Capital City Clearance Rate Hits 8-Week High at 49.7%

Sydney led a capital city rebound with a 17-week high clearance rate, though national results remain well below year-ago levels.

After several weeks of subdued results, Australia's auction market showed signs of renewed activity in the week ending 26 July, with the weighted average final clearance rate across the capital cities climbing to 49.7% — its highest point in eight weeks.

The improvement, reported by MPA Australia using Cotality data, came alongside a modest lift in volumes. There were 1,415 auctions held across the capitals, a 3.5% increase from the prior week — though still 17.3% fewer than the 1,710 auctions conducted in the equivalent week of 2025. The four-week average clearance rate stands at 47.4%.

Year-on-year comparisons tell a more sobering story. The national clearance rate is 18.8 percentage points below the 68.5% recorded in the same week of 2025, when conditions were considerably more buoyant. That gap — nearly 20 percentage points — reflects how significantly market sentiment and activity have shifted over the past 12 months.

Sydney and Melbourne Lead the Rebound

Sydney posted the standout result of the week, with its clearance rate climbing 10.9 percentage points to 53.3% — the city's best result in 17 weeks. Despite the improved clearance performance, Sydney auction volumes fell 3.8% to 426 properties.

Melbourne hosted the most auctions of any capital, with 710 homes going under the hammer — up 18.5% from the prior week. Melbourne's clearance rate improved 1.1 percentage points to 51.7%, its best result in five weeks.

Adelaide held 100 auctions, down 9.1% from the previous week, and returned a clearance rate of 49%, a marginal increase of 0.8 percentage points.

Canberra produced the largest single-week swing among the capitals, with its clearance rate jumping 20.4 percentage points to 51.4%, though that came from a low base of only 37 auctions.

Brisbane was the clear outlier, with a clearance rate of 29.5% from 132 auctions — down 5.9 points from the prior week and the weakest result among the major mainland markets. Brisbane's trajectory has been notably weaker than the southern capitals throughout July, with results in the low-to-mid 30s for much of the month.

Perth cleared 20% of 10 auctions, while Tasmania held no auctions during the period.

Across July as a whole, the national weighted average rose from 46% in the week ending 5 July to 49.7% by 26 July, with a dip to 45.3% mid-month. Melbourne posted steady weekly gains over the period, while Brisbane was the consistent outlier, remaining in the low-to-mid 30s throughout.

What the Numbers Mean for Buyers and Sellers

A clearance rate approaching 50% signals a market that is roughly balanced: for every two properties that go to auction, approximately one sells on the day. That is a very different environment from the 68.5% clearance rate recorded in the same week a year ago, when competitive bidding was the norm and buyers regularly faced heated competition at the hammer.

For buyers — particularly first-home buyers who were locked out of the market during stronger conditions — these numbers represent a real opportunity. With a higher share of properties passing in, there is more room to negotiate, more time to conduct due diligence, and fewer situations where emotion pushes bids past sensible limits.

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For sellers, the data is more nuanced. While Sydney's result was encouraging, a 53.3% clearance rate still means that nearly half of Sydney properties did not sell on auction day. Pricing expectations need to be realistic, and the choice of sale method — auction, private treaty, or expressions of interest — deserves careful consideration in the current environment.

"Auction volumes are likely to stay steady next week, with about 1,300 homes set for auction in the week ending 9 August," said Annabelle Mezieres, economist at Cotality. She noted that Cotality expects volumes to fall further to around 1,160 for the week ending 16 August.

What Comes Next for the Auction Market

Around 1,302 auctions are scheduled across the capital cities this week — a drop of 8% from last week's 1,415 and 17.3% below the 1,575 conducted in the same period of 2025.

Melbourne is the primary driver of that decline, with 553 auctions scheduled — a 22.1% fall from 710 last week and 24.2% below the 730 held in the equivalent week of 2025. Sydney has 451 auctions listed, up 5.9% on last week but still 21.0% below the 571 held in the same week a year ago.

Brisbane has 141 auctions scheduled, up 6.8% from last week and 10.2% above year-ago levels — a counterpoint to its relatively weak clearance performance. Adelaide has 92 auctions, down 8.0% on last week but 9.5% above the 84 held in the same week of 2025. Canberra has 54 auctions lined up, a 45.9% increase on last week's 37, and just 1.8% below the 55 held a year ago. Perth has 11 auctions planned, up from 10 last week.

The broader context for the auction market right now is one of uncertainty. Many buyers and sellers are watching the Reserve Bank of Australia closely for signals on rates, and that caution is likely keeping volumes lower than they might otherwise be at this time of year. The combination of lower volumes and a modest clearance rate rebound suggests the market is stabilising rather than turning decisively in either direction.

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