Housing supply is gradually increasing across several parts of the country, giving buyers more choice after years of highly competitive market conditions.
Fresh data shows property listings across the combined capital cities are now 2.6% higher than they were at the same time last year. While supply remains tight in many locations, the increase is beginning to shift negotiating power slightly back toward buyers in selected markets.
Sydney has recorded the strongest rise in listings, with available stock up 8.5% year-on-year. Melbourne follows with a 7% increase, Adelaide has risen 6.8%, and Canberra listings are up 5%. These increases are creating more options for buyers who previously faced intense competition and limited availability.
Not every city is experiencing higher supply, however. Darwin listings have fallen sharply by 22%, Hobart is down 20.6%, Perth has dropped 14.7%, and Brisbane listings are marginally lower by 0.9%. Regional Australia remains even tighter. Across combined regional markets, listings are almost 10% lower than the same period last year. Regional Western Australia and Regional Tasmania have recorded some of the steepest declines in housing availability. The imbalance between supply and demand remains one of the defining characteristics of Australia’s property market.
For several years, undersupply has supported rapid price growth and strong competition among buyers. Properties in many markets were selling quickly, often attracting multiple offers or highly competitive auction campaigns. As listings rise in selected cities, conditions are slowly becoming more balanced. That shift is beginning to influence pricing behaviour.
Vendor discounting across the combined capital cities has increased from 2.9% to 3.1% over recent months. This indicates sellers are becoming slightly more flexible during negotiations as buyers gain additional options. Regional Northern Territory sellers are currently discounting the most, reducing asking prices by a median of 5.6%. Meanwhile, sellers in Brisbane, Regional Western Australia and Regional South Australia continue achieving prices much closer to their original expectations, with median vendor discounting sitting at just 2.9%.
Auction markets are also reflecting softer buyer conditions in some areas. According to Cotality, declining clearance rates suggest many buyers are becoming more cautious as higher borrowing costs continue affecting affordability. Proposed tax changes and ongoing economic uncertainty are also influencing sentiment, particularly among investors.
For buyers, rising stock levels can create valuable opportunities. During extremely tight markets, buyers often feel pressured to move quickly and compromise on due diligence in order to secure a property. More listings provide additional breathing room to compare options, negotiate terms and make more considered decisions. However, supply remains highly uneven depending on location and property type. Well-positioned homes in desirable suburbs continue attracting strong interest, particularly in markets supported by infrastructure investment, population growth and tight rental conditions. Brisbane remains a good example.
Although overall listings are slightly lower than last year, demand remains strong in lifestyle suburbs and infrastructure-linked precincts. Interstate migration continues supporting buyer activity across many parts of South East Queensland. Perth also continues experiencing strong competition because available housing stock remains limited while population growth and rental demand stay elevated. At the same time, affordability pressures are clearly changing buyer behaviour nationally.
Higher interest rates have reduced borrowing capacity significantly compared to just a few years ago. Many buyers are now reassessing budgets, targeting smaller homes or exploring different suburbs in order to remain within lending limits. This shift is contributing to stronger performance in affordable housing segments compared to premium markets.
The gap between seller expectations and buyer budgets is also becoming more noticeable. Some vendors continue pricing homes based on peak market conditions experienced during recent years, while buyers are increasingly factoring higher mortgage repayments into their offers. That mismatch can result in longer selling periods, increased negotiation activity and more realistic pricing outcomes.
Importantly, rising listings do not necessarily signal widespread market weakness. Instead, the market appears to be transitioning away from the extremely aggressive seller conditions that dominated after the pandemic. Conditions are becoming more localised and nuanced. Some suburbs remain undersupplied and highly competitive. Others are beginning to soften as affordability constraints impact demand. This makes local market knowledge increasingly important for both buyers and sellers.
Understanding future supply pipelines, infrastructure projects, employment growth and demographic changes can provide far more insight than broad national headlines alone. For strategic buyers, a market with slightly more choice can be a positive development. The ability to negotiate, compare properties carefully and avoid emotionally driven decisions often leads to stronger long-term outcomes.
At the same time, buyers should not assume all markets are slowing equally. Quality homes in tightly held suburbs continue attracting strong demand, particularly in locations where long-term fundamentals remain strong.
The Australian property market is no longer moving as one uniform cycle. Instead, outcomes are increasingly being shaped suburb by suburb, city by city and price bracket by price bracket. That trend is likely to continue as affordability pressures, infrastructure spending and migration patterns reshape housing demand across the country.
