- Strong conditions in the Australian property market have led to more sellers raising asking prices midway through a sales campaign
- Many vendors have felt sure that they might fetch higher asking prices as prospective purchasers have made queries and attended inspections, according to research undertaken by Domain
- Last month, approximately 10 per cent of sale listings in Sydney saw an increase in asking price — this has now decreased to 9.3 per cent
- Domain Senior Research Analyst Dr Nicola Powell said when we see more homes for sale with asking price hikes, we would then see price growth gain momentum and vice versa
- Dr Powell said this data set suggests that prices will continue to grow in the coming months
Strong conditions in the Australian property market have led to more sellers raising asking prices midway through a sales campaign.
Many vendors have felt sure that they might fetch higher asking prices as prospective purchasers have made queries and attended inspections, according to research undertaken by Domain.
“In a seller’s market, the heightened competition between buyers can make raising the asking price a greater possibility,” Domain Senior Research Analyst Dr Nicola Powell said.
“The percentage of sale listings with an asking price increase mid-campaign is a unique insight that provides a timely leading indicator of market conditions and prospective price growth.”
Dr Powell said that in a moving market, being outbid can be frustrating, but adjusting prices mid-campaign provides greater transparency and helps set price expectations for all parties involved.
“The proportion of sellers hiking an asking price mid-campaign is elevated compared with this time last year and near to multi-year highs,” she said.
“Although, the percentage of sale listings with a revised higher asking price appears to be easing across most capital cities. This data set also proves that the strong pace of price growth recorded this year is unlikely to continue at such a rapid rate.”
Last month, approximately 10 per cent of sale listings in Sydney saw an increase in asking price. This has decreased to 9.3 per cent since April.
In Melbourne, 7.8 per cent of homes for sale raised their asking price in the middle of the campaign in April. This is lower than the 8.9 per cent recorded in March 2021 and the nearly 10 per cent recorded in March 2020.
“This highlights the swift pace of Sydney’s housing market and the pent-up demand built in Melbourne as the city emerged from last year’s extended lockdowns,” Dr Powell said.
Darwin is the only city where the asking price of homes for sale has climbed in the middle of the campaign, a multi-year high for the city. Canberra, Brisbane, Adelaide, Perth and Hobart have been declining from late 2020 peaks, but remain elevated compared to this time last year.
Dr Powell said when we see more homes for sale with asking price hikes, we would then see price growth gain momentum and vice versa.
“When we see more homes for sale with the advertised asking price revised higher during the sales campaign, it provides an on-the-ground lens of buyer sentiment and level of market competition,” she said.
“It is intuitive that this would then translate into a change in pace of property price growth.”
Dr Powell said this data set suggests that prices will continue to grow in the coming months.