Australia’s property market is showing all the right fundamentals: population growth, rising rents, and solid price gains, but one thing is missing – enough listings.
Despite the usual seasonal uplift in spring, new residential listings remain well below average nationwide. According to LJ Hooker’s Head of Research & Business Intelligence, Mathew Tiller, the decline is being driven by structural factors rather than short-term seasonal trends.
Mr Tiller outlined his top five reasons for the shortage. First, limited upsizing and downsizing activity is keeping homes off the market.
“Many homeowners are choosing to stay put, largely due to a lack of suitable alternatives. Downsizers are finding it difficult to secure the right next home, while upsizers are often hesitant to move, given the higher costs associated with today’s mortgage environment,” he said.
Second, lingering caution from the recent period of high interest rates is still weighing on sellers.
“While rate cuts have begun to emerge, the recent period of high interest rates has discouraged many potential sellers, particularly those who would need to borrow to upgrade. Some homeowners remain locked into low-cost loans and are understandably reluctant to give up their favourable interest rate in exchange for a more expensive one.”
Third, a construction pipeline bottleneck is limiting new housing supply.
“Although the number of dwellings has increased over the past decade, the pace of new housing completions has slowed significantly. Builders are still grappling with labour shortages, rising costs and lengthy planning delays.”
The fourth factor is what Mr Tiller calls the “wait-and-see effect,” where many property owners are delaying sales until they see clearer economic signals.
“Many property owners are deferring listing their homes, waiting for clearer signs of economic stability, such as further rate cuts or a boost in consumer confidence. This hesitation has contributed to a frozen market effect, where even those with strong equity are choosing to remain on the sidelines.”
Finally, the rise of off-market sales is keeping properties out of public view.
“Not all homes are being marketed through traditional channels, with the rise of off-market sales meaning a portion of stock is transacted without ever appearing in public listings. Increasingly, properties are being promoted through social media, agent databases and private buyer groups, rather than mainstream portals, reducing the overall visibility of listings.”
Despite these headwinds, Mr Tiller says conditions are favourable for sellers prepared to move now.
“Listings remain low, while buyer demand is strong and prices continue to rise, creating a powerful combination heading into spring,” he said.
“Those who list early are likely to face less competition and attract serious buyer interest.
At the same time, strong population growth, stable employment, and rising rents are pushing more people to buy, yet new listings remain well below average. This supply/demand imbalance gives sellers a clear advantage.
