Current State of the Australian Residential Property Market

Weekly Market Wrap: Current State of the Australian Residential Property Market (SQM Research)

• Stock remains tight – New listings are down significantly, distressed listings are low, and much of what is not selling is overpriced or unappealing.
• Affordability is capping growth but easing mortgage rates are providing momentum for price rises.
• Location matters – Property is not a commodity; long-term gains hinge on smart selection across suburb, street, and asset quality.
• Melbourne’s auction market is leading the nation, with clearance rates at 75%, up from 56% this time last year.

Weekly Commentary: Navigating a Mixed Market Landscape

SQM Research’s latest report paints a nuanced picture of the national housing market. Here are the key takeaways:

• New Listings: Down 3.7% YoY to 62,769 nationally, with sharp drops in Sydney (-14.2%) and Melbourne (-18.8%). Perth and Adelaide bucked the trend, rising 17.8% and 6.7% respectively. This shows us where the growth will be
• Old Listings (180+ days): Rose 13.1% YoY, totalling 77,018 in June. Significant increases in Sydney (+29.8%), Melbourne (+17.9%) and Canberra (+65.6%) suggest lingering clearance issues., although we notice ambitious vendors or compromised property make up the majority. Quality property moves quick
• Distressed Listings: Fell 11.1% YoY to just 4,543, with NSW and QLD recording the highest totals—signalling resilience despite economic headwinds.
• National Asking Prices: Rose 9.0% YoY. Standouts include Adelaide (+17.4%), Brisbane (+12.5%), and Perth (+13.7%). Sydney and Melbourne were stable; Hobart and Darwin declined.
• SQM Outlook: Director Louis Christopher noted that seasonal winter slowdowns were expected, but strong buyer interest and low supply are keeping the market competitive—especially for quality homes.

What It All Means

The current data reveals a market shaped by selectivity, resilience, and scarcity. The rise in old listings reflects a cautious but rational buyer pool—willing to act, but only on quality assets in the right locations. Meanwhile, the continued decline in distressed sales confirms the underlying strength of the market, despite economic headwinds. And with new stock remaining tight, stable demand is placing gentle but persistent pressure on prices, even as affordability continues to challenge many buyers.

But here’s the key: property isn’t a commodity. It’s a highly nuanced asset class where suburb, street, and build quality make all the difference. National trends offer clues—but smart investing requires local insight, tailored strategy, and strong execution.

At 1Group, that’s exactly what we deliver. If you're serious about building long-term wealth through property, we're here to guide you through every step of the journey. Let’s talk.

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