A cooling market, read state by state

SQM Research recorded a 12 per cent rise in national listings in July, and PIPA Chair Cate Bakos set out for news.com.au how the slowdown differs from one state to the next.

What the listings data showed

SQM Research figures reported by Elizabeth Tilley on news.com.au on the 4th of August 2026 put national residential listings at 278,984 in July. That was more than 12 per cent up on June and 22 per cent up on a year earlier. July is ordinarily one of the quietest months for new listings.

SQM managing director Louis Christopher described the month as abnormal and attributed part of the rise to vendors choosing to sell before prices fall further. He also suggested that investors reconsidering their portfolios after the taxation changes in the federal budget could account for some of the increase, while noting that SQM does not break listings down by seller type.

Combined capital city asking prices fell 1.2 per cent over the month, the third consecutive monthly fall. Listings that had been on the market for at least 180 days rose 8.1 per cent.

How the market differs by state

Cate Bakos, Chair of PIPA, told news.com.au that the national market had entered a recalibration phase, and that the conditions within it vary considerably. Her reading, as reported:

• New South Wales has moved into a clear downswing, with Sydney clearance rates below 50 per cent and asking prices in premium suburbs discounted by up to 10 per cent.
• In Victoria, investors are moving from established Melbourne houses toward regional centres such as Bendigo and Ballarat, where yields are higher, and boutique apartments are returning rents above 5 per cent.
• Queensland remains active but segmented. Affordability limits in Greater Brisbane are moving demand into units, while Rockhampton and Toowoomba offer yields above 5 per cent with major infrastructure under way.
• Western Australia continues to outperform, although listings have risen on a year earlier and days on market have doubled.
• South Australia has softened since the budget, with clearance rates falling and inexperienced developers exposed. She described it as a cyclical slowdown rather than a crash, given low unemployment.
• Tasmania has grown steadily in Launceston and the north-west, and Hobart remains resilient, with buyers increasingly price sensitive.

Overall, the national market is cooling, but fundamentals such as infrastructure, affordability, and rental demand continue to underpin long-term resilience. The cycle is shifting from momentum-driven growth to selective and strategy-led opportunities.

Cate Bakos, Chair of PIPA, quoted on news.com.au, the 4th of August 2026

What the aged listings indicate

Mr Christopher explained that many properties unsold after six months were listed well above the market from the start. A property that has sat for 180 days has usually been tested by the market already, and the evidence of that test is available: the original asking price, each price change and the time on market. A buyer negotiating on an aged listing can build an offer from those facts and from recent comparable sales, rather than from the current asking price.

The same data showed auction listings down about 20 per cent over the year as vendors moved to private treaty, which Mr Christopher described as typical of a downturn. For a buyer, that shift changes the terms of the purchase. In most states a private treaty contract carries a statutory cooling-off period, although the length varies between jurisdictions and it can be waived. An auction contract carries none.

What a yield figure leaves out

Several of the markets named in the article are attracting investors because the advertised yield is above 5 per cent. A gross yield is rent divided by price, and it says nothing about the costs that sit between the rent and the investor’s return.

Before a regional yield is relied on, an investor should expect to see:

• The local vacancy rate and how it has moved over several years, not only the current month.
• The depth of the tenant market, including whether demand rests on a single employer, project or industry.
• Holding costs specific to the property: body corporate levies for units, insurance, council rates, land tax and a realistic allowance for maintenance.
• The sales history of comparable properties, as a measure of how quickly the asset could be sold and at what discount.
• The status and funding of any infrastructure cited as a reason to buy.

Questions to put to an adviser

A regional purchase recommended on the strength of its yield should come with the net yield calculation, the local vacancy evidence and the comparable sales behind it, in writing. Where that recommendation comes from a person paid by the seller or developer, the PIPA Code of Conduct requires the commission to be disclosed. Advisers who hold the QPIA accreditation have met PIPA’s education standard, and consumers can search for a Qualified Property Investment Adviser. Because property investment advice sits outside any licensing regime, PIPA continues to advocate for a regulatory framework covering everyone who offers it.