Australia's residential property market has recorded an unusually strong lift in supply, with national listings climbing 12.4% in July to 278,984 dwellings, according to the latest SQM Research data.
The increase pushed total stock 22.8% above July 2025 levels, marking the strongest annual growth in available housing in more than a year.
The rise defies the typical winter slowdown, when vendor activity usually eases.
SQM Research managing director Louis Christopher (pictured) said the scale of the increase was notable.
"National listing levels are now almost 23% higher than they were a year ago, giving buyers considerably more choice than they have had for some time," Christopher said.
Growth was broad-based across the capitals. Melbourne led the major markets with a 15.5% monthly rise to 50,867 properties, now 42.8% higher year-on-year, while Brisbane climbed 18.0% to 20,273 listings, now 29.5% higher annually.
Adelaide and Canberra also posted strong gains, up 16.0% and 10.3% respectively. Sydney rose 6.6% and sits 28.0% higher than a year ago, while Perth added 5.5% to reach 15,218 properties, extending several months of improving supply. Darwin jumped 15.6%, and Hobart rose 3.8%, though its stock remains 10.3% below July 2025 levels.
Beneath the city-level detail, the national breakdown shows growth split fairly evenly between fresh stock and properties that have lingered on the market. New listings rose 5.1% to 72,806 dwellings, while older stock, classed as listings over 180 days, increased 8.1% to 78,098 dwellings.
Christopher said the dual increase pointed to a slowing market.
"More properties are coming onto the market, but they're also taking longer to sell. This is the typical read you see in housing market downturns – listings start piling up upon each other," he said.
Distressed listings added to the picture, rising for a third consecutive month, up 1.6% nationally to 4,330 properties and 0.9% higher annually, the first yearly rise recorded in some time. Growth was led by South Australia (+11.8%) and the ACT, where distressed stock sits 70.0% higher than a year ago despite a modest 4.1% monthly increase.
Capital city asking prices eased 1.2% over the month, with house prices down 1.5% and units down 0.2%, though combined prices remain 6.2% higher annually.
Christopher also pointed to a shift in how properties are being sold: auction listings have fallen roughly 20% against the same period last year, with vendors increasingly opting for private treaty.
He said the added supply, combined with buyer withdrawal, "should provide buyers with greater negotiating power heading into spring," while forecasting a further rise in listings and continued downward pressure on prices through the rest of 2026.
The forecast aligns with other recent industry outlooks. KPMG expects national house prices to fall 1.1% through 2026 before rebounding in 2027, while CBA has downgraded its own 2026 forecast to flat, citing softer sentiment following this year's tax changes. Westpac, meanwhile, expects prices to be roughly flat for the year, implying a modest fall in the second half, with the correction most pronounced in Sydney and Melbourne.
See more property insights at the SQM Research website.
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