SQM Research: Sydney housing stock on the market plunges by 23% as asking prices rise 7% in a year; Sydney stock levels approach four-year lows. National stock levels down 5%.
From terraces to low-rise blocks to high-rise complexes, Sydney buyers are spoilt for choice.
From tall towers in the city, low-rise developments on the north shore, inner south, inner west and west to ground-level townhouses almost everywhere else, and from five-level blocks to medium rise, developers now cater to every taste.
''We're finding particularly today that a lot of people like terrace-style apartments,'' says Daniel Mok of Raine & Horne Chinatown, who is having huge success marketing a boutique development of three-storey townhouses in front of a six-level building of 34 apartments on the same strata plan in Botany.
''Townhouses can offer courtyards or gardens at both the front and the back, which is particularly good for young families. Also, it's the kind of design attractive to empty-nesters who are more used to houses and feel this is a good compromise.''
''I think a lot of people look for security these days, and high-rise can offer that, as well as good views,'' says Peter Gray of developers the Billbergia Group.
''The Chinese market in particular prefers high-rise, as that's what they're used to historically.
''Younger people also don't want to have to mow lawns every weekend, they want to enjoy themselves in their spare time rather than doing chores, while downsizers like being able to lock [their homes] up and go off on holiday without worrying.''
In addition, large high-rise developments can have the bonus of lower strata levies, as communal costs for shared facilities, such as pools and gyms, are shared over a much wider base of apartment owners. VQ: Shores doesn't have those kind of facilities, so for an average two-bedroom apartment levies tend to be a comparatively low $600-$900 a quarter - attractive to owner-occupiers and investors alike.
But there are still plenty of people who choose low- to medium-rise apartments, particularly in areas that haven't seen much high-density development. In Bonnyrigg, for instance, in Sydney's south west, the new Virtue Apartments has just been launched, a project of 49 units over four and five levels.
''People like to live in a small complex, which can feel more like a home, and investors often feel more comfortable.''
Perth is trending against the national new listings easing. Its got new listings growth. South Australia is the only other state with postive growth in fresh winter listings. Tasmania followed by NSW are the state's with the greatest shrinkage.
Stock for sale levels have fallen by a massive 17 per cent in Sydney over the past year, and by 2.1 per cent over the past month alone.
SQM Research reports the latest figures indicate there’s more and more evidence the Sydney housing market is beginning to pick and up the trend is likely to continue into spring.
“Sydney is clearly experiencing a shortage of listings in the market, which is putting upward pressure on real estate prices,” managing director Louis Christopher says.
“This is particularly the case in the inner ring, where listings have fallen by approximately 25 per cent over the past 12 months.”
Property listings around the nation fell by 2.1 per cent in July, or 2.5 per cent year on year.
These decreases potentially point to a pick-up in the Australian housing market, although with more than 350,000 online residential listings being recorded, SQM Research believes the level of stock is still elevated.
Adelaide, Hobart and Perth all experienced monthly declines of four per cent.
Brisbane stock for sale levels fell by two per cent over the past month, while Melbourne remains unchanged.
“Despite apparent high clearance rates at auction, there’s still too many listings on the market, creating headwinds for a Melbourne housing recovery,” Christopher says.
The only capital city to record a rise during July was Darwin, with listings increasing by 0.9 per cent.
There is a growing contradiction in the Sydney property market - the more the market improves the more sellers turn their back on it.
The number of properties listed for sale has fallen again over July, down 2.1 per cent on June.
The figures released by SQM Research show that there were 23,207 homes on the market last month - 17 per cent below July 2012.
The election is certainly playing a part in sellers' reluctance to go to market but experts say that is not the only factor at play.
"There is no doubt an aspect of greed," said Louis Christopher, managing director of SQM Research.
"Sellers are holding off in the hopes of getting higher prices down the track."
Mr Christopher said the sustained improvement in the property market has reinvigorated the idea that property as an asset will continue to improve in value.
"The last time Sydney had a sustained property recovery was really from 2001 to 2003," he said.
"It has been a long time since Sydney has really seen a strong real estate recovery and this may well be it."
AMP Capital chief economist Shane Oliver said while it was a "surprise" to see listings down on last year, it most likely reflected overconfident sellers.
"Sellers are working on the assumption that the strengthening buyer demand will continue post-election," he said. "And it probably will."
The regions with the lowest number of listings are the areas that were hit hardest by the GFC.
Listings on the northern beaches are down 26.4 per cent on the same time last year.
Strong competition between buyers has pushed prices up.
The latest data from Australian Property Monitors showed the median house price for the lower north shore rose by 10.9 per cent over the June quarter to an all-time high of $1.5 million.
Though SQM Research findings show overall listings are down, the senior economist at APM, Andrew Wilson, points to an increase in auction numbers.
Over the month of July, 1577 properties went under the hammer - 16.5 per cent more than the same month last year.
An increase in Australia-wide listings indicates sellers are more confident about the property market, according to one analyst.
SQM Research has released figures showing a rise in national stock levels during August of 2.6 per cent to a total of 360,414.
Year on year, the country still recorded declines in listings in every capital city besides Brisbane and Darwin, but it appears sellers are becoming more bullish about property, according to the release.
In Sydney, the 9.1 per cent increase in stock numbers during August indicates sellers are becoming less desperate, according to the SQM report.
“This rise may reveal that vendors are beginning to make their move.”
Louis Christopher, managing director at SQM Research, says along with the traditionally busier spring-selling period, improved vendor confidence will see even more stock come onto the market.
“Potentially with more confidence instilled in the national economy, vendors will be encouraged to place their properties on the market.”
Chris Gray, director of property consultancy Your Empire, believes the statistical rise is too modest to indicate a trend, but from his on the ground experience, seller confidence is improving.
“With the election out of the way next week, that should help, spring should help… so you’d hope that there would be more properties on the market.”
Gray says a rise in listings, in his opinion, will fuel value gains.
“The more property that comes on, more buyers will be around as well and there’ll be more capital growth and I think it will just kind of spiral and then hopefully just keep pumping the market.”
Gray is certain recent price rises are likely to continue in real estate.
“The tip for buyers is, we’ve been telling them to buy for the last few years anyway, I think it’s going to get harder and harder week by week.”
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