Australia Weekly Property Market Report – Week Ending 20 September 2026

Melbourne Auction Volumes Surge, but Clearance Rates Retreat as Buyers Test Spring Vendor Expectations

Executive Summary

Melbourne’s spring auction market faced its most meaningful test so far over the weekend ending Sunday, 20 September 2026. More properties came to market, but the larger supply of homes was met with a softer clearance rate.

The latest preliminary data from Cotality, formerly CoreLogic, shows that 1,832 homes went to auction across the combined capital cities, around 16% more than the previous week. The national preliminary clearance rate fell to approximately 54%, down 4.6 percentage points. Auction volumes were also more than 30% below the same period last year.

Melbourne accounted for almost half of that national activity. Cotality recorded approximately 900 Melbourne auctions and a preliminary clearance rate of around 56%, down roughly seven percentage points from the previous week. Sydney recorded 577 auctions with a 54% preliminary clearance rate.

The later preliminary numbers from Domain tell a similar story. In Melbourne, 913 auctions were scheduled with 659 results reported, 374 sales, 205 pass-ins and 80 withdrawals. That produced a 57% clearance rate, while the median auction price was $954,000. Reported auction sales totalled approximately $270.6 million. At the equivalent point last year, Melbourne’s clearance rate was 71%.

Domain’s reporting was softer on Sydney, clearing 48% from 797 scheduled auctions. Brisbane posted 29%, Adelaide 51% and Canberra 48%.

The figures are significant because Melbourne’s recent improvement in auction clearance rates had come while the number of properties being offered was still unusually low. This weekend saw a lot more stock come to market and the Melbourne auction clearance rate went backward.

So the Australia Weekly Property Market Report is less about a sudden collapse and more about buyers’ depth. Now there is more stock available that is testing the market.

There are still clear signs that buyers are active where they believe they’re getting value. Recent reporting indicated that purchasers in Melbourne and Sydney were taking advantage of lower prices, even as expectations of another interest-rate increase grew.

That creates a market with two very different sides.

Buyers are active, but they aren’t indiscriminate.

Well-presented properties with realistic pricing can still attract genuine competition. Properties carrying ambitious reserves are increasingly being passed in and moving into private negotiation.

That distinction is likely to shape the Melbourne Property Market through the rest of spring.

Weekly Market Snapshot

Combined capitals – Cotality preliminary ~1,832 auctions; 54% clearance rate.

Melbourne – Preliminary Cotality: ~900 auctions, 56% clearance rate.

Domain Melbourne 913 scheduled 659 reported 374 sold 205 passed in 80 withdrawn 57% clearance $954,000 median

Sydney — Domain: 797 scheduled; 486 reported; 235 sold; 74 passed in; 177 withdrawn; 48% clearance; $1.59 million median.

Brisbane — Domain: 177 scheduled; 129 reported; 38 sold; 78 passed in; 13 withdrawn; 29% clearance; $1.1 million median.

Adelaide — Domain: 123 scheduled; 77 reported; 39 sold; 32 passed in; six withdrawn; 51% clearance; $1.1055 million median.

Canberra — Domain: 77 listings; 64 reported; 31 sold; 18 passed in; 15 withdrawn; 48% clearance; median $987,500.

RBA cash rate: 4.35%, with financial markets assigning a very high probability to another increase at the 29 September meeting.

Melbourne: Spring Supply Finally Tests Buyer Depth

The Melbourne Property Market has reached an important point in its spring campaign.

For several weeks, Melbourne auction clearance rates had been gradually improving while listing numbers remained well below last year. This weekend was different.

Between 900 and 913 properties were listed for auction in Melbourne over the weekend, making it one of the biggest auction weekends of the current spring campaign depending on which data set you use.

The Melbourne Auction Clearance Rate immediately felt the impact of the increased supply.

Cotality’s initial rate dropped to about 56% and Domain posted 57%.

The domain figures are particularly telling. Of 659 Melbourne auction results reported, 205 passed in. A further 80 were withdrawn and 374 were recorded as sold.

That means almost one-third of reported Melbourne auctions passed in.

For vendors, this may be the most important number in this week’s Australian Property Market Update.

More listings haven’t automatically translated into more buyers. Now, however, buyers have more choice and can see a number of campaigns side-by-side.

