Surge in property listings a bad sign for Brisbane and Perth property

Brisbane’s and Perth’s property corrections are in their infancy and are lagging well behind Sydney’s and Melbourne’s, according to Cotality.

The outlook for both markets continues to sour, however, amid a surge in ‘for sale’ listings.

As illustrated below by Cotality, Brisbane’s listings are tracking 44.1% higher than the same time last year, whereas Perth’s are tracking 40.9% higher. The increase in listings across both markets is tracking well ahead of the 23.8% rise across the combined capital cities:

Source: Cotality

At the same time, property sales volumes have fallen significantly across both markets.

According to Cotality, sales in Perth declined by 14.8% in the 12 months to July, whereas they were 7.2% lower in Brisbane. This compares to a relatively modest 3.5% decline across the combined capital cities.

Source: Cotality

Strongly rising supply amid falling buyer demand can only mean one thing: falling prices.

After a long period of extraordinary price growth, where buyer demand exceeded supply, the situation has changed in Brisbane and Perth.

The “fear of missing out” (FOMO) has been replaced by the “fear of overpaying” (FOOP).