Sellers hiking their asking prices to keep up with booming property market

author-avatar By on May 25, 2021
Sellers hiking their asking prices to keep up with booming property market

Rapidly rising property prices are seeing vendors increasingly raise their asking prices mid-campaign to keep up.

If there was any doubt it's a sellers market right now, new analysis by Domain has found that vendors are feeling so confident in the booming market right now that they're commanding even higher asking prices mid-sales campaign.

But the analysis also found the number of property listings with a revised higher asking price appears to have peaked in most capital cities, a sign the strong pace of price growth may be easing.

Domain data shows 9.3% of property listing prices in Sydney were increased last month, down from a peak of nearly 10% in March.

In Melbourne, 7.8% of homes for sale increased their asking price mid-campaign in April, down from 8.9% of March.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

With house prices recently notching the steepest quarterly increase in 18 years, Domain Senior Research Analyst Dr Nicola Powell said vendors are feeling more confident about commanding higher asking prices.

"Throughout the first three months of 2021 the median house price lifted $539. In Sydney and Canberra, it was the fastest quarterly acceleration of house prices in almost three decades," Dr Powell said.

"Buyers and sellers were transacting in a market that saw house prices rise by $1,145 a day in Sydney and $909 a day in Canberra.

"Accruing capital growth at this pace over a four-week sales campaign would add another $32,060 in Sydney and $25,452 in Canberra.

"This can be accentuated in a rapidly rising market as battling buyers become more likely to drive prices even higher. It is understandable that during a period of sharp median price increases more homes experience an asking price hike mid-campaign."


Source: Domain

Areas with the biggest number of properties increasing their prices mid campaign were in pockets of inner-Sydney and Melbourne, with 14% 

"The more expensive areas of Sydney and Melbourne have the highest percentage of asking price revisions upwards over April. This suggests the upper end of the market will continue to lead price growth in the coming months," Dr Powell said.

But vendors in regional areas are less likely to hike their asking prices, despite property price growth in regional areas doubling those in capital cities.

"The capitals tend to exhibit greater price volatility versus regional Australia. During periods of price growth, capitals tend to have bigger upswings followed by deeper downturns," Dr Powell said.

"Therefore, our regional property markets in comparison have historically gone through more steady changes and paces of growth compared with capital cities, which is playing out in the percentage of sale listings with an increased asking price mid-campaign."

Photo by Patrick McGregor on Unsplash


The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure,, Performance Drive and are part of the Firstmac Group. To read about how manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.


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