Auction momentum cools but clearance rates remain above 80% in some suburbs

Auction clearance rates are softening in the major capital cities as buyers feel less urgency to rush into a rising market.

However, strong demand from first-home buyers tapping into expanded government support has driven the auction clearance rate to around 80% in some outer-city pockets.

The national auction clearance rate has trended downwards since February, when the RBA delivered the first of two interest rate hikes this year.

In the two major auction cities, Melbourne’s clearance rate has dipped from close to 70% in February to around 55% before the Easter lull. Sydney has seen its clearance rate dip to around 50%.

PropTrack executive manager of economics Angus Moore said the softening is due to higher auction volumes as well as increased buyer caution following back-to-back rate hikes.

"Clearance rates have softened in the past month, particularly in Sydney. In part that has reflected the fact that auction volumes have been high; but the more recent decline in clearance rates is consistent with cooler market conditions and slowing price growth following the second rate hike," he said.

But new data from PropTrack shows auction demand is still hot in certain pockets of the market, particularly those popular with first-home buyers.

Analysis of the suburbs with the highest auction clearance rates during the period between early March and April show Melbourne’s affordable outer ring dominated the top 20 list.

Top 20 auction clearance rates across the country:

Epping in Melbourne’s north - where the median house price is $730,500 - had a clearance rate of 81% over the period, with nearby Thomastown (median $785,000), Mill Park ($850,000) and Mernda ($730,000) all hovering near 80%.

Mulgrave and Noble Park in the city’s east and Caroline Springs in the west have also cleared around 80% at auction over the past month.  

Local agent Rob Stefanovski from Harcourts Rata & Co said homes around Epping, Thomstown and Lalor were in high demand with first-home buyers, with properties often receiving multiple bids at auction.

“All properties are selling in a timely manner,” Mr Stefanovski said.

“Around the City of Whittlesea from the edges of Bundoora, but more like Mill Park, South Morang, Epping, Thomastown, Lalor, those suburbs, we're getting more than one person for each property.

“So I'd say there's a bit more demand than supply - it's not as hot as I've seen the market sometimes, but it is still hot.”

This fixer-upper at 7 Cleeland Close, Epping sold for well above its price guide. Picture: realestate.com.au

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The sub-$1m market was attracting strong activity, he said, while upgraders in a higher price bracket were being more selective.

He pointed to two recent sales that attracted multiple bids at auction - a dilapidated home on a large block at 7 Cleeland Close in Epping, with six bidders driving the price to $670,000, well above the $550,000-$605,000 price guide.

"You couldn't live in it as it was, and so for that reason you had people that wanted to renovate it and move into it, you had people that wanted to renovate it and flip it, and you also had investors that thought the land was good."

"The other property was first-home buyer territory, and that was 19 Virginia Crescent in Bundoora. That sold for $842,000; the reserve was in the high sevens. The two last bidders were both first-home buyers."

Multiple first-home buyers battled it out at auction for 19 Virginia Crescent, Bundoora. Picture: realestate.com.au/sold

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By contrast, the Sydney suburbs to make the top 20 list were in affluent pockets near the beach or harbour.

Will Gosse, director and acting CEO of Sydney real estate agency BresicWhitney, said buyers looking for apartments and entry-level homes in these markets were likely being encouraged by the pullback in market momentum.

"There's still some energy sub $1.5m, driven partly by first-home buyer initiatives and a sense among that demographic that this might finally be their opportunity to enter the market,” Mr Gosse said.

"Clearance rates are holding better in suburbs where supply is constrained and buyer conviction is high. Bondi and Woollahra are good examples of that right now.”

7/330 Edgecliff Road, Woollahra sold for $1,597,000 at auction with multiple bidders. Picture: realestate.com.au/sold

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Over the weekend, a two-bedroom apartment in Woollahra was sold by BresicWhitney for almost $200,000 above its asking price, with five registered bidders.

Further north, bidder numbers have remained strong across the board throughout southeast Queensland, according to Ray White Queensland auctioneer Tom Gunness.

“The market seems to have remained resilient with buyers acting with confidence and vendors ready to meet the market,” Mr Gunness said.

In Brisbane’s north, a young couple beat out five other active bidders for a four-bedroom property at 80 Armfield St, Stafford - fighting it out with incremental bids of $1000 and $500, up to the $1.91 million sale price.

6 active bidders fought for 80 Armfield Street, Stafford at auction as buyers seek renovated homes under $2m. Picture: realestate.com.au/sold

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Ray White said competition in the city was fierce among buyers wanting a fully renovated home under $2 million.

Meantime, Adelaide’s relatively small auction market is being defined by a story of “hesitation” according to John Morris, chief auctioneer of Ray White South Australia.

“We’re seeing some reluctance to list via auction, and even when properties are listed, not everyone is seeing it through,” Mr Morris said.

“Around 15% of properties are selling prior to auction, and auction market share is sitting at just 29% - well below where we’d typically expect in a more confident market.

On average, there are five registered bidders per auction, with three actively competing, he said. 

Clues for market momentum

Senior data analyst at PropTrack, Megan Lieu, said at a bigger picture, clearance rates can act as a leading indicator into housing demand.

“As auction rates tend to be quite responsive to changes in interest rates, they often provide an early indication of shifts in housing demand,” Ms Lieu said.

“The recent auction clearance rates provide early signals of cooling buyer activity.”

Auction activity remains patchy across different markets. Picture: Jeremy Piper

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She noted that while interest rates hikes tend to have a moderating effect on demand, supply is also an important component.

“Supply trends have also contributed to a slowdown in housing market activity, particularly in Sydney, Melbourne and Canberra. New listings in these cities have recorded year‑on‑year growth every month since October 2025, with the exception of November.

“The remaining capital cities continue to face supply constraints which is likely helping to sustain stronger relative price growth despite the higher-interest rate environment.”