That changes the dynamics of the Melbourne Auction Market.

Why Clearance Rates Differ Between Providers

Weekly auction reporting can be confusing because Cotality, realestate.com.au and PropTrack, REIV and Domain collect and categorise results differently.

Cotality’s preliminary figures are released before every result has been captured and are normally revised as additional unsuccessful results are added.

Domain’s Saturday evening dataset recorded 659 of Melbourne’s 913 scheduled auctions. Realestate.com.au also updates results as campaigns are reported through its network. The Real Estate Institute of Victoria reports a Victorian auction clearance measure based on its own agency submissions and reporting methodology.

There isn’t much value in searching for one supposedly definitive number.

The more useful approach is to look at the direction across the datasets.

This week, that direction is clear:

Auction supply increased and clearance rates softened.

That is the central theme of this Australia Weekly Property Market Report.

Melbourne Median Auction Price

Domain recorded a Melbourne median auction price of $954,000, with total reported sales of approximately $270.6 million.

The Melbourne Median Auction Price is considerably below levels seen during stronger phases of the city’s property cycle. But weekly auction medians need to be treated carefully.

The distribution of properties can change quite a bit from weekend to weekend. A weekend with more Inner East houses will naturally produce a higher median than one with more units and outer-suburban family homes.

The bigger price trend puts it more in context.

Cotality’s August Home Value Index showed national dwelling values declining 0.9% during August, their fifth consecutive monthly fall. Australian home values were approximately 3.6% below their March peak.

Sydney experienced an even larger decline, with values around 7.1% below its peak. Melbourne has also remained among the weaker major capitals.

The takeaway is straightforward:

Higher transaction activity doesn’t necessarily mean higher property prices.

Passed-In Properties Become the Story of Melbourne Spring

In the latest reporting from Domain, Melbourne recorded 205 passed-in auctions.

That’s a more meaningful number than the headline clearance rate.”

A pass-in is when a property is passed in at auction because the bids did not meet the vendor’s reserve. The campaign may have generated inspections and buyer interest but the expectations of the buyer and seller were too far apart.

That’s the sort of tension that arises more when you have more supply.

South Yarra was a good example.

Two adjoining Art Deco homes at 50 and 52 Lang Street passed in on a $2 million vendor bid after failing to attract a genuine public bid. The properties subsequently moved to private treaty with an asking price of approximately $2.225 million.

The result illustrates an important point for both sides.

For vendors, enquiry and inspection activity don’t necessarily translate into bidding at the expected price.

For buyers, a passed-in auction can create an opportunity to negotiate without the pressure of competing publicly against several other bidders.

That makes Melbourne Passed-In Auctions an important part of the spring story.

A Tale of Two Melbourne Auctions

The South Yarra result contrasts with a Yarraville sale, where a 1950s weatherboard home reportedly sold for $1.15 million after a buyer made a significant bid that met the vendor’s reserve.

Together, the two campaigns demonstrate something increasingly obvious about the Melbourne Property Market.

It’s not simply a buyer’s market or a seller’s market.

It’s becoming a property-specific market.

A correctly positioned property can sell quickly.

A comparable home with an ambitious reserve can pass in.

The difference may be relatively small in dollar terms, but substantial in buyer psychology.

This is one reason Melbourne House Prices can’t be understood by looking at auction clearance rates alone.

Melbourne’s Premium Market

The premium segment remains highly selective.

Domain’s detailed results included a four-bedroom Armadale property at 2A Denbigh Road that passed in on a $3.37 million maximum bid. A five-bedroom Beaumaris home at 14 Comport Street passed in at $2.75 million.

Meanwhile, a five-bedroom property in Toorak was reported as Melbourne’s highest-priced transaction for the week ending 19 September.

The premium market is still transacting, but there’s a widening gap between exceptional properties and ordinary premium stock.

Purchasers with budgets above $2 million often have more discretion. They can wait, compare multiple suburbs and negotiate rather than feeling compelled to buy immediately.

That gives them greater leverage than buyers competing for scarce lower-priced properties.

Middle Melbourne: The Affordability Advantage

The middle and more affordable parts of Melbourne remain comparatively resilient.

