Australia’s housing market ended 2025 with an even tighter stock squeeze, as total listings fell sharply over December while asking prices continued to climb, SQM Research reported.
Total national residential listings dropped 12% month-on-month in December to 210,237 dwellings, reflecting a sharp seasonal slowdown on top of already low stock. Listings are now 9.8% lower than a year ago, confirming ongoing supply constraints across most capitals.
Sydney led the pullback with a 20.3% monthly fall in listings to 27,012, followed by Melbourne (-16.6%), and Brisbane (-19.6%), with Brisbane’s stock now 19.6% lower than December 2024.
Perth (-12.5%), Adelaide (-19.4%) and Canberra (-15.7%) also recorded sizeable declines, while Darwin listings are down 36.7% year-on-year. Hobart fell 4.4% for the month and 9% annually.
Newly advertised listings fell 31.1% nationally in December to 53,738 dwellings as vendors stepped back ahead of Christmas and New Year. Despite the sharp monthly drop, new listings remain 4.3% higher year-on-year, pointing to underlying vendor confidence heading into 2026.
Older stock also continued to clear. Old listings (on market 180+ days) fell 9.5% over the month to 60,320 dwellings and are now 10.0% lower year-on-year, signalling that long‑standing or overpriced stock is still being absorbed.
Perth was the notable exception on older stock, recording a monthly increase of 4.5%, suggesting some accumulation of stale listings and possible pricing resistance after strong gains earlier in the year. More substantial reductions in old listings were recorded in Adelaide (-6.1%), Canberra (-6.6%), Hobart (-11.2%) and Darwin (-16.7%), with Darwin now 65.4% below December 2024 levels.
Distressed listings declined a further 9.8% in December to 3,326 dwellings and are now 29.4% lower than a year ago, highlighting improved mortgage serviceability and stronger household balance sheets despite higher rates. Most states saw falls in distressed stock, led by South Australia (-22.8%), Western Australia (-22.1%) and the Northern Territory (-23.1%).
Tasmania was the only state to record an increase (+8.2%), though distressed listings there remain 6.2% lower year-on-year. The ACT continues to stand out, with distressed listings 33.3% higher than a year ago.
SQM Research’s Weekly Asking Prices Index shows the drop in listings has not dented seller expectations. National asking prices rose 1.8% for houses and 0.6% for units over the month to 30 December, with combined dwellings up 1.7% month-on-month and 12.8% year-on-year.
Sydney house asking prices rose 2.8% over the month to $2.19 million and are now 11.5% higher year-on-year, while unit prices climbed 2.0% monthly and 7.8% annually. Melbourne recorded steady gains, with houses up 2.9% month-on-month and 7.2% year-on-year, and unit prices 0.9% higher monthly and 8.6% annually.
Brisbane continued to outperform, with house asking prices rising 2.7% for the month and 17.3% year-on-year, while unit prices surged 4.8% monthly and 28.9% annually. Perth saw mixed conditions, with house prices easing slightly (-0.1% month-on-month) but remaining 8.1% higher year-on-year, while unit prices rose 4.1% monthly and 22.5% annually. Adelaide recorded one of the strongest monthly results, with house prices up 6.2% and 20.5% higher year-on-year.
Canberra and Hobart recorded modest monthly gains in asking prices, with combined dwellings up 0.8% and 2.4% respectively, while Darwin remained volatile with mixed results across property types despite strong annual growth.
PropTrack data also shows national home prices ended 2025 at a record high of $880,000, up 8.8% over the year, with December growth slowing to just 0.1% as values cooled in Sydney and Melbourne but stayed strong in Adelaide, Brisbane, and Perth.
“December’s data confirms that Australia’s housing market ended 2025 with extremely tight supply,” said Sam Tate (pictured), head of property at SQM Research.
“The sharp drop in total and new listings is largely seasonal, but the ongoing year-on-year decline tells us that stock levels remain structurally constrained across most capital cities.
“At the same time, distressed listings continue to fall, which suggests households are coping well despite higher interest rates. This has helped underpin continued growth in asking prices, particularly in markets such as Brisbane, Adelaide, and Perth.
“As we move into early 2026, the key question will be whether new listings rebound strongly enough to relieve some of this pressure. If they don’t, price momentum is likely to persist.”
For mortgage brokers, the combination of tight stock, rising asking prices, and fewer distressed sellers points to continued affordability pressure for borrowers and competitive conditions for purchase and refinance clients into early 2026.
Industry leaders expect 2026 to remain busy and challenging, with consolidation, tight stock, strong investor demand and possible rate hikes all keeping pressure on borrowers and making brokers’ guidance more critical than ever.
For the full report and other property insights, visit the SQM Research website.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
