SQM Research’s latest data reveals national residential property listings decreased in December 2019 by 14.8%, falling from 338,971 in November 2019 to 288,966. Compared to 12 months ago, listings have fallen by 12%.

All capital cities experienced decreases in property listings over the month with the most significant reduction in Sydney of 28.7%, followed closely by Canberra of 28.1%.

Year-on-year listings also show similar declines for all capital cities with Sydney recording a significant decline of 30.1%.

Because of falling listings, capital city asking prices increased by 2.4% for houses and 0.8% for units over the month to 31 December 2019, said SQM. The year ended with unit asking prices at $577,600 and houses $977,900.

Compared to a year ago, the capital city asking prices posted increases of 5.8% for houses and 1.0% for units.

Overall, Melbourne recorded the most substantial price growth of 4.2% for with the median house asking price breaking the $1 million again. The last time this occurred was in the period between April to June 2018. The median asking price of a Melbourne house now sits at $1,027,600.

Recording a 2.4% increase in asking house prices in December, the Sydney house market has also climbed back to its 2017/2018 highs of over $1.3 million. The median asking house price in Sydney is now $1,341,400, according to SQM.

Luke Hogan, Head of Sales at Raine & Horne Double Bay said current market conditions presented Sydney vendors with the best opportunity to sell a property for three years. “In the Eastern Suburbs, demand from overseas buyers and locals remained strong through the Christmas break making early 2020 a prime time for vendors considering a property sale.

“We are still seeing average sales prices heading north with demand for apartments and houses in the Eastern Suburbs very strong.”

Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital National supported Luke’s outlook, declaring, “Capital city house prices are expected to see continued strong gains into early 2020 on the back of pent up demand, rate cuts and the fear of missing out.” Shane is tipping average price growth of 10% for residential property in 2020.