The Australian Auction Market's Current State

February is the start of a full active selling season and an auction market with strong growth and competition, following the winter lull. According to preliminary data from realestate.com.au, private discussions are still going strong. Clearance rates appear to be stable among major capitals, despite the fact that quantities vary from city to city. 

Among these trends that highlighted real estate selling strategies,  important auction indicators were also noted as:

• Victoria’s clearance rate from 1,184 private sales and 589 outcomes was 62%.
• Out of 1,601 private sales and 760 results, New South Wales had a 60% clearance rate.
• Out of 888 private sales and 143 results, Queensland had a 48% clearance rate.
• Out of 117 results and 238 private sales, South Australia achieved a 78% clearance rate.
• Out of 12 outcomes and 410 private sales, Western Australia achieved a 75% clearance rate.
• Out of 74 results and 112 private sales, the Australian Capital Territory achieved a 66% clearance rate.

Based on the statistics, it can be inferred that there were a lot of private transactions this weekend rather than many auctions, indicating that they occupy a portion of the market when auction volumes decline.

Performances of clearance

According to the aforementioned clearance rates, Western Australia, South Australia, and the Australian Capital Territory all had strong clearance rates. This indicates that reasonably priced, high-quality properties are of great interest to bidders.

Because purchasers are picky and frequently choose properties with good marketing and clear price advice, Victoria and New South Wales had moderate clearance rates.

Due to a large variety of property types and price ranges, as well as intermittent fluctuations in demand, Queensland suffered from low clearance rates.

Views from the market

With the biggest number of private sales and a clearance rate of 60%, New South Wales wins. This demonstrates that buyers are interested when demand matches their pricing expectations, especially in residential areas.

Queensland also exhibits a significant 48% clearance, which is indicative of the diverse local conditions. Reports state that there was fierce competition at some of the Brisbane auctions, with price increases occurring year after year, particularly in regions with limited supply.

A significant portion of South Australia’s exceptional 78% clearance rate came from auctions, and the high demand keeps real estate values steady.

Clearance rates were high in the Australian Capital Territory and Western Australia. This is due to the fact that purchasers are drawn to high-quality residences that are available.

Examination of regional Victoria

The outcomes of these markets’ auctions were not included in the real estate.com.au statistics, but agent and local market insights indicate that:

Geelong:

• Buyers are more interested in lifestyle and affordable properties than in inner-city Melbourne.
• Although they rely on the price points, private sales and auction activity overlap.

Ballarat:

• Single-family houses are appealing to buyers, and many private conversations are documented.

Bendigo:

• When reasonably priced residences with amenities are listed, buyers are excited, and when inventory is strong, auctions are crucial.
• Buyer interest continues to grow since properties are more reasonably priced than those in Melbourne, which in turn boosts real estate sales activity.

Views from vendors and buyers

Buyers:

• They are picky and concentrate on listings with great marketing and transparent prices.
• Despite strong auction turnouts, choose to proceed with private discussions.

Vendors:

• Active vendors employ pre-auction and auction negotiation tactics, as well as competitive guidelines, as real estate selling strategies to increase buyer interest.
• When auction numbers are smaller, they close deals through private treaty sales, which are particularly common in major locations like Melbourne’s major Business District.

The market appears to be balanced overall; neither suppliers nor buyers are impatient, although they do participate when prices meet their needs.

Contributors to the economy

Prices and patterns across the country

• Even though they occasionally fluctuate, Australia’s median property rates have been steadily rising, primarily due to Melbourne and Sydney.

Price projections

• Market estimates indicate that ongoing demand, low borrowing rates, and a strong economy will push property values in major capitals to all-time highs.

Broader market considerations

• Population growth and migration contribute to housing demands.
• Because of limited supply and competitive rental markets, property values and auction interest continue to rise.

All things considered, the real estate market is expected to hold steady through 2026, with performance differing from city to city. However, due to high real estate prices and steadily rising borrowing rates, major cities like Sydney and Melbourne can face difficulties.

Forecast for real estate and practical advice

We at Ham Kerr Properties compiled a list of actionable tips and a forecast of what the market ahead will be like, and adjusted real estate selling strategies accordingly.

Four to six weeks:

• It is anticipated that auction volumes will increase from the end of February into March.
• Generally speaking, clearance rates appear to be becoming better; nevertheless, this is contingent upon the state of the available properties and how well the pricing aligns.
• Buyers must prepare a strong bidding plan based on previous auction outcomes and have their money approved.
• However, after reviewing the most recent clearance data, sellers should choose hybrid marketing techniques (private and public auctions) in order to draw in more potential purchasers.

After six to eight weeks:

• Good clearance rates are anticipated in Adelaide and Western Australia.
• Due to significant buyer interest, prices in Sydney and Melbourne may rise slightly.
• Buyers seeking cheap lifestyles continue to favor regional areas such as Geelong, Ballarat, and Bendigo.

Key conclusions

• State auctions have the highest clearance rates, particularly in South and Western Australia.
• Most of the listed properties are sold through private transactions.
• Melbourne’s core business district also recorded no auction activity this weekend, suggesting that private transactions accounted for the majority of market activity.
• Fairly priced properties that fit in nicely with the state of the market are appealing to buyers.

According to forecasts, 2026 should see little price growth.