Supply is Rising, so Are Prices Dropping?

June 7 2024

Leading luxury real estate agency Kollosche explores the reasons why a flush of new winter stock isn’t bringing house prices down.
Supply is Rising, so Are Prices Dropping?

While the temperature is falling in most parts of the country, stock levels are finally on the rise, but so too are housing prices.

Traditionally, the property market cools in the winter months as the financial year draws to a close, but recent data from listings analyst PropTrack shows a flush of new properties coming to market.

Nationally, new listings were up 32 per cent on the same time last year while total listings rose 7.7 per cent – the strongest rise in new listings since 2021 and the highest overall level of stock since 2020.

Stock levels struggled in the aftermath of the pandemic as uncertain market conditions led many to delay the sale of their homes, but consumer confidence has since rallied, leaving homeowners keen to test the market.

Home Price Growth | Kollosche
Source: PropTrack

However, the surge in new listings has not had a significant impact on housing prices.

Strong population growth, tight vacancy rates, increased investor activity and home equity gains have offset the high interest rate environment and ensured that demand continues to outstrip, even with the recent increase in supply.

PropTrack reports that national prices have cycled through 17 consecutive months of increases, with the median price on the Gold Coast lifting 11.48 per cent in the past 12 months to reach $948,000.

With further price rises predicted, buyers are motivated to acquire what they can now, before the increases kick in.

On the Gold Coast, newly built or turn-key homes have been prevalent among the new listings coming to market, as projects finally come to fruition.

Popular with buyers seeking quality, these homes have worked to continue to push up wider market prices.

Kollosche agents came within range of the suburb house price record in Mermaid Waters with the $7,250,000 sale of a high-tech, Balinese-influenced, waterfront home at 30 Montego Court, which sold under the hammer last Friday.

Among those currently listed for sale is ‘Zarma’, a luxury new-build created from cantilevered concrete and Italian marble at 5 Monte Vista Court, Broadbeach Waters. The waterfront home is filled with bespoke luxury features and will go to auction onsite on 14 June at 3pm.

Browse residential homes for sale across the Gold Coast in our BUY section.

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