Australia’s real estate market is experiencing a clear divide, with Melbourne currently emerging as the most affordable major city in the country for land purchases, while Perth records strong growth and active demand in the property sector.
According to a new analysis, four out of the five largest real estate markets in Australia are witnessing increased activity. This contrast highlights the uneven nature of the housing market’s recovery at the national level.
Data indicates that Perth is currently the most attractive market in the Australian real estate sector, whereas Melbourne continues to face significant challenges and has yet to reach a full recovery stage.
Matt Bell, Chief Economist at Oliver Hume, explained that the national land market has generally performed strongly despite variations between different cities. He confirmed that land markets “are generally performing very well,” noting that four out of five major markets were operating above balanced levels by the end of last year.
However, he pointed out that Melbourne remains the only exception, though it is gradually moving toward that level. Bell added that Perth has been the most active real estate market nationally for several years, attributing this to strong demand that significantly exceeds supply, which has enhanced its attractiveness compared to other cities.
He also noted that supply shortages are heavily impacting other regions, particularly Southeast Queensland and Adelaide. Southeast Queensland is experiencing a limited supply, which has weakened sales volumes despite continued strong demand and rising prices. Similarly, Adelaide has long faced a shortage of available land, leading to limited movement in sales volumes, much like Queensland, despite high land prices.
