PropTrack has released data showing that the share of properties newly listed for sale on realestate.com.au for less than $600,000 hit a record low in October despite recent home price falls.
In October 2022, a record low of 35.8% of homes listed for sale were priced for less than $600,000, down sharply from 52.5% at the beginning of the pandemic.
The decline in ‘affordable’ new listings since the onset of the pandemic has been much greater in regional areas (71.2% to 45.6%) than it has been across capital cities (42.5% to 30.6%).
Sydney (11.6%), Canberra (21.6%) and Melbourne (25.5%) have the lowest share of affordable listings in the nation, and Darwin (59.3%) and Perth (56.5%) have the highest.
Moreover, just 1.4% and 1.8% of houses were listed below $600,000 in Canberra and Sydney in October, down from 25.4% and 10.5% at the start of the pandemic.
PropTrack notes that “as prices continue to fall, we may see more properties coming on to the market at lower price points”. However, “it seems unlikely that we’ll see a significant uplift in the share of new listings under $600,000, which highlights ongoing affordability challenges“.
Certainly, the rapid cost inflation in the new home sector won’t help, given off-the-plan houses and apartments are key suppliers of entry level ‘affordable’ housing stock.
