If the initial feedback from some of Australia’s leading real estate companies is any indication, then we need to buckle in for some exciting auction action in 2026.
The industry is abuzz with the number of entry-level and investor-potential properties that are about to go under the hammer in the first quarter of this year.
At least two major franchises were reporting that listings for last month were 25% higher than for January 2024, and there’s every indication that we’ll start to see strong results in the two main auction markets – the bellwether cities of Sydney and Melbourne.
There’s no doubt that a key influence on the auction market is the Home Guarantee Scheme (HGS), which was rewritten and relaunched by the Federal Government last October.
The new-look HGS is designed to help first-time buyers avoid Lenders Mortgage Insurance (LMI), which is a minimum five-figure, one-time levy imposed on any buyers with less than a 20% deposit. Its purpose is to protect the lender from a loan default.
The Government achieves this goal by underwriting 15% of a prospective home loan, thus enabling first-time buyers to purchase with a 5% deposit.
The ramifications are as obvious as they are significant – aspiring first-time buyers are flocking into the market, and sellers are responding.
With clearance rates nationally hovering around the mid-70% for most of last year – and averaging 80% for some agencies in Sydney – we can expect keen bidding and more heat in the market.
Here are seven auction strategies to help you win the property of your dreams:
Don’t forget this: At an auction, there’s no cooling-off period. Once the hammer falls, you are legally committed and must pay the deposit (usually 10%) on the spot.
Odd number strategy – Most bidders set their maximum at round numbers (e.g., $2 million). To beat them, set your “absolute ceiling” at an uneven number, like $2,107,500. That extra $7,500 could be the tiny buffer that exhausts your competition just as they hit their psychological limit.
Control the tempo – If the auctioneer calls for $5,000 increments, try a “power bid” of $20,000. It’ll convince rivals you have deep pockets, potentially demoralising them.
Instant response tactic – When someone else places a bid, call out your counter-bid immediately, giving the impression you have the appetite to win the deal. Hesitation shows you’re calculating and nearing your limit. Rapid-fire bidding makes other bidders feel like they cannot win.
Read the crowd – Stand at the front, near the auctioneer, so you can see the faces of other bidders. From this position, you’ll be able to see rivals glance around or check their phone – a telltale sign they’re near or at their limit.
Waiting game – Often, an auctioneer will announce that the property is “on the market”, which means it has met the seller’s reserve. This is the time to make your most significant moves. Focus your mental energy on this part of the auction.Be strategic – Even if the property fails to meet the reserve, you still want to be the highest bidder. Why? Because the agent will approach you after the auction and invite you to negotiate privately. You’ll be in the box seat to negotiate without other bidders interfering.