Cotality’s latest weekly data shows auction clearance rates and volumes rising from recent lows during spring, with Melbourne and Sydney posting their strongest weekly results in months—even as activity remains substantially below last year.
Combined capitals clearance rate rose 5.8 percentage points to 58.5%, the strongest weekly result in 19 weeks but still below last year’s 69%.
Cotality warns volumes are likely to rise moderately through spring but stay subdued because of weak selling conditions and the risk of higher interest rates later in the year.
Despite the weekly upswing, the numbers are lower than the same time last year. The combined clearance rate was 69% a year earlier, and auction volumes are down 33.6% year-on-year. Cotality's economist Annabelle Mezieres noted the rise aligns with seasonal norms but stressed that auction volumes remain substantially below what would normally be expected for this time of year.
Short-term: The uptick indicates pockets of renewed buyer competition, particularly in Melbourne and Sydney. That can reduce negotiation leverage on properties that attract multiple bidders, and it may push some sale prices closer to vendor expectations in those specific contests.
Medium-term: Overall auction activity remains subdued versus 12 months ago. Lower volumes and weaker year-on-year clearance rates suggest many listings will still sit longer or shift to private treaty campaigns, which supports buyer negotiation power in many suburbs.
Interest rates: Cotality flags the risk of higher interest rates later in the year as a downside driver for selling conditions. Rising rates can reduce borrowing capacity and dampen buyer urgency.
Market mix and selling methods: Where vendors convert auctions to private treaty, price discovery changes and negotiation dynamics favour buyers. Watch listings that switch strategy—those often signal weaker demand around a property.
Cotality expects auction volumes to continue increasing through spring, but at a more moderate pace than in previous years. The current pattern is consistent with seasonal activity returning, yet structural weakness in buyer demand keeps volumes and clearance rates below the prior year. Investors should treat the recent rise as an early signal of seasonal competition, not a full market recovery.
Spring selling season is off to a weaker start, but what does the softer market mean for investors as buyer demand, listings, and borrowing conditions evolve?
Investors continue to have strong negotiation power as spring volumes rise and auction clearance rates drop following two weeks of consecutive increases.
Something interesting is happening in Australia’s property market, with auction clearance rates only telling part of the story. Auctions work best when several motivated buyers compete for the same property, creating urgency and pushing prices higher. But as buyer demand has softened in 2026, that competition has becom
For years, auctions have been the preferred selling method in Australia’s largest property markets, particularly in Melbourne and Sydney. When buyer demand is strong, an auction can create urgency, competition and fear of missing out, encouraging emotional buyers to push the price beyond where a private negotiation may
As the market adjusts away from a seller’s market, three in five vendors have changed tactics, converting from an auction campaign to a private treaty sale, according to recent data.
Investors looking to enhance their portfolios towards the end of 2026 need to find the right balance of growth and yield and avoid artificially inflated markets.
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