Over 1.3 million Australians intend to buy or build property in the next year—equivalent to over half a million homes trading hands or being built, new intention data from Roy Morgan Research shows. But exactly what sort of property these prospective purchasers want to buy differs significantly from state to state, with the highest preference for established homes in Sydney, fueling its unprecedented auction frenzy.

“Almost a million capital city residents intend to buy or build property within the next year, whether as an investment or a new or first home. With interest rates now at historic lows, this will no doubt further fuel demand in what many see as an overheated and inequitable housing market," said Michele Levine, CEO of Roy Morgan Research.

In the 12 months to March 2015, around 1 in 10 Perth residents (9.8%) said they intend to buy or build a new or established house or apartment within a year. With 8.3% of residents in the market, Melbourne’s appetite surpasses the 7.8% rate in Sydney—and there are now potentially just over 300,000 imminent property buyers in each city. Intention rates in Brisbane (6.7%), Adelaide (5.8%) and Canberra (5.3%) are below the national norm, and appetite is weakest in Hobart (3.5%). Only a quarter of all property intenders live outside these seven capital cities. Between them, Sydney and Melbourne are home to just under half of all Australia’s property intenders. Perth is the next largest market (165,790), with more intenders than Brisbane (124,670) despite being a smaller city overall.

Most Sydney property intenders (71%) are planning to buy an established house or apartment, while almost half as many (38%) want to buy or build a brand new property. In Melbourne, the ratio is close to the national norm with 67% of intenders after an established home and 43% seeking something new. In Perth, half of intenders (50%) want to buy a newly built house or apartment—or to build it themselves—while only 55% desire an established property.

“Each state has different first home-owner grant schemes and stamp duty concessions that apply to new or established properties, but these alone cannot explain the contrast in preferences across capital cities," said Levine. "Intention in Perth is almost evenly split between new and established property, while in Sydney over 7 in 10 intenders want to buy established real estate. So while around 220,000 Sydneysiders and 206,000 Melburnians keep prices high and auctioneers and agents busy this year, developers, builders and architects will be most in demand in Perth.”