HIGH turnover, an upcoming election and hints of a better market have set the scene for a dramatic drop in Brisbane property listings.
The number of homes advertised in print and online for the greater Brisbane area has fallen 17 per cent in 12 months, according to property analysts RP Data.
Equating to roughly 5000 less properties on the market, it was the largest capital city decrease.
RP Data national research director Tim Lawless said it was the first drop since listings had continued to increase with the onset of the Global Financial Crisis.
About 10,000 properties were advertised in early 2007 but by 2012 this figure had reached almost 30,000.
There are now just under 23,000 listings on the market in Brisbane.
“While listings have shown a substantial fall, they have done so from quite a high level,” Mr Lawless said.
Harcourts Queensland CEO Jim Midgley said the fall was largely the result of increased turnover.
RP Data shows there was an 8 per cent rise in Brisbane property transactions in the 12 months to May.
“That increase in turnover will have a direct effect on stock levels,” Mr Midgley said.
If turnover increases there will be a drop in listings – it’s a consequence of more activity on the ground.’
Mr Midgley said September’s pending federal election was another factor affecting listings as owners tended to postpone selling during times of political uncertainty.
Ray White Queensland CEO Peter Camphin agreed turnover was not the only factor in reducing listing figures, citing vendor anticipation of a more promising future market.
“There is a sense that there is a change in the market and vendors are always hoping to sell for a better price,” he said.
While some sellers were holding off, he said lower listing levels meant now was a great time to sell.
“If you placed your property on the market today you would have less competition,” he said.
Mr Camphin said the trends did not extend across the state.
“It’s the complete opposite in Central Queensland,” he said.
“A lot of people bought investment properties through the mining booms and are selling to get out because they aren’t getting the rental returns they were getting in the past.”
While Brisbane was not the only capital city with falling listing numbers, it was far ahead of its interstate counterparts. Sydney lost 12.9 per cent of its listing volume.
Mr Midgley attributed this disparity to the affordability gap created by Sydney’s quicker post-GFC recovery sending demand to Brisbane.
“We’re now 35 per cent behind the Sydney median price which affects interstate migration,” he said.
Herron Todd White Independent Property Advisers chairman Gavin Hulcombe also said affordability played a large part in Brisbane’s listings being more affected.
Original article published at www.news.com.au by Melanie burgess The Courier Mail 17/6/2013