Demand beating supply in Brisbane property listings

20th Aug 2013

Supply and demand is a classic component of any capitalist system, when supply beats demand prices will generally go down, when demand beats supply prices will rise. Obviously there is far more to it than this, with a number of other general key factors and many market and product specific issues having an influence, but supply and demand is a classic component for a reason: it offers one of the most simple measures of an economy or market.

According to property analysts RP Data, the number of homes advertised in print and online for the greater Brisbane area has fallen 17 per cent in 12 months. This Equates to roughly 5000 less properties on the market, it was the largest capital city decrease for the year. This is the first such drop in Brisbane since RP Data began collecting information.

Over the same period RP Data shows there was an 8 per cent rise in Brisbane property transactions in the 12 months to May.  What this tells us is that the the supply of properties in Brisbane has dropped, while the demand seems to have risen.

Classic economics would imply that prices will therefore rise unless demand reduces or supply increases.