Homes are selling faster across many Australian suburbs, with PropTrack data revealing a steep decline in days on market – a potential signal of accelerating price growth ahead.
According to REA Group senior economist Anne Flaherty (pictured), tracking how quickly properties sell is a strong indicator of buyer interest.
“Where we see demand tracking up, we see days on market going down,” Flaherty said.
At the national level, it currently takes 37 days to sell a house and 35 days to sell a unit, but some capital cities and key suburbs are outperforming those averages – and doing so at pace.
Among the capital cities, Darwin and Hobart have recorded the largest improvements in selling times over the past year.
Darwin’s property market is gaining momentum, with houses now selling six days faster and units 14 days faster than a year ago. PropTrack data shows house prices have climbed 5.6% annually, while unit prices are up 7%.
Investor interest is rising sharply, drawn by affordability, tight supply, and strong rental yields.
“In the case of Darwin we’ve seen investor interest really pick up,” Flaherty said. “Darwin offers some pretty attractive yields and the entry price to buy a property is much lower compared to the other capitals.”
Inventory in Darwin is also under pressure. According to REA Group, the number of homes listed last month was down 38% compared to a year earlier.
Ray White Darwin principal Andrew Harding said competition was heating up quickly.
“Darwin's the cheapest capital city in Australia, has great rental yields, and is one of the few markets that hasn’t seen a huge increase in prices,” Harding said.
“The investors are buying anything below $700,000.”
Hobart’s recovery is also gaining traction. Houses are selling 14% faster than a year ago (43 days), and units 7% faster (42 days). Prices have begun to lift modestly following a correction period.
“Hobart had very strong demand during the pandemic when it went through a phase of extreme price growth,” Flaherty said.
“Then it went through a period of price correction and now we’re finally on the other side.”
Peterswald director Harry Coomer said earlier interest rate cuts had given the local market a boost.
“Interest rate drops are certainly giving the market a bit of confidence, which may then contribute to days on market decreasing,” Coomer said.
“Growth in prices should also be relatively gentle, which is what we’ve witnessed over the past six to 12 months.”
Days on market have also fallen significantly across many outer suburbs in Sydney and Brisbane, where affordable homes and larger blocks are attracting buyers. In some areas, homes are selling in less than half the time they did a year ago.
Suburbs with the largest drops in unit selling times were concentrated in Darwin and Melbourne – two cities where values are rebounding after prolonged stagnation and relative affordability is drawing renewed interest.
In Perth, unit sales have quickened slightly, while house sales have slowed – a shift Flaherty attributes to price points.
“Units typically are attracting a bigger buyer pool in capital cities because they’re more affordable to a greater percentage of people than a house,” she said. “Often investors and first-home buyers are looking for units as opposed to houses.”
Realestate.com.au data shows strong yields in Darwin suburbs such as Driver (8.1%), Brinkin (7.5%), and Rosebery (7.4%), reinforcing investor interest in the Top End.
For mortgage brokers, falling days on market can be a leading indicator of future price growth. Tighter supply, rising yields, and improved buyer confidence – especially following rate cuts – are creating conditions for renewed competition in affordable growth pockets.
The backdrop is a recovering housing market in FY25, with national settlement volumes up 3.2% and property values rising 9.4% year-on-year, according to PEXA. Rate cuts in February and May, combined with stronger borrower sentiment and rising non-bank competition, have accelerated lending activity — particularly in Queensland, New South Wales and Victoria, where broker-originated loans continue to gain ground.
In many cases, the balance between supply and demand has shifted decisively in sellers’ favour – offering brokers valuable cues about which suburbs may be poised for the next upswing.
For more details, read the realestate.com.au article.
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