Australia’s property market is facing a growing build-up of unsold homes, with listings climbing almost 20 per cent over the past year and distressed properties reaching their highest level since late 2024, according to new SQM Research figures.
National residential property listings increased 8.8 per cent in October to 301,201, up from 276,839 in September, with every capital city recording a monthly increase.
Total stock is now 19.3 per cent higher than a year ago and has reached its highest level in more than five years, giving buyers considerably more choice as the spring selling season continues.
However, the figures reveal a more significant shift beneath the headline numbers, with much of the additional stock coming from properties spending longer on the market rather than an influx of new sellers.
SQM Research Managing Director Louis Christopher said the increase in available properties was becoming increasingly noticeable across the country.
“October’s numbers show a sharp increase in available stock, with national listings rising above 300,000 for the first time in more than five years and every capital city recording a monthly increase.”
More properties, but not necessarily more sellers
While new listings increased 8 per cent nationally during October to 86,974 properties, they remain 1.2 per cent below the same time last year.
Meanwhile, properties that have been advertised for between 30 and 180 days have increased 41.1 per cent annually to 130,118, accounting for close to four-fifths of the overall yearly increase in listings.
Properties sitting on the market for more than 180 days have also increased, rising 16.2 per cent over the year to 84,109.
For agents, the figures highlight the importance of managing vendor expectations and ensuring asking prices reflect current market conditions, particularly as buyers have more properties to choose from.
“We are also seeing a build-up in older listings. Stock that has been on the market for more than 180 days is now 16 per cent higher than a year ago, while new listings are slightly below last year. The bigger build-up is in properties that have been on the market for one to six months, which are up 41 per cent on a year ago. That suggests a growing number of properties are taking longer to sell,” Mr Christopher said.
Melbourne provides one of the clearest examples of the changing conditions, with total listings reaching 51,264, up 17.3 per cent annually and the highest level recorded by SQM Research.
Yet new listings in Melbourne are 5.2 per cent lower than a year ago, while properties advertised for between 30 and 180 days have increased 47 per cent.
Canberra is experiencing a similar pattern, with total listings reaching a record 5,548 despite new listings falling 16.7 per cent annually. Properties on the market for between 30 and 180 days have increased 52 per cent.
“Melbourne and Canberra deserve particular attention. Listings in both cities have now reached record highs on our measurements. Fresh listings in both cities are lower than a year ago, so this is not a rush of new sellers. It is stock accumulating because it is not selling, which points to soft buyer demand in those markets,” Mr Christopher said.
Brisbane and Adelaide lead the stock build-up
Some of the largest changes are occurring in markets that have experienced substantial increases in available stock over the past year.
Brisbane recorded 23,489 properties for sale in October, an increase of 11 per cent over the month and 44.2 per cent compared with October 2025.
Adelaide recorded the strongest monthly increase among the capitals, with listings climbing 19.3 per cent to 12,943, leaving total stock 43.8 per cent higher than a year ago.
Perth listings rose 14.2 per cent during October to 18,075, representing an annual increase of 27.8 per cent.
“The annual comparison is particularly noteworthy. Brisbane and Adelaide are both carrying more than 40 per cent more stock than a year ago, and Perth is up almost 28 per cent. Buyers in these markets have considerably more choice than they did this time last year,” Mr Christopher said.
Sydney also recorded a substantial increase in available properties, with listings climbing 9.3 per cent during October to 42,699, up 15.2 per cent annually.
However, new listings in Sydney remain 18.9 per cent below October last year, while properties advertised for more than 180 days have increased 41.6 per cent.
Hobart was the only capital where total listings remained below last year’s levels, falling 2.3 per cent annually despite an 11.4 per cent monthly increase.
The changing balance between available stock and fresh listings suggests agents in several capitals are dealing with a growing pool of existing properties, making pricing and campaign management increasingly important.
Distressed listings climb as asking prices soften
Adding to the changing market conditions is a rise in distressed property listings, which increased 10.2 per cent nationally during October to 5,368 properties.
Distressed listings are now 42.3 per cent higher than a year ago and have increased by roughly 60 per cent since reaching a low of around 3,300 in early 2026.
Queensland recorded the highest number of distressed listings at 1,904, an annual increase of 71.2 per cent.
South Australia experienced the strongest annual growth, up 84.9 per cent, followed by Western Australia at 75.8 per cent.
New South Wales recorded 1,123 distressed listings, up 21 per cent annually, while Victoria’s total increased 6 per cent to 900.
Every state and territory now has more distressed properties listed than at the same time last year.
“What we are watching most closely is the rise in distressed listings. National distressed stock is now 42 per cent higher than a year ago, and every state and territory is above last year’s levels, with particularly sharp annual increases in South Australia, Western Australia and Queensland. These numbers are still relatively small, but distressed listings have been rising steadily since early 2026 and are now at their highest level since late 2024,” Mr Christopher said.
Despite the increase, distressed listings still account for only around 1.8 per cent of total national stock and remain well below the levels recorded in late 2020, when more than 12,000 distressed properties were advertised.
The increase in available properties is also coinciding with softer asking prices in several capitals.
SQM Research’s detailed asking-price data for the week ending 3 November shows Sydney’s combined dwelling asking prices declined 0.7 per cent over the month and are now 2 per cent below a year ago.
Brisbane recorded a 2.1 per cent monthly decline, while Adelaide’s combined asking prices fell 1.3 per cent.
Melbourne, Canberra, Darwin and Hobart recorded monthly increases, highlighting the differences in market conditions between capitals.
For agents, the combination of rising stock, longer selling periods and weaker asking prices in several capitals reinforces the importance of accurate appraisals and early conversations with vendors about market conditions.
With buyers facing more choice and a growing number of properties competing for attention, the remainder of the spring selling season will provide an important test of vendor expectations and the ability of agents to convert listings into sales.