or call us on 1300 20 30 30.
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