Property Listings Plummet, Prompting Fears of Soaring House Prices

The Australian real estate market faces significant challenges as the number of property listings declines across all capital cities. This reduction has alarmed industry experts, with one real estate agent predicting that house prices will inevitably rise due to the dwindling supply of available homes.

In Perth, the situation is particularly dire. The city has seen property listings fall to a historic low, with only 1,700 homes currently for sale. This marks a dramatic decrease and highlights a broader trend affecting cities nationwide. New data indicates that listings have fallen across major urban centers, with Hobart experiencing a 13.5 percent drop, followed closely by Perth at 11.2 percent, Brisbane at 10.6 percent, and others. Canberra was the only city to show minimal change, with a decrease of just 0.4 percent.

Real estate agent Corey Adamson described the current listings as “unbelievable,” especially given that spring typically brings an increase in available properties. He stated, “This is the lowest number of properties on the market of all time. There is such limited stock out there. I’ve never seen it like this.” Adamson warned that the shortage of supply would continue to drive prices upward, with some agents even leaving the industry due to the lack of listings.

As demand continues to outpace supply, properties in Perth are being sold rapidly. Adamson noted the urgency among buyers, saying, “If something goes up, people want to buy that property. They’re jumping at it straight away.” The local market’s challenges are exacerbated by recent weather patterns, with Perth experiencing its coldest days in 50 years and its wettest winter since 2000, which some attribute to the slowdown.

Nationally, the REA Group reported a 8 percent year-on-year decline in new property listings for July. Adamson anticipates that the situation will worsen when the federal government’s Home Guarantee Scheme takes effect on October 1, 2025. This program enables first-time homebuyers to secure a loan with only a 5 percent deposit, eliminating the need for mortgage insurance. Analysts expect this scheme to further inflate property prices, as it allows for an uncapped number of loans, a departure from the previous limit of 35,000 places.

Research conducted by the Insurance Council of Australia estimates that the scheme could push house prices up by as much as 10 percent in its first year. Tim Lawless, research director at Cotality Australia, noted that while the Home Guarantee Scheme may appeal to first-time buyers, it does not address the fundamental issues of housing affordability. He emphasized, “The lack of new listings is a problem nationwide, with advertised supply levels 20 percent below average for this time of the year.”

The president of the Real Estate Institute of Western Australia, Suzanne Brown, highlighted that the scarcity of available homes has led many sellers to list their properties only if they can secure a suitable purchase first. As a result, the imbalance between supply and demand has caused homes to sell quickly, which in turn has driven prices higher. In August, the median house sale price in Perth reached $841,928, reflecting a 6 percent increase over the past year.

Under the prevailing circumstances, experts predict that prices will continue to rise. The key question remains: by how much? The current trajectory suggests that as long as the supply remains tight and demand persists, the upward pressure on housing values will likely continue across Australia.