Domain recorded examples including a four-bedroom Airport West home selling for $1.12 million, a Northcote three-bedroom house selling for $1.515 million and a Mount Waverley four-bedroom home selling for $1.58 million.

These areas benefit from broader buyer pools.

At times owner-occupiers, first home buyers, downsizers and investors can compete for the same property. Demand is supported by that overlap.

But affordability is relative.

With the cash rate at 4.35% and another increase increasingly expected at the time of this reporting, buyers are assessing repayments much more carefully.

That is an important consideration for anyone watching Melbourne House Prices or considering Melbourne Property Investment.

Sydney

Sydney delivered one of the weaker results among the major capitals.

Domain recorded 797 scheduled auctions and a 48% clearance rate. Of the 486 reported results, 235 sold, 74 passed in and an unusually high 177 were withdrawn.

The median auction price was $1.59 million, with total reported sales of approximately $234.1 million.

The withdrawal number stands out.

Over a third of the Sydney outcomes reported were due to withdrawals. That means some vendors and agents are choosing not to proceed when campaign feedback indicates the property may not achieve the desired result.

Sydney’s problem with affordability is worse than Melbourne’s, with purchase prices much higher.

A $1.59 million median auction price requires considerably greater borrowing capacity than Melbourne’s $954,000 median. That makes the Sydney Property Market particularly sensitive to another interest-rate rise.

Even so, strong individual sales continue.

A historic Petersham station master’s home sold for $2.311 million after 34 bids, while another western Sydney family property reportedly achieved $2.33 million, which was $205,000 above reserve.

Once more, the Sydney Auction Results prove that quality and scarcity can still generate competition, even in a subdued broader market.

Brisbane

Brisbane Property Market: Brisbane recorded 177 scheduled auctions, with a 29% clearance rate. 

Domain reported 129 results, with only 38 sales. A remarkable 78 properties passed in, while another 13 were withdrawn.

The reported median auction price was $1.1 million.

Brisbane remains very much a private treaty market so auction results are just one piece of the puzzle for the wider housing market.

But the fact that about three in five reported auctions are passed in shows how hard it is currently to create competitive tension through the auction channel.

The result is particularly interesting because Brisbane has been one of Australia’s stronger property markets in recent years.

The latest Brisbane Auction Results reinforce the idea that even previously resilient markets are becoming more sensitive to affordability, higher interest rates and increased listing supply.

Adelaide

Adelaide recorded 123 scheduled auctions and a 51% clearance rate.

Of 77 reported results, 39 sold, 32 passed in and six were withdrawn. The reported median auction price was $1.1055 million, with approximately $34.2 million in reported auction sales.

A four-bedroom Henley Beach property was the highest-priced reported Adelaide sale during the latest weekly reporting period.

The Adelaide Property Market remains supported by housing scarcity and comparatively strong population demand.

But after several years of rapid price growth, affordability has deteriorated substantially.

A clearance rate close to 50% suggests buyers are becoming more disciplined.

The latest Adelaide Auction Results therefore point to a market where demand remains present but buyers are less willing to stretch beyond what they consider fair value.

Canberra

Canberra recorded 77 scheduled auctions and a 48% clearance rate.

Domain reported 64 results, including 31 sales, 18 pass-ins and 15 withdrawals. The reported median auction price was $987,500.

Canberra’s smaller auction pool means weekly figures can be more volatile than Melbourne or Sydney.

The underlying support is stable public-sector and professional employment, but high mortgage rates and high purchase prices are still limiting borrowing capacity.

Therefore, even with some stability in employment conditions, the Canberra Property Market remains vulnerable to changes in affordability.

Perth, Hobart and Darwin

Auction data is considerably less useful in Perth, Hobart and Darwin because private treaty dominates these markets.

Broader price indices provide more useful context.

Australia’s housing correction hasn’t been uniform. Cotality’s August data showed Sydney and Melbourne among the weaker major markets, while Perth remained substantially stronger.

That divergence is important.

Australia doesn’t currently have one housing market.

It has multiple local cycles responding differently to supply, affordability, migration and borrowing costs.

For anyone tracking the Australian Housing Market, this regional variation is worth keeping in mind.

Geelong and Regional Victoria

The Regional Victoria Property Market continues to show greater resilience than metropolitan Melbourne in selected locations.

