Clearance rate going up
However, it is getting the blame for the lack of stock and hopes are that October will bring an influx of quality properties.
Low interest rates and the steadily moving market are bringing a range of buyers back into play, from upsizers to investors, first home buyers and cashed-up parents trying to secure a place for their children.
Melbourne recorded a clearance rate of 76 per cent from 548 results, according to the Real Estate Institute of Victoria, the highest rate since 2010.
Sydney maintained the more confident lead it has displayed all year with an 84 per cent clearance rate from 263 results, according to data from Australian Property Monitors.
Sydney's top sales included a five-bedroom property on the Sandringham estate at 10/122 Clareville Avenue, Sandringham, which fetched $3.2 million through R&H Sans Souci.
The inner west also performed strongly. Agents Strathfield Partners sold a new five-bedroom house at 187 Homebush Road, Strathfield, for $2.66 million.
In Melbourne, 134 properties were passed in, 71 of them on a vendor bid; 42 results had yet to be reported.
But there were some patches of softness underlying the strength of the headline figure. The clearance rate for the inner metro region - usually one of the strongest areas - was 65 per cent. The north recorded only 66 per cent and none of the properties up for auction in Epping was sold.
Four out of nine properties up for auction in trendy Northcote were passed in, including the double-storey Victorian high on the hill at 155 Clarke Street, passed in on a vendor bid of $1.85 million.
And while they achieved big prices, the four highest selling houses over the weekend in Melbourne sold after auction.
In Camberwell, Jellis Craig sold the double-fronted two-storey Victorian mansion at 3 Fermanagh Road for $4.7 million after it was passed in at $4.6 million.
On Brighton's Golden Mile, Hocking Stuart sold 9 Dawson Avenue for $3.95 million after it was passed in at $3.8 million.
And in Balwyn, the buyer of 3 Monash Avenue paid $3.16 million after the six-bedroom neo-French chateau-style house was passed in at $3.15 million through agents Christopher Russell.
Jellis Craig director Alastair Craig said he expected more people to bid at the Camberwell auction. "But the higher up the market the fewer the number of buyers," he said.
Developers were also out in force, showing confidence in the future property market. Five developers vied for a site in Yarraville at 66 Wilson Street, with a local developer paying $2.61 million, 41 per cent over its $1.85 million reserve.
A small double-fronted Victorian house in poor condition sits on the 1932-square-metre site, which is near the station and shops. "When you have developers they tend to get egotistical and really let go," Jas H. Stephens director Craig Stephens said.
"Developers work out what price they think they will get and then work backwards. It's the working backwards that lets them bid aggressively when these unique sites come up," Mr Stephens said.
In Fitzroy, Harrington Earl director John Harrington said there was some "lacklustre bidding" for a single-fronted terrace at 69 Cecil Street, Fitzroy, close to the proposed east-west link tunnel.
The terrace fetched $971,000 under the hammer after slow bidding from two parties.
Frequently Asked Questions about this Article…
Melbourne posted a 76% clearance rate from 548 results (the highest since 2010, per the Real Estate Institute of Victoria) while Sydney recorded an 84% clearance rate from 263 results (Australian Property Monitors). High clearance rates generally signal strong buyer demand at auction, but investors should remember these are headline figures and local pockets can still be softer.
The article says the election campaign has had little impact on the burgeoning market in terms of sales activity, yet it is being blamed for a shortage of stock. Industry voices are hoping October will bring an influx of quality properties onto the market.
According to the article, low interest rates and a steadily moving market are drawing a range of buyers back in — upsizers, investors, first home buyers and cashed-up parents looking to secure homes for their children.
'Passed in' means the property did not sell under the hammer and is typically negotiated afterwards; Melbourne had 134 properties passed in over the weekend, with 71 of those involving a vendor bid. The article also notes several of Melbourne's highest prices were achieved after properties were passed in and then sold.
Yes — developers were active, competing strongly for unique sites. The article gives an example where a local developer paid $2.61 million for a Yarraville site, 41% over its $1.85 million reserve, and agents commented that developers often 'work backwards' and bid aggressively, which can push prices higher on special sites.
Yes — despite strong overall clearance rates, some areas showed weakness: Melbourne's inner metro clearance was 65%, the north recorded 66%, none of the properties up for auction in Epping sold, and in Northcote four out of nine auctions were passed in. These local variations matter for buyers and investors assessing risk.
Notable sales included a five‑bedroom property at 10/122 Clareville Avenue, Sandringham (Sydney) for $3.2 million via R&H Sans Souci, a new five‑bedroom at 187 Homebush Road, Strathfield for $2.66 million, and in Melbourne several high‑value homes sold after being passed in — for example 3 Fermanagh Road, Camberwell for $4.7 million, 9 Dawson Avenue, Brighton for $3.95 million and 3 Monash Avenue, Balwyn for $3.16 million.
Strong overall clearance rates point to healthy demand, but individual auctions can still see weak buyer turnout or slow bidding — the article cites examples like a Fitzroy terrace that fetched $971,000 after slow bidding. Investors should look beyond headline clearance figures and consider suburb-level activity, auction outcomes (sold under the hammer vs passed in) and local factors such as development plans or proximity to infrastructure projects.
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