John McGrath – More choice for Spring buyers in these East Coast areas

A shortage of homes for sale has been a constant challenge for buyers this year, and the main driver of price growth in Sydney, Brisbane, Adelaide, Perth, and many regional areas.

So, it’s interesting to see new data from MCG Quantity Surveyors documenting the 50 suburban markets that have had the highest increase in listings over the past 12 months.

Buyers in these areas have more choices and are therefore more likely to find a home or investment that suits their particular needs and budgets. In some areas, the rise in listings means buyers also have more negotiating power, with price growth subdued. But that’s not the case in every area. It just depends on whether the rise in new listings has been enough to meet or exceed demand in each market.

Either way, these are the areas where Spring buyers will find more options this season, so let’s check out some examples.

East Coast suburban markets offering Spring buyers more choice

NSW

Bringelly – Green Valley, Sydney

This area in Sydney’s south-west recorded the biggest increase in listings over the past year at 162%. The district incorporates Catherine Field, Hoxton Park, Leppington and Oran Park. The median house price is $1,070,000, up from $1,050,000 a year ago. It’s taking an average of 32 days to sell a home, which is a normal timeframe. Median rents have risen from $650 per week a year ago to $720 per week now.

Rouse Hill — McGraths Hill, Sydney

There’s been a 127% increase in listings in this north-west district incorporating Box Hill, Maraylya and Vineyard. The median house price is up from $1,600,000 a year ago to $1,703,888 now. Homes are taking an average of 37 days to sell, up from 31 last year. The median rent has increased from $745 per week a year ago to $820 per week now.

Lower Hunter, North Coast

This district includes Abermain, Cessnock, Kitchener and Pokolbin. A near-75% increase in listings has helped keep the median house price stable at $623,000 today, only slightly up from $620,000 a year ago. Homes are taking 43 days to sell. Median weekly rents are up from $525 a year ago to $550 today.

Wyong, Central Coast

The Wyong district, which includes Chittaway Bay, Ourimbah, The Entrance and Tuggerawong, has seen a 42% increase in listings. House prices are still rising, up from a median of $795,000 a year ago to $842,000 today, and it takes 35 days to sell a home. Weekly rents have moved up slightly from $550 per week to $560 per week currently.

VICTORIA

Wyndham, Melbourne

In Melbourne’s outer south-west, Wyndham incorporates Hoppers Crossing, Point Cook, Tarneit and Werribee. A 32% increase in listings has kept prices stable, with the median house value up only slightly from $650,000 to $660,000 today. It takes 43 days to sell and it’s been this way for the past year, so it seems demand is strong enough to absorb the new supply for now. Median weekly rents have risen strongly from $440 a year ago to $510 now.

Melbourne CBD

Dominated by apartments, Melbourne CBD is a fantastic buyer’s market today. A 21% increase in apartment listings has kept price growth subdued. The median apartment price has lifted from $520,000 a year ago to $542,000 today. It typically takes 41 days to sell. Yields are very attractive at 6%, with weekly rents up from $580 to $630 now.

QUEENSLAND

Ormeau – Oxenford, Gold Coast

New builds, particularly in Pimpama, have contributed to a 26% increase in listings for sale in this Gold Coast district. But median house prices are still rising and homes are selling within 31 days, indicating a buoyant market. The median house price is $910,000, up from $805,000 a year ago. Weekly rents have risen from $670 a year ago to $720 currently.

Bundaberg, regional Queensland

Incorporating Avenell Heights, Avoca, Bargara and Svensson Heights, the Bundaberg district has seen a 24% increase in listings over the past year. Although this has given buyers more choice, it’s clear that demand remains above supply given the median house price has risen by 20%, from $452,000 to $545,000, in just one year. The average days on market is 56. Median rents are also rising, up from $475 per week to $530 per week now.

The seasonal increase in new listings across all markets started later than usual this Spring, but there will be a steady flow of new homes coming onto the market from here.

During September, there was some moderation in auction clearance rates in the major cities due to higher volumes, but clearance rates remained healthy at about 60% to 65%.

Overall, the Spring season is off to a good start.