Property listings in Australia continued to decline in August, which could be attributed to two reasons, according to an expert from SQM Research.
The number of listed properties decreased in August by 6.3% on a monthly basis and by 10% on an annual basis. This is explained by the sharp drop in Melbourne to 13.2%.
The drop in enrollments in August was due to a "somewhat abnormal" 3.8% increase in July, said Louis Christopher, managing director of SQM Research.
"Normally falls are recorded. This could have been generated by the lifting of restrictions in May and June, attracting sellers to the market," he said.
However, the restrictions in Victoria became a major contributor to the August enrollment drop, Christopher said.
"The Melbourne figures are actually quite revealing. They reflect almost all of the freezing Melbourne real estate market. With the Victoria state government heavily reliant on land stamp tax revenues, it there must be a major collapse in state revenues, "he said.
Another factor that could be behind the decline in listings is the growing demand for housing in regional markets.
"We continue to see declining supply in regional areas of Australia. Our take on this phenomenon is that demand for regional real estate has exploded as more and more in addition to our populations are turning to isolated life, ”said Christopher.
According to a recent study by ME Bank, about two-thirds of young first-time homebuyers are considering buying a home in regional areas.
New flexible and remote working arrangements due to the COVID-19 outbreak have influenced the preference of many homebuyers, especially those in the entry-level segment, said Andrew Bartolo, chief executive of home loans to ME Bank.
"This is now a more doable option for many and if the prices are lower in these areas and you think it will improve your lifestyle – of course, this is an attractive possibility" , did he declare. "I think many Australians dream of moving to a regional area at some point in their lives, so it will be interesting to see how many actually decide to pursue a sea or tree change, perhaps sooner than expected. "
The table below shows the changes in the property listings in August:
Top suburbs:
nightcliff
,
Alexandra Hills
,
Padbury
,
Belmont
,
The Pelvis
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