Property listings fell 12% in December and almost 10% over the year
Australia’s housing market ended 2025 with fewer homes on the market and asking prices still edging higher, as new data pointed to sustained supply constraints rather than a softening in demand.
Figures from SQM Research show total residential listings fell 12% in December to 210,237 dwellings, extending an already subdued November and underscoring a sharp year‑end pullback in vendor activity. On an annual basis, listings were 9.8% lower than in December 2024, reinforcing the structural shortage of stock facing buyers in most capital cities.
Newly advertised properties fell sharply as vendors stepped back over the Christmas and New Year period. National new listings dropped 31.1% in December to 53,738 dwellings.
Source: SQM Research
Properties that have been on the market for longer than 180 days also declined. Old listings fell 9.5% nationally in December to 60,320 dwellings. Compared with a year earlier, this category was 10% lower, signalling that stale or over‑priced stock is gradually being removed from the market as buyers absorb remaining listings or vendors adjust expectations.
Source: SQM Research
Meanwhile, the number of properties listed under financial distress declined again in December, as households continued to manage higher borrowing costs.
Distressed listings fell 9.8% over the month to 3,326 dwellings and were 29.4 per cent lower than a year earlier, pointing to improved mortgage serviceability and relatively solid household balance sheets despite higher interest rates.
Source: SQM Research
“December’s data confirms that Australia’s housing market ended 2025 with extremely tight supply,” said Sam Tate, 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.”
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