Melbourne leads strong auction clearance rates in Australian capitals

MELBOURNE led Auction clearance rates higher in Australia’s capital cities last week, reaching their highest levels in almost a month, property consultant Cotality said.

The combined capital city preliminary clearance rate rose to 73% over the week, up from 71.9% the previous week the data from Cotality, formerly CoreLogic, showed.

The latest result was the highest reading on auction clearance rates across the nation’s capitals in three weeks, the property consultant said.

In Melbourne, 1,254 homes were taken to auction, making it the country’s busiest capital city auction market, followed by Sydney, which logged 1,003 auctions.

Brisbane hosted 133 auctions, the ACT held 106, and in Adelaide 96 homes went under the hammer, according to Cotality.

 In Perth, 18 auctions were held, while in Tasmania three auctions took place, it said.

Ray White Group chief economist Nerida Conisbee said Melbourne’s property market was showing clear signs of recovery.

Conisbee said house prices in Melbourne increased 3.1 per cent over the past three months and 5.3 per cent over the year, their strongest pace in more than two years.

“While still below the national average growth, it marks a clear turnaround from the flat conditions that characterised 2023 and early 2024,” she said in a statement.

“Melbourne has now edged just above its previous peak, with prices sitting slightly higher than the highs reached during the 2021–22 upswing, a symbolic milestone that confirms the city’s return to growth.”

Strongest growth was recorded in established middle-suburban areas including Wantirna, Chelsea Heights, Croydon Hills–Warranwood, Rowville and Dingley Village, with annual price gains ranging between 6.8 – 7.0%, according to Ray White.

“These are not the city’s most expensive postcodes, but they sit in well-connected, family-oriented corridors that have benefitted from improving affordability and renewed buyer confidence as borrowing conditions ease,” Conisbee said.

Melbourne listings rose 4.2 per cent over the month. Rising supply in strengthening markets typically signals confidence rather than weakness, as vendors take advantage of firmer prices and faster sales.