Australian Property Auction Market Weekly Report | 16 February 2026

Australia’s property market entered mid‑February with rising auction volumes and steady clearance rates, indicating a resilient yet price‑sensitive buyer environment.

Preliminary weekly results show:

• Melbourne: 68% clearance rate from 613 reported auctions
• Sydney: 70% clearance rate from 657 reported auctions
• Combined capitals: ~70.7% preliminary clearance rate
• Auction volume: approx. 2,051 homes across capitals

Median auction prices:

• Melbourne median: $906,100
• Sydney median: $1,707,500

Overall market behaviour suggests a balanced market rather than a boom or downturn — buyers are active but selective, and vendor expectations must align closely with market value.

National Auction Market Overview

Across Australia, auction activity surged as the traditional early‑year selling season ramped up.

Clearance rates around 65–72% historically represent a balanced property market — neither strongly buyer‑nor seller‑dominated.

Market Interpretation

• Above 70% → seller‑leaning conditions
• 60–70% → balanced conditions
• Below 60% → buyer‑leaning

Current conditions therefore show stable equilibrium with modest upward pressure on prices.

Melbourne Market Deep Dive

Auction Results

• Auctions scheduled: 828
• Auctions reported: 613
• Sold: 418
• Passed‑in: 123
• Withdrawn: 72
• Median sale price: $906,100

What This Means

Melbourne’s clearance rate below Sydney’s but near equilibrium suggests:

• Buyers negotiating harder
• Vendors realistic on pricing
• Strong activity in well‑presented homes

Buyer Behaviour

Agents report:

• Multiple bidders at entry‑level homes
• Fewer bidders at premium price brackets
• Conditional offers increasing

This is typical of a maturing market phase after strong growth periods.

Sydney Comparison

Sydney continues to outperform slightly:

• Clearance rate: 70%
• Median price: $1.7m+

The higher clearance combined with significantly higher median prices suggests demand remains robust in prestige and land‑value suburbs.

News reports show strong bidding even for derelict homes due to redevelopment potential — a sign of land scarcity rather than pure housing demand.

Regional Victoria Trends

Geelong

Strong migration‑driven demand persists.

Buyers priced out of Melbourne continue relocating, supporting steady price growth.

Current pattern:

Family homes < $900k selling fastest.

Ballarat

Balanced market with growing first‑home buyer activity.

Government incentives and affordability keep competition stable.

Bendigo

Investor interest rising due to rental yields outperforming Melbourne metro averages.

Regional summary:

Regional centres are now less cyclical and more structurally supported by population redistribution.

Passed‑In Properties — Market Signal

Melbourne passed‑in rate ≈ 20%

This is a critical indicator:

• Not weak demand
• But strong price discipline

In previous boom cycles, pass‑in rates fell below 10%. Today’s level shows rational buyer behaviour — healthier long‑term market conditions.

Median Prices & Value Trends

Auction medians confirm ongoing stratification:

Australia’s broader property market continues gradual price growth following prior gains, not speculative acceleration.

Buyer & Vendor Sentiment

Buyers

Current psychology:

• Concerned about affordability
• Motivated by limited supply
• Careful with borrowing capacity

Vendors

More realistic pricing compared to 2021–22 peak conditions.

Many are accepting post‑auction negotiations.

Market character:

Professional and informed — less emotional bidding.

Macroeconomic Context

Interest Rates

Recent rate tightening has not halted the market but has moderated enthusiasm.

Clearance rates above 70% despite higher borrowing costs show demand resilience.

Population Growth

Migration remains a primary housing demand driver.

Supply Shortage

Construction lag + planning constraints continue to underpin prices.

Global Property Environment

International markets show mixed performance, yet Australia remains stable due to:

• Banking regulation
• Supply shortage
• Population growth
• High employment

This reduces risk of sharp corrections seen elsewhere globally.

Forecast

Next 3 Months

• Stable clearance rates 65–72%
• Slight price growth in Melbourne
• Continued Sydney strength

Next 12 Months

• Moderate price growth nationally
• Regional markets outperform inner apartments
• Auction volumes rising into autumn

Actionable Insights

For Buyers

• Finance pre‑approval essential
• Focus on long‑term fundamentals
• Consider regional growth corridors

For Sellers

• Accurate price guide critical
• Presentation matters more than timing
• Auctions still effective but negotiation likely

For Investors

• Yield‑driven markets outperform speculation
• Watch infrastructure‑linked suburbs

Key Takeaways

• Melbourne auction market stable and disciplined
• Sydney slightly stronger due to land scarcity
• Regional Victoria gaining structural demand
• Interest rates slowing — not stopping — growth
• Balanced markets support sustainable price increases

With strong population growth and ongoing housing supply shortages, the outlook remains positive. Expect steady price growth rather than rapid surges, with auctions continuing as an effective selling method when pricing aligns with market value.