Buyer demand rises or holds steady across all markets
Australia’s housing market has entered a rare period of synchronised growth, with buyer demand rising or holding firm across all major states and territories, according to new research from Hotspotting.
The latest Price Predictor Index found that all 14 major market jurisdictions were classified as either “winner” or “steady” markets. Ten were rated as winners, while the remaining four were steady.
The report links the improvement to sustained sales activity, low stock levels, population growth and infrastructure spending.
“Our latest research points to broad-based strength across property markets nationwide, with buyer demand remaining elevated that has resulted in no ‘loser markets’ this edition,” said Tim Graham (pictured right), director at Hotspotting.
“In fact, residential property markets throughout the nation are experiencing a level of buyer demand unprecedented in the decade that we have published the Price Predictor Index.”
Graham said the market had shifted into what he described as an “all boats rising” phase.
“For the first time in a long time, we’re not seeing clear underperformers – strength is broad-based and demand is consistent across the country,” he added. “There are no loser markets left. This is one of those rare moments where every jurisdiction is moving in the right direction.”
The strongest results were recorded in Regional Victoria, where 70% of markets were given a positive classification. Melbourne also recorded a 70% positive reading, followed by Hobart at 68%, Regional South Australia and Darwin at 67%, and Canberra at 63%.
Regional Victoria’s quarterly sales volumes rose from 9,848 to 13,299 over the past year, according to the index. Hotspotting said activity in that market was now above the level recorded during the COVID-19 property boom.
Source: Hotspotting
“Regional Victoria is pumping,” Graham said. “Sales activity is now higher than at the peak of the COVID-19 boom, and 70% of markets have positive classifications, which is a huge turnaround.”
The four markets rated as steady were Brisbane, Regional Queensland, Regional Western Australia and Perth. None of the 14 jurisdictions was classified as a loser market.
The report said demand was being supported by several longer-term factors, including public infrastructure investment, first-home buyer incentives, migration and population movement within Australia.
“We’re seeing the impact of record infrastructure spending, strong government incentives for first-home buyers, years of elevated migration and major population movement within Australia,” Graham said. “These factors are creating real, sustained demand and not speculative spikes.”
According to Property Investment Professionals of Australia chair Cate Bakos (pictured right), the figures gave buyers and investors more evidence that market conditions were improving across a wide range of locations.
“When every jurisdiction is showing positive or steady momentum, it tells us the fundamentals are doing the heavy lifting such as population growth, infrastructure investment, tight supply, and genuine buyer demand,” Bakos said. “This data is telling us that most markets are strengthening for real and structural reasons.”
Bakos noted that Victoria’s improvement was one of the more notable shifts in the latest data. “The Victorian market is clearly entering a new phase,” she said. “After several flat years, the data now shows sustained increases in sales activity across both Melbourne and the regions which is a shift in market dynamics.”
She added that the national spread of improving conditions was also significant for confidence. “When you have every state and territory either rising or steady, it gives homebuyers and investors a level of confidence that we haven’t seen in years,” she pointed out.
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