The Domain preliminary auction clearance rate came in at 63% over the weekend, from 473 reported auctions. Of these, 297 properties sold under the hammer, 62 were withdrawn and 114 passed in. This is down from the 70% final clearance rate recorded for the same weekend last year. The REIV also reported another 609 private sales.
There has been a lot of talk in the media over the past 24 hours about Melbourne’s auction clearance rate, which has reached its highest level since 17 March. There have also been plenty of reports of active bidding at auctions, with some agents reporting three to four active bidders and more properties selling under the hammer rather than passing in.
According to Cotality, Melbourne recorded the strongest preliminary auction clearance rate of any capital city across the country over the weekend.
While the clearance rate is a positive sign, it cannot be used as the only indicator of the health of Melbourne’s property market. Some agents are now opting for Expression of Interest campaigns and private sales rather than taking properties to auction. It could also be a sign that vendors are becoming more willing to meet the market and adjust their price expectations in order to get their property sold. However, the REIV’s 609 reported private sales last week is also a relatively high number compared with other weeks in 2026, which adds some weight to the improved results we saw over the weekend.
Today marks the deadline for buyers to use lending to purchase residential property through self-managed super funds, so some of the recent increase in activity may also be associated with buyers trying to transact ahead of this deadline.
We will be watching the results closely over the coming weeks. As I have previously mentioned, I believe we could be at, or very close to, the bottom of the property cycle here in Melbourne. One stronger weekend doesn’t establish a trend, but the combination of a higher clearance rate, stronger private sales numbers and reports of increased competition between buyers is certainly worth watching.
On another note, the RBA will announce tomorrow whether interest rates will rise or remain on hold. Most economists are expecting rates to remain on hold, and a further increase this year is now looking less likely than likely. Tomorrow’s decision, and particularly the RBA’s commentary around the outlook for inflation and future rates, could have a further impact on sentiment in the property market.
