This week, 2662 properties went to auction across Australia - the busiest week since late May. Nearly 74% of those homes sold, marking the highest clearance rate in a month as buyers rush to secure homes before prices climb further. The sharp rise in sales underscores growing urgency among first home buyers, particularly in Sydney and Melbourne where demand is outstripping available listings.
The market is being driven by several factors including falling interest rates now at 3.6%, improved first home buyer support allowing deposits as low as 5% without lenders mortgage insurance, and strong confidence from ongoing capital growth. Analysts note that a shortage of high-quality properties combined with a fear of missing out is prompting buyers to commit quickly, with some purchasing before auction day.
Sydney recorded 1082 auctions in its second-busiest spring week, while Melbourne led the country with 1248 auctions and a 74.4% clearance rate. Nearly 40% of Sydney homes sold prior to auction - the highest level in more than two years - pointing to intense buyer competition. Demand in Melbourne has also surged, especially after a slower start to the year. A recent sale in Richmond saw a two-bedroom inner-city flat go for $775,000 - $65,000 above reserve - showing buyers are prepared to pay premiums for well-situated and distinctive properties.
Momentum is extending beyond the major capitals. Brisbane had one of its best weekends this year, with 198 auctions and a 70.7% clearance rate. Adelaide recorded a 77.4% clearance from 96 auctions. Smaller markets like Darwin are also showing stronger capital growth and are forecast to lead national gains in 2025.
Experts expect auction strength to last at least another week, although activity may dip briefly in Victoria over the Melbourne Cup long weekend. Despite this, data suggests buyer motivation remains high and the return of FOMO could push prices up further through the remainder of spring.
