The substantial decline in Australian capital city auction volume, marked by a 34% fall week-on-week, was directly attributed to a scheduled market interruption in Melbourne. This drop represented the decrease in the number of capital city auctions compared to the week prior.

The primary catalyst for the significant reduction in overall auction activity was a 72% drop in Melbourne activity, as the city paused for the Melbourne Cup Carnival. Despite this sharp weekly decline, Melbourne still hosted 507 vendors taking their property to auction, which was slightly higher than the 474 homes auctioned during the same Melbourne Cup Carnival weekend the previous year. The temporary nature of this volume drop is clear, as Melbourne auction numbers are immediately set to surge, scheduled to rise to around 1,370 this week and more than 1,400 next week.

The sharp fall in volume exerted pressure on overall market success, causing the preliminary auction clearance rate across the combined capitals to nudge lower, easing back to 70.0%. This result marked the lowest early auction outcome in 21 weeks. The lower preliminary clearance rate was primarily dragged down by a softer result in Melbourne’s early success rate, which fell to 66.0% last week, down from 71.8% the week prior.

While Melbourne’s volume plummeted, several other capital cities reported high volumes or strengthening clearance rates, suggesting robust localized activity.

Sydney demonstrated significant weekly market strength, hosting 1,106 homes under the hammer. This volume was the highest weekly volume of auctions since the last week of September and the fourth highest weekly volume so far this year. Furthermore, Sydney’s preliminary auction clearance rate saw an increase, rising to 70.6% last week, up from a softer 68.2% early clearance rate the week prior. Like Melbourne, Sydney is scheduled for rising activity, with more than 1,300 homes scheduled for auction this week and next week.

Other cities also posted strong results:

• Brisbane hosted 218 auctions, achieving its highest weekly volume since the week ending November 24 last year (235 auctions). Brisbane’s preliminary clearance rate responded positively, rising to 77.9%, the highest since the first week of July 2024.

• Adelaide recorded 143 auctions, roughly steady compared to the previous week (144). Its preliminary clearance rate rose to 77.1%, increasing from 70.8% the week prior.

• Canberra saw 133 homes go under the hammer, representing the highest weekly volume since mid-December 2023. The clearance rate rose to 62.0% (up from 59.4%), although this was the fourth week in a row that the early success rate remained below the 70% threshold.

In smaller markets, Perth saw 21 homes auctioned, its highest volume since mid-December 2024. Only half (50%) recorded a positive outcome. Tasmania had only one home scheduled, which was sold prior to auction.

Overall, the auction volume decline was a predictable, holiday-related dip that masked underlying strength in other major capital city markets. Auction activity across the combined capitals is firmly set to ramp up over the coming weeks, with around 3,180 capital city homes scheduled this week, rising to approximately 3,270 next week.

The temporary fall in auction volume, driven by the Melbourne Cup Carnival, acts like a market breath-hold; when the holiday ends, the pent-up supply is immediately released back onto the market, suggesting the underlying demand and willingness of vendors to list remains robust.