Melbourne recorded a Domain preliminary auction clearance rate of 58% for the week ending Saturday 10 October, up from 56% last week, but below 69% at the same time last year. This week’s preliminary rate may be revised down as further results are reported. Of the 710 scheduled auctions, 514 results were reported, with 297 properties sold, 78 withdrawn and 139 passed in.
While conditions are favouring buyers, the Melbourne property market is still active. We are seeing fewer bidders at most auctions, but properties are continuing to sell under the hammer. Buyers are being more selective and disciplined with their budgets, which makes realistic vendor expectations particularly important.
For buyers, reduced competition can provide greater room to negotiate. However, it does not mean every vendor will accept a low offer or that a good property will sit on the market waiting. Buyers still need to understand comparable sales and recognise value when an opportunity presents itself.
This coming weekend will be the first under the mandatory published reserve requirements, which apply to auctions and fixed-date sales held from 16 October. Vendors must disclose their reserve at least seven days beforehand. It will be interesting to see how those published figures influence buyer participation and bidding.
In some instances, I believe this will work well. Motivated vendors who set a realistic reserve can give buyers confidence that the property is genuinely available within their budget. That clarity may encourage participation and help achieve a sale.
Others may try to retain the upper hand by setting their reserve high, leaving room for negotiation. The risk is that an ambitious reserve discourages buyers before auction day, reducing competition rather than strengthening the vendor’s position.
I am expecting more negotiations following passed-in auctions. However, a pass-in does not necessarily mean a property will remain unsold. In many instances, I expect a sale to be negotiated immediately afterwards, once the buyer and vendor have an opportunity to work towards an agreed price.
I am also seeing more properties coming onto the market to be sold via private sale, which is no surprise. As vendors and agents adjust to the new requirements, some will favour the flexibility of a private sale campaign over an auction.
The coming weeks will give us a clearer picture of how these changes affect selling strategies. For now, buyers have opportunities, transactions are still taking place, and realistic pricing remains central to achieving a result.