The highest reported transaction across regional Victoria and the Riverina for the week ending 19 September was a five-bedroom home in Highton, within Greater Geelong.

That’s a noteworthy result.

Highton remains one of Geelong’s established family markets, supported by schools, access to central Geelong, larger homes and proximity to the Surf Coast.

PropTrack-powered realestate.com.au suburb data places Highton’s median house price at approximately $890,000, while units sit around $557,500.

The relative affordability of the Geelong Property Market compared with many Melbourne family suburbs continues to support demand.

But regional markets are far from uniform.

Buyers increasingly favour renovated or move-in-ready homes because construction and renovation costs remain elevated. Properties requiring significant immediate expenditure are more likely to face price negotiation.

That means Geelong Property Prices need to be considered alongside property condition, location and the cost of bringing a home up to standard.

Ballarat

Ballarat’s latest weekly sales reporting identified a four-bedroom home in Brown Hill as the region’s highest-priced reported sale for the week ending 19 September.

Ballarat continues to be a largely private-treaty market so weekly auction clearance rates provide little insight into the wider market.

The city has a diversified employment base of healthcare, education, government and professional services as well as rail connectivity to Melbourne.

Affordability remains one of its major advantages.

Even so, buyers are becoming more selective about location and property condition.

Well-maintained family homes close to schools, employment and established amenities are generally better positioned than properties requiring substantial upgrades.

For vendors, presentation is becoming increasingly important. When buyers have more choice, the cost of required works is often reflected directly in what they’re willing to offer.

Bendigo

Bendigo’s highest-priced reported sale for the week ending 19 September was a five-bedroom home in Flora Hill.

Flora Hill is one of Bendigo’s established residential areas, supported by proximity to La Trobe University, schools and central Bendigo.

Like Ballarat, Bendigo is overwhelmingly a private-treaty market. Auction statistics shouldn’t therefore be treated as the principal measure of market strength.

Days on market, achieved prices, vendor discounting and listing volumes provide more useful information.

The Bendigo Property Market continues to offer an affordability advantage compared with Melbourne, but investors need to assess rental demand, maintenance costs and future supply rather than relying solely on regional population growth.

The Bigger Picture: Australian Prices Continue to Correct

The latest completed Cotality Home Value Index showed Australian property values falling 0.9% during August, the fifth consecutive monthly decline.

National values were approximately 3.6% below the March peak, while around 93% of capital-city suburbs recorded declining values through winter.

PropTrack also recorded five consecutive months of national price declines, confirming the broader direction even though the two methodologies produce different absolute figures.

This matters when interpreting auction results.

A property can successfully sell at auction in a falling market.

For example, if a vendor reduces expectations from $1.2 million to $1.1 million and the property sells for $1.11 million, the campaign counts as a successful auction.

But the underlying property value may still have fallen.

Clearance rates measure transaction success.

They don’t measure capital growth.

That distinction is essential when assessing the Australian Property Market and any Australian Property Market Update.

The RBA Has Become the Immediate Market Risk

The Reserve Bank of Australia’s next monetary-policy decision was scheduled for 29 September 2026, with the cash rate at 4.35% at the time covered by this report.

Expectations of another increase had strengthened considerably.

Following parliamentary testimony from RBA Governor Michele Bullock and senior officials, financial markets were pricing approximately a 95% probability of a September rate increase, according to LSEG data cited by ABC.

The International Monetary Fund had also warned that Australia might require additional monetary tightening because inflation remained persistent.

A 25-basis-point increase would take the cash rate to 4.60%.

For property buyers, that would affect mortgage repayments and borrowing capacity.

But the psychological effect could be just as important.

Buyers expecting higher rates tend to leave a larger financial buffer. That can directly reduce the amount they’re prepared to bid at auction.

This is why RBA Interest Rates Australia remains one of the most important variables to watch alongside auction volumes and clearance rates.

Why Inflation Remains Difficult

Australia’s inflation problem is increasingly complicated by global conditions.

The RBA has acknowledged that inflation remains too high, while global energy costs and geopolitical conflict continue to create upside risks.

At the same time, Australia’s labour market remains relatively tight.

That leaves the central bank with a difficult balancing act.

