Auction markets wrap up 2025 with buyer confidence

By Hari Yellina
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Representational Photo by Getty Images. Licensed under the Unsplash+ License

Australia’s auction season is closing with more strength than many expected, as clearance rates lifted nationally despite elevated listing volumes in the final stretch before Christmas. The latest results suggest buyer demand has remained steady, even as sellers brought a large volume of homes to market ahead of the summer pause.

The national weekend auction clearance rate rose to 63.7 per cent, up from 60.3 per cent the previous week and well ahead of the 54.1 per cent recorded at the same point last year. With just one auction weekend left in the year, the figures point to a market that has absorbed supply better than feared through the closing months of 2025.

Sydney’s market softened slightly week on week, posting a clearance rate of 64.4 per cent compared with 66.8 per cent previously, yet it remained stronger than a year ago. Auction volumes eased to 1,113 properties from more than 1,300 the week before, offering buyers some breathing space after weeks of heavy listings. Despite the moderation, Sydney prices continued to show underlying strength, with the median house price sitting at $1,680,888, still more than 18 per cent higher over the year.

Performance varied sharply across Sydney regions. The Northern Beaches led the city with a clearance rate of 73.8 per cent, followed by the North West at 71.9 per cent, while the Upper North Shore lagged at 45.9 per cent. Units again outperformed houses, clearing at 68.8 per cent compared with 63.8 per cent, reflecting the pressure affordability continues to place on buyer choices.

Melbourne delivered another steady outcome, recording a 66.6 per cent clearance rate, marginally higher than last week and above the same period last year

Melbourne delivered another steady outcome, recording a 66.6 per cent clearance rate, marginally higher than last week and above the same period last year. A total of 1,421 homes went under the hammer, a slight reduction from the prior weekend but still well above 2024 levels. The median house price eased to $981,000, though it remains 3.8 per cent higher year on year, pointing to price stability rather than stress.

Within Melbourne, the South East led results with a 73.2 per cent clearance rate, followed by the North East and Inner South. Units continued to attract strong demand, clearing at 70.7 per cent and again outperforming houses. The city’s ability to absorb volume late in the year has underlined its resilience after a patchy period earlier in the cycle.

Elsewhere, results were mixed but broadly supportive. Brisbane recorded a lower overall clearance rate, though premium sales remained active, highlighted by a $6.25 million result in McDowall. Canberra posted solid outcomes, with top sales clustering between $1.25 million and $1.65 million, suggesting steady owner-occupier demand. Adelaide once again stood apart, delivering a 75 per cent clearance rate and reinforcing its position as the strongest and most consistent auction market among the capitals this year.

Across the country, a clear pattern has emerged. Auction markets are finishing 2025 in better shape than last year, clearance rates are edging higher rather than slipping under pressure, and units continue to outperform houses in Sydney and Melbourne as buyers respond to affordability constraints. With one final auction weekend remaining, the tone heading into 2026 appears constructive, even if caution remains close at hand.


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