More than a quarter of homes listed for sale across Australia have been on the market for six months or longer, as higher interest rates and changes to property tax concessions weigh on buyer demand.
With the traditionally busy auction season approaching, agents say sellers are reluctant to reduce their price expectations while buyers are increasingly cautious about taking on higher borrowing costs.
Data from SQM Research shows that more than 21 per cent of Melbourne properties for sale have been listed for more than 180 days. The figure is 18 per cent in Sydney and more than 10 per cent in Brisbane. Nationally, including regional areas, 28 per cent of properties have remained unsold for more than six months.
SQM managing director Louis Christopher said sellers needed to adjust to current market conditions rather than wait for buyers to meet previous price expectations.
Auction results have also remained weak, with preliminary figures showing just 48 per cent of properties offered at auction over the weekend were sold.
Some suburbs are experiencing particularly long selling periods. In Sydney’s Pyrmont, 34 per cent of listings have been on the market for more than 180 days, while in Western Australia’s Beaconsfield, around half of the 60 properties listed have remained unsold for more than six months.
Officer South in Melbourne’s south-east has been among the hardest-hit areas, with almost 53 per cent of properties listed for 180 days or more. Local agent Brad Nicholls estimated values had fallen by around 10 per cent, but said many owners were reluctant to accept lower prices.
Nicholls said the market had become increasingly difficult, with some open homes attracting no prospective buyers.
The broader downturn has been driven by rising borrowing costs and weaker buyer confidence. Four interest-rate increases have pushed the cash rate to a 15-year high, while changes to investor tax concessions have added further pressure.
Capital city property prices have fallen 6.4 per cent over six months, while industry data shows buyer inquiries have been particularly weak in Victoria and Queensland.
Real Estate Industry Partners chief executive Sadhana Smiles said properties were taking longer to sell as buyers became more cautious and took more time to make purchasing decisions.
The slowdown is also evident in Sydney’s north-west, including Pitt Town, where many properties have remained listed for more than 180 days. Local agent Rebecca Baldwin said buyer numbers were noticeably lower than last spring and that activity often fell sharply in the days following an interest-rate rise as households reassessed their finances.
For sellers, the message from agents is increasingly clear: in a weaker market, properties priced according to previous market conditions may continue to sit unsold unless expectations are adjusted.
