Australia’s Housing Market Heats Up as Clearance Rates Stay Above 70% — Sydney Auction Clearance Rate at 72%, Buyers Move Quickly Ahead of Expected Rate Cut Next Week

Week’s Key Focus

Australia’s property market continues to gain momentum, supported by consecutive interest rate cuts and widespread expectations of further monetary easing. According to data from Cotality (formerly CoreLogic), the national preliminary auction clearance rate reached 73.1% this week, marking the fourth consecutive week above 70%. Over the past 10 weeks, eight have recorded clearance rates above this level. After a brief period of price consolidation, both Sydney and Melbourne posted 1.1% house price growth in the last quarter. The Reserve Bank of Australia has already delivered two rate cuts this year, with a third potentially on the horizon as early as next week—further boosting buyer confidence.

Louis Christopher, founder of SQM Research, noted that buyers are responding swiftly to both current and anticipated rate cuts. “This is the final auction weekend before the next RBA meeting, and the market is clearly heating up,” he said. “Anyone still waiting on the sidelines might want to step in quickly.”

One standout transaction underscoring this trend was the sale of a full-floor waterfront apartment in Abbotsford, Sydney, which sold for $6.385 million, setting a new record for apartment sales in the area. The four-bedroom, three-bathroom residence includes a private boat berth and is located in a boutique block of just five residences—one per floor.

Agents involved in the sale reported a sharp increase in buyer inquiries and more competitive bidding at auction. The recent upswing isn’t limited to high-end downsizers—market-wide activity has noticeably strengthened. “Earlier this year, many were still holding back,” the agent said. “Now we’re seeing renewed confidence and more buyers stepping forward.”

Sydney’s preliminary clearance rate came in at 72.5% this week, slightly down from the previous week’s 73.5%, which was later revised to 67.2%. Melbourne continues to outperform, with a preliminary clearance rate of 75.5%, up from 75.2% the week prior. Despite a 0.4% annual price decline to June, buyers are taking advantage of more affordable conditions. Melbourne has now maintained clearance rates above 75% for three consecutive weeks and above 70% for ten.

Other capital cities also posted strong results: Brisbane recorded a preliminary clearance rate of 70.8%, Canberra at 73.1%, and Adelaide at 65.7%. With another rate cut expected and economic conditions improving, analysts anticipate continued strength in the auction market through the second half of 2025, likely supporting steady price growth nationwide.

Auction Results Last Week

Sydney: 849 properties were scheduled for auction, with 570 results reported and 413 properties sold, resulting in a clearance rate of 72%. The total value of properties sold was AUD 454,819,663, with a median sale price of AUD 1,532,500.
Melbourne: 712 properties were scheduled for auction, with 546 results reported and 411 properties sold, resulting in a clearance rate of 75%. The total value of properties sold was AUD 330,661,814, with a median sale price of AUD 930,000.