Australia’s housing market is kicking off the year with renewed energy, with Sydney leading a sharp rebound in auction activity as sellers and buyers return in force.

Fresh data from Cotality’s Auction Market Preview shows 1,605 homes scheduled for auction across the combined capital cities this week, almost identical to last week’s 1,603 results — but the headline story is Sydney, where auction volumes have surged dramatically.

The Harbour City is set to host 662 auctions this week, representing a 44.2% jump from last week’s 459 homes and sitting 6.6% higher than the same time last year. The spike signals growing vendor confidence and suggests momentum is building as the autumn selling season approaches.

Sydney and Melbourne drive activity

Sydney’s sharp rise contrasts with Melbourne, where 588 homes are scheduled for auction, down 6.1% week-on-week. Despite the slight dip in volume, Melbourne’s market remains active, having recorded 626 auctions last week and a solid 63.7% clearance rate, the city’s strongest result since November.

Sydney’s performance has also strengthened on the demand side. Last week’s 62.3% clearance rate marked its highest success rate in months, indicating buyers are still competing strongly for well-priced homes.

Nationally, combined capital city clearance rates rose to 66.4%, up significantly from 57.1% in mid-December, reinforcing signs that market sentiment is improving.

Smaller capitals show resilience

Outside the two largest cities, Brisbane continues to anchor regional activity with 130 scheduled auctions, although this is down from last week’s peak. Adelaide remains the standout performer for sales success, posting an impressive 83.9% clearance rate — the strongest result among all capitals.

Canberra recorded a healthy 64.9% clearance rate, while Perth and Tasmania remain quieter markets, with only modest auction numbers scheduled.

Auction momentum building

Perhaps the clearest signal of strengthening conditions is what’s ahead. Early forecasts show more than 2,000 homes already pencilled in for auction next week, suggesting activity is set to ramp up further.

For buyers, the increase means more choice and negotiating opportunities. For sellers, it’s a chance to capitalise on improving clearance rates and competitive bidding environments.

After a slower end to 2025, the auction market appears to be regaining pace quickly — and Sydney’s 44% surge may be just the beginning of a broader national rebound.

With confidence returning and listings rising, Australia’s property market is entering 2026 with renewed momentum.