Spring auction market opens with volumes sharply lower
Australia’s spring auction season has begun with significantly fewer properties going under the hammer than a year ago, as cautious buyers, higher interest rates and falling property prices continue to affect market activity.
Cotality research showed 1,462 homes were taken to auction across the capital cities over the weekend, 31.1 per cent fewer than at the same point in 2025.
It was the fourth consecutive week in which auction volumes were more than 30 per cent below the corresponding period last year.
The national preliminary clearance rate edged up from 52.4 per cent to 52.7 per cent, but remained below 60 per cent for an 18th consecutive week.
More listings set to test buyer demand
While the opening weekend of spring was relatively subdued, auction supply is expected to increase.
Cotality research director Tim Lawless said about 1,640 auctions were scheduled for the following weekend, with approximately 1,900 expected the week after.
That increase is likely to provide a clearer indication of the depth of buyer demand as more vendors bring properties to market.
Lawless said clearance rates were expected to remain below average and noted that the prospect of another interest rate increase could weigh further on buyer sentiment.
The report also linked softer property prices to interest rate rises and tax changes announced in the May federal budget.
Melbourne recorded the largest share of auctions over the weekend, with 662 properties going under the hammer. That represented a 27.9 per cent decline from the same time last year.
The city’s preliminary clearance rate was 58.2 per cent.
One four-bedroom property in Brighton was marketed with a price guide of $3.9 million to $4.2 million. It was passed in at auction at $3.7 million before later selling for $3.68 million, $220,000 below the lower end of the guide.
Buxton Brighton senior sales consultant Ross Walker, who managed the campaign with colleague Leanne Potter, said buyers were often reluctant to show their position during an auction and negotiations were increasingly occurring afterwards.
Sydney and Brisbane show differing conditions
Sydney recorded 523 auctions, with its preliminary clearance rate increasing by 1.4 percentage points from the previous week to 57.7 per cent.
Brisbane recorded 133 auctions but produced a preliminary clearance rate of just 24.8 per cent, which Cotality identified as the city’s second-lowest early clearance rate of the year.
Matthew Cleverdon, a buyer’s agent at Morrell and Koren, said limited housing stock in Melbourne was affecting confidence. He also identified the approaching school holidays, reserve-price disclosure changes expected to be legislated in October and a looming state election as factors influencing the market.
Interest rates remain a central consideration for the spring selling season.
Ray White chief performance and value executive Thomas McGlynn said a further rate rise would likely have an immediate effect on market activity. Conversely, he said keeping rates unchanged for the remainder of the year could support confidence among both buyers and sellers.
For property investors, the early spring figures show a market entering a period of increasing auction supply while borrowing costs and buyer confidence remain significant influences on transaction outcomes.
SOURCE ATTRIBUTION:
Based on reporting by Sarah Petty. Source publication,
