Australia's residential supply has seen no significant decrease, with an increase in demand the main reason behind the sharp rise in property prices.
Many agents have attributed the recent surge in Australia's property prices to insufficient housing supply in capital cities.
However, data from research company SQM Research shows that there has not been a significant shortage of residential housing supply in Australian state capitals recently.
On the contrary, low interest rates and rising demand have led to fierce competition among buyers.
SQM Research's data also showed that the number of new listings in Australia rose 4.3 percent year on year in January, with most cities recording an increase.
Among them, Melbourne rose by 27 percent. Only Sydney and Hobart saw decreases, with the number of new listings in Sydney falling from 8,235 to 8,144 and Hobart's falling from 461 to 443.
The property advisory's managing director Louis Christopher said the shortage of housing inventory in the capitals was driven by an increase in buyer demand. Though the number of new listings has decreased significantly, he said, the local listings are not enough to meet the demand.
A senior research analyst at Domain, Nicola Powell, said the surge in new listings in Melbourne reflects the fact that the supply of dwellings was suppressed and that owner confidence is making a strong return after long-term lockdowns.
Residential prices in most capitals have reached record highs, and interest rates have reached historic lows during the same period, stimulating many buyers to enter the market.
Sydney real estate agent Lauren Goudy pointed out that housing supply is very limited, and more properties are expected to be offered for sale.
But even if the number of listings doubles, the relationship between housing supply and demand still remains very tense.
Owners currently have nowhere to go and feel there is nowhere they can move to, so more people are deciding to stay in place or build new houses.
