Sydney Buyers Set Sights on Melbourne as Property Listings Rise in Major Australian Markets

Amidst a backdrop of rising home prices and a surge in property listings in Australia’s largest markets, a new trend emerges: Sydney buyers are increasingly looking south to Melbourne for their next property investment.

Reporter, Jorge Diaz, in his article “RISING HOME PRICES DRIVE INCREASE IN PROPERTY LISTINGS IN AUSTRALIA’S MAJOR MARKETS”, outlines how rising home prices and stabilizing interest rates are boosting confidence among vendors. This trend is especially prevalent in Melbourne, where an “unusual rise in the number of properties hitting the market in July” provides buyers with more options. In his report, Diaz noted that, “In Sydney’s eastern suburbs, where prices have increased by 3.5% in the last year, listing volumes in July were 13% higher than the same time last year”. While Sydney’s property prices have soared, Melbourne’s median property price shows modest growth, and the surge in investor sales throughout 2023 has broadened options for property seekers.

Oliver Hume, in his piece titled “Melbourne property prices have Sydney buyers looking south”, explains that the city’s relative affordability compared to Sydney is making it attractive for potential buyers and investors2. Drawing on PropTrack data, Hume highlights a striking statistic: the current difference between the median house price in Sydney and Melbourne stands at a significant $455,000.

Hume goes on to underscore Melbourne’s lifestyle allure, noting the city’s rank as the world’s third most liveable city in the Economic Intelligence Unit’s 2023 Global Liveability Index2. Melbourne’s anticipated population boom, with numbers predicted to rise by almost 20% over the next decade, further strengthens the case for investment in the region2. George Bougias, Oliver Hume’s Head of Research, emphasizes, “Melbourne’s population is forecast to grow almost 20% over the next decade, creating a significant demand for housing”

Additionally, the transition to remote work has caused many to reevaluate their living preferences. Bougias adds, “With increasing numbers of people able to work from home, the focus on lifestyle has never been greater”. This sentiment was further echoed by Julian Coppini, Oliver Hume’s Chief Executive Officer Project Marketing, who mentioned that the pronounced price gap between Sydney and Melbourne provides investors with an opportunity to capitalize on the differences between the two markets2. Coppini states, “Buying in a prime location like Melbourne in a relatively flat property market represents a good opportunity to take advantage of substantial offers and rebates offered by land and property developers”.

In conclusion, as home prices continue to rise and property listings swell in Australia’s major markets, Melbourne is positioning itself as an attractive alternative for both Sydney-based investors and those looking for a lifestyle change. With its affordability, predicted population growth, and cultural richness, the southern city offers ample opportunities for those looking to make a smart property move.

References:

RISING HOME PRICES DRIVE INCREASE IN PROPERTY LISTINGS IN AUSTRALIA’S MAJOR MARKETS by Jorge Diaz. https://www.claytoncountyregister.com/news2/the-cities-where-homebuyers-now-have-more-choice/101584/ 

Melbourne property prices have Sydney buyers looking south by Oliver Hume. https://www.realestate.com.au/news/melbourne-property-prices-have-sydney-buyers-looking-south/