Residential property listings have edged higher in January, but overall supply remains constrained when compared with the same period last year. According to SQM Research, total residential listings increased by 3.1% to 216,826 dwellings in January, following seasonally low volumes in December. Despite the modest rise, listings are still 11% below January 2025 levels, underscoring persistent supply shortages in key markets.
Most capital cities recorded small increases in listings, although Darwin was an exception, declining 0.7% during the month. Key figures across major cities include:
* Melbourne: 35,980 properties for sale
* Sydney: 28,922 properties
* Brisbane: 12,546 properties
* Perth: 11,971 properties
SQM Research head of property Sam Tate notes that the low number of distressed listings indicates limited forced selling, even amid higher interest rates. The data highlights a market where owners are generally holding firm, rather than accepting discounted offers. Constrained supply combined with steady buyer demand is supporting price levels and sustaining competition across multiple price segments.
Even with modest increases in stock, the underlying market fundamentals remain tight. In cities such as Brisbane, Perth, and Adelaide, where population growth is strong and rental demand is high, insufficient listings will continue to underpin price growth. Limited new supply can intensify competition, especially for well-located properties, placing buyers under pressure to act quickly when quality options become available.
The data also demonstrates that not all markets behave uniformly. While Melbourne and Sydney experienced reasonable listing volumes, regional and smaller metropolitan centres often face more acute supply shortages, reinforcing the need for strategic buying and careful market research. Micro-market dynamics, such as street-level demand, property features, and elevation, contribute to variation in sale outcomes and clearance rates.
From a rental perspective, constrained listings also signal potential pressure. Fewer properties for sale can shift some buyers into the rental market temporarily, adding to competition for existing rental stock. Vacancy rates in many regions remain below healthy levels, further intensifying demand and supporting rental prices. This dynamic has implications for investors, tenants, and policymakers, highlighting the importance of balancing supply and demand across both sales and rental markets.
Looking forward, analysts anticipate that unless new listings increase materially, competition is likely to intensify over the coming months. Rising demand in combination with constrained supply can drive faster sales, higher prices, and potentially more bidding at auctions and private treaty sales. For buyers, this reinforces the need for preparation, access to early market information, and strategic decision-making to secure suitable properties.
In addition, SQM data indicates that the quality of listings varies, with limited high-end or family-friendly stock available in certain desirable locations. This uneven distribution contributes to pricing disparities and reinforces the importance of micro-market knowledge. Prospective buyers and investors should focus on understanding the interplay of location, property condition, and market timing when evaluating opportunities.
In summary, January listings show modest growth but remain below last year’s levels, reflecting ongoing supply constraints across Australia’s major property markets. Limited stock combined with steady buyer demand creates a market where prices are likely to remain supported, competition will persist, and informed decision-making is critical. Market participants should monitor stock levels closely over the next quarter to anticipate potential impacts on pricing, competition, and rental affordability.