Further rate increases could put additional pressure on heavily indebted households and the housing market. But allowing inflation expectations to become entrenched could ultimately require even more aggressive tightening.

For property markets, the result is continued uncertainty around Australian Interest Rates.

Global Factors: Higher Rates May Last Longer

The global interest-rate environment is also changing.

Central banks internationally are dealing with the possibility that the period of exceptionally low interest rates following the Global Financial Crisis was unusual rather than normal.

Higher government debt, infrastructure requirements, geopolitical risks and substantial investment in artificial intelligence and data centres are all contributing to stronger demand for capital and potentially higher long-term interest rates.

For Australian property, that raises an important longer-term possibility:

Buyers and investors may need to adjust to mortgage rates remaining structurally higher than they became accustomed to during the 2010s.

That would put greater emphasis on rental yield, cash flow and affordability.

For investors considering Melbourne Property Investment, the purchase price alone therefore isn’t enough. Financing costs and ongoing holding expenses matter just as much.

Buyer Sentiment

Buyer behaviour over the weekend provides a useful indication of sentiment.

Purchasers are returning because prices have fallen.

But they’re cautious because rates may rise again.

That combination explains how competitive individual auctions can coexist with a metropolitan clearance rate in the mid-50s.

Buyers see opportunity.

They don’t see urgency.

That distinction matters.

During a fear-of-missing-out market, buyers worry that waiting will make property more expensive. In the current environment, many believe waiting could produce more choice or a better price.

That shifts negotiating power towards the purchaser.

It also helps explain why Melbourne Auction Results can look very different from one property to another.

Vendor Sentiment

Vendor confidence is also being tested.

Melbourne’s jump to approximately 900 auctions suggests more sellers are finally committing to spring campaigns.

But the 205 Domain pass-ins demonstrate the risk of bringing stock to market without adjusting expectations.

The coming weeks could become even more competitive for vendors.

Cotality expected Melbourne auction activity to fall dramatically around the AFL Grand Final weekend before rebounding afterwards.

October will therefore provide the more meaningful test.

If sellers who delayed their campaigns enter the market simultaneously after the holiday weekend, buyers could suddenly have significantly more choice.

The Melbourne Spring Property Market is now entering a more important phase, with increased listings giving buyers more choice and vendors facing greater pressure to price realistically. 

Listing Supply Is Becoming a Bigger Risk

Separate market analysis has identified 56 Australian areas where property listings now exceed roughly five months of buyer demand, raising the possibility of further price pressure.

Victoria has fewer high-risk areas than some other states because it has already experienced a substantial correction, although the Mornington Peninsula remains among the areas identified as vulnerable.

The underlying principle is simple.

Price is ultimately determined by the relationship between supply and demand.

If listings rise faster than buyers return, prices can come under pressure even when the broader housing market remains undersupplied.

That’s why the next phase of the Melbourne Spring Auction Market deserves close attention.

Forecast: The Next Four Weeks

Melbourne is likely to experience unusual auction-volume volatility.

The AFL Grand Final weekend will temporarily reduce scheduled auctions, after which activity is expected to rebound in October.

The key indicator won’t be the Grand Final week clearance rate because the sample will be unusually small.

Instead, attention should focus on the first two full auction weekends of October.

If Melbourne can absorb a return to 900–1,000 auctions while maintaining final clearance rates in the mid-50s or better, that would point towards meaningful stabilisation.

If clearance rates fall towards 50% or below as supply increases, vendors may need to adjust price expectations further.

The September RBA decision was equally important for the near-term Property Market Forecast 2026. A further rate increase would place renewed pressure on borrowing capacity just before Melbourne’s traditional peak spring selling period.

The interaction between interest rates, listing volumes and buyer confidence will therefore be critical to the overall Property Market Outlook 2026.

Actionable Insights

For vendors

The message from this weekend is clear: increased spring activity doesn’t mean buyers will accept last year’s pricing.

Use very recent comparable sales, pay close attention to repeat inspections and contract requests, and set a reserve that reflects genuine buyer feedback.

If the property passes in, negotiate immediately while buyer interest is strongest.

For buyers

Prepare finance early and maintain a buffer for another potential rate increase.

Don’t assume every auction will be competitive. Monitor passed-in and withdrawn campaigns closely, as these can create some of the better negotiating opportunities.

