Buyer demand shifts from booming hotspots to rebounding markets

Demand is rising in previously-underperforming capitals, with increased investor interest fuelling a home price turnaround.

Tracking how the average number of key enquiries per property listing on realestate.com.au has changed can reveal where buyer demand is increasing, and where interest is waning.

Key enquiries combine high-intent actions such as emailing an enquiry, calling the agent or downloading documents.

If enquiries per listing are rising, it suggests more serious buyers are interested in properties in that area. If enquiries are going down, it suggests demand is decreasing.

Key enquiries per listing - houses

Enquiries remain steady at the national level, with houses receiving 41 enquiries on average and units receiving 40 enquiries.

But most cities experienced significant changes in enquiries in the past year, with demand surging in some cities and waning in others.

Demand rises sharply in Darwin

Darwin recorded the largest increase in buyer demand amid a surge in investor interest, with enquiries rising 57% for houses and 40% for units. 

Lending data from the ABS shows the number of investor loans in the Northern Territory in the year to June 2025 was about 81% higher than the previous 12-month period, while owner-occupier loans were up about 10%.

Darwin has become a buyer hotspot in the past 12 months amid a housing shortage, with interstate investors targeting high-yielding properties with the expectation of above-average price growth. Picture: Getty

---

There are far fewer homes on the market in Darwin than last year, according to the latest REA Group Listings Report, which shows the total number of homes for sale declined by 41% year-on-year.

With fewer homes for sale, higher enquiries per listing and lower days on market, prices are expected to rise further.

Key enquiries per listing - units

Home prices in Darwin are already at record highs, having risen 6.6% in the 12 months to July this year, according to the latest PropTrack Home Price Index. 

Updated price forecasts from ANZ released last week predicted home prices will rise by about 14% in the 2025 calendar year, outperforming the other capitals.

Improved affordability in Melbourne lifts buyer interest

Enquiries per listing in Melbourne were up 22% for houses and 16% for units, indicating demand is strengthening.

Melbourne’s improved affordability relative to the other capitals has attracted more investment recently, with investor loans in the June quarter at the highest level in three years.

Home prices in Melbourne rose about 1.5% in the past year, and now sit just 1% below the peak recorded in early 2022. Picture: Getty

---

The number of investor loans in Victoria in the year to June was almost 9% higher compared to the prior 12 months, while owner occupier loans rose about 4%. 

Regional Victoria recorded an even higher rise in enquiries per listing than Melbourne – up 33% for houses and 28% for units.

How home prices changed around Australia in July

Enquiries per listing rose in all regional areas in the past year, reflecting increased interest in areas where homes are typically more affordable.

Hobart enquiries rise as market recovers

Enquiries per listing in Hobart were up 24% for houses and 31% for units compared to a year ago.

The total number of homes for sale in Hobart in July was about 10% lower than the same time last year, and homes are selling quicker too.

This comes after a slower period during 2023 and 2024, when Hobart faced declining prices amid a glut of properties on the market.

Hobart's market has strengthened, with properties selling a little quicker and prices growing at a moderate pace. Picture: Getty

---

Although the supply and demand imbalance is less extreme than in Darwin, prices in Hobart have been creeping up, and are about 3% higher than a year ago. 

However, prices are still about 7.5% lower than the peak reached in February 2022, indicating Hobart’s recovery is still in its early stages.

Enquiries ease in booming capitals

The biggest declines in enquiries per listing were in Perth, Adelaide and Brisbane – Australia’s three strongest capital city housing markets in the past few years.

These cities have recorded home price growth of about 8-9% in the past 12 months, although this is slower than the rapid growth of last year, when property prices in Perth rose by about 23% in the year to August 2024.

Perth had the most significant decline in enquiries per house listing (down 18%) while Adelaide recorded the largest drop for units (down 12%). However, enquiries in these cities remain elevated and above the national average.

Price growth in Perth has been very strong, but enquiries have declined from very high levels. Picture: Getty

---

Demand in Sydney and Canberra has been stable compared to a year ago, and price growth in these cities has been relatively subdued – Sydney prices rose about 3% in the past year, while prices in Canberra remain flat year-on-year. 

Increasing buyer demand in previously-underperforming capitals where supply has tightened could put further upward pressure on home prices, but gains aren’t expected to be even – ANZ forecasts more rapid growth in Darwin and Melbourne than in Hobart.

While some of the heat has come out of the market in Perth, Adelaide and Brisbane, strong underlying demand and the prospect of further interest rate cuts means prices in these cities are likely to stabilise rather than fall.