Low mortgage rates are driving an upswing in the Melbourne property market, according to new data.

Whilst most of the housing market reporting has centred on Sydney, data compiled by SQM Research revealed that Melbourne recorded a surprising decrease in the number of unsold properties after February’s rate cut, as buyers rush to the market.

The number of residential property sale listings in Melbourne fell by 1.4% over March. Melbourne listings are now down 14.7% year-on-year, the largest decline seen across all capital cities. Sydney, which posted the second largest decline in unsold properties, fell 8.8% year-on-year. Over March, Sydney listings increased by 1.6%.  

Louis Christopher, managing director of SQM Research, said this suggests demand is heating up in the Melbourne property market.  

“What was different in these results however were the falls recorded in Melbourne. We are now recording a clear downtrend in properties for sale in Melbourne. Such a downtrend to me suggests the market in Melbourne is picking up and there are now more buyers than sellers,” he said. 

“Previously, Melbourne was very much a mixed market. But this suggests to me the recovery is becoming more uniform across the city.”

Meanwhile, Victoria is also leading the way in new housing approvals for the month of February, according to the latest ABS figures.

New dwelling approvals increased by 20.5% in Victoria, followed by NSW (13.5%) and Tasmania (4%). Three states saw reduced new dwelling approvals during February, including Western Australia (-8%) and Queensland (-30.6%). A particularly severe reduction occurred in South Australia (-41.4%).