The current Australian Property Market is giving prepared buyers more choice than they had during tighter periods of the cycle.

For investors

Prioritise sustainable rental income and net cash flow.

Falling prices can create attractive entry points, but higher interest rates can quickly offset a cheaper purchase price.

Finance costs, land tax, insurance, maintenance, owners corporation expenses and realistic rental income should all be considered together.

Key Takeaways

Melbourne’s auction volume jumped to approximately 900–913 properties, making this the strongest test of spring buyer demand so far.

Cotality’s preliminary Melbourne clearance rate fell to approximately 56%, while Domain recorded 57%.

Domain recorded 205 Melbourne pass-ins and 80 withdrawals, with a $954,000 Melbourne Median Auction Price.

Sydney recorded only a 48% Domain clearance rate, with 177 withdrawals.

Brisbane remained particularly weak at 29%, including 78 pass-ins from 129 reported results.

Adelaide recorded 51%, while Canberra achieved 48%.

Cotality’s latest monthly index showed Australian home values 3.6% below their March peak, with declines widespread across capital-city suburbs.

Geelong produced regional Victoria’s highest reported transaction of the week through a five-bedroom Highton home.

Ballarat’s leading reported sale was in Brown Hill, while Bendigo’s was in Flora Hill.

Financial markets viewed another RBA increase on 29 September as highly likely at the time of this reporting.

The central message from this Australia Weekly Property Market Report is straightforward: spring supply is increasing, but buyer demand isn’t rising at the same pace.

The Melbourne Auction Market is still active, but the stronger supply is giving buyers more choice and more negotiating power.

Pricing correctly is more important than ever for sellers.

Buyers can find opportunities with patience and preparation.

And for anyone trying to get a handle on the Australian Housing Market, the most important thing to watch over the next few weeks is not one headline clearance rate.Whether Melbourne can absorb a much higher volume of spring listings without any further significant deterioration in auction results.

Frequently Asked Questions

What was Melbourne’s auction clearance rate for the week ending 20 September 2026?

Melbourne’s preliminary auction clearance rate was around 56% according to Cotality, while Domain’s preliminary results recorded a 57% clearance rate. Cotality’s later final figures put the clearance rate at 54.2%. The difference reflects the timing and methodology used by each provider. 

How many properties went to auction in Melbourne this week?

Around 900–918 Melbourne properties went to auction during the week ending 20 September 2026, depending on the dataset and reporting stage. Cotality recorded 900 auctions in its preliminary data, later revising this to 918 held auctions. This represented a substantial increase from the previous week. 

What were the latest Melbourne auction results?

Melbourne recorded a clear increase in auction activity, but the higher supply wasn’t matched by stronger clearance rates. Cotality’s final figures recorded 918 auctions and a 54.2% clearance rate, while Domain’s preliminary figures reported 913 scheduled auctions, 374 sales, 205 pass-ins and 80 withdrawals. The results suggest buyers remained active but were increasingly selective about price and property quality.

What was Melbourne’s median auction price this week?

Domain reported a $954,000 median Melbourne auction price for the week ending 20 September 2026. Weekly auction medians should be interpreted carefully because the type, location and price range of properties going to auction can vary significantly from one week to another.

How did Melbourne’s spring auction market perform?

Melbourne’s spring auction market became more competitive for vendors as auction volumes increased. Around 900–918 properties were taken to auction, but the clearance rate softened as buyers gained more choice. Cotality’s final clearance rate was 54.2%, compared with 57.3% the previous week. The result suggests that demand is still present, but buyers aren’t rushing to purchase at prices they consider too high. 

Are Melbourne house prices falling in 2026?

Yes. Melbourne has been one of the weaker major Australian property markets during the current downturn, with property values declining from their previous peak. The article’s broader Cotality data showed Australian dwelling values falling 0.9% in August, with national values around 3.6% below the March peak. Melbourne’s weaker price performance means buyers should distinguish between a successful auction and genuine capital growth: a property can sell successfully even while its underlying market value is declining.

Disclaimer: This report is for general information only and is based on market data available at the time of preparation. It does not constitute financial or investment advice. Market conditions may change, and readers should seek appropriate professional advice before making property decisions.