By Property News Desk

The Australian property market is bracing for its most significant activity spike of the year so far, with auction volumes in both Sydney and Melbourne set to shatter the 1,000-dwelling barrier for the week ending 22 February 2026. As sellers return to the market in droves, the upcoming weekend represents a crucial litmus test for buyer depth across the nation’s largest capitals.

Data from Cotality indicates that 2,803 capital city homes are scheduled to go under the hammer this week. This figure represents a massive 39.9 per cent increase on last week’s volume of 2,004 auctions, and sits 1.9 per cent higher than the 2,751 auctions held during the same time last year.

Sydney and Melbourne Lead the Charge

Sydney is poised to see auction activity rise above 1,000 for the first time since early December. There are 1,098 homes currently scheduled for auction across the harbour city this week, marking a sharp 42.2 per cent rise from the 772 auctions held last week. Perhaps most telling of the shifting market sentiment is that this week’s volume is 19.1 per cent higher than one year ago, when only 922 auctions took place.

Melbourne is also seeing a dramatic surge, with 1,254 homes scheduled for auction. This is a 50.0 per cent jump from last week’s 836 auctions, making it the busiest auction week the city has witnessed since mid-December. However, unlike Sydney, Melbourne’s numbers are slightly down—12.7 per cent lower—compared to the same time last year.

Volume vs. Clearance Rates: A Balancing Act

The sharp increase in supply comes on the heels of a week that revealed the sensitivity of clearance rates to rising volumes. Last week, as auction activity pushed above 2,000 for the first time this year, the combined capital city clearance rate softened to 63.3 per cent, down from 66.1 per cent the previous week.

In Melbourne, the higher volume last week saw the clearance rate dip below the psychological 60 per cent mark to settle at 59.7 per cent. Similarly, Sydney’s clearance rate retracted to 64.1 per cent last week after recording a strong 70.8 per cent the week prior. With supply ramping up significantly this week, all eyes will be on whether buyer demand can absorb the influx without further dampening clearance success.

Activity Across the Smaller Capitals

Outside the two major markets, Brisbane is leading the smaller capitals with 162 homes scheduled for auction, up from 151 last week. Adelaide continues to show resilience and is set to host 142 auctions, an increase from 126 the previous week. Canberra is also seeing a lift, with 129 homes scheduled, up from 96.

In contrast, Perth is the only capital city expecting a drop in volume, with just 14 auctions scheduled compared to 20 last week.

Looking ahead, there is no sign of the momentum slowing. Early indicators suggest next week will be even bigger, with more than 3,400 homes currently scheduled to go under the hammer across the combined capitals.