Momentum is picking up in the major Australian real estate markets judging by the latest trendlines in auction clearance rates.
The improvement is particularly noticeable in Melbourne and Sydney, while most other capital cities continue their strong performances. The only exception is the new multi-million-dollar market of Brisbane, where the trend has dipped slightly.
Industry researcher Cotality (formerly CoreLogic) is reporting auction rates consistently above the 70% benchmark, which indicates a healthy, balanced market.
The clearance rates appear to be supporting predictions by the property portal Domain that Sydney (+6%) and Melbourne (+5%) will lead the capital cities in terms of value growth for the rest of the year.
On average, there are between 1,500-1,800 auctions held in Australia each week. At the beginning of last month (July, 2025) clearance rates hit a peak of 74.5% and they have hovered in that region each week through the month.
It is clear Melbourne is starting to rise from the doldrums of the past couple of years when values dipped due to a mixture of oversupply in the apartment sector, tougher compliance laws for landlords and a subdued economic outlook for the state of Victoria.
At the time of writing, Melbourne had recorded its 11th straight week of 70%-plus auction clearance rates.
Sydney is another strong performer – again supporting the Domain prediction for future price growth. It achieved a 76.2% clearance rate in mid-July – its second highest since the initial interest rate reduction in February when it recorded 76.6%.
In Sydney, between 550-700 homes are under the hammer each week.
One city to struggle is Brisbane – recently declared Australia’s second multi-million-dollar market by Cotality.
After five years of significant price growth, Brisbane’s average price of more than $1 million is surpassed only by Sydney. The city recently recorded a 61.3% clearance rate – its lowest for six weeks.
However, Adelaide had 75 properties under the hammer in mid-July and hit a clearance rate of 75.6%.
While auction rates are not a definitive indicator of the property market’s strength in each capital, they capture an important moment in time when it comes to buyers’ perceived value of property.
With anticipation growing for another rate cut by the Reserve Bank of Australia in the coming weeks, and at least one more before the end of the year, it’s clear buyers have renewed their optimism and the market is moving positively for sellers.