Australia’s for-sale housing stock rebounded in February as vendors returned to the market, but overall supply remains well below last year – keeping upward pressure on prices, new figures from SQM Research show.
The figures come as Australia’s 2026 property cycle is turning more selective, with higher funding costs and capacity constraints keeping pressure on quality assets and prices.
Total national residential listings rose 4.6% month-on-month to 226,758 dwellings in February, reflecting a seasonal lift after a subdued January. However, listings are still 9.1% lower than a year ago, underscoring “materially lower” stock levels despite the rebound.
Sydney led the recovery, with listings jumping 15.6% to 33,437, now 0.6% higher year-on-year. Melbourne recorded a 14.1% monthly rise to 41,036 listings, up 2.7% annually. Brisbane gained 3.7%, though remains 21.0% below last year, while Perth fell 6.1% over the month and is still 25.7% lower year-on-year, highlighting some of the tightest conditions in the country.
“February’s figures confirm that the listing market is regaining momentum following the seasonal lull,” said Louis Christopher, managing director of SQM Research.
New listings surged 48.6% nationally to 76,077 dwellings – the strongest monthly rise since spring – as vendors came back after the holiday pause. Sydney new listings jumped 57.9%, while Melbourne soared 73.9%. All other capitals also posted strong gains.
Even so, national new listings are broadly flat year-on-year (-0.1%), signalling that underlying supply is still constrained. Older stock rose just 0.7% over the month and is 12% lower than a year ago, with Brisbane, Perth and Adelaide all recording meaningful declines in old listings as longer‑dated properties continue to be absorbed.
“The surge in new listings for February is fairly typical activity for this time of year. However, overall stock levels remain materially lower than a year ago, which continues to provide support to prices,” Christopher said.
Distressed listings increased 6.2% in February to 3,502 properties, but remain 29.2% below February 2025.
“At this time, there are no indications of vendor stress across the housing market,” Christopher said, while warning SQM will watch conditions closely following the recent rate rise and “current geopolitical turmoil”.
SQM’s Weekly Asking Prices Index showed combined dwelling asking prices up 1.9% over the month and 13.6% year-on-year, with Brisbane, Perth, and Adelaide continuing to post standout annual gains.
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