The Australian property market has kicked off the 2026 auction season with unexpected vigour, defying the sluggish trend that defined the end of last year. In a sharp turnaround from the fading clearance rates seen in late 2025, the first major week of reporting for February revealed a robust preliminary clearance rate of 69.7% across the combined capital cities.
This resurgence coincides with a significant lift in volume. A total of 1,629 homes were taken under the hammer across the capitals, marking a 17.2% increase compared to the same week a year ago. The data, released by Cotality (formerly CoreLogic), suggests that market participants are moving quickly to transact early in the year.
Vendors Meeting the Market?
The preliminary clearance rate of 69.7% is the strongest early result since mid-November 2025. For context, the market limped to the finish line in December with rates dipping to 62.7%. Analysts suggest this sudden buoyancy isn’t necessarily driven by a boom in sentiment, but rather a pragmatic shift in vendor psychology.
The uptick in successful sales indicates that vendors may be actively adjusting their pricing expectations. This “meet the market” approach appears to be a strategic move to secure sales ahead of an expected interest rate hike and the potential for a broader cooling of buyer demand later in the year.
A Tale of Two Cities: Melbourne and Sydney Lead the Charge
Melbourne was the busiest auction market, hosting 643 auctions—a substantial 33.1% jump in volume year-on-year. The Victorian capital recorded a preliminary clearance rate of 69.3%, a marked improvement from the 65.7% seen in mid-December.
Sydney followed closely with a strong performance. While volume growth was more modest at 3.3% higher than last year, the clearance rate surged to 71.3%. This is a significant recovery from the 58.1% recorded at the end of the 2025 season.
Smaller Capitals: Boom and Gloom
The smaller capital cities presented a stark divergence in performance. Adelaide continues to be the nation’s standout performer, recording a staggering 86.1% clearance rate—the highest of any capital city and its best result since April last year.
Brisbane also showed strength with a 36.4% surge in auction volume and a solid 75.0% clearance rate. Conversely, the nation’s capital is struggling. Canberra’s clearance rate plummeted to just 39.8%, the lowest result recorded since mid-2019.
Looking Ahead
The momentum is expected to build, with Cotality forecasting volumes to rise to approximately 1,735 auctions this week and surpassing 2,000 the following week. As inventory levels rise, the sustainability of these high clearance rates will be the key metric to watch for buyers and sellers alike.