Sydney and Melbourne Listings Are Surging: What It Means for Buyers
While Brisbane and Perth have dominated property headlines with double-digit growth, something interesting is happening in Australia’s two largest cities. Sydney and Melbourne are experiencing a surge in new property listings at the same time as price growth has stalled.
For buyers who’ve spent years being outbid and outpriced, this shift in supply dynamics could be the opportunity they’ve been waiting for.
The numbers
Recent data from SQM Research and Cotality (formerly CoreLogic) tells a clear story:
- New listings have jumped most sharply in Sydney and Melbourne compared to other capitals
- Total for-sale stock has also fallen less in these markets, meaning more properties are sitting on the market for longer
- Price growth is near zero in both cities, with Melbourne recording a slight decline of -0.4% over the past quarter
- Auction clearance rates have eased, particularly over weekends with lower listing volumes
By contrast, the mid-sized capitals continue to see strong demand and tight supply, keeping prices elevated.
Why this is happening
Rate rise anxiety
The RBA’s February rate hike to 3.85% and signals of another possible increase in March are pushing some owners to sell before conditions deteriorate further. Sellers who bought at the peak of 2021-2022 may be particularly motivated to lock in their equity before prices soften.
Investor rebalancing
With Brisbane and Perth delivering 15-17% annual returns while Sydney and Melbourne flatline, some investors are selling in the slower markets to redeploy capital where growth is stronger. This is adding to the supply glut.
Seasonal factors
Autumn is traditionally a high-listing period as vendors aim to sell before winter. This year’s seasonal bump is landing in a market already under pressure from rate uncertainty and geopolitical concerns.
What this means for buyers
More listings and flat prices shift negotiating power. Here’s how to take advantage:
1. You have time
Unlike the frenzied markets of 2021-2022, there’s no urgency to bid above asking price. Properties are sitting on the market longer, giving you time to do proper due diligence, get building inspections, and negotiate.
2. Vendors are more flexible
When clearance rates drop, vendors become more willing to negotiate on price, settlement terms, and conditions. Don’t be afraid to make offers below asking price, particularly on properties that have been listed for more than four weeks.
3. Pre-approval is your superpower
In a market with more choice, the buyers who can move quickly when they find the right property have an advantage. Getting mortgage pre-approval before you start seriously looking means you can make confident offers without delays.
4. Look at the areas that overshot
Suburbs that saw the sharpest price increases during 2020-2022 are often the ones softening most now. These areas may represent value if you believe in the long-term fundamentals (good transport links, employment access, school zones).
5. Don’t ignore Melbourne
Melbourne has been the underperformer among capitals, recording a decline of -0.4% over the past quarter. But Melbourne’s fundamentals (population growth, infrastructure investment, diverse economy) haven’t changed. For long-term buyers, today’s prices could look like a bargain in five years.
A word of caution
More choice doesn’t mean every property is good value. Interest rates could rise further, which would continue to put downward pressure on prices. Budget conservatively: if the RBA hikes again, can you still comfortably service your mortgage?
Working with a mortgage broker who understands the current lending environment is essential. They can help you structure your finance to handle potential rate increases while maximising your borrowing position.
The bottom line
The Sydney and Melbourne property markets are offering conditions that buyers haven’t seen since 2019: more listings, flat prices, and vendors willing to negotiate. Whether this window lasts depends on interest rates, economic conditions, and how long supply continues to outpace demand.
If you’ve been waiting to buy, this is worth a serious look.
Frequently Asked Questions
Why are listings rising in Sydney and Melbourne?
Several factors are contributing: some owners are selling ahead of potential further rate rises, investor portfolio rebalancing, and a seasonal surge in new listings after a quieter summer period. Auction clearance rates have also eased, suggesting sellers are adjusting expectations.
Are Sydney and Melbourne property prices falling?
Not falling sharply, but flatlining. Both cities recorded near-zero growth in recent months while mid-sized capitals like Brisbane and Perth continued to rise. This stagnation, combined with rising listings, tilts the market in buyers' favour.
Is now a good time to buy in Sydney or Melbourne?
More listings and flat prices create better negotiating conditions than buyers have had in years. However, interest rate uncertainty remains a risk. Getting pre-approved and working with a mortgage broker helps you move quickly when the right property appears.
