Sydney Auctions Hit 6-Year Low as Property Market Softens

Fewer than half of all homes taken to auction found a buyer last weekend, with Sydney recording its weakest clearance rate since April 2020.

Capital city auction markets recorded their weakest combined result in years over the final weekend of June 2026, with preliminary figures from Cotality showing a national clearance rate of 49.2%. [ABC News reports](https://www.abc.net.au/news/2026-06-28/worst-property-auction-rates-in-years-for-sydney-melbourne/106852602) the final figure is expected to fall further once all results are counted — with Cotality estimating it will likely land closer to 40%, well below the 60% level that signals a balanced market.

For the first time in years, fewer than half of all homes taken to auction found a buyer in a single national weekend result. That is a meaningful shift in conditions, and it varies significantly depending on where you are looking.

The Numbers, City by City

Sydney recorded a preliminary clearance rate of 47.3% — the lowest reading for the city since April 2020, more than six years ago. Melbourne came in at 50.2%, its weakest result since the COVID-19 lockdowns of September 2021.

Brisbane had the lowest clearance rate of any capital city at 39.3%, though that was a slight improvement on the prior week. Adelaide was the exception to the national trend: auction volumes jumped nearly 24%, and the clearance rate reached 68.7% — the strongest result in five weeks.

Overall, 21.5% of auctions were withdrawn from the market during the week — a smaller proportion than the 23.6% preliminary reading the prior week. Just 1,771 homes went to auction nationally, down nearly 6% from the week before and more than 13% below the same weekend last year. Lower listing volumes tend to support prices by reducing supply, but when clearance rates fall this sharply, it signals that demand is pulling back faster than supply.

Why the Market Is Pulling Back

AMP deputy chief economist Diana Mousina attributed the weak results to pressure coming from multiple directions. "The main reason is multi-fold, but most recently it's been due to concern about lower investor demand in the housing market as a result of the budget changes," she told ABC News.

The budget changes in question are the negative gearing and CGT reforms that cleared Parliament on 25 June 2026. From 1 July 2027, negative gearing on established properties will only apply to new builds, and the 50% CGT discount is being replaced with an inflation-based system alongside a minimum 30% tax on gains. These reforms have changed the investment calculus for a significant pool of potential buyers, particularly in Sydney and Melbourne where established-property investors have historically been most active.

AMP's central forecast is that home prices will fall around 5% over the next year. Mousina noted that low supply in capital cities would act as a partial buffer, but cautioned that sellers holding back from the market could constrain options for buyers. "The lack of listings may be a problem for them if sellers want to hold back knowing it's not a great time to sell," she said.

Treasurer Jim Chalmers, speaking on ABC Insiders, encouraged a measured response to the data. "It's best not to overreact to data from a week or two, or even a month or two," he said, comparing the current softness to the 2022 rate-rise cycle.

What This Means for Buyers Right Now

A clearance rate below 50% is a buyer's market signal. When fewer homes sell under the hammer, passed-in properties often come to private negotiation straight after the auction — sometimes at a discount to the reserve. For buyers who have been outbid or priced out in recent years, this is an environment worth engaging with seriously.

For first home buyers in particular, it is worth getting your finance sorted before you bid. Use a [borrowing power calculator](/calculators/borrowing-power) to confirm how much you can realistically borrow in today's rate environment, and get pre-approval in place so you are ready to act on a passed-in property. Head to our [first home buyer hub](/home-loans/first-home-buyer) to compare lenders suited to buyers entering the market now.

For existing homeowners thinking about upsizing or downsizing, the dynamics are two-sided — you would be selling and buying in the same softened conditions. It is also a worthwhile moment to check whether your current loan is still competitive. A [refinance](/home-loans/refinance) may deliver savings you could put toward a larger deposit or reduced monthly repayments.

Around 1,800 auctions are expected nationally next weekend, which will give a clearer read on whether this weakness is a short-term pullback or the start of a more sustained softening. What does not change: in any market, having your pre-approval sorted and knowing your spending ceiling matters more than any clearance rate headline.