Australian Real Estate Auction Market Wrap - Part II

The first auctions of 2026 began quietly in Melbourne and other cities in Australia. Buyers and sellers came back to the market after the recent auctions in late December. As mentioned in the last blog, there was a post-holiday slowdown every year.

According to an article by realestate.com.au, Victorian figures based on 15 auctions are:

• Clearance rate of 67%
• 866 private sales

Melbourne recorded no suburban auctions over the weekend, with activity limited to private sales across a few areas.

Notwithstanding this, Victoria’s figures indicated a fairly good performance for early Summer. The remaining percentages were as follows:

• South Australia – 71%
• Queensland – 44%
• New South Wales – 33%
• Western Australia – 33%

Houses in the outer suburbs, as well as apartments located in prime areas, recorded significant growth; houses in Melbourne’s inner and middle suburbs also contributed to this. Furthermore, New South Wales also recorded more than 500 private sales, which shows that buyers are active and make purchases for good deals even when auction activity is limited.

During the slow weeks, sellers too opted for private sales as they noticed buyers’ interest in them more than auctions. They made this their “year-end strategy” and switched away from auctions to negotiated sales. 

Victorian Market Insights

• Geelong – auction activity was minimal over the weekend, as expected given the seasonal timing. However, buyers remain particularly interested in family houses and lifestyle properties, with the majority of transactions being negotiated privately.
• Ballarat – there’s a steady growth in sales, although volumes remain naturally lower than mid-2025 levels. Buyers are focused on good value and well-located properties, with a preference for negotiations rather than auctions.
• Bendigo – like the other two cities, auction activity is limited; however, private sales continue, with buyers attracted by affordability, improved infrastructure, and the wide range of amenities of the city.

Viewpoints of Buyers and Sellers

Buyers:

• Entering 2026 with a selective and cautious mindset
• Prefer private negotiations over auctions
• Stay informed about full auction schedules in late Jan 2026

   

Sellers:

• Open to private sales and expressions of interest
• Aware that realistic pricing is crucial at this time of year
• Accept strong early offers rather than waiting for the auction

Broader factors influencing the real estate market

Even with low auction volumes this week, the wider property market remains steady as:

• The rising population continues to clash with housing supply shortages
• Positive price growth is predicted for 2026
• Fluctuating interest rates are likely to affect affordability and borrowing capacity

Forecast for the next 4 to 8 weeks

4 to 6 weeks:

• Auction volumes are expected to rise sharply in late January 2026
• Clearance rates will become more reliable with increased activity

   

• It is beneficial for both parties to prepare now by arranging finances and updating property valuations

Mid 2026

• Properties are predicted to experience moderate growth overall
• Competition will be tight in the suburbs with good infrastructure and high appeal

Auctions are expected to gain momentum in late January 2026, when market trends become clearer. Currently, this quiet period provides valuable insights for both buyers and sellers to position themselves strategically.