Australia's housing crisis has intensified dramatically, with new figures revealing a startling shortage of available properties in the nation's two largest cities. Exclusive data from CoreLogic shows house listings in Sydney and Melbourne have collapsed to their lowest levels in over a decade, creating a perfect storm for prospective buyers.
The property drought is most severe in Sydney, where total listings have plummeted to just 15,700 properties – a staggering 26.3% below the previous five-year average. Melbourne follows closely behind with 19,900 listings, sitting 16.9% below its five-year benchmark.
A Market Starved of Choice
This unprecedented shortage has transformed the property landscape into what experts are calling an 'ultra-competitive environment.' With fewer properties available, buyers are facing intense competition, multiple offer scenarios, and rapidly escalating prices as they scramble for limited stock.
The situation represents a dramatic reversal from market conditions just two years ago, when abundant choice gave buyers significant negotiating power. Today's market firmly favours sellers, who are enjoying premium prices and quick sales in virtually every suburb.
Regional Markets Follow Suit
The property shortage isn't confined to capital cities. Regional markets across New South Wales and Victoria are experiencing similar constraints, with total listings sitting 21.8% and 30.1% below their respective averages. This nationwide trend indicates a structural shift in Australia's property availability that shows no immediate signs of abating.
The Economic Ripple Effect
Economists warn that this sustained shortage could have far-reaching consequences beyond the property market itself. The difficulty in finding suitable housing may impact labour mobility, with professionals potentially reluctant to relocate for work without housing security. The rental market continues to face parallel pressures, with vacancy rates remaining at critically low levels across both cities.
As spring traditionally brings more properties to market, all eyes will be watching whether this seasonal increase can provide any meaningful relief to desperate buyers caught in Australia's great property squeeze.
