SQM Research reports sharp rise in distressed listings across Victoria

A key housing indicator suggests more and more Australians in one big state are falling into dire financial stress.

A warning sign is flashing red across one state’s economy, with “distressed listings” in the housing market spiking sharply in the past 12 months.

Fresh data from SQM Research shows distressed listings in Victoria jumped 28.4 per cent from October 2023 to October 2024, a dramatic divergence from the 3.1 per cent decline recorded nationwide.

A distressed listing means a vendor puts up a property for sale while under financial stress.

The month-on-month change in distressed listings also increased sharply, rising 5.6 per cent.

Victoria’s figures were the worst across the country.

Distressed listings are rising sharply across Victoria’s housing market, new data from SQM Research shows. Picture: NewsWire / David Crosling

Tasmania is in second place with a 23.7 per cent increase in distressed listings over the year and the Northern Territory takes third spot at 15.9 per cent.

Queensland, WA and South Australia all reported declined in distressed listings, while NSW remained flat.

Altogether, the number of residential properties selling under distressed conditions in Australia hit 5351, SQM said.

“While the counts are still low compared to pre-covid periods, we will be monitoring these results very closely going forward as it could be an early sign of an increase in the number of Melbourne property owners struggling,” SQM Research managing director Louis Christopher said.

Alongside distressed listing, old listings, or properties listed for over 180 days, also rose in Victoria.

Across the year, the number of old listing jumped 11.3 per cent from 7110 in October 2023 to 7910 in October 2024.

Nationwide, old listings increased 10.1 per cent for the year, but declined 1.2 per cent from the previous month.

Asking prices for houses continued to rise, SQM said.

Nationwide, asking prices lifted 0.9 per cent, with Perth and Darwin leading the capital city markets with a 1.5 per cent and 2.6 per cent lift, respectively.

Sydney rose 1 per cent lift, Melbourne remained comparatively stable with a 0.4 per cent rise and Adelaide fell 0.9 per